Thomas Piketty: “Germany has never repaid.” – Link here
My dentist saved my tooth but stole my memory – Link here
Why China won’t listen to Western scientists about genetically modifying the human embryo – Link here
Here's a Simple Lesson on Business Ethics From the Former CFO of Enron – Link here
How Iceland Emerged From Its Deep Freeze – Link here
Indiaplaza.com: How an Indian e-commerce firm ran out of cash – Link here
The Chef That Ate The World: How Gordon Ramsay Earned $60 Million Last Year – Link here
Can gene editing provide a solution to global hunger? – Link here
Lessons Learned from A History of Oil – Link here
Sean Parker: Philanthropy for Hackers – Link here
Robots Might Save the Humanities – Link here
Africa Should Lure Bangladesh's Garment Industry – Link here
Everyone in India thinks they are 'middle class' and almost no one actually is – Link here
Seven Intelligent Fanatics from India - Sanjay Bakshi – Link here
Saturday, July 11, 2015
Friday, July 10, 2015
Hilarious BSE annoucement
Original announcement on bse here - http://www.bseindia.com/corporates/anndet_new.aspx?newsid=c558d33a-2d58-42d1-ab11-d5444d17d5ef
| Security Code : 532908 Company : SHARONBIO | |||||||||
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Wednesday, July 8, 2015
People expect free stock tips as if it's their birth right -II
This is a guest post from Analyst friend AVC
“Can you give me some tips?”, if you are working in stock market chances are you have encountered this statement more often other than “market su lage chee” or “market kya lagta hai” or “what do you think of market”. Also irrespective of your job profile whether you are receptionist or back office or IT guy working for a broking firm, you would always find this question creep in any conversation.
Imagine, you are at friends party
You: Hi Kunal, whats up pal?
Kunal: Hi Raj, welcome to the party buddy
You: Thanks, whts up
Kunal: meet my friend “Dr Rushabh from Nanavati Hospital”
You: o..doctor….great…..hey doc, I have been having continuous pain in my back, what do you think? O…also one more thing my 80yr old granny’s knee pains too…..much, do you think its arthritis?
Dr Rushabh: ummm…….actually……….I am a dentist.
You: oh ok……….but you still might have some idea about back pain, since you are doctor?
I don’t know if this habit of asking for free advice is very typical to Indian or its global phenomena (I have not ventured out of India, nor have I interacted with many foreigners to take a call). Most of the time it reminds me of Tata sky ad, “punche ne mein kya jaata hai?” (If you don’t ask, you will never know or ask no matter what). Key thing being, most of them want to make free money without any “mehnet” (hardwork) or paying for “other people’s mehnet”.
However it would be unfair to blame general people at large for such behavior, for simple reason the way stock brokers do business. A typical stock broker provides free stock tips, as he knows clients would trade with him and he would get paid by charging brokerage on the trade. Simple thing driving his business on this model is ingenious human nature, everybody is afraid to pass up the money making opportunity (without verifying if there actually an opportunity or not) which is best summed up by Charles P. Kindleberger
“There is nothing so disturbing to one’s well-being and judgement as to see a friend get rich”.
Due to this human nature, most people are compelled to ask for stock tip and many a time free stock tip. As my mother said to me during my childhood,
“don’t take/buy anything just because it is free or has something free with it, chances are you have already paid for it or will pay for it for long time in future”
This is something similar to economist say in general “There is no thing as free lunch”. Most of the people expect free tips to help them earn money, while in reality it’s rarely the case. Most (not all) lose money on this free tips, as broker knows your greed has taken over your brain. Broker’s model is very simple, he would give you 2-3 stock tips every day for 5 days meaning approximately 10-15 stock tips in a week. Chances of price increasing of any 1-3 stock is pretty high (simple case of probability), so even thought of 10 tips, 8 would go down broker would harp on 1-2 stock that went up and so would you brain. Hence you would remember that 1-2 stock that went up and you didn’t purchase (case of selective memory).
Let’s reverse this situation, if you had an idea that could make money would you tell me? Most people I know would say “why the hell would I do it?” and I completely agree with them. So extending this logic if broker has stock idea that can make money why does he share it with you? Why doesn’t he himself trade and make money and become rich? {Assuming making money is the ultimate goal and not samaj seva (charity)}. At this point, most MBAs come up with barge of answers to justify their argument that why both cases are different (although outcome in both cases is you can make money), I will leave that thought you to ponder on and simple advise that I have learned after following stock market for over decade “ don’t trust free advise”. If you make loss in stock market, your broker would not recoup it for you.
“Can you give me some tips?”, if you are working in stock market chances are you have encountered this statement more often other than “market su lage chee” or “market kya lagta hai” or “what do you think of market”. Also irrespective of your job profile whether you are receptionist or back office or IT guy working for a broking firm, you would always find this question creep in any conversation.
Imagine, you are at friends party
You: Hi Kunal, whats up pal?
Kunal: Hi Raj, welcome to the party buddy
You: Thanks, whts up
Kunal: meet my friend “Dr Rushabh from Nanavati Hospital”
You: o..doctor….great…..hey doc, I have been having continuous pain in my back, what do you think? O…also one more thing my 80yr old granny’s knee pains too…..much, do you think its arthritis?
Dr Rushabh: ummm…….actually……….I am a dentist.
You: oh ok……….but you still might have some idea about back pain, since you are doctor?
I don’t know if this habit of asking for free advice is very typical to Indian or its global phenomena (I have not ventured out of India, nor have I interacted with many foreigners to take a call). Most of the time it reminds me of Tata sky ad, “punche ne mein kya jaata hai?” (If you don’t ask, you will never know or ask no matter what). Key thing being, most of them want to make free money without any “mehnet” (hardwork) or paying for “other people’s mehnet”.
However it would be unfair to blame general people at large for such behavior, for simple reason the way stock brokers do business. A typical stock broker provides free stock tips, as he knows clients would trade with him and he would get paid by charging brokerage on the trade. Simple thing driving his business on this model is ingenious human nature, everybody is afraid to pass up the money making opportunity (without verifying if there actually an opportunity or not) which is best summed up by Charles P. Kindleberger
“There is nothing so disturbing to one’s well-being and judgement as to see a friend get rich”.
Due to this human nature, most people are compelled to ask for stock tip and many a time free stock tip. As my mother said to me during my childhood,
“don’t take/buy anything just because it is free or has something free with it, chances are you have already paid for it or will pay for it for long time in future”
This is something similar to economist say in general “There is no thing as free lunch”. Most of the people expect free tips to help them earn money, while in reality it’s rarely the case. Most (not all) lose money on this free tips, as broker knows your greed has taken over your brain. Broker’s model is very simple, he would give you 2-3 stock tips every day for 5 days meaning approximately 10-15 stock tips in a week. Chances of price increasing of any 1-3 stock is pretty high (simple case of probability), so even thought of 10 tips, 8 would go down broker would harp on 1-2 stock that went up and so would you brain. Hence you would remember that 1-2 stock that went up and you didn’t purchase (case of selective memory).
Let’s reverse this situation, if you had an idea that could make money would you tell me? Most people I know would say “why the hell would I do it?” and I completely agree with them. So extending this logic if broker has stock idea that can make money why does he share it with you? Why doesn’t he himself trade and make money and become rich? {Assuming making money is the ultimate goal and not samaj seva (charity)}. At this point, most MBAs come up with barge of answers to justify their argument that why both cases are different (although outcome in both cases is you can make money), I will leave that thought you to ponder on and simple advise that I have learned after following stock market for over decade “ don’t trust free advise”. If you make loss in stock market, your broker would not recoup it for you.
Saturday, July 4, 2015
Read, Learn, Improve – 4-Jul-15
This Is How Uber Takes Over a City – Link here
What’s really warming the earth – Link here
CAUGHT IN THE BIG SALE @_SACHINBANSAL @AMAZON @1KUNALBAHL #PRESS #MEDIA @BWORLDONLINE – Link here
How to Be a Friend in Deed – Link here
How one young guy can create $25 billion – Link here
The meteoric rise and likely fall of Tamil Nadu's Sun TV – Link here
The forgotten origins of Greece’s crisis will make you think twice about who’s to blame – Link here
The Philosophy of Value Investing — Reject “New Paradigm” Thinking – Link here
Misplaced Stress - What economic commentators get wrong about farmer suicides – Link here
Is Facebook Really Worth More Than Wal-Mart? A Value-Based Comparison – Link here
Peter Thiel on what works at work – Link here
Four Things the Stock Market Has Taught Me – Link here
How Icelandic Yogurt Invaded America – Link here
Why Greeks Will Vote 'Yes' to Europe – Link here
How Reliance Is Taking Over Indian Media, Now Buying Sun TV Network – Link here
How McDonald’s Started in China – Link here
Get Off The Computer And Complete This Italian Teacher's Summer Assignment. You Won't Regret It – Link here
What’s really warming the earth – Link here
CAUGHT IN THE BIG SALE @_SACHINBANSAL @AMAZON @1KUNALBAHL #PRESS #MEDIA @BWORLDONLINE – Link here
How to Be a Friend in Deed – Link here
How one young guy can create $25 billion – Link here
The meteoric rise and likely fall of Tamil Nadu's Sun TV – Link here
The forgotten origins of Greece’s crisis will make you think twice about who’s to blame – Link here
The Philosophy of Value Investing — Reject “New Paradigm” Thinking – Link here
Misplaced Stress - What economic commentators get wrong about farmer suicides – Link here
Is Facebook Really Worth More Than Wal-Mart? A Value-Based Comparison – Link here
Peter Thiel on what works at work – Link here
Four Things the Stock Market Has Taught Me – Link here
How Icelandic Yogurt Invaded America – Link here
Why Greeks Will Vote 'Yes' to Europe – Link here
How Reliance Is Taking Over Indian Media, Now Buying Sun TV Network – Link here
How McDonald’s Started in China – Link here
Get Off The Computer And Complete This Italian Teacher's Summer Assignment. You Won't Regret It – Link here
Sunday, June 28, 2015
Read, Learn, Improve 27-Jun-15
The Greatest Good - Inspired to make a meaningful donation, I wondered: What is the best charitable cause in the world, and was it crazy to think I could find it? – Link here
The Flash-Crash Trader's Kafkaesque Nightmare – Link here
The NSE manipulation – Link here
Who decides Auto & Taxi Fares? – Link here
Surprise: Some Active Managers are Skilled – Link here
Driverless Cars: Insurers Cannot be Asleep at the Wheel – Link here
Toyota Test-Drives a New Hybrid (security) - Link here
What Happened When Linkin Park Asked Harvard for Help with Its Business Model – Link here
23 Profit Models – Link here
The dirty little secret advisers won’t tell you - Luck plays a far bigger role than skill in investment performance – Link here
Apple Music and the Future of the Music Industry – Link here
A Partnership with China to Avoid World War - George Soros – Link here
How Wall Street Enabled A Controversial Power Grab At A Wannabe Berkshire Hathaway – Link here
Saturday, June 20, 2015
Read, Learn, Improve - 20-Jun-15
Speaking the Language of Risk – Link here
The story of Mukesh Ambani's loss-making private firm that just got public banks to restructure its loans – Link here
Imagine a company with no organization structure, if employee joins there is no boss to report to, employees decide which project would they like to work on or you can start your own project gather/hire people – how long do you think company will survive? Well it has been alive & kicking since 1996 – it’s called Valve – one of the leading game developers – Link here . Most interesting is their employee handbook – Link here
The corporate theatrics in India of Reliance’s reclusive tycoon – Link here
The holy grail of earthquake prediction – Link here
Our history books need rewriting – Link here
The $50 Billion Question: Can Uber Deliver? – Link here
The Increasing Scarcity of Helium – Link here
How a curmudgeonly old reporter exposed the FIFA scandal that toppled Sepp Blatter – Link here
Who owns your face? Weak laws give power to Facebook – Link here
Russian farmer on trial for printing his own monopoly money – Link here
Why Apple Should Kill Off the Mac – Link here
Buffett: How inflation swindles the equity investor (Fortune Classics, 1977) – Link here
The Economist Who Realized How Crazy We Are – Link here
The story of Mukesh Ambani's loss-making private firm that just got public banks to restructure its loans – Link here
Imagine a company with no organization structure, if employee joins there is no boss to report to, employees decide which project would they like to work on or you can start your own project gather/hire people – how long do you think company will survive? Well it has been alive & kicking since 1996 – it’s called Valve – one of the leading game developers – Link here . Most interesting is their employee handbook – Link here
The corporate theatrics in India of Reliance’s reclusive tycoon – Link here
The holy grail of earthquake prediction – Link here
Our history books need rewriting – Link here
The $50 Billion Question: Can Uber Deliver? – Link here
The Increasing Scarcity of Helium – Link here
How a curmudgeonly old reporter exposed the FIFA scandal that toppled Sepp Blatter – Link here
Who owns your face? Weak laws give power to Facebook – Link here
Russian farmer on trial for printing his own monopoly money – Link here
Why Apple Should Kill Off the Mac – Link here
Buffett: How inflation swindles the equity investor (Fortune Classics, 1977) – Link here
The Economist Who Realized How Crazy We Are – Link here
Friday, June 19, 2015
What do you think you are doing?
This is a guest post from a very good analyst friend MA, he had worked for long time in stock market as analyst and then switched to non-stock market job/company for brief period. He narrated this incident that I have written below from his point of view.
What do you think you are doing?
Long time ago there was one Analyst; he was very intelligent and smart. He left stock market to join a company that was in total different business compared to stock market. Company actually manufactured actual product and sold, unlike stock market where product is more of idea (stock idea/ stock recommendation)
Given Analyst has been born & brought up with habit of reading daily newspaper, he would discuss pretty much everything that could impact any organisation – like interest rates (finance), competitors launching new product or new tie-ups or new promo, M&A, big recruit moving from one organisation to another, update on raw material or suppliers front , etc etc. He would interact with lot of office people and he would be shocked to know that most of people working in office are actually less aware about stuff that goes around outside office. Things that would be reported in newspaper and easy to become alert about, he would always wonder why people would just not read simple newspaper.
Once such afternoon, he was reading newspaper and CEO walked in, Analyst nodded in respect and CEO came nearby. Analyst greeted him and CEO said in very grudging voice “what do you think you are doing?” Analyst replied “just trying to move some orders and trying to reduce our freight cost”. CEO gave irritating look, points at newspaper and says “what is this?”, Analyst looks and is about to answer newspaper when he realises what blunder he has committed. Office order newspaper but that is just for show or for outsiders not for office people to read it. Analyst closes newspaper and shoves in it drawer as quickly as he could and that’s when CEO says “if you want read newspaper sit at home, don’t come to office”
This story is applicable to most organisations that work in every other area apart from stock market. Most CEO believe reading newspaper equals to wasting of time, even though that’s first thing every B-School ask its student to do. For that matter most parents also encourage their kids to read newspaper for developing & improving reading habits and also to get to know world around at large. One ought to read as much as possible, however not believe every world written in it.
What do you think you are doing?
Long time ago there was one Analyst; he was very intelligent and smart. He left stock market to join a company that was in total different business compared to stock market. Company actually manufactured actual product and sold, unlike stock market where product is more of idea (stock idea/ stock recommendation)
Given Analyst has been born & brought up with habit of reading daily newspaper, he would discuss pretty much everything that could impact any organisation – like interest rates (finance), competitors launching new product or new tie-ups or new promo, M&A, big recruit moving from one organisation to another, update on raw material or suppliers front , etc etc. He would interact with lot of office people and he would be shocked to know that most of people working in office are actually less aware about stuff that goes around outside office. Things that would be reported in newspaper and easy to become alert about, he would always wonder why people would just not read simple newspaper.
Once such afternoon, he was reading newspaper and CEO walked in, Analyst nodded in respect and CEO came nearby. Analyst greeted him and CEO said in very grudging voice “what do you think you are doing?” Analyst replied “just trying to move some orders and trying to reduce our freight cost”. CEO gave irritating look, points at newspaper and says “what is this?”, Analyst looks and is about to answer newspaper when he realises what blunder he has committed. Office order newspaper but that is just for show or for outsiders not for office people to read it. Analyst closes newspaper and shoves in it drawer as quickly as he could and that’s when CEO says “if you want read newspaper sit at home, don’t come to office”
This story is applicable to most organisations that work in every other area apart from stock market. Most CEO believe reading newspaper equals to wasting of time, even though that’s first thing every B-School ask its student to do. For that matter most parents also encourage their kids to read newspaper for developing & improving reading habits and also to get to know world around at large. One ought to read as much as possible, however not believe every world written in it.
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