How bad incentives and motivations can kill companies despite hugely untapped potential.
Read More
Har baap ka sapna, bas SETTLE ho jaye beta apna ! (completing the man !) A note on Raymond Franchise Stores.
India is a land of the plenty, unlike the US, not of opportunities, but of money. Every businessman daddy is trying to “settle” his beta with an enterprise. Being huge fans of rentRaymond has a target to open 300 mini-franchise stores in the next one year. I am of the opinion that not only will…
Read More
The Undoing Project – Michael Lewis undoes Danny Kahneman and Amos Tversky
From dealing with uncertainty, decision making, understanding and recognising your and public stupidity, negotiation, using intuition, defining losses, the difference between probability and possibility, controlling emotion while reasoning – this book has it all. Take your time in chewing on this. Probably the best book in psychology that I will ever have read. The Insider…
Read More
Demonetization triggers Piramal Enterprise’s first ConCall in years !
Whenever there is wild spread ambiguity, i remember Pabrai’s distinction between risk and uncertainty loud and clear. In this specific case, the loan book concerns were about mortgage worthiness (risk) and cash flow/interest payments (uncertainty ). Piramal seems to have put off taking calls from investors all these years as the entire group structure itself…
Read More
Bajaj Auto just shot itself in the foot with a Bullet !
Recently Bajaj Auto, released an ad on brotherhood day, an ad apparently to reduce discrimination in the Himalayas between the Bullet riders and the Avenger riders. Watch how it goes. I almost died laughing at the ad. It’s the cheapest shot of piggy backing on someone else’s brand name. The guy riding the Avenger, is…
Read More
Who moved Jubilant’s Cheese ?
On August 2015, Jubilant traded at 1923 a share, thats a M.Cap of a whooping 12,610 cr.. Jubilant sold 2410 cr of pizzas(mostly) this year and made 114 cr after taxes. At 12,610 cr someone assumed that Jubilant is worthy to pay 110 years worth of current profits. 110 !!!!! I have something to say…
Read More
Investing Capital Vs Re-Investing Profits – Is there a difference ?
This question has long plagued me. Should there be a distinction in investing capital/savings vs investing profits ? Money is money right ? Why should we then even bother answering this question ? I said this to myself and tried to convince/fool myself for a while. It didn’t work but just stayed in the “PENDING”…
Read More