Buy India long-term

» Bill Bonner is positive on India long term
» FII or FDI? What's better for India
» Buffett halo just got bigger
» India's PM bullish on GDP growth


It is not just the fickle minded and mostly short term oriented FIIs that are bullish on India. We were happy to know that there are some like Bill Bonner who are willing to consider India from a 10-year perspective. 'We are advising our clients to buy India long-term', Bill observed at the recently held Equitymaster Investment Summit 2010. This, coming from a person who is believed to be an astute observer of long term economic trends is indeed pleasing.

As Bill further notes, there is no difference between what a labourer does in US and what he does in India. Yet, the same person earns many times more there than here. The only reason the person in the US has an advantage is because countries like US and UK got a headstart over India. They benefited from the industrial revolution and hence built up a huge capital base. However, now the advantage is eroding and wage differentials are getting corrected. Thus, over the next few years, while real wages in developed countries could come down, those in emerging nations like India would go up and so would overall prosperity. Hence, India does like a very good long term bet to Bonner.