Notes from an interaction with Ajit Dayal in September 2017

Ajit Dayal is a noted value investor, founder of Quantum Mutual Fund and Quantum Advisors. Following notes are from an interaction with him on 24.09.2017. Now looking back , I realised how right and prophetic he was about the state of India's economy, financial markets and politics in the country. 

1. Think Risk and not return under present circumstances, reminded us of 2008 crisis time and again
2. Demonetisation was a bloody bad idea and a self goal by the Govt
3. GST in its present form is bad. Octroi part is good. 28% GST on hotel rooms in Goa will kill its economy.
4. Govt is hellbent on winning elections.
5. India has experienced the maximum GDP growth whenever there is a coalition govt, whereas, India has experienced the minimum GDP growth whenever there is single party or strong national govt. He has data to prove this point. However he could not pinpoint the real reason, his best guess is that in coalition people are busy fighting and don’t have time to fiddle with the economic policies, hence the natural process of growth takes over.
6. The value of an indian asset is subject to what happens in India (domestic economy) , and price of that asset is a function of domestic and foreign flow combined.
7. in near to mid term , he was bearish on market, and suggested to move money to liquid funds or PSU bank FDs ( not to private bank FDs)
8. Advised against investing into dynamic bond funds at all times, , though quantum itself runs such a fund.
9. Infosys board thrown out is very good 
10. Ratan Tata taking over is great, from Mistry
11. So far present govt has stayed away from crony capitalism and corruption
12. Annoying China is a bad idea  
13. Being allies of America is not such a great thing, he leaves his allies in bad shape when he is done with them , case in point is Pakistan and Japan
14. America is one of the most immoral country of the world ( he was educated there)
15. Majority of people in financial world are crooks, and bereft of any ethics, foreign as well as Indian, save yourself from them. Stay away from brokers research.
16. Sold Maruti at 5500, not very happy about it, but its the most expensive stock in the world after Tesla.
17. Institutions are failing in India like HDFC, Tata, and Infosys.Differentiated between company and institutions.
18. emphasised on giving back to society and taking care of under privileged, else it might lead to social unrest.
19. Demographic dividend seems to be going waste, and might cause social unrest with other factors combined like divisive politics 
20. He Highly recommended to watch 3  documentaries 1. Inside Job 2. Why we fight 3. The art of the steal. According to him, these will educate you by leaps.