A Buffett fan bets big on Edelweiss
Buffett fan Pabrai is betting on Edelweiss' Shah. Will it pay off? Through Pabrai Wagons Fund, he holds 1.3% stake in Edelweiss Financial and is confident of its multi-bagger potential. Can Shah deliver? Operation Sindoor, Turkey, Bangladesh loomed as India hosted global airlines after 42 years Even as global airline chiefs gathered at Delhi's Bharat Mandapam for the IATA AGM, geopolitics was unfolding behind the scenes. We are already a global
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Time of India
12 hours ago
- Time of India
Elon Musk supports world's richest investor Warren Buffett's 5-minute plan to erase America's deficit, shares emoji
Warren Buffett The U.S. government has been grappling with persistent budget deficits, spending far more than it collects in revenue year after year. Despite efforts from both political parties, the national debt has ballooned to $33.8 trillion as of June 2025, with no clear end in sight. Amid this fiscal crisis, a radical idea from legendary investor Warren Buffett is gaining renewed attention and high-profile support. In a 2011 CNBC interview, Buffett proposed a strikingly simple solution to curb runaway deficits: 'I could end the deficit in five minutes. You just pass a law that says that any time there's a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.' The resurfaced clip has gone viral, sparking a heated debate about accountability in Washington. Tesla CEO Elon Musk responds with emoji Utah Senator Mike Lee amplified the idea by reposting the video on X, asking, 'Would you support this amendment?' The post ignited a firestorm of responses, including a resounding endorsement from Tesla CEO and X owner Elon Musk, who wrote, '100%. This is the way.' Other prominent voices, including economist Peter Schiff, chimed in, tweeting, 'Buffett's plan is brutal but brilliant. Congress would finally feel the heat of their own fiscal mess.' Lee isn't just stirring the pot online—he's taking action. 'I'm drafting a constitutional amendment to oust every member of Congress whenever inflation exceeds 3%. It's better to disqualify politicians than for an entire nation to suffer under the yoke of inflation,' he wrote on X. Lee's proposal tweaks Buffett's original idea, tying congressional eligibility to inflation rather than deficits, though both metrics are closely linked to government spending. US economy in tough place The U.S. fiscal situation paints a grim picture. In fiscal 2024, the U.S. economy generated $28.83 trillion in GDP, while federal spending reached $6.75 trillion against $4.92 trillion in revenue, resulting in a $1.83 trillion deficit—6.3% of GDP, double Buffett's proposed threshold. The Congressional Budget Office projects deficits will climb to $2.6 trillion by 2034, driven by rising interest payments on the national debt, now costing over $1 trillion annually. Economists have long warned about the link between deficits and inflation. Nobel laureate Milton Friedman famously argued, 'What produces [inflation] is too much government spending and too much government creation of money and nothing else.' Recent data supports this: inflation hit 3.2% in 2024, above the Federal Reserve's 2% target, fueled partly by expansive fiscal policies. The M2 money supply, a key driver of inflation, grew by 6% in 2024, according to Federal Reserve reports, reflecting continued monetary expansion. Warren Buffet and Mike Lee proposal aims to fix responsibility Buffett's and Lee's proposals aim to force accountability by tying lawmakers' jobs to economic outcomes. However, passing a constitutional amendment is a daunting task, requiring two-thirds approval in both the House and Senate and ratification by 38 states. Critics argue the plan could backfire. 'Kicking out every member of Congress during a deficit spike could paralyze governance and lead to inexperienced replacements,' said political analyst Sarah Klein in a recent Washington Post op-ed. Others note that deficits often surge during crises—like pandemics or recessions—when spending is necessary, potentially punishing lawmakers for unavoidable decisions. Supporters counter that the threat of mass ousting would incentivize fiscal discipline. 'Congress has no skin in the game,' tweeted economist Nouriel Roubini. 'Buffett's idea flips that script.' Public sentiment on X leans heavily in favor, with polls showing 68% of 12,000 respondents supporting Lee's amendment. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hans India
16 hours ago
- Hans India
Will Nifty 50's breakout above 25,000 drive a rally to 25,300?
The NSE Nifty 50 index reclaimed the 25,000 mark on Wednesday, closing at 25,141.40—its highest level since October 14. This move follows a tight three-day consolidation between 25,055 and 25,222, reflecting a brief pause in market momentum. According to analysts, the breakout signals a renewed bullish trend. 'The market was in a breather phase post-rally, but this breakout opens up room for further upside,' said Sudeep Shah of SBICAP Securities. However, Shah also noted that the Relative Strength Index (RSI) remains range-bound, suggesting limited short-term strength. Akshay Chinchalkar of Axis Securities emphasized the significance of the move, calling it a breakout from a bullish consolidation with an upside target of 25,800. He pointed to the strong performance of small- and mid-cap stocks as evidence of growing investor risk appetite. External factors are also aligning favorably. Easing US dollar strength, stabilizing interest rates, and reduced volatility are boosting investor sentiment, particularly with positive cues around India-US trade talks. Of the 50 Nifty stocks, 28 advanced while 22 declined. The index touched an intraday high of 25,222.4, reinforcing the breakout narrative. Bajaj Broking projects a further move towards 25,300 and 25,500 in the near term. 'Dips should be seen as buying opportunities with strong support at 24,900–25,000—the recent breakout zone,' the firm noted. Market watchers now eye 25,300 as the next major resistance level. A decisive move beyond 25,222 could spark further gains, while a fall below 25,055 may trigger short-term profit booking.
Mint
a day ago
- Mint
Sebi engages with venture capital funds directly to smoothen transition to AIF
The Securities and Exchange Board of India (Sebi) has extended a crucial deadline for older venture capital funds (VCFs) to wind up expired schemes, following direct engagement with the industry to smooth their transition to a new regulatory framework. The Sebi granted a one-year extension for liquidations, but maintained a firm stance on migration, requiring funds to apply to the Alternative Investment Fund (AIF) framework by 19 July 2025. People aware of the matter told Mint that Sebi's outreach—both independently and through industry associations such as the Indian Venture and Alternate Capital Association (IVCA) and the Private Equity and Venture Capital Chief Financial Officer Association (PEVCCFO)—helped clarify longstanding challenges and led to the extension for VCFs to wind up expired schemes. Sebi's engagement came amid concerns over a tepid response to its 2024 circular offering VCFs an opportunity to migrate under specified conditions. Many VCFs, some of which still operate despite the expiry of their scheme lifespans, have yet to begin the transition. Also read: IndusInd board says it didn't know. Sebi thinks it did. Now what? Through IVCA and directly, the regulator reached out to VCFs to find out why they are not doing the migration," said Rahul Shah, executive vice president at IVCA. He explained that in the meeting, IVCA's members clarified that they were trying to liquidate the balance investments and then apply for migration. 'They also wanted to see if they can liquidate and wind up the VCF, instead of undertaking the process of migration," Shah said. The VCF structure, governed by Sebi's 1996 regulations, was designed to promote early-stage and unlisted startups. However, with the rollout of the AIF Regulations in 2012, which offer broader coverage for private investment vehicles, Sebi has been steering the industry toward a single, modernized regime. Under the new framework, VCFs fall into Category I AIFs, alongside SME, social venture, and infrastructure funds. In its July 2024 circular, Sebi allowed eligible VCFs with unexpired or unwound schemes holding residual investments to migrate as 'Migrated VCFs". Those unwilling to migrate may continue operating under the old rules until their schemes close, or surrender registration if all activities are complete. However, industry feedback revealed outdated contact records and confusion around the regulatory shift. To address these issues, Sebi enlisted IVCA and PEVCCFO to help communicate the changes. Also read: Sebi to roll out new F&O risk measures in phases Sebi was told by the associations that even after migration, the liquidation of assets is still to be undertaken by funds, which has its own set of issues. 'The extension helps buy critical time to clean up without compromising on governance. For one, a rushed transition could have adverse effects on fund performance and investor returns," said Shruthi Cauvery, founder and managing partner of VAIA, a firm advising VCFs. She noted that fund managers and family offices were still grappling with the AIF regime's reporting and compliance requirements. 'There is some concern that this extension might lead to prolonged uncertainty, and I think that might lead to extended delays as well unless strict timelines are imposed." Shah emphasized that some VCFs continued operating well past their permitted tenure. 'Sebi overlooked then. But now you have time till July 19, 2025 (to migrate) without any penalty. If there are VCFs who will continue operating without the migration process, Sebi may not look at it nicely," he said. He added that Sebi is open to supporting compliant funds: 'If you first migrate and take your problem to Sebi, it will hear you." Not everyone in the industry supports a blanket migration approach. A VCF manager, speaking on condition of anonymity, questioned its necessity in certain cases. 'If they have a single investor, or if the promoter is missing, liquidation will be difficult. Why to migrate then?" the manager asked. Also read: Sebi's co-investment plan wins fund favour; lawyers warn of tax, legal cracks Still, most agree the move reflects Sebi's intent to bring all pooled investment vehicles under a unified regulatory framework. 'VCFs were born under a different regulatory mindset and AIFs represent the evolved, principles-based framework Sebi wants to standardize for all pooled investment vehicles going forward," said another fund manager, also speaking anonymously. Only VCFs with clean records and no pending investor complaints can opt for migration, Sebi has clarified. 'Sebi's extension of the additional liquidation period gives VCFs more room to transition into the AIF regime without triggering regulatory action. However, this opportunity is reserved for clean and compliant funds—those free from unresolved investor complaints or governance issues," said Venkatesh Chitla, client relationship manager at SBI-SG Global Securities Services Pvt. Ltd. Common disqualifiers, he added, include onboarding ineligible investors, incomplete know your customer (KYC) or anti-money laundering checks, side letters offering preferential terms, or breaches of investment conditions. 'For legacy funds nearing maturity or inactive, the compliance burden may outweigh the benefits of migration, leading to some consolidation in the space. But for institutional fund houses aiming to align with global best practices and continue raising capital, this is a strategic chance to clean up structures and reposition under a modern regulatory regime," Chitla said. Legal professionals also welcomed Sebi's move. 'The certainty that the recent extension circular provides particularly for funds in the process of seeking migration or awaiting Sebi's approval cannot be overstated," said Anita Jain, partner at IC Universal Legal. She noted that the extension gives managers sufficient time to plan asset liquidation in an orderly and investor-friendly manner. 'Without this extension, VCFs that had already migrated but whose liquidation period had expired prior to migration, were under pressure to make immediate decisions either to exit all underlying investments or undertake in-specie transfers and file for winding-up by July 19, 2025, or to finalize the dissolution plan with investors and file the dissolution plan application with Sebi within the same timeframe," Jain explained. 'The additional year offers much-needed flexibility, enabling fund managers to take well-considered, strategic decisions in the best interest of investors," she added. Even as the extended liquidation period is seen as a relief, Sebi has made its message clear: the VCF regime is being phased out. Only those willing to align with the AIF framework will be able to continue operations post-migration.
