Show notes
This podcast continues our investigative journey on the theme of programmatic and serial acquirers. Links to the other episodes in this series are:* The Secret of Investing in Programmatic Acquirers podcast - [unlocked]* Relais Group investment analysis - [unlocked]* Teqnion - [unlocked]* Fairfax India (podcast/video presentation) - [unlocked]* Topicus - [45 day partial paywall, after which it will be unlocked]* Valuing Programmatic Acquirers* » Watch this space, more to come «Receive future episodes directly to your inbox:This Episode - Gateway to IndiaIndia is proving to be a highly compelling investment opportunity, and its story echoes the economic rise of China, with a massive, young workforce and a fast-growing middle class.The country has also positioned itself as a resilient and rapidly expanding economy, especially during its G20 presidency where it moved from a global participant to a key architect of international cooperation. This strong foundation is supported by significant legal, tax and regulatory reforms, as well as tremendous progress in physical and digital infrastructure.For foreign investors, however, the Indian market can be challenging to navigate due to issues like withholding taxes, restrictions on capital movement and language/cultural barriers. Not only that, but some of the best investment opportunities exist among private businesses rather than the hyped and often overpriced publicly listed companies. So how does a non-Indian investor play this wonderful opportunity?A potential answer is proposed in this podcast which first unpacks why India is so attractive right now, but also focusses on a programmatic acquirer, a holding company named Fairfax India Holdings Corporation ($FIH), listed in Canada, it provides foreign investors with exposure to the dynamic Indian market while bypassing these complexities. Ben Watsa, Chairman of Fairfax India and son of the great investor and entrepreneur Prem Watsa, explains why he likes India right now:As a permanent capital vehicle, it focuses on long-term investments in high-quality Indian businesses, leveraging decades of experience from its hugely successful parent company, Fairfax Financial.In one packaged investment, you and I are able to gain exposure to a portfolio of first class Indian businesses, 70% of which are private, in a range of sectors from banking and finance; transport, logistics and storage services; manufacturing; and most important of all, critical infrastructure.Best of all, while almost all of the top performing programmatic acquirers trade at eye-watering premiums to intrinsic value, this one is a rare exception, available at a discount to its net asset value.Listen to, or watch, the podcast to learn more. The video version - on YouTube and the Rock & Turner Substack has images to accompany the narrative.DISCLAIMER & DISCLOSURE: The author has a position in Fairfax India at the time of publication, but that may change. The views expressed are those of the author at the time of publication and may change without notice. The author has no duty or obligation to update this information. Some content is sourced from third parties believed to be reliable, but accuracy is not guaranteed. Forward-looking statements involve assumptions, risks, and uncertainties, meaning actual outcomes may differ from those envisaged in this analysis. Past performance is not indicative of future results. All investments carry risk, including financial loss. This analysis is for educational purposes only and does not constitute investment advice or recommendations of any kind. Conduct your own research and seek professional advice before investing. Get full access to Rock & Turner Investment Analysis at rockandturner.substack.com/subscribe