Which stock / business can be the berkshire hathaway of india in concept?

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by w4wealth, May 8, 2017.

  1. w4wealth

    w4wealth Well-Known Member

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    Berkshire hathaway has given the biggest stock returns (18,000+ times) in the history of stock markets. given berk hathaways insurance business model,other profit streams, investment accumen, business acquisition model which stock in india will replicate berkshire hathaway in india in coming decade/s? friends share your thoughts/ideas.
     
  2. shakti khanduri

    shakti khanduri Active Member

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    Very interesting question raised.Let senior and knowledgable well known members like Mr kharb,Mr Rama Murthy,Mr Mukherjee,Mr w4wealth take lead in coming up with probable names.I
     
  3. shakti khanduri

    shakti khanduri Active Member

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    @Mr Rama Murthy,@Mr Kharb @et al
     
  4. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    My view is TOP CLASS STOCK IN INDIA IS " MRF TYRES ( Rs.67,634) " ONLY REACH CURRENT MARKET PRICE OF 1 SHARE BERKSHIRE HATHWAY ( $ 2, 47, 160 ) (Rs. 1,60,65,400 ) MAY BE WITH IN NEXT 40 YEARS ....IF SAME GROWTH , SAME COMPETITION, AND COMPANY UPDATION LATEST TECHNOLOGY AND NO SPLIT , NO BONUS , NO RIGHTS , SAME EQUITY
    MRF MAY REACH 1 SHARE EQUAL VALUE TO BARKSHIRE HATWAY'S TODAY PRICE
     
    Last edited: May 9, 2017
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  5. shakti khanduri

    shakti khanduri Active Member

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    interesting observation,Sir.
     
  6. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    Barkshire Hatway started in 1960
    56 years company single stock price reached in Ind Rs. 1,60,65,400

    MRF TYRE also started in 1960
    it may reach Brakshire Hatway current level total 100 - 110 years
    may be 2060-2070
     
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  7. w4wealth

    w4wealth Well-Known Member

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    yes sir thats right.
    But what i mean given the free float created in insurance business by berk hathaway and buffet and mungers bussiness and investing excellence to invest that free float into even other cash making businesses. i am talking about that concept of free cash flow-investment.
    one such stock in india may be Motilal oswal financial services. they are primarily into stock broking. and mutual fund, PMS and recently into housing finance(low ticket-affordable housing) . so profits made from broking, MF, PMS go into housing finance and generates further profits. so that acts like free float. And raamdeo agarwal is already indian warren buffet and legendary investor .CMP is 963.
    i was looking for similar stocks with same concept.(Free cashflow/ Free float)
     
    Last edited: May 9, 2017
  8. Manmohan Gupta

    Manmohan Gupta Member

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    I think L&T can be equal to Berkshire Hathway.
    It is a good quality diversified conglomerate with investments in good businesses.
     
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  9. Gautam

    Gautam Member

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    My pick is Piramal Enterprises. Piramal is a pro-shareholder, always looking on maximisation of shareholder returns while following the highest ethics.
     
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  10. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    in my view Motilal oswal financial services is having heavy debt company , they are not adopting
    Barkshire hatway principles
     
  11. starry_eyes

    starry_eyes Member

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    In Rupee terms or USD term?? In 40-50 years what is the exchange rate assumed sir?

    And would cars be running on wheels then?
     
    Last edited: May 9, 2017
  12. w4wealth

    w4wealth Well-Known Member

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    debt is there bcoz of housing finance business
     
  13. kharb

    kharb Well-Known Member

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    I dont see any parallels. But in my view Rel Capital tried that model to smaller extent but failed badly .Becuase of that it has now started concentrating in core business and disinvesting investments .I hope after few years it may do it again ,and may be successfull second time as Anmol Ambani is concentrating only on Rel Capital and is well educated and has age on his side to create wealth .This was just my hope. to create wealth for myself.Now I talk present status and real facts.Out of present businessman I view only Udai Kotak of Kotak bank ,who will create maximum wealth by any single Indian businessman in his life time .I am also invested in Kotak bank .Both stocks form about 5% each of my portfolio.
     
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  14. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    i mentioned about present value USD convertion rate 68 Rs.
    i mentioned in that post same conditions at present situation
     
  15. starry_eyes

    starry_eyes Member

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    So in other words you are saying is that MRF will grow at a CAGR of 11.5% over the next 50 years?

    And who knows
    - what Berkshire would be at at that time
    - what the USD/INR exchange rate will be.
    - whether cars will even run on wheels 50 years from now.
     
  16. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    i said todays barkshire price not after 50 years price or dollar rate ....
    please read my post carefully , i said same competition , technology up gradation also
    ok leave it these are all completely speculation and there is no use
    to continue regarding my views
     
  17. kharb

    kharb Well-Known Member

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    Fortunately both stocks hit fresh 52 week high today.
     
  18. w4wealth

    w4wealth Well-Known Member

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    sir reliance capital is having insurance subsidiary so free float will be there naturaly.It also has MF, Home finance, Share broking business.It is a similar business like motilal oswal in some way. so it can invest that cash in businesses and create wealth. i remember they had stake in paytm and they sold it in profit.i think reliance capital in future can be berkshire hathaway of india
    So first idea is Motilal oswal
    second idea is Reliance capital.
    this is other version of invest and forget.

     
  19. shakti khanduri

    shakti khanduri Active Member

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    Ajay Piramil led Piramil Enterprises.
     
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  20. BKJ

    BKJ New Member

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    The single most parameter for creating this kind of company is visionary management with great execution skills. I am not somehow convinced any Anil Ambani company can be a candidate. Probably ITC is the closest candidate. which can be expected to give 15-20% CAGR returns over the next 20 or more years
     
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