Sunday, 20 December 2009
I strongly believe that each new year one should have money resolutions separately for oneself. Here are my "Money Resolution" for the coming year 2010.
- Keep track of every investment regularly and count & consolidate every month’s investment. So That you know how much money is invested every month and consequently for the whole year.
- Every 6 months look how investments are doing, redo them if required.
- Start Tax Saving investments early in the financial year.
- Every month invest surplus money somewhere, be it even the Liquid funds. But let your money earn at least something for you.
- Don’t ever dither on any financial decision. Make it then and there but not without thinking.
- Keep yourself up-to-date with personal finance knowledge.
- Be little bold in investing for your long-term money.
- Maintain proper balance in your portfolio by investing in all kinds of assets.
- Keep booking profits if profit goes beyond your expectations.
Saturday, 31 October 2009
Friday, 3 July 2009
Here I am also part of the above herd.
Wednesday, 1 July 2009
Tuesday, 30 June 2009
Automobile in India is now moving (or has already moved if I am late) from one being part of basic needs onto a luxury for the middle class. And when anything becomes a luxury, it doesn't just have to fulfil the basic requirements of that product (like for an automobile, to ferry people around) but have to satisfy the ego or even shoot up the status (in his or her own mind) of the owner. So for an automobile product to be bought it has to satisfy many criteria. And the top most of them would be the looks or the design of the product.
If we observe the automobile products launched in India over last decade, by having only a (and first) look at the product you can easily tell whether the product is going to be successful or not. Or you can even write obituary of the product at first look if looks are not very striking. In my mind I wrote the same for three Suzuki two wheeler products and two Honda products (Unicorn and Shine). In retrospect, I think I am fairly correct (no braggin or boasting) on those counts as these launches have not been so successful for their respective companies.
Today when a consumer in India (Indian consumer is mostly going to be a young person) buys a product he (mostly the automobile buyer is "definitely male") sees the look of the product as the most important thing. Yamaha has not been able to make any presence in Indian two wheeler market simply because none (except the latest launch FZ. Oooh! that's the best bike in India so far by looks) of their product have been worth looking at. The same could be the case of Suzuki two wheeler as well, since all three products launched so far are not at all good at design. Yamaha and Suzuki are well known world over for their superb two-wheeler technology still they are failing in Indian market. I am sure the only reason is that they do not have great product designers in their studios. Superb technology only gets appreciation when it's presented in best designed box. Even Honda is not able to make much of an impact in two wheeler because of the same reason. Bajaj would not be successful or worthy competition to Hero Honda until they hire some top-notch designers. Right now their products looks like underfed dogs or foxes. Pulsar had been successful mainly, because the category which it sells in, did not have worthy competition so far. By the way now Pulsar design has improved considerably but still not the best and has a long way to go. In this category the two new entrants TVS Apache and Yamaha FZ are going to be the scorching hot products, if they have good enough technology.
Obviously when a product's design is great second most important thing should be the underlying technology. Hero Honda has got these two things right in the same order in most of their products and we can see the results.
Same could be said of the passenger car market as well. Unknown (at start) Hyundai is successful in Indian market whereas the mighty GM and Ford are still struggling here for precisely the same reason.
I always wonder why can the management of Yamaha, Suzuki, Bajaj etc not see this point? A business magazine "Businessworld" (oooh, my favourite) carried a cover story on product design couple of years back but probably CEOs of these above companies did not read that issue and paying price now. Had they paid Rs 5 for that issue they would have made a few thousand crores for their companies and we Indian consumers would have had even superior product marquees to choose from.
Monday, 29 June 2009
Thursday, 18 June 2009
Then comes the time when recession starts and everyone including the loyalist start fearing about their job. Here probably everyone has the risks of loosing his or her job.
Wednesday, 17 June 2009
What I observed in Indian context is that normally a person follows his parental profession. Be it business, profession (medical, law or anything ) or anything else. And the second generation make it good in their parental profession, sometimes even better. Take examples of Ambani brothers, so many generations of politicians, innumerable small businessmen, people in Bollywood, just to give a few examples. I have also observed some families where there is good environment in home about education or spirituality or religion, the kids of such households grow up to be stronger in those area. This confirms that what kind of environment kids get at home and how serious they take their chosen area,they would become successful in that area.
In Indian middle class, students almost always choose their career options based on either family members suggestions/insistence or influences by peer group's choices. Hardly anyone has any idea as to what he or she really likes, barring a few exceptions. And even in such situations people turn out to be quite successful in their career. I feel except for few areas like art (painting, music, etc), or research when you really have to be passionate all other areas could be mastered by interest and hard work (obviously smart work).
I do not claim to be a researcher but I can claim to be a good observer in the above area. Please leave your comments and views on the topic.
Tuesday, 16 June 2009
Two reason for this:
1. so that I can refer as and when I wish
2. if someone bump into my mind he can also view the list.
I have always wondered what books should one read and who to tell what to read and what not to as there is huge information flood (books, journals, blogs, Internet). I thanks Rajesh for putting his list on Internet.
Tuesday, 9 June 2009
How this has helped the management at Satyam is that without them having to layoff employees company's employee strengh has come down significantly. What else would managment ask for when their goal is being achieved without them having to worry about consequences of laying off.
I wonder if the constant media coverage of layoff was a well tought out strategy of management. Whatever it was it was good. As neither employees had to go through the anogy of being laidoff not management had to draw any flak.
Wednesday, 20 May 2009
Sunday, 17 May 2009
The election results yesterday was simply stunning by any measure. None, absolutely none, in his/her wildest dream would have thought that the Congress would be getting absolute majority (almost!) at the centre. But that happened, and in style. I, though, did not favour another term for Congress govt. at centre, however I am really happy for the way Indian voters have given so clear a mandate for politics which is not divisive, not communal, pro-people, and inclusive, at least on paper. Voters have chosen the best option available to them.
I have never felt so confident about India and it's future as I do now. I now feel confident that if there is problem and none is able to decide which party, which person or which ideology should lead India, I think we should leave that to Indian voters and they will decide it best. Today I really feel proud of Indian democracy, they way it has matured and the way it will protect my future and that of my son. We can proudly tell to the world that we can teach you a lesson or two about democracy.
Long Leave Indian democracy.
Tuesday, 28 April 2009
The current crisis in the world is caused, as they say, by the new instruments created by bankers to make more profits. The new and innovative instruments like sub-prime lending, Collateralized Debt Obligations (CDO) and likes were introduced to encourage more and more lending. And this led us to this point.
Now every experts see the problem in these instruments and blame regulators of the time for not having checked on them when these were introduced in the market.
Why not regulators make it a point that they keep a close eye on the market and see if any new types of instruments are being introduced by market players like banks, PE players, hedge players and investment bankers. When this happens the regulators should not clamp down upon them immediately instead get some of the experts together and discuss pros and cons of them threadbare. This can help unearth any shortcoming if they have and accordingly regulations can be introduced so that we do not come to this point. I know it's easy on my part to say in the hindsight.
Monday, 27 April 2009
A lot of new innovations were done by this coach, like making every team member, except the one who captained team in last season, captain of the team. This way everyone has incentive to do his /(her?) best. Another innovation of packing back team members who are not fitting in the team's scheme of things (saving a huge amount of money specially during recession when money is honey). And another innovation is recruiting coach's sons in various newly created positions within team. And another innovation .......will come later. Not all today.
So out obsession with everything phoren is really paying dividend. Next time think this team's owner should also be foreign and so be all the players. That way team would be wining more games.
Our national team also had a foreign coach who is compatriot of the above coach. During this national coach out team also did wonders.
I just wonder should we not have our PM, president, everything phorener so that they take us up and up and up and we enjoy the fruits sitting on the ground.
Friday, 17 April 2009
But in contrast, Infosys itself has been telling that there will be almost no growth (projected 1.5% in rupee terms) in current financial year. Now we hear that company has asked its employees who are on the bench to work for its BPO arm. I understand that if company do not have enough work then it should ask employees to work for associate companies. This way jobs are saved, employees get to learn new skills and associate companies get resources when required without recruiting from outside. But what’s point in sending your existing employees to associate companies against their wishes and recruiting new (which Infy is doing by honouring its campus promises). If company does not have enough work why should it hire more which impacts job securities of its existing employee, severely impacts company financial affecting shareholders.
There is a famous saying in Ramayan “Jaan Jaaye par wachan na jaaye” (Keep your promise even at cost of your own life). Infosys seems to be following this saying, but with a little twist. Twist is that if life has to go it will not be its own but that of its employees. How unethical!
Thursday, 16 April 2009
Implication of this piece of news is:
1. Infosys is considered the bellwether of the overall Indian IT services industry and any trend set by it is considered to be replicated by the overall industry. So we can safely assume that the overall IT industry would also grow at the same rate. That is almost a 0% growth.
2. As there would be hardly any growth in IT service industry so there would not be need for new recruitment and certainly IT industry would like to rationalize their existing bench (generally Indian IT companies maintain up to 30% bench strength). This means there would be lay-off of resources that are currently on bench in companies.
3. Real estate in India is almost singularly dependent upon the uptake from IT industry be it for commercial or residential sector. So as a result I would say it’s safe to say that there would be no takers for real-estate that means the property prices are going to CRASH badly and LOUDLY in a years’ time.
4. Indian IT industry employs a huge no. of youth. As there would be hardly any growth this year so there is going to be significant problem of unemployment this financial year.
5. As lot of industries, home loan, financial industry to some extent and many more industries depend directly or indirectly for their growth on the growth of IT industry, so these industries would not be growing and that would impact employment too. So ultimately India would see huge unemployment problem among the educated youth (thankfully for political parties the election would be over by that time).
6. Infosys is saying that there would be hardly any new requirement for IT services in their target markets (western world), that clearly says that there would be no growth in those economies for this financial year. So a badly needed pickup in economic activities are still at least a year down the line. This means if we reasonably assume that economies in the west would start picking up only after this financial year (if nothing goes wrong now of which there is no surety). It would take at least a year for western economies to take off and then they will generate the requirement for IT offshoring so Indian IT companies should wait at least 2 year for their services to be required.
7. When in 2000 dotcom went bust, IT industry in India was impacted in 2001 and it took another 3 years for requirement to pick up. It’s only from 2003 end that serious recruitment started by IT companies. Which means a small problem like dotcom took two years off from the job market growth in India. Assume how long it will take this time as the problem is far far serious this time.