Rakesh Gangwal and family slowly exit Indigo Airlines

 

When the headline of 501 million dollar worth of share sale going through as a block deal hit the news, I got thinking about when do the promoters really exit their own businesses?

Well there can be a lot of reasons as to why a promoter would want to have their exit, money crunch, to buy an extravagantly luxurious asset, or interestingly to invest into a business which they believe would reap them more profits than from an empire they have set up on their own.

Personally as a retail investor none of this would get me thinking, except for when he exits to invest into another business, because why would I bank on a business when the very person who made it thinks otherwise.

But analytically thinking does it really make sense to evaluate my options putting myself and Rakesh on the same pedestal? Nope it makes absolutely no sense, because we are talking about two investors with a huge difference in risk appetite. Like Warren Buffet said, play the game in such a way, that if the most unexpected things were to occur, you are around to play the next day. So the relocation of the funds might just work well for Rakesh if things go around his way, but it is not advisable for a small retail investor like me to do the same.

This brought me to a partial eureka moment, I began following the investments of the top 50 richest people on earth through Forbes, and it felt like I got cheated, because firstly these people have their money in everything, like hundreds of totally unrelated sectors, and secondly these rich people among themselves seem to have employed my little secret sauce from a long time, because the overlap in the areas they put their money in has a seriously skewed overlap.

So my atom lost energy and fell back to it’s shell, but I realised one thing Charlie kept saying, nobody knows how the market is going to tomorrow, and it is the assumptions and the delusional theories which help make patient, long term players create real value.

So if you are a market participant, banking on a specific business, I ask you to look into your ‘why’ and if your not fooling yourself, trust that you’d do well in time. (Because hope is a good thing Red-- Andy)

Oh and if you are wondering what Mr Rakesh is doing with his money from Interglobe Aviation ltd (Which is nothing but Indigo airlines) follow The Chinkerpoo Family Trust , their latest investment was Zetwork. Be on the look out!