Greetings from Team Carnelian!!
We try to cover in our letters topic from the questions, comments, or concerns in the mind of our investors and share our perspective on them.
Few heard in the recent past are:
Manufacturing
India stands no chance vis a vis China.
India neither has scale / eco system.
Minimal ease of doing business, red tape, bureaucracy too strong etc.
India does not invest into R&D, technology.
We are only assembling, not manufacturing.
IT services
India is only a low-end IT servicing business.
We have no innovation of our own.
India does not have a Silicon Valley kind of ecosystem.
AI - we have no chance. It will disrupt the industry.
Indian corporate governance is poor.
Most promoters are thieves/crooks.
We have a very different perspective on all of them.
A fundamental thinking error which one makes while making the above statements is:
Comparing two different stages/time frame of countries and arriving at a conclusion, and
Forgetting to notice the rate of change and its possibilities.
In wealth creation, what matters is the rate of change. Value creation is the delta from where you stood yesterday to where you are today. Value creation is not the delta between where you stood today and where you ideally should be or where others are.
One who misses to understand this fundamental point, misses the wealth creation opportunity.
In our perspective, Demand creates its own supply and when strong demand is met with an enabling environment, it creates value.