Many friends in the media will feel let down by this post! After all the media spends so much time and effort on the macro. Telling people that they should look at market cycles, inflation, demographics….
Warren Buffet says ” Ignore the Macro, Focus on the Micro”.
Clearly business should be concentrating on what they can control. I do not know of any sensible investor who has called me asking “I have 35L to invest, does the macro make sense to invest now, or 4 years later”.
My latest call was “I have 10L to invest – can you create an income of Rs. 15,000 per month for an orphanage near my house – I want the income in perpetuity, capital protected say after 5 years, and it should happen whether I live or die”.
Now i would love to believe this is because of my posting on charity, it is not.
Now, tell me where is the question of macro? It is only micro. Things like economic indicators – purchase managers optimism, housing starts, elections are only noise to Warren Buffet. He instead concentrates on the business – which is what we should too! How much does the demand for Wriggley change? What about Coke? Fries? Shaving blades? Not really much is it not. So let us worry about how well we do our homework and let Chidambaram, Manmohan Singh, George Bush do their home work!
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