By Gautami Gavankar
“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.” Warren Buffett’s fundamental rule for investing in known or emerging avenues resonates strongly with the next generation (next-gen) of Ultra High Net Worth Individuals (UHNIs) in India. These young titans of wealth are not just following their predecessors’ example but are charting new territories in investment diversification.
This new cohort of UHNIs is redefining the investment landscape with a blend of traditional wisdom and modern sensibilities. They are not just scouting for alternative investment avenues; they are actively shaping them. They have started at looking at value investing and have understood that they must value the business in order to value the stock; which are principles followed like stalwarts like Warren Buffett. From impact investing and sustainable technologies to digital assets, their portfolios reflect a keen understanding of global trends and a commitment to long-term value creation.
Going by some of their recent interests and initiatives, these next-gen UHNIs are investing with a disciplined yet innovative approach. They are learning from historical growth curves while simultaneously embracing cutting-edge opportunities. Their investment agenda now extends beyond mere wealth accumulation to include nurturing potential unicorns, prioritizing social values, and championing environmental sustainability.
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Alternatives abundant on the horizon: Family offices and wealthy individuals are showing increasing interest in private markets, an asset class that historically has been largely inaccessible to non-institutional investors. Over the past two decades, we have seen some incredible businesses globally enjoy huge success while remaining privately held, think Facebook, Uber or Airbnb. Back home, the next generation has come of age seeing private markets as an incredibly exciting opportunity.
The private market investing landscape in India has evolved into a wide array of private market funds covering the full spectrum of access to investment opportunities across stages and sectors of business development. Further, exit opportunities which hereto used to be far and few has been graduating to an active stream of exit avenues such as initial public offerings (IPOs), secondary sales and strategic acquisitions. Both these factors have contributed to making private market investing for the next-gen more enticing by providing liquidity and attractive return potential as well.
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