Kevin Carter, EMQQ Global - India is Happening NOW on the The Meb Faber Show

Kevin Carter discusses India's growing tech sector, noting favorable demographics, gov't initiatives, and high growth potential compared to China 15yrs ago. Current tech valuations are high in India. Environmental risks remain a potential concern.

Kevin Carter, EMQQ Global - India is Happening NOW on the The Meb Faber Show

TLDR: India is a compelling investment opportunity due to its large population, digital revolution, and infrastructure investments, despite concerns about payment programs and risks.

  1. **00:00 📊 Kevin Carter discusses his background and insights on China, including his experience playing blackjack with Burton Malkiel and the lessons learned about bet sizing and exponentials.**

1.1 White charts has announced a new product enhancement called proposals, which provides advisors with customizable report generators and tools to effectively communicate investment strategies and win new business.

1.2 Kevin Carter is currently in Lafayette, California, and he recommends listening to the first episode with him to learn about his background and his insights on China.

1.3 The speaker and Burton Malkiel played blackjack together in Macau and Sydney, with Burton following strict rules while the speaker played more by gut feeling and math, resulting in them both leaving with the same amount of money but the speaker’s experience being more volatile.

1.4 The speaker discusses the concept of the Martingale and the lessons it teaches about bet sizing and the power of exponentials, as well as the similarities to short selling and the insights from the Godfather of blackjack card counting, Ed Thorpe.

2.  **04:24 📈 India is the biggest and best opportunity in emerging markets due to its large population, particularly the 850 million Gen Z individuals, and the availability of affordable smartphones, leading to a surge in online banking and digital consumption.**

2.1 Investing in emerging markets is important because of the growing population and their increasing desire for goods and services, but the main problem lies in the flawed index used to track their performance.

2.2 Emerging markets, such as China, have government-owned banks and oil companies that are inefficient, have conflicts of interest, poor governance, and widespread corruption, leading many investors to give up on investing in these markets.

2.3 Emerging markets, including India, have a significant impact on world GDP and offer potential for profit growth, unlike traditional indexes dominated by state-owned banks and oil companies.

2.4 Billions of consumers in emerging markets are getting their first ever computer in the form of a smartphone, leading to a surge in online banking and digital consumption.

2.5 China’s e-commerce market is the most developed in the world, and now other emerging markets, including India, are following suit.

2.6 India is currently the biggest and best opportunity in emerging markets due to its large population, particularly the 850 million Gen Z individuals, and the availability of affordable smartphones.

3. 13:50 🇮🇳 India’s macro picture is increasingly interesting with a large population, rise of unicorns and IPOs, and digital opportunity, making it a compelling investment opportunity.

3.1 India’s macro picture has become increasingly interesting due to the significant number of people, the rise of unicorns and IPOs, and the digital opportunity, making it a compelling investment opportunity.

3.2 India is now the largest country in the world with a young population, a fast-growing economy, a swelling middle class, and the fastest growing e-commerce market.

3.3 India’s fast-growing economy, led by a digitization-focused government, presents a significant opportunity due to its well-developed digital public infrastructure.

3.4 India has a population of 170 million people, is two-thirds the size of Illinois, and is incredibly diverse with 1600 different languages.

3.5 India’s lack of infrastructure investment compared to China’s has hindered its economic growth, with China quadrupling its economy while India remained stagnant due to bureaucratic issues.

4. **19:29 🇮🇳 India's infrastructure investments have increased under Modi's leadership, with plans to modernize the rail network and expand airports; the country's unique digital public infrastructure and national identity card system make it an attractive destination for companies like Apple, but concerns are raised about Indian payment programs like PayTM.**

4.1 Modi has been the leader of India for the past 10 years and is likely to get another five-year term; under his leadership, infrastructure investments have significantly increased, including a trillion and a half dollar comprehensive plan to modernize the rail network and introduce high-speed trains.

4.2 The Indian air travel market is set to explode as domestic travel increases, with airports expected to triple by 2025, and investments in infrastructure being made to support the China plus one strategy and reduce dependence on China, although China’s superior infrastructure and port capacity remains a bottleneck for India’s manufacturing.

4.3 India has a unique digital public infrastructure called the India stack, which includes a national identity card system, making it an attractive destination for companies like Apple.

4.4 India’s government implemented a system of identification using technology, including biometric data, to address the lack of official identification and promote economic development.

4.5 India launched a national identity number program in 2010, followed by a know your customer layer and a unified payments interface in 2016, allowing for easy and instant money transfers.

4.6 The speaker expresses concern about a program involving Indian payments, specifically mentioning the company PayTM, which had not yet gone public but was featured in the presentation after Berkshire Hathaway’s investment.

5. 25:53 💡 India’s digital revolution is driven by Geo’s investment in a 4G network, Reliance Jio’s massive user base, the India stack’s impact on financial systems, and the evolution of e-commerce through Paytm and ONDC, making it a promising market with potential similar to China.

5.1 Geo, the largest phone carrier in India, made a bold move by investing $25 billion to build a state-of-the-art 4G network, while other carriers were struggling with 2G, positioning themselves as the only provider with 4G.

5.2 Reliance Jio offered free voice calls and six months of free data, aiming to sign up 100 million people by the end of 2017, and they achieved this goal by using the autohar system and opening a hundred million accounts in four months.

5.3 India’s digital payment system, known as the India stack, has revolutionized the country’s financial system, with mobile payments exploding, tax revenues increasing, and the government offering it to other countries.

5.4 India’s e-commerce market is evolving with the digitization of mom and pop stores, led by Paytm and the introduction of the Open Network for Digital Commerce (ONDC) to integrate these stores into the country’s e-commerce ecosystem.

5.5 India’s new program is seen as incredibly powerful and exciting, but the American perspective may overlook the different perspective in India where they see it as a potential similar to China.

5.6 India presents a promising opportunity with many positives, as discussed by Nanda.

6. 34:08 📈 India’s use of facial recognition technology and QR codes has the potential to drive significant GDP growth, making it an exciting investment opportunity in emerging markets, despite concerns about high PE multiples and the risk of losing money.

6.1 The use of facial recognition technology and QR codes can provide benefits such as easy identification and faster transactions, making it a valuable tool for various purposes including commerce and security.

6.2 India’s potential growth in consumer credit could contribute to a significant increase in GDP, and according to experienced Indian investors, India has the capability to grow faster like China.

6.3 India’s digital platform has the potential to drive significant GDP growth, making it an exciting investment opportunity in emerging markets.

6.4 Investors may be hesitant to invest in India due to high PE multiples and the risk of losing money, despite its potential for growth similar to China.

6.5 India is seen as a safe haven among emerging markets due to its lack of involvement with Russia and China, and although the challenge lies in its small size and limited availability, there has been good reception and interest in the India product, which has also shown a strong performance this year.

6.6 The speaker believes that despite the recent correction in EMQ due to China tensions, the valuations for Indian internet companies are compelling, with a PEG ratio of 1.3, making it a good long-term investment opportunity.

7. 44:03 📈 India is an emerging market with potential for growth, but it faces political and environmental risks.

7.1 China has experienced a wide range of highs and lows in its stock market performance, and the speaker is attracted to investments that are currently undervalued and part of the emerging story.

7.2 The speaker describes the intense and chaotic experience of traveling through South Asia, specifically mentioning the density and chaos of Dhaka, Bangladesh, where they encountered traffic jams and had to navigate through various modes of transportation.

7.3 The deravi slum in India is a densely populated area where waste products are recycled into new products, and it is soon to be redeveloped by Tata, leading to skyrocketing real estate prices.

7.4 India faces political risks, including the potential instability of its leader Modi, racial tensions, and the government’s tendency to shut off the internet in regions experiencing sectarian violence.

7.5 The speaker visited India and crossed into Pakistan at the Vaga border, where the internet went out due to a Sikh separatist causing communication issues, but the speaker managed to cross the border in time to get coverage on the Pakistan side.

7.6 India faces significant environmental risks, including extreme heat and pollution, but despite this, it is expected to experience internal growth rather than relying on export-driven growth like China.

8. 53:52 👍 Check out our website or find me on LinkedIn as Kevin C Carter for more information about our funds.

Key Insights

Digital Transformation in India

💡 Nine years ago, it was predicted that emerging market consumers would become digital consumers once they had access to smartphones and the internet, leapfrogging traditional forms of consumption.

🌱 India and South Asia are part of the third wave of digitization, with a potential for significant growth in the e-commerce market.

📈 The rapid growth of India’s digital economy, with numerous unicorns and a thriving internet sector, has sparked increased interest and investment in the country.

🌱 India’s government has embraced digitization and has developed a well-developed digital public infrastructure, presenting a significant opportunity for growth.

🌐 India has a unique digital public infrastructure called the India stack, which includes components such as a national identity card, showcasing the country’s commitment to digital development.

💸 The unified payments interface (UPI) in India enables instant and free money transfers between individuals and businesses, revolutionizing the digital payment landscape.

💥 Geo’s bold move to invest $25 billion in building a state-of-the-art 4G network in India disrupted the market dominated by carriers with outdated 2G networks.

🔒 Reliance Jio used advanced technology like the eyeball and fingerprint readers to open 100 million accounts in just four months, revolutionizing the verification process in their stores.

🤔 The introduction of a new program in India is considered to be the most powerful thing, even surpassing the Foundation.

💰 The convenience and efficiency of using QR codes for payments and transactions outweigh the use of cash, providing a valuable and streamlined experience.

India’s Growing Middle Class and Consumer Market

🌍 The emerging markets are driven by the increasing demands and aspirations of the six and a half billion people who want more and better things in life.

💰 India is currently the best opportunity in Emerging Markets due to its large population and the availability of affordable smartphones, making it a fertile ground for growth.

🛒 The swelling middle class in India is driving the fastest growing e-commerce market.

India’s Infrastructure Development and Modernization

🚄 India is currently in the middle of a comprehensive infrastructure plan, including modernizing the rail network, electrifying it, and building their own high-speed trains, which will connect cities and drive further development.

💥 The Indian air travel market is set to explode, with domestic air travel expected to triple by the end of 2025, driven by the rising middle class and their desire to explore their own country.


Q: What is the new product enhancement introduced by Wine Charts?

A: Wine Charts has introduced a new product enhancement called “proposals.” This enhancement allows advisors to generate customizable reports with talking points, compliance-approved messaging, and personalization options. The proposals feature includes tools and features that help advisors effectively communicate investment strategies and win new business.

Q: How has the India stack revolutionized the financial system?

A: The India stack, a unique digital public infrastructure, has revolutionized the financial system in just seven years. It began in 2009 with the creation of a national identity card that includes a unique 12-digit number linked to the individual’s eyeball scan and fingerprints. Initiatives like demonetization and simplified tax codes have accelerated the digitization of the economy. Mobile payments have exploded, with UPI (Unified Payments Interface) accounting for 40% of real-time instant money transfers worldwide. As more people are now in the proper financial system, tax revenues have also increased.

Q: Why is investing in Indian markets attracting positive attention?

A: Investing in Indian markets is attracting positive attention due to its stability amidst global uncertainties. The PE (price-to-earnings) multiples for broad indexes in India are currently the highest in the world. India is considered a safe haven among Emerging Markets due to its lack of involvement in conflicts with Russia, China, and Taiwan. Despite concerns about the product’s availability on some broker platforms, it is accessible through places like Morgan Stanley and UBS where advisors can access it. The performance of the product this year has shown a 20% increase. Though there has been a correction in the main product EMQ, it was due to tensions and de-listing risk in China, which is believed to be temporary noise. Valuations for the inqq portfolio are currently very compelling.

Q: What challenges does India face regarding the environment and pollution?

A: India faces significant challenges regarding the environment and pollution. There are high levels of heat and pollution along the Ganjas River, posing risks to human health and ecosystems. Additionally, the water supply sourced from the Himalayas is at risk due to various factors such as climate change and overexploitation. Furthermore, political stability in India is uncertain, which can affect the ability to implement effective environmental policies. Despite these challenges, India is still experiencing internal growth and has taken measures to address environmental concerns, such as committing to digitization and building a strong digital infrastructure.

Note - This content is generated by AI, we believe it is accurate, but we don’t claim any liability of inaccuracies in the AI generated content.

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