Investing in India is truly an art. Analysts (both from the sell side and the buy side) focus on a variety of financial, fundamental and technical metrics to determine if a stock is worth investing in or not. But the one characteristic that is progressively becoming an important criterion is the talent of the next generation. By that I mean, the children of promoters.
- Are they hardworking or lazy?
- Are they educated or 12th grade fail?
- Are they more interested in partying and making it to Page 3 than showing up to work?
For example, I have met one of the nextgen in Kolkata who told me that he was busy for the past six weeks planning, executing and attending a dear friend’s wedding. That included the arduous task of selecting the menu, attending several rounds of food tasting and finalising the decorations! And now he is so exhausted that he is off to recuperate for a week in…..Bali. Really? So, who is running the show at his company? I would never invest in this guy’s company nor would I recommend the stock to anyone.
As the older generation passes the baton on to the younger generation the question is, does the latter ‘have it in them’ to carry forward the company to the next level? I believe that for the nextgen to lead the company to future glory they need to possess all of the following three qualifications:
They must be educated and quite honestly it doesn’t matter if it’s in India or abro