Musings on Investing

India’s “Independence Day”

Kangaroo Resources (ASX.KRL), etc.

Last week India celebrated its 71 years of independence from the British empire. I saw the following photograph from a flag-hoisting event at a remote school. As anyone with a heart and mind and a sense of decency would, I cried.

I cried because I was appalled by the degradation people in the photo are going through. I was appalled that a piece of cloth, representing tribalism, has become India’s fastest growing religion.

Once you subjugate your individuality and free-thinking to the collective, see what degradation and indignities you are prepared to accept, and on top feel proud of them. You then feel a sense of achievement and accomplishment despite that you add no value to the society. You merely torture yourself. You exist in a lose-lose mentality.

On 15th August 1947, India did not become independent. A society by definition cannot be independent. Only an individual can be independent. After the departure of the British, India’s institutions got degraded very rapidly, and continue to today. India is now ruled by utterly degraded crooks and slimy sociopaths with negligible intelligence.

I have grown increasingly of the view that India is rapidly hurtling towards an implosion. Not just India, every Third World country, with the exception of China, is going downhill. This will be the biggest humanitarian disaster of the modern era. It could easily over-shadow the disaster of World War II. I expand on this in the linked article.

On investments…

While people like to erroneously think that rewards come with risks, I like to look for the most upside for the least amount of risk. For this reason, I pay close attention to arbitrage opportunities.

When I invest for arbitrage, I have two options. Either I should have a reasonable confidence in the underlying value, for there is always a risk that the share prices might be unnaturally inflated and might fall to destroy the upside I originally had. Or I should “book” my upside by short-selling the merger partner that is expensive.

There is sometimes a third option, and among the least risky possibilities. This is when a merger is based on a cash offer. Here are two very interesting ones. You should still research to feel confident enough that these mergers will go through:

  • Kangaroo Resources (ASX.KRL; A$0.12) has an A$0.15 per share cash offer. This gives you a 25% upside.
  • Nkwe Platinum (ASX.NKP; A$0.09) has an A$0.10 per share cash offer. This gives you an 11% upside.

Warm regards,

Jayant Bhandari


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