As an investor, Bertie thinks of himself as a drone. Not that he harbours any delusions of being able to fly, at least not while sober. The analogy stems from his self-image as someone who can survey the investment landscape from a few hundred feet before swooping down to examine an area of interest more closely.
Bertie's professional engagements last week reflected the wide canvas he likes to paint on. A Wall Street bank was hosting an exclusive meeting with a visiting global macro economist for a select group of high-powered chief investment officers (CIOs). The venue was the ballroom of a five-star hotel. Bertie's sharp eye, however, did not miss the contradiction between the words 'select group' and the size of the ballroom. He smirked, but then remembered the delicious pralines served by the hotel. After a quick cost-benefit analysis, the pralines won. He found himself among a hundred or so 'select CIOs', listening to a long-haired, blue-eyed global economist.
Bertie had chosen a seat close to the refreshments area, hoping to make a quiet exit as soon as he had polished off the pralines. But a passing waiter informed him that food would be served only after the talk. The Wall Street bank, which had itself been bailed out twice, was displaying uncharacteristic financial prudence, Bertie thought, by making him sit through a 56-slide presentation before he could get to his beloved pralines. He resigned himself to his fate and decided to pay only passing attention to the proceedings.
Having heard enough global economists over the years, Bertie knew that it was only a matter of time before the discussion turned to India's macroeconomic fault lines. True to form, a chart showing India's low spending on research and development (R&D) appeared on screen, accompanied by comparisons with other countries and some friendly advice: India needed to invest more in innovative research.
Low private-sector capital expenditure was flagged as another fault line. Once again, a chart comparing India with other countries made its appearance. This time, the advice was directed at private companies: they needed to spend more on building capacity.