Demographics, Infrastructure and Investment Flows — Where and Why?
Dear Friends While demographics and other longer-term factors have led to a rise in commodity prices, the dramatic spike over the past three months has more to do with investment flows and allocation of smart capital. When looking at the geographic spread of investment strategies and discretionary investment flows across the world, it is interesting to note that today’s smartest investors, whether in the US, Europe or Japan, are asking about India and not China. According to Sequoia Capital Partner Michael Moritz, the venture capitalist who made 34,000% off Google, “We can barely imagine investing in a company without at least asking what their plans are for India. India has seeped into the marrow of the [Silicon] valley.” While plenty of Americans, Europeans and Japanese know that China is a fast-growing economy, a small group of smart investors are making several times more money investing in India. Perhaps it is hard to believe — but in the longer term the numbers prove it. As econ
