How to Invest in Stocks in India

Video Transcript

"Hi I'm Roger Groh of Groh Asset Management. Today we're here to talk about buying stocks in India. Now in general, why would you do that? And the answer is that India today although being very developed with a middle class of approximately 300 million people, has another billion people that are dirt poor and they don't want to be dirt poor. They want water, they want power, they want better food. They want the basics of life that will improve what they have today, give their kids a better chance at a better life and last but not least, let them live a little bit longer. So in general that is why you would invest in India. Now what should you buy in India? Well that might be a different story. Like all countries, you have to be very careful about doing your homework on the company that you purchase. But it is interesting to note that most major companies have divisions that are publicly traded in India. For instance, if you like Proctor & Gamble, you probably know them because they make the soap that's in your own bathroom. Their Indian company is publicly traded. Do you drink Coca-Cola? Well the Indians do too and you can buy Coca-Cola in India. Do you use pharmaceuticals? Of course you do, well so do the Indian people and you can buy drug companies that are also based in India. So those are ideas. Other examples might be real estate. You have this very fast growing country and people need places to live. So what are they buying? This is a very well educated country, an awful big percentage of the kids today go to college and when they graduate they want to have condos or homes and cars and all the basics of life. So you might consider investing in developers in India. Their outlook is significantly different then ours here in the United States. Other Indian companies that you might consider, well going back to basics, how about water companies? Sounds funny, but if today you drink polluted river water and you're given the choice to drink bottled water, well as quickly as you can afford it, you will because it will significantly improve the quality of your life. Last but not least, it gets dark at night if you don't have power and many people in India don't and would like to, so Indian power companies would be other, another category that you could consider. So that's a little bit about investing in India. Some of those companies trade here in the United States, some of them trade in India, be very careful, be careful of the currency and I'm Roger Groh and thank you for spending a few minutes with me."