Indian Energy Exchange (IEX)

“I never allow myself to hold an opinion on anything that I don’t know the other side’s argument better than they do” – Charlie Munger

Anti-Investment Hypothesis

• New Exchanges are coming up: There are two exchanges currently established and the 3rd one has just been given approval by the regulator to operate, of course, it will take away some part of the pie from IEX, so now we have three horse race, and much more exchange can come, as the opportunity is so big. This will have an impact on IEX business in the long run, the scale of impact isn’t clear though.
• CERC push to take away the monopoly: Of course, the monopoly nature of business is not good for any type of market and consumers as well. CERC floated papers regarding MCO last to last year which introduced will have an impact on the business, and we are also not certain what steps can be taken by the government or regulators and there are uncertainties around it as well. These regulatory changes will be huge for the market and until they are not implemented we cannot be sure what kind of impact will they have, we can be certain that if implemented there will be an impact.

PS: Of course, I have thought about all these aspects and there are a lot of details in the thread regarding all these things, I thought about it a lot before investing, but other than these two points all the discussion(I haven’t read all of it, but whatever I have read) is around short-term macroeconomics points or some short term news, I am not bothered about any short term news, macros or any other short view, the points in favor are much better then points in against. But yes, I would keep an eye out for the two points mentioned above and any new changes that I don’t see right now.

PPS: Follow Whatever Guy Spier has said about the company.