meek-investor

Meet Sadashiv Chandrakanth Khodke. His life was turned upside down, exactly one year ago, when the despicable scum called terrorists attacked Mumbai. I heard his tale on a BBC podcast and it touched me – and it’s the subject of this Sunday’s non business post. Sadashiv was a waiter in a restaurant, holding a steady job. His misfortune was that he was in VT station at exactly the wrong time. He was injured in the shooting and his life turned in an instant. He was taken to a hospital and operated upon to remove shrapnel lodged in his chest. The operation was successful, but he had to spend a long time in hospital and then in recuperation. It is usual to blame the government for apathy when it comes to disaster victims. I actually think this is often a completely erroneous accusation. The government does do a lot – many a time its just that the scale of the tragedy is simply too big. In Sadashiv’s case, they did all they could. They didn’t charge him for the treatment. Even when he was i

The media loves to makes lists – the richest people in the world, the biggest companies in the world and so on. Forbes has compiled a rather unusual list – the 10 most outrageous CEOs of 2009 . Bernie Madoff would have been a slam dunk for the winner – but his place in the sun was last year – so he’s disqualified. This year’s list is full of people who have been charged or indicted of fraud. Robert Moran sentenced for tax fraud at No 10, David Rubin indicted for fraud at No 9, Allen Stanford accused of misappropriation at No 8, Danny Pang accused of running a Ponzi Scheme at No 7, Thomas Peters on trial for fraud at No 5, Ramalinga Raju, in jail at No 4 and Raj Rajaratnam charged with insider trading at No 3. Sandwiched between them are Ed Libby of AIG at No 5, for the retention bonuses he decided to pay the executives of the financial products divisions who brought ruin to the company in the first place and John Thain of Merill Lynch at No 3 who pushed through bonuses before the tak

In the blue corner is Rupert Murdoch, the media tycoon – Chairman of Newscorp, owner of The Times and the Sun in the UK and New York Times in the US, and the TV Channels Sky, Star and Fox News. In the red corner is Google – the titan of the on line world. The bout has begun. In question is the issue of on line news – who owns it, who pays whom for it, etc etc. Now we are perfectly willing to pay a few rupees, or cents or yuan for a newspaper, but are absolutely not prepared to pay a penny for the same newspaper on line. Confess it – you haven’t read the newspaper today. Instead you browsed on line. I did too – at least my excuse is that the single English newspaper, where I live, is not worth reading! What’s yours ? Murdoch says Google and such other news aggregators are freely linking to news content that his newspapers create and then get advertising revenue for it and to rub salt into the wounds, charge the papers for sending readers to it. They have news pages which attract readers

One of the greatest of days in Indian sport , to me THE greatest day in Indian sport, was the day in March , long ago, when India lifted the hockey World Cup in Kuala Lumpur. India beat Pakistan in the final to win the World Cup for the first, and alas thus far the only, time. The greatest day was actually not the final win. By the day of the final, it seemed pre ordained that India would win. The day came on the semi finals, just a day earlier. India played Malaysia on their home soil It was on a rain sodden pitch early in the morning (those days they played hockey on natural turf). It was a classic, which will remain in the memory of every Indian sports fan who was around then. There was no TV , of course, so glued to the transistor radio, listening to Melville D’Mello and Jasdev Singh, we followed the match. The Indian team was an all star team captained by the immortal Ajitpal Singh. I can still get the full team more or less right – Leslie Fernandez in goal, Surjit Singh and Mich

Of all the markets in the markets in the world, one of the most nonsensically regulated is the air travel market. Countries are still clinging on to the antiquated notion that somehow national interests are involved in the aviation sector and “national airlines”, however dinosaur like they may be, must be propped up. This post is prompted by the news that Germany has asked Emirates to raise its business class fares for flights out of Germany. Emirates, faced with big fines, has been forced to raise its rates by some 20%. Airlines flying in and out of Germany are policed by the unfortunately named Federal Office for Goods Transport. This august body has written to Emirates saying it was “not allowed to engage in price leadership" on routes out of Germany to non-EU countries. Apparently it was acting under a law used in cases where "public transport interests are being permanently damaged". Apparently European carriers can indulge in “price leadership”. Only non EU airli

This seems to be the season for whispering sweet nothings. K and C are engaged in a very public courtship as I blogged here – its progressing at such a snail’s pace that its probably more exciting to watch grass grow. K has threatened to abduct and carry away C, and C is saying “bah” as women are wont to do ! But there’s another rumour doing the rounds. Yesterday curious things happened with Colgate Palmolive’s share price. The speculation is that Reckitt Benckiser (makers of Dettol) and Colgate Palmolive (makers of, well, Colgate) are looking coyly at each other. It appears that Reckitt is sending strong signal that he/she is ready to marry. What is not clear is who the target of its affection is. Is it Colgate, or is it SSL (makers of Scholl and Durex) ? If its Colgate, then its not clear who is the bride and who is the groom. For they are both roughly equal. It's supposed to be a marriage of equals. But then women’s lib has not yet reached the corporate world where the traditi

“Remove baby before folding the stroller “ is a famous example of the American legal system gone crazy. It remained an object of mirth until it became all too real last week. For, Maclaren, a small privately held maker of baby strollers was faced with a massive crisis on a similar sort of a problem. Maclaren’s strollers are actually of a reasonably high safety standard. However it appears that when the stroller is being unfolded, if a child sticks a finger into the hinge, its likely to chop off the finger tip. This is not a state secret that normal human beings are unaware of. Any parent, however dumb, is well aware that if a child sticks its finger into a hinge, it will get hurt. However there was no warning on Maclaren strollers that children must be kept away when opening it. And the product is "unsafe". So the company is responsible. There were 12 instances of such an event happening. The company is now recalling 1 million strollers sold in the US – or atleast providing r

Our city bred yuppie has settled down into the village, mastered the art of managing without plumbing and has been proposed to. If you’ve missed this story of a couple of weeks ago, click here . Statutory warning : This is a X rated post. Youngish readers and those with sensitive feelings please leave now !! Of course the company has not put him here to bask in the adulation of the village belles. He’s supposed to do some work. Like organising a cattle camp. My good friend Aashish, who comments often in this blog, observed that I seem to have a peculiar fascination for matters bovine – considering the number of times this venerable creature has appeared in what is ostensibly a business blog. I must confess that I hadn’t thought about it, and now that he has said it, am guilty as charged ! Now, in this part of the country, the buffalo is the family’s most prized possession. Therefore the cattle camp is the most important "village development” exercise that he can undertake. What o

Yesterday was 9/11, written in the British way. It is as momentous a day as its American equivalent is tragic. For it was on this day, 20 years ago, that the Berlin wall collapsed. And Europe would never be the same again. A trillion words are being written about the event and the celebration and the hoopla surrounding it. This blog is loath to add to that total, and in any case is not a political forum. Instead we will touch upon one of the most interesting aspects of the reunification at that time, the currency unification. The word German reunification is actually a politically correct, but not factual, term – in reality it was an acquisition of East Germany by West Germany. When German reunification happened, the black market rate between the mighty Deutsche Mark and the Ostmark (East German Mark) was 1 to 5. The Ostmark would be abolished and instead the Deutshe Mark would be the currency of the new Germany. But then, at what rate do you convert the existing Ostmarks of East Ge

This weekend's irreverent post is a guest post in le embrouille blogueur's blog. I am flirting with deep danger by continuing to needle the fair ladies, but then, this Sunday is that sort of a Sunday. Ladies - this is all just for some idle fun ; don't take anything seriously ! Click here to read this post.

If you are in India and wanted to buy a Windows 7 box, you could not do it legally. Never mind that Windows 7 was released globally about 2 weeks ago. Never mind that much of Windows 7 development happened in India. Why ? Because the babus (pedantic officer) at Customs wanted to tax the stuff twice !! This is an example of the nonsensical complexity that abounds in India’s taxation law and the missionary zeal with which the babu wants to implement them – methinks the ultimate frustrated guy is the Indian babu and his only source of pleasure in life is from creating and implementing mind boggling complexity. Take the Windows 7 situation. The product is the standard software box with a CD and a manual in it. Because it’s a box, it’s a physical product. Therefore customs duty on the “product” is to be levied. Then the box contains a CD which gives you a license to use the software. Giving the license to use is a “service”. So they want to again charge service tax on the same box. Tax the

Rapidly evolving technologies and market adjustments have thrust media into states of nearly perpetual alteration that require agile and swift responses to gain benefits and defend the firm from outside forces. Managers who have been used to stable environments and well conceived plans are often reticent to move to seize opportunities with quick and decisive action based on incomplete information and knowledge. The turbulent contemporary environment, however, require leaders to rapidly evaluate the potential of new communication opportunities and to take risks in a highly uncertain setting. This is disturbing to managers who are used to employing well developed and elegant strategies that require significant investment and commitment. Declining to test opportunities until a clear roadmap is produced, however, takes away flexibility and the ability to rapidly change with contemporary developments. While preserving the core activities of media businesses, managers need to simultaneously

Politicians should, in general, not meddle in business. A great illustration of this danger is the mess brewing in General Motors Europe. Facts of the case are as follows. When GM was entering bankruptcy last year, the fate of GM Europe was in serious doubt. In any case GM Europe had too much of manufacturing capacity in Germany, the UK , Spain and Belgium. Even under normal circumstances a big restructuring was inevitable. Now there was serious threat of complete closure. In waded the politicians. No less than the redoubtable Angela Merkel, Chancellor of Germany. She was coming up for an election. In Germany, auto workers are next only to God. No way was she allowing job losses amongst auto workers in Germany. So she forced an auction, put together a curious alliance of a Canadian spare parts manufacturer (Magna) and a Russian bank (Sberbank) to buy GM Europe. She then offered them $6.6 bn (yes 6.6 billion) and they had to commit no closures and job losses in Germany. Unsaid, but obvi

China places an enormous value on education – both the society and the government are, rightly, obsessed with it. As a nation it has done a fantastic job of educating huge chunks of its population and providing them with job opportunities. But it’s a massive task and sometimes education and jobs are not always in tandem. This was brought out to me in vivid detail when I read the book review of Ants (Yizu) , a book in Chinese by Lian Si, a post doctoral student in Beijing. Considering the scale of the task, China has been immensely successful in educating its population. In fact, so successful, that it has become a problem. In 2009, China produced more than 6 million college graduates. That gives it the headache of creating 6 million additional jobs every year. Not factory worker jobs, but skilled jobs befitting university graduates. How on earth do you add 6 million jobs year after year ? Just for appreciating the scale, the entire outsourcing industry in India, an undoubted success st

Since the beginning of the year, the prices of all sorts of risky assets – shares, oil, etc have increased by fantastic proportions. Take equity. In virtually any market in the world, you would have made returns of 50% plus, even if you are an idiot. Did somebody say we were in the midst of a huge crisis ? Here was massive money to be made, by just being there. Sounds too good to be true ?? As the old saying goes, when something is too good to be true, it usually is. I read a very interesting article by Nouriel Roubini , the highly respected Professor from New York’s Stern School of Business, in today’s Financial Times. Its somewhat technical, although very readable. I commend even a layman to read this. At the risk of extreme oversimplification, I will paraphrase his argument as follows - Interest rates are extremely low and will be maintained at very low levels by the US Fed to stimulate the economy - The dollar is falling. Because it is falling, everybody is short selling the doll

A couple of generations ago, our great grandparents made the decision to leave their villages and move to the city, largely in search of a better life. In just two or three generations, we have completely lost the understanding of what village life is. One company decided, many decades ago, that city bred yuppies, who it was mostly recruiting as trainees, must spend two months in a village to reacquaint themselves with rural India. This is a story of that “fantastic” experience – it is set in India, but could equally be true of many other countries. Picture the setting. A truly representative village in a lawless part of India. Modern conveniences have not yet reached the place. No electricity. No plumbing. No nothing. But warm people. The day starts with daybreak and ends with sunset. The most precious possession in life is the buffalo. Into this setting, in walks our city yuppie. He is ritually welcomed into the house by the lord of the house with the reassurance that he would be