meek-investor

HSBC is a solid, and perhaps staid, bank. It rode the financial crisis reasonably well and generally stays out of the headlines. Surprising then to see it on top of the financial news for the last five days thanks to a messy succession saga. Here's what happened. Successions in HSBC are very orderly. The Chairman retires to tend to his garden somewhere in the English countryside. The CEO becomes the Chairman. The senior most executive being groomed for years, takes over as CEO. All very dignified and solemn. The Board congratulates itself over many glasses of the finest bubbly. The money continues to pour in and all is well in the world. This time the script went wrong. Stephen Green , the current Chairman, had indicated in May that he wanted to retire in a year's time. A search firm was duly appointed to recommend that there were no suitable outside candidates so that the pesky shareholders can be told to keep quiet. But suddenly Stephen Green was asked to join the UK cabinet ...

Jobs for life ?  A quaint and obsolete concept ? Not even dinosaurs would think of such an idea ; Right? Don't snigger. No less a company than Siemens has done just that in Germany . My first reaction was, of course, what on earth has Siemens done. Has it simply bowed to the pressure of the mighty German trade unions ? The power of trade unions in Germany is well known. The country has adopted a model for a cosy relationship between workers and managements. Confrontations, when they come, are often less intense than might be seen in other parts of the world. Wages are high. Its not easy to lay off workers.And yet Germany remains a massive industrial success; it remains the largest exporter in the world neck to neck with China.  The arguments for flexibility with work force are well known. But why has Siemens opted for giving jobs for life - and that too in high cost Germany ? There must some arguments on the other side of the debate as well. There surely are.   If we turn...

Vaithy mama is a legendary figure if you were a schoolboy playing cricket in a certain district in the south of India in the 70s. No prizes for guessing that this blogger was one of them. Vaithy mama was the lone selector of the district cricket team and had the power of life and death over earnest schoolboys for whom being dropped from the team was the end of the world. Vaithy mama's selection criteria were very clear. If you were a batsman, did your bat stay close to the pad; was the bat straight, did the front foot point in the direction of the stroke, did the ball travel all along the ground, did the front shoulder point to mid off, etc etc. Readers unfamiliar with this funny game can translate this as the good old way of playing cricket. Not the current day slam bang variety. To Vaithy mama, it didn't matter if the runs did not come. Did you play correctly ? Many a boy had got slapped for attempting a cross batted shot. Such is cricket. It's more than a game. It repres...

The Right to Information is a fundamental right in most countries. Freedom of the press is a cherished goal. All very good.  But I think its now time to have a Right to NOT have information. I write this even though I have witnessed at close quarters for three years, the perils of such an idea. Take the case of the story of the idiot in Florida who wanted to burn the Koran , which is the trigger for my post today. He is an irrelevant nobody  who perhaps has a dozen imbeciles who go to his "church".  Suddenly he has become a celebrity and has been interviewed and reported all over the world. And equal imbeciles in some corner of the world, who can't even point to Florida on the map demonstrate and threaten violence against America. That's reported on too. News has been "created" where none should have existed. With potentially dangerous consequences. The world would have been a better place if the worthy in Florida had been royally ignored. A week ago, there ...

I had never heard of ShoreBank until I read this article in The Economist. The Economist titled its article – Small enough to fail. I add an “alas” to my post header. ShoreBank , according to The Economist article, thrived for 35 years on a business model of a small community bank that targeted lending to poor people in poor neighbourhoods. It actually had higher repayment rates and lower delinquency,  as any careful micro lender will tell you.  But then the recession struck like a tsunami. In the neighbourhood in  which it operated, the recession has been brutal and most people lost their jobs. Despite very good payment records in the past, they couldn’t keep it up.  Unfortunately its location in Chicago and therefore the association with Obama made it a political lightning rod. No way it could be bailed out. Alas, it had to go. This article set me thinking on the risk quotient for small businesses. By definition, small businesses cannot be diversified in terms of ...

The blurring of lines between work life and personal life has been a profound change in the last 10 years. We may not have fully realized it as it’s a classic case of slow boiling of the frog. If anybody had presented to you what the demands of working life would be when you started your career, you would have recoiled with horror. But like the proverbial frog, we have all been slowly cooked to death. E mail, and later Blackberry, have been the two largest causes of virtually eliminating the line between business time and personal time. I know of a senior guy who sets an alarm three times in the night to check his email. He may be an extreme case, but most of us are not very far away from there. Just look around when a plane lands and you’ll know what I mean. The office comes to us all the time. We can’t go to bed without it – the damn thing is under the pillow. We can’t even go to the loo without it. The day is not far off when we’ll be buried with it. Imagine a business situation wh...