Float and moat mixed with the election goat

State of affairs in India - 2013

Being locked out of your trading account can be good sometimes (lets hope so). Especially when it comes to the election time. Sitting on neat 30% profits on portfolio for past 6 months - I am having dual mind of either pulling out some money or buying more hoping that 'Ab ki baar Modi sarkaar' can give more impetus to the market. However - the decision for me to sit tight is made as I'm locked out of my trading account for the time being..

Last year was good for picking stocks as two factors came in handy for me - the currency devaluation (exchange rate EUR to INR dropped from 70 to 85ish i.e., 21%) and Sensex below 20K levels (add on top loads of stocks hovering at discounts to book value with 5%+ yields..).

As Charlie Munger would say - "Being rats in other person's granary" - investing is a crude way of wresting money from another in a capitalistic sense. Nepotism, monopoly and add some government backing (sprinkle some corruption) - you could be talking about India now. I think the trio can be good for investment though (corruption definitely not). I am not really proud of taking advantage of things as they stand - but; I'm not the PM right.. I'm just an average guy trying to earn a hard way to retirement..

Though - I do wish for the goodness of nation - there is a stable government; I really don't mind having any government in India at the moment. Being a net investor in the market for next 5 years, I would love that I can build my positions in few stocks favorably. Weak governments mixed with unstable policy matters don't seem to be a deterrent for me to invest (the long term consumption story remains intact - so I frankly dont really mind buying good businesses at cheap valuations). Actually who doesn't like to pick stocks with mouth watering margin of safety trading below BV and yielding 5%+ yields.. (on hindsight - being locked out, I definitely missed the golden chance to pick Corporation Bank and Syndicate Bank at 230ish and 70ish levels respectively which in turn would have yielded upwards of 9% yields..).

Shit happens.. but, I think we definitely live in interesting times.. ever checked the kind of returns Buffett made through the 1950's? I think its the kind of market India is in now. Amen.

Ciao till next time...Harsha