meek-investor

Ok ; don’t sigh at the completely unimaginative title – after Zaijian Zhongguo, it's inevitable that it has to be Namaste Hindustan. The title means Hello India, in Hindi. Just as leaving a place is a cauldron of emotions, arriving at another, is equally so. Even if, and probably especially if, it's your home. Things are familiar. You know people. And yet it is an unsettling feeling. Things have changed. Some of your favourite places are gone. Some of the people you know have moved on. You are suddenly an outsider coming in, rather than an insider giving a knowing smile at the new arrivals. As always, in such moves, it’s the small things that catch the eye. In the first few days back in Bangalore, these are what have really struck me Top of the list has to be reading a newspaper with the morning cuppa. A real newspaper. I almost lovingly caressed it on the first day ! I am in the camp which is firmly of the opinion that “The Hindu” (a longstanding newspaper in India) with fi...

Goodbye China, goes the title of this post. For this will be my last post from China as I wind up here and head back to India. For nearly three years, Guangzhou has been my home and you’ll perhaps forgive me for a misty eyed long farewell post. One of the first things that struck me when I decided to come here was how little, we in India, know about China. We study a lot about European history and culture, the Pharaohs of Egypt, the Incas and Aztecs of South America, everything about the US. But we know very little about China – most Indians can’t even name a city after Beijing and Shanghai, let alone know about China’s rich history. The reverse is equally true – very few Chinese know anything about India at all. I came to China as a newbie, quite ignorant of this country. I leave China, equally ignorant, but perhaps with a greater understanding of my ignorance. China is a complex, fascinating country rich in culture, diversity, history and tradition. It is changing at such a rapid rat...

China’s bosses sometimes find it difficult to understand the world; especially as seen through their own lenses, which are admittedly very thick. What can you make out of the following news report – “The western rating agencies are politicised and highly ideological and they do not adhere to objective standards,” Guan Jianzhong, chairman of Dagong Global Credit Rating, told the Financial Times in an interview . “China is the biggest creditor nation in the world and with the rise and national rejuvenation of China we should have our say in how the credit risks of states are judged.” China likes to develop everything by itself. It doesn’t like Google; it has Baidu instead. Doesn’t like Facebook, YouTube, Blogger, …….., I can go on and on. Every one of them has a local equivalent. It’s not just in IT. Take Credit rating. It wants its own credit rating agency. Enter Dagong Global Credit Rating. It has about a quarter of China’s own fledgling credit rating market, and of course zilch of th...

What on earth is happening at Johnson & Johnson ?? It is one of the world’s foremost and respected companies. For 120 years it has commanded trust from consumers, employees, governments, investors – virtually everybody. It is a regular in the Top 5 of the World’s most admired companies – this year it is 4th. Consumers know it largely for its baby products – every mother trusts Johnson’s baby powder, or lotion or bath or whatever. If you are sick, you pop in a Tylenol; if your child is coughing you give her Benadryl. It is also a name totally trusted in hospitals – it produces a variety of medical equipments and supplies. Investors love J&J for the steady performance, and therefore the returns, it produces. It is one of the four companies left in the world which has a AAA rating. If there has to be one company that typifies all that’s good about the corporate world, it would be hard to find a better candidate than Johnson & Johnson. And yet, I read with an increasing se...

Why , Oh Why, do they come back ? Don’t look back. Don’t ever look back. Please. You are an all time great. You have millions of adoring fans. You have made enough money. Yes, I know that the road forward seems only downhill and the wonders of the lands you have just passed is fatally alluring. But bite your tongue. Thrust your chin forward. Go forward. And don’t look back. This could be true for any one of us, that is if you slightly discount the millions of fans and the enough money bit. But it is so so true for sportsmen. Its really tough not to look back – but alas, many succumb to the temptation. Look at Michael Schumacher. Why did he do this. He had achieved all that there was to be achieved. And yet he comes back. To be scrapping with teammate Nico Rosberg for 10th place, and losing. Remember the days when the mere presence of Schumi on the track would be enough to strike terror in the hearts of opponents. Michael Jordan was a case who both proved and disproved the theory. When ...

If you are an Indian, by now you would have seen the new symbol designed for the Indian rupee. Given the close attentions of my beloved net nanny, I cannot reproduce it , but if you really wish to see it, you can do so here . This is a small matter, but is so typical and representative of India. Symbolism and pride is wildly disproportionate to reality. Currencies such as the US dollar, the Euro, the Yen, the Pound Sterling, all have their unique symbols. India aspires to be in that league. But the fact is that you don’t join the league by having a symbol; you join that league by having a currency (and by implication, an economy) that is worthy of being there. With all due respect to the country, and I am an illogically patriotic Indian, the rupee is a basket case. Because, the underlying economy is far from strong. The rupee is still subject to stringent controls, especially on the capital account, and rightly so. The market is this currency is minuscule. Nobody, other than an Indi...

Hold your breath, all ye men and women – there are now only four companies in the world which are AAA rated – ADP, Johnson & Johnson, Microsoft and ExxonMobil. That’s it. Why are there so few in this exalted list ? Before I go further, this is not a “technical” blog. Technically I should be saying companies whose bonds are rated AAA . Short term or long term ? Moody’s or S&P or Fitch ? Is Moody’s rating not Aaa ? Let it go. It doesn’t matter. The point is not to be technically correct. A AAA rating (in whatever form) acknowledges that the company’s bonds (not shares) have the highest degree of safety . Wouldn’t it be something every company would die for ? Obviously not. Only four companies are there. Why so few ? The recent financial crisis has taken its toll. Quite a few have dropped off the list in the last couple of years. Notably GE, a long time star of that list. Understandable. But this doesn’t explain the paltry list fully. Some companies deliberately get off the li...