What do you think?
Rate this book
Investing in India: A Value Investor's Guide to the Biggest Untapped Opportunity in the World
A practical, real-world guide to investing in India India's rapid economic growth offers obvious opportunities for foreign investors, but making wise investing decisions can be difficult for any investor without a deep knowledge of the country and its culture. With a vibrant democracy and an active press, India can be a complex and chaotic place in which investors can find it difficult to make investing decisions with confidence. This book offers an on-the-ground perspective on India from one of India's most successful value investors. Looking deeply into the internal realities that impact India's investment climate, Investing in India helps investors both inside and outside the country cut through the noise and find the facts that truly matter for anyone who wants to invest there.Features charts of stocks, markets, and other helpful Indian economic indicators Offers a real-world look at India's politics and governance; its financial system and capital markets; its asset classes and equity markets; the private equity scene; and the real estate market Written by Indian value investing guru Rahul Saraogi
- GenresFinance
176 pages, Kindle Edition
First published December 4, 2013
26 people are currently reading
254 people want to read
About the author
Rahul Saraogi
4 books1 followerRahul is a managing director at Atyant Capital and manages the Atyant Capital India Fund. In the last 13 years he’s managed money exclusively in the Indian markets.
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 19 of 19 reviews
June 10, 2022
This book is written as a primer into Investing in India for the western community, and it does a good (albeit fairly superficial) job of explaining the business scene in India as it stands.
Some interesting aspects it touches upon is the role of Culture/Family/Community in business, and the ever-present intertwining of politics/business in India.
Some interesting aspects it touches upon is the role of Culture/Family/Community in business, and the ever-present intertwining of politics/business in India.
December 4, 2018
India is a country of interest to investors as it offers many of the characteristics that made the West such a fertile place for business and investing during the 20th century: young demographics, a rapid rate of urbanization and improving education. The best investors have often prospered from using a bottom-up approach, investing in stable countries with a clear rule of law, a strong financial infrastructure and with capitalism and not socialism as the ruling principle. The question is if the opportunities in India outweigh the risks for investors. Judging by the title of this book from Rahul Saraogi, Investing in India: A Value Investor's Guide to the Biggest Untapped Opportunity in the World, the answer is a clear yes!
Saraogi is a value investor who was born in India and moved to the US to study. It was at that time he became interested in economics and investing. He also became enthralled by Indian economic history and realized that both Indians and Westerners had problems with understanding India. He saw an edge that he decided to pursue. He moved back to India to become an investor and now manages Atyant Capital. Saraogi wrote the book in 2014 – a time when the Indian markets had suffered from a severe downturn.
Investing in India is structured in six chapters where the first four focus on giving the reader an understanding of India from a social, political and economic perspective. The fifth chapter is about value investing in India where the author presents examples of what businesses to avoid (those with bad governance and poor capital allocation) and what to look for. Throughout the book the author presents case studies to describe and strengthen the points made.
Some quirks that may be surprising for the reader is that Indians avoid buying property and machinery at certain times during the year due to spirituality and superstition. Another is that debts in Indian villages are not forgiven by death but is left with the heirs. Another central theme is that of the important roles of land, property rights and gold. It's not allowed to lend for land-buying, but prices are still high as it’s seen as a valuable consumption item. Gold has been a good store of value, as it often is in countries suffering from currency debasement and instability. The country imports gold worth $60 billion a year. Strong property rights are central to a free-market system but also act as a hindrance for building infrastructure, an area where India has huge needs of improvement.
India should not be seen as one country as the differences between the 28 states are huge - some states are likely to prosper in the near- and long-term while others have worse outlooks (the richest state has seven times the GDP per capita of the poorest). In terms of sectors, agriculture is the largest measured in people employed while services are largest in terms of GDP. On the macro side the country has a large current account deficit but at the same time a low level of external debt.
The Indian markets have often traded higher than the other “BRIC” countries. While Brazil, Russia and China have lots of cyclical and commodity companies, India has strong franchises which according to the author should command higher valuations. Saraogi is certainly bullish on the future of India, a view he shares with great investors such as Mohnish Pabrai and Prem Watsa. He thinks the groundwork has been laid and compares it with a bamboo plant that grows very slowly during the first four years while it develops its root system. In the fifth year it grows 80ft in 6 weeks! The future will tell if something similar can occur in India.
One should always invest within one’s circle of competence. The book is a comprehensive guide to one of the most important countries in the world and a great start for the investor who wants to know more about the ins-and-outs of investing in India. The reader will certainly get a better understanding of interesting sectors and might even pick up some stock-tips.
Niklas Sävås, December 04, 2018
Saraogi is a value investor who was born in India and moved to the US to study. It was at that time he became interested in economics and investing. He also became enthralled by Indian economic history and realized that both Indians and Westerners had problems with understanding India. He saw an edge that he decided to pursue. He moved back to India to become an investor and now manages Atyant Capital. Saraogi wrote the book in 2014 – a time when the Indian markets had suffered from a severe downturn.
Investing in India is structured in six chapters where the first four focus on giving the reader an understanding of India from a social, political and economic perspective. The fifth chapter is about value investing in India where the author presents examples of what businesses to avoid (those with bad governance and poor capital allocation) and what to look for. Throughout the book the author presents case studies to describe and strengthen the points made.
Some quirks that may be surprising for the reader is that Indians avoid buying property and machinery at certain times during the year due to spirituality and superstition. Another is that debts in Indian villages are not forgiven by death but is left with the heirs. Another central theme is that of the important roles of land, property rights and gold. It's not allowed to lend for land-buying, but prices are still high as it’s seen as a valuable consumption item. Gold has been a good store of value, as it often is in countries suffering from currency debasement and instability. The country imports gold worth $60 billion a year. Strong property rights are central to a free-market system but also act as a hindrance for building infrastructure, an area where India has huge needs of improvement.
India should not be seen as one country as the differences between the 28 states are huge - some states are likely to prosper in the near- and long-term while others have worse outlooks (the richest state has seven times the GDP per capita of the poorest). In terms of sectors, agriculture is the largest measured in people employed while services are largest in terms of GDP. On the macro side the country has a large current account deficit but at the same time a low level of external debt.
The Indian markets have often traded higher than the other “BRIC” countries. While Brazil, Russia and China have lots of cyclical and commodity companies, India has strong franchises which according to the author should command higher valuations. Saraogi is certainly bullish on the future of India, a view he shares with great investors such as Mohnish Pabrai and Prem Watsa. He thinks the groundwork has been laid and compares it with a bamboo plant that grows very slowly during the first four years while it develops its root system. In the fifth year it grows 80ft in 6 weeks! The future will tell if something similar can occur in India.
One should always invest within one’s circle of competence. The book is a comprehensive guide to one of the most important countries in the world and a great start for the investor who wants to know more about the ins-and-outs of investing in India. The reader will certainly get a better understanding of interesting sectors and might even pick up some stock-tips.
Niklas Sävås, December 04, 2018
January 23, 2016
This isn't a substitute for the classics on investing. what it does really well is that it gives a framework for investing in India. The author gives some valuable advice on some check lists to keep in mind while evaluating companies. some of the companies that have given amazing returns are ones I grew up hearing. my dad worked in eid parry for 30 years and yet didn't buy a single stock. he even sold the shares that the company gave him when it went public !!!!!
March 15, 2018
Book is one of its kind. Though lot of views might just be authors opinions but still the kind of book which differentiates India market than other places. Lot of coverage on investments in India with case studies as well. Good for people who are fed-up with the US market focused books on investment.
January 25, 2016
A comprehensive overview of indian investing landscape and what makes India a place of unprecedented opportunity for value investors.
Loaded with numerous case studies of real indian companies and what makes them good or bad businesses.
Loaded with numerous case studies of real indian companies and what makes them good or bad businesses.
April 10, 2022
The book is one of the few books which touches upon different aspects an investor needs to know before investing in India. The book touches upon cultural aspects, demographics, different state's progress, business case studies, political landscape, mindset, corporate governance, advantages and drawbacks to consider before investing in India. Throughout the book, the author shares from his experience of growing up in a business family in India and global exposure gained from his education to explain things close to reality. Being an Indian, I was able to relate to many of the author's experience about India. With a lot of needs yet to be fulfilled for the majority of the population, I echo the authors thoughts of being optimistic about investing in India which is still one of the biggest untapped opportunities.
June 16, 2017
I like the book. It's quite fast read with lots of case studies, many of them I have come across in the past or am covering at work at the moment.
The author obviously get the crux of investing. And his style is also similar to mine, which is looking for compounders, and pay particulat attention to corporate governance and capital allocation.
That said, the book may be a bit shallow and not "deep" enough for seasoned investors in India. But it's great for me who is not a dedicated Indian analyst.
Highly recommended for investors who has some interests in India.
The author obviously get the crux of investing. And his style is also similar to mine, which is looking for compounders, and pay particulat attention to corporate governance and capital allocation.
That said, the book may be a bit shallow and not "deep" enough for seasoned investors in India. But it's great for me who is not a dedicated Indian analyst.
Highly recommended for investors who has some interests in India.
October 17, 2019
Excellent book on India and some case studies of diff indian companies
This book is a must read for every investor. It's a brief discussion about indian economy, it's political background, land and real estate, culture, RBI, SEBI, and how all these affects the equity market. He has given several case studies to explain those topics in details. Specially how DII & FII affects the price and liquidity of stocks.
This book is a must read for every investor. It's a brief discussion about indian economy, it's political background, land and real estate, culture, RBI, SEBI, and how all these affects the equity market. He has given several case studies to explain those topics in details. Specially how DII & FII affects the price and liquidity of stocks.
July 21, 2020
I really like the book. For the people who wants to start investing in India, definitely see this book. The author start this book discussing about history, geography & politics of India. What I really like in this book was "CASE STUDIES". In between of every chapter, different case studies were there from which I learnt a lot.
March 14, 2020
Waste of time
April 10, 2021
Indian stock market scenario explained.
May 28, 2021
Opinions without any backing. Few views/facts incorrect. Over all the content of the book has very little to do with the title of the book.
September 16, 2016
Highly recommended if you like to get your hands dirty with investing( in Indian equities ) yourself and know the words like 'value' investing and value traps. Actually, the book was a pleasant surprise, and I would even recommend it to pure Economics students.
When you run across an 'investing' book you usually expect the snake oil of 'technical' charts chosen specifically to fit whatever theory is put forth by the author. Or you find paeans for Warren Buffet or Kelly or Greenblatt , and hundreds of pages of straitjacket advice telling you how you should follow these saints to the very seam of your underpants, bereft of any statistical analysis.
This book though, was unexpected. It aims to provide a comprehensive view of Indian economy and business environment from an (average yet curious) investor's point of view. And it does so in a non-pedantic manner. Each chapter, it picks one topic like agriculture or chemicals, and starts from a near casual scan of statistics. Even here it does not rattle off figures as page filling device, but uses them to draw a comprehensible picture of where India stands in terms of the rest of the world and if there are any pockets of growth in that particular area. After that it gets into the business-culture prevailing in that sector and the psychological , social and political nitty-gritties of what moves that field. Each such chapter has at least one or two case studies depicting how these factors shaped some company .
I'd often wanted to read a book that would give a comprehensive, practical birds eye view of Indian economy. And this is by far the best I've had. You pick up a bit of history of Indian stocks, get a more than rudimentary knowledge of many sectors, develop a 'healthy' cynical perspective on how to filter investing news, and learn a bit about the hidden political influence in companies' operations , and about the lifecycle of family politics in Indian companies.
It also has a section on value traps with a few examples dissected in some detail .
Indian economy is of course too dynamic with its gear-within-gears milling of social and political churn. So I won't be able to say by how far Mr Saraogi has got it right.
But it is definitely a book to read if you are interested in the topic. And I'm sure these themes are also applicable to many other developing countries.
When you run across an 'investing' book you usually expect the snake oil of 'technical' charts chosen specifically to fit whatever theory is put forth by the author. Or you find paeans for Warren Buffet or Kelly or Greenblatt , and hundreds of pages of straitjacket advice telling you how you should follow these saints to the very seam of your underpants, bereft of any statistical analysis.
This book though, was unexpected. It aims to provide a comprehensive view of Indian economy and business environment from an (average yet curious) investor's point of view. And it does so in a non-pedantic manner. Each chapter, it picks one topic like agriculture or chemicals, and starts from a near casual scan of statistics. Even here it does not rattle off figures as page filling device, but uses them to draw a comprehensible picture of where India stands in terms of the rest of the world and if there are any pockets of growth in that particular area. After that it gets into the business-culture prevailing in that sector and the psychological , social and political nitty-gritties of what moves that field. Each such chapter has at least one or two case studies depicting how these factors shaped some company .
I'd often wanted to read a book that would give a comprehensive, practical birds eye view of Indian economy. And this is by far the best I've had. You pick up a bit of history of Indian stocks, get a more than rudimentary knowledge of many sectors, develop a 'healthy' cynical perspective on how to filter investing news, and learn a bit about the hidden political influence in companies' operations , and about the lifecycle of family politics in Indian companies.
It also has a section on value traps with a few examples dissected in some detail .
Indian economy is of course too dynamic with its gear-within-gears milling of social and political churn. So I won't be able to say by how far Mr Saraogi has got it right.
But it is definitely a book to read if you are interested in the topic. And I'm sure these themes are also applicable to many other developing countries.
May 31, 2016
I loved this book. Some key takeaways
1) India is a federation and therefore certain companies subject to political risk at state level-Tata Motors & Aditya Birla Group in West bengal, JP Associates and Sahara Group in UP, state PSUs and so on. Reading this book refreshed my recollections of SKS Microfinance nearly losing its business due to Andhra Pradesh legislation virtually encouraging default, SUN TV stock performance depending on DMK electoral performance, and other examples
2)Family matters in India-those remembering this may have benefitted from the Reliance situation arising from the Mukesh/Anil Split
3)Need for due diligence beyond the standard template-since the controlling shareholder may feel the urge to diworsify or 2nd generation may worsen(Himatseige Seide)
1) India is a federation and therefore certain companies subject to political risk at state level-Tata Motors & Aditya Birla Group in West bengal, JP Associates and Sahara Group in UP, state PSUs and so on. Reading this book refreshed my recollections of SKS Microfinance nearly losing its business due to Andhra Pradesh legislation virtually encouraging default, SUN TV stock performance depending on DMK electoral performance, and other examples
2)Family matters in India-those remembering this may have benefitted from the Reliance situation arising from the Mukesh/Anil Split
3)Need for due diligence beyond the standard template-since the controlling shareholder may feel the urge to diworsify or 2nd generation may worsen(Himatseige Seide)
December 21, 2021
Author talks about various things, at some point I started to feel I'm reading a book on politics. He goes to discuss about each and individual states and their regional politics etc but I have no idea where the author talks about value investing. If you are planning to pick this book to learn value investing, well, this is not the book you are looking for.
Btw author says Hindi is India's national language, he could have simply googled to find the answer but he had chosen not to do. I expect some level of research before writing anything rubbish like that.
Overall, good if you are looking to read wide variety of things about India but seriously it has nothing to do with Value Investing.
Btw author says Hindi is India's national language, he could have simply googled to find the answer but he had chosen not to do. I expect some level of research before writing anything rubbish like that.
Overall, good if you are looking to read wide variety of things about India but seriously it has nothing to do with Value Investing.
April 11, 2016
Not much new stuff as I find all the things discussed in the book are widely discussed in media and any investor who is interested in India might very well find all the data presented by just browsing the net for few hours.
Just one chapter on Investing, and the author names the book as a value investor's guide. The book does not deserve the title and it completely misleads the readers.
Just one chapter on Investing, and the author names the book as a value investor's guide. The book does not deserve the title and it completely misleads the readers.
May 25, 2016
It is a great example of how India has progressed since independence on the economic front. I felt a stark difference on how Tamil Nadu and Gujarat have moved ahead of other state governments in India.
June 1, 2016
Very helpful book for beginners. Gives you basic knowledge about India's investing landscape. Book is filled with cases to keep it interesting.
If you dont know much about economy and investing landscape of India. This book will be a good start.
If you dont know much about economy and investing landscape of India. This book will be a good start.
April 23, 2017
Brilliant perspective into indian potential and a good look at some of the industries and how the dynamics are changing for them
Displaying 1 - 19 of 19 reviews