Nov 16, 2008
Posted by admin in Spirituality | 8 comments
I know I’ve blogged about this before, but as it’s affected me so deeply, I really have to discuss it again. What’s the purpose of life? Why are we here? Why don’t we get eternal satisfaction from material pleasures? For those who’ve got everything, you can almost hear them screaming, “Dammit, I’m always travelling first class, I’ve got men & women fawning about me all the time, I’ve can buy anything that I ever want, but so what? What’s the point of it all? It’s so meaningless.”
Between 1990 and 2000 the Chinese saw an incredible boom in their economy such that millions were pulled up out of poverty to earn a decent living wage. However, in 1990 28% of Chinese people described themselves as very happy, but by 2000 this figure had dropped to 12%. (Source). We don’t have to go to China for examples, a look at our own lives is sufficient. India is having a boom of it’s own. Many have experienced new found wealth which they didn’t have before. Especially those who have lived the 1970’s and 80’s in India, many are now exceptionally well off. Rate yourself (or your parents) on a scale of 1 to 10 your level of happiness then and your level of happiness now. Is it much different? Were you severely depressed then and deliriously happy now?
So if health & wealth is not the source of ALL happiness then what use are they? Well these are not the source of happiness, but the tools to help us achieve eternal bliss. To quote Imam Ghazzali’s Analogy, our life in this world is like that of a person (let’s call him Abdul) going for pilgrimage on a camel. Without his camel, Abdul certainly wouldn’t be able to complete his obligatory journey. However, what would be his plight, if he cares for his camel (feeds it, clothes it, gives it adequate rest & relaxation) but has forgotten the purpose of setting off on his ride in the first place. He just wanders along the desert, trying his best to keep his camel in as good humor as a camel can be. Soon Abdul’s steed grows his old, his faithful camel cannot support his master’s burden anymore. And drops off and dies. Leaving his master alone and stranded in the desert. Miles away from his home, and even further away from his destination.
The story of those of us who are searching for Eternal Bliss or Meaining of Life in wealth, fame, material objects is not much different from Abdul’s story. Just like Abdul we have forgotten the purpose of our journey and are fully focussed on our wealth, health, status, which are mere tools/vehicles which are there to help us complete our voyage. They are not the purpose of it. So what’s the purpose of our journey/voyage? Abdul’s was to complete his spiritual pilgrimage. Ours is the same.
Aug 24, 2006
Posted by admin in General | 3 comments
Well, why not? If you really think about our, Hosur has got all that Bangalore has got minus the pollution, traffic jams and the concrete. Further it is about 40% cheaper, though it is within the commuting distance to South Bangalore.
To help you to tweak your thinking we have designed a small survey and wonderful raffle draw prizes for the participants. All entries received by Monday 4th Sep ‘06 will be eligible to win a raffle draw prize of a Rs. 1000 Gift Voucher at The Forum Mall in Bangalore!
Do take a little effort to complete the survey. We at Vakil’s have lots of plans for Hosur, but firstly we would like to know what you think of Hosur as a residential desitnation. It will take only a few minitues of your time, but who knows, you may find yourself living in a green, plush paradise at Hosur, at about 60% of your budget, but still commuting daily to Bangalore, a few years from now!
Please click on the below link to take the small survey!
http://www.formassembly.com/forms/23649
Jul 1, 2006
Posted by admin in General | 0 comments
Hi,
In the last few weeks Indian stock market (Sensex) has been yoyoing crazily, leaving investors totally adrift without any direction whatsoever. But help is at hand “You can achieve success in the stock market if you follow a set of well-defined investment principles and refuse to abandon them when the market acts irrationally,” assures Scott Kays in 5 Key Lessons from Top Money Managers, from Wiley (www.wiley.com)
The secret behind great investments is `gutsy moves’. The masters don’t gamble. “They invest deliberately and purposefully, and they outperform the average investor as a result.”
First check if you belong to the majority in the world of investment that comprises those who want hot stock tips. “Unwilling to learn the rudiments of investing, they invest in companies because `they’ve been going up.’ The thrill of the action is as important to them as the profits they make.” To them, investing is not about maximising the returns over time.
The minority are the few who study the art of investing “in a constant effort to increase their knowledge and improve their skills.” Kays points out that these people take time to learn what matters when buying the stocks. “They don’t gamble; they invest deliberately and purposefully, and they outperform the average investor as a result.”
Chapter 1, titled `The return of common sense’, reminds us that many complex investment strategies only veer investors away from the crux. “What kind of pattern is the stock’s price chart forming? What was the stock’s relative strength last week? The masters classify these questions as irrelevant distractions.”
More right than wrong
Great investments are about `gutsy moves,’ requiring the execution of the fundamentals, using `straightforward methodologies,’ even as lesser mortals look for `something flashy, something unusual, to give them an edge.’ The difference is simple: “The naïve talk of what should do well over the next few weeks; the masters consider the long term.”
The author devotes a chapter each to five top money managers, beginning with Andy Stephens of Artisan Mid-Cap Fund. The art of portfolio management, the way Stephens does it, is to be right more than being wrong — at least to be right in a bigger way. “It’s a trade-off between capitalising on opportunities and protecting my downside if I make a mistake,” he says.
Structural competitive advantage that he seeks in enterprises has four components, viz. dominant market share, proprietary asset, lowest cost structure, and defensible brand. “Firms that possess two or more of these advantages will likely perform in the upper quartiles of their industries. Because their cash flow is safeguarded, investors can value these firms with a higher level of confidence.”
Lessons from mother
Next expert is Bill Nygren of Oakmark Select Fund, who learnt all about investing from his mother. She kept the family on a strict budget, he remembers. “A true value shopper, she visited three supermarkets each week, checking out the specials they were each running… If an item was fully priced, she bought less of it or passed on it completely.”
Kays notes that buying quality, undervalued-companies gets you only halfway to a successful investment experience. “Knowing when to sell a security is just as important. Fortunes have been lost because investors have tried to squeeze every penny out of winning situations and held on to positions long after they should have gotten rid of them.”
Sell a company when its price reaches 90 per cent of its fair valuation, Nygren advises. “Liquidate a position when a company fails to perform fundamentally as you expected. If you realise you made a mistake, the sooner you admit it and deal with it, the more likely you will minimise its impact on your performance,” are further insights of immense value.
No lottery tickets
The third expert that Kays introduces you to is Christopher C. Davis of Selected American Shares. The foundational principle he adopts to select securities is, “Stocks are not pieces of paper like lottery tickets, but they represent ownership interests in real businesses.” Once you accept that, answer the following two questions: “What kind of businesses do you want to own? And, how much should you pay for them?”
According to Davis, “Businesses that grow their values at above average rates for long periods of time make the best investments.” His three criteria of superior businesses are: Financial strength (as evidenced by a strong balance sheet and high returns on invested capital), competitive advantages (such as brands, patents and economies of scale), and shareholder-oriented management (with a strategic vision and a realistic plan).
To assess the last criterion, that is, shareholder orientation, Davis digs deep to understand `the thought process and logic’ of the company managers’ capital allocation decisions. “Before he invests in a company, he ensures that managers have a strong understanding of their cost of capital and the return they expect to achieve on investments.”
Compound mystery
Bill Fries of Thornburg Value Fund, the fourth expert you encounter in the book, recounts how his eighth-grade teacher unlocked the mystery of compound interest, and sparked his interest in saving and earning money on money!
What is his investment technique? He divides his portfolio into three types, viz. basic value, consistent earners, and emerging franchisees. Fundamental research that he uses filters out for promise and discount. “A cheap stock can remain cheap indefinitely,” he cautions. Identifying cheap stocks is easy; what’s tough is “finding companies that can achieve a healthier than generally expected future.”
Two core philosophies
The fifth expert is John Calamos Sr, of Calamos Growth Fund. His core philosophies are two. One, “to create wealth, you have to give up some of the upside to preserve capital on the downside.” Calamos quips, “I’m long-term bullish, short-term scared, all the time.” While the economy can create significant prosperity over time, “the stock market can drop unexpectedly at almost any moment,” he warns. “When that happens, he wants to maintain his principal intact, even if that means missing out on some of the market’s growth during the good times,” explains the book.
His second philosophy reads, “No strategy works very well for very long, so you have to keep evolving your process.” Calamos says there is no `magic quantitative equation’ that works all the time. “If such a formula existed, everyone would use it and it would no longer work. What works at any point in time constantly shifts.”
What do you think?
Jun 30, 2006
Posted by admin in General | 2 comments
Hi,
If an aspiring MBA student asks you to recommend a few “Must Read” business books to start with, what books would you recommend? Here is the list from Nattie Harstock, of “Must Read Business Book Blog”
While generally agreeing with her, my choice would also include “ You, Inc: Discover the C.E.O. Within! “ by Burke Hedges, which is an ideal book for beginners. Gives excellent insights into 10 valuable principles.
For example one of interesting quotes from the book “Life is like a 10-Speed bike. Most of us have gears we never use”. Here Hedges refers to childhood friends (who all we know of ) who were blessed with great abilities, but as adults, who have chosen to let their God-given talents go unused while they willingly turn themselves into overweight couch potatoes.
The purpose of this book is to offer the insights and actionable principles that will allow us (and them) to have all the things in life that we deserve. But understanding and acting upon the principles discussed in You Inc. … and then by incorporating them into our lives, we can certainly improve the quality of our lives beyond our wildest dreams.
Do let’s know what you think of her choices and what you would have recommended.
Regards
Ramesh
