Yeah it is an attempt at understanding how important is Understanding Culture in picking up Stocks? Sounds bizzare, doesn't it? I bet we wont feel so, if we were to look at this at a deeper level.

Consider this, Coca Cola, Gillete some of the gems in the crown of Warren Buffet. These are not only good companies but also companies which are a part of American Culture. Put in Simple words, to Americans water and soft drinks are almost similar.Shaving everyday again is a part of their culture. Sounds silly isnt it? Well believe me, it is not so easy and understanding this seemingly easy but rather difficult facet of Investing is in my opinion a key to the monumental success of Warren Buffet. Once you have got this in place, you start zeroing in on the companies which operate in that sector and then all your valuation principles come into play.


Now, this process will help you in picking companies which can give you consistent returns over a long period of time regardless of the economic conditions, thus forming the foundation of your portfolio.

OK now to Indian Context, what are the companies I can think of which form a part of Indian Culture? Too hard as the country is extremely culturally diverse. However if this Organization is made into an Institution, I will be the first person to go ahead and get a stake for myself.

This Organization employs about 14,000 people, runs Universities, manages thousands of acres of assets and rakes in around 100 million US dollars and above all manages the activities of the most temple, which is the most visited in the world. In case if you have still not got it, it is none other than TTD(http://en.wikipedia.org/wiki/Tirumala_Tirupati_Devasthanams).

If at all anything the recent crisis have made more people to turn to this place with the hope that God(if there is one?) will bail them out of the crisis. Hope TTD is listening :)

Well on a serious note, lets start our homework and hope to hit on something which can form the bedrock of our portfolios. It could be anything from a Beer Company( the changing demographics might make it a reality) to a Hospital ( the amount of Junk Food and Unhealthy life style) to a Fast Food Joint or of all a company which supplies clean drinking water ( don't be surprised if that happens :) )