Most Amazing video I have seen related to physical world and virtual world

This is the most amazing video I have seen between the interaction of physical world and virtual world.

Real Estate bubble in China??

If everyone has the same information, it is tough to get the edge. At the same time we need to be continuos learning machines. I am trying to keep an habit of reading Chinese business news once a month. Read this interview from CEO of SOHO china. She thinks there is a real estate bubble in China

http://www.cibmagazine.com.cn/Features/Face_To_Face.asp?id=1190&zhang_xin.html

Tell Me if I am Wrong - Howard Marks from Oaktree

Here is an excellent Letter from Howard Marks. I am not a Macro guy but we all need to understand the risks of investing. It is tough to quantify the probability of these events. Whether we are investing in India, China or Emerging markets, we all need to understand the current risks in the US market.

The only thing I know is , If we are buying at deep discounts to intrinsic value, we will do fine in the long run


Memo to: Oaktree Clients

From: Howard Marks

Re: Tell Me I’m Wrong

My readers treat me well. They indulge my penchant for dissecting the past, and they send kind
messages of encouragement. To repay their generosity, I’m going to venture into something I
usually avoid: the future of the U.S. economy.

This memo won’t be about the future in general, just the elements I find worrisome. As I see it,
every investor is either predominantly a worrier or predominantly a dreamer. I’ve come clean
many times: I’m a worrier. By saying that, I absolve myself of having to describe the whole
future. I’m going to cover the negatives, starting with the immediate and ending with the
systemic (some of the latter repeats themes from “What Worries Me,” August 28, 2008). For
the other side of the story, I’d suggest you consult the optimists who seem to be in charge of the
markets these days.

Read Bruce Greenwald's interview

I agree to some of his comments. I cannot believe that I have the same hedges for my portfolio as he is talking. Recently I bought S&P puts and gold as hedges for blackswan events. I also agree that some of the best values are on franchises.
Interview - Part1
Read Bruce Greenwald's interview - part2

A one in Billion - True inspirational story - Must read

 

 Some times you can really underestimate, the power of hardwork, determination. culture can be a true advantage a company has. Think about replacing L&T in India, it is almost impossible.

 

Thanks to Rajeev Desai

Anil Naik......CMD of L&T....

Read On:

A. M. Naik is the Chairman and Managing Director of Larsen & Toubro, one of the most popular Indian companies. He was awarded the Padma Bhushan,India's 3rd highest civilian award,on January 26, 2009. Mr. Naik was also the recipient of the prestigious 'Economic Times Awards-Business Leader of the Year' award, for the year 2008[1]. Anil M. Naik joined L&T in 1965 as a junior engineer and shortly became the youngest manager in Larsen & Toubro's history.
After joining L&T as Junior Engineer in 1965, he rose rapidly through its ranks; he became General Manager in 1985, and Vice President (Operations) and Member of the Board in 1989 (in charge of the erstwhile Group II, now bifurcated into E&C and Heavy Engineering). In 1995, he was appointed President (Operations) and in April 1999, he took over as Chief Executive Officer and Managing Director. On December 30, 2003, he was appointed as the Chairman & Managing Director[2]. Naik is also extensively involved in social work and is currently developing the educational institution set up by his father in a region called Kharel, Gujarat.proud to be anaval Mr.Naik has been announced as an awardee of the Padma Bhushan in India on 26 Jan 2009[3]. AM Naik - A rare interview to MoneyLIFE
September 15, 2008 By 2010, we will hopefully come to the take-off point to becoming a true Indian multinational in our sector He came from a family of teachers, but was essentially a kid from a village in south Gujarat who, by his own admission, was poor in English because he used to think in Gujarati and then translate his thoughts. But language was no barrier to Anil Manibhai Naik, 65, in rising to the top slot in Larsen & Toubro, an engineering and construction giant, or putting it on the path to being a multinational entity and creating enormous value for shareholders. He achieved this through sheer hard work and through what he calls “devotion beyond dedication”. He is the first professional to head the blue-chip company set up by two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro with financial help from the father of NM Desai (another former L&T chairman). As the executive chairman of Larsen & Toubro, Naik has steered the company through some of its most turbulent times. Under him, L&T has recorded probably the most robust performance and the scrip has had the fastest rise in its history. His prime concern now is attracting and retaining talent for L&T, his biggest pride is in being “partners in nation building” and his big regret is that he has been such a workaholic that he did not spend enough time with his family

ML: Would you start by telling us something about your background?

Ricoh India - Still some value left

I liked the way this author thought about this. Even though it is not as compelling at 26 compared to 32 now. Read this article and make your own judgement. Couple of things I liked about this is it is recurring revenue and dependent on Indian Economy. What I don't like it is importing most of the stuff from Japan. China can kill in the long term.

A short quiz: If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef? Likewise, if you are going to buy a car from time to time but are not an auto manufacturer, should you prefer higher or lower car prices? These questions, of course, answer themselves.



But now for the final exam: If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. In effect, they rejoice because prices have raised for the "hamburgers" they will soon be buying. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.


The above paragraph is from the “letters to the shareholder” in 2005 by Mr Warren Buffet to the shareholders of his holding company Berkshire Hathway.


As an investor, our sole intention is to find a well-run and sensibly-priced business with fine economics …… and stay invested ignoring the gyrations of the market. But if a stock appreciates rapidly to the point where it no longer represents excellent in absolute terms or reasonable value relative to prospective purchases, or if new information comes to light that causes us to revaluate , it may be sold quite quickly. In this respect, I can’t resist the temptation of quoting Mr. Buffet from his “letter to the shareholders – 2003 ”. “…. We own pieces of excellent businesses – all of which had good gains in intrinsic value last year – but their current price, reflect their excellence. The unpleasant corollary to this conclusion is that I made a big mistake in not selling several of our large holdings during the great babble. If these stocks are fully priced now, you may wonder what I was thinking four years ago when their intrinsic value was lower and their prices far higher. So do I ”

Ricoh India Limited (RIL) is one of India’s leading sellers of office automation equipment like copiers, printers and multifunctional devices. It is the subsidiary of Ricoh, Japan, one of the world’s leading players in the office automation industry. The parent company owns 73.9% of the equity of Rs 39.7 crore.


The Indian office automation market is one of the fastest growing in the world and being driven mostly by BFSI sector (banking/financial service/insurance etc). The Industry in all likelihood will continue to grow in foreseeable future.

Ricoh (Japan) used to operate two units in India , Ricoh India and Gestetner India ( manufacturer of duplicating machines). Few years back, Gestetner India was merged into Ricoh India. The duplicating division was closed and all the employees were given VRS. The cost of closure was charged in the accounts of Ricoh India already. The goodwill arised out of merger was written off in the accounts and as on 31.3.09, entire Goodwill amount was already written off in the accounts.

http://www.capitalideasonline.com/articles/index.php?id=3217