It is amazing how people will not do simple things to make money! Start early, index your investments, do not interrupt the compounding process…..but will continue to do stupid things. In 1600 it was tulips, in 2012 it was Social Media! The fall in market capitalization of Groupon is about US $ 20 billion, and […]
Moodys downgraded one tranche of SBI’s borrowing…but the Indian Media has downgraded SBI!! Amazing what lack of training can do. One small tranche of US $ 400 million borrowing has been downgraded by Moodys (which can do no wrong, because Warren Buffet is a shareholder) to D. However, rest assured this is surely a cheap […]
remember this story was written in July 2011….in fact on 10 July…. Did anybody tell Dhirubhai Ambani that he was very lucky? Take a ‘Taleb’ian view on the success of the late Dhirubhai Ambani. He was a simple man, not very educated, perhaps very well focused, and dammit, GODDAMN LUCKY. Make no mistake there may […]
If you wondered how a company can fudge its accounts, well here are some things that they do: – show less expenses: if you want to be more profitable -show more expenses if you want to be seen as less profitable from real life. – increase profits by showing revenue expenditure as capital expenditure – […]
I have nothing new to say..but surely this group is starved of ‘income’ and therefore cash flow. The markets especially equity markets love cash flow and certain cash flows at that. If certainty and cash flows are missing, the p/e takes a hammering…so the market capitalisation of the group is down…from great heights reached. Ok […]
Once upon a time (even today it has not really changed much) companies were run for the benefit of the dominant shareholders who were also in management. Even today that happens in companies like Reliance, Birla, Bajaj, Murugappa, – and these are not insignificant in size or contribution to the national kitty. However in the […]
For readers of my blog this is not a new news. I have not been a fan of any businessman who is more into ‘market capitalisation management‘ rather than business management. When the Reliance Power IPO came at Rs. 450 I did not apply though of course there are many people who applied. I wrote […]