Hats off to the makers of 3 Idiots for giving us these three magic words that can give a lot of solace to our heart and mind in these troubled and often out of control situations. We face issues day in and day out. Some of them are totally out of our control and out of our sphere of influence. However, they are the once that bother us the most. In such times keep you hand on your heart and say “All Izz Well”!
I firmly believe that the world economic recovery that we are curently experiencing does not have the fundamentals to sustain itself. It is bound to fail. How can you bank on a recovery without reform? Nothing major has changed in the world banking landscape. No major legislation or act. Unfortunately, we might see a major double dip – This time the depth of the fall will be far greater and painful than the last one. All major stock indices will see their 2009 lows tested and broken. Contrary to the popular consensus that gold is a hedge against an economic down turn, I believe this fall will not spare gold too. Gold will fall along with all other assets. The recession will be deep, painful and long lasting.
What control do you have over this gloom and doom scenario – None. So just say “All Izz Well” and hope that I am wrong.
Good Luck!
Wednesday, January 27, 2010
Monday, January 25, 2010
Follow the herd at your own peril
Most of us have this herd mentality; we just follow a path treaded by most others because we consider it to be safe. The following incident drives home the point – though not very logical, I am sure you will remember it for a very long time to come.
In October 2009, I visited a number of places in Kerala along with my friend Ravi. When we reached Thekkady, we were told that the high court of Kerala imposed a blanket ban on boating. Thekkady is famous for its boating, so with the main attraction no longer in play, we decided to go trekking and had a gala time through the forest assisted ably by two very knowledgeable guides.
On our way back, we asked them what happened on the fateful day. One of them narrated the incident as if it unfolded in front of his eyes. There are a number of boats that are used to ferry the tourists on an 8 mile journey up and down the most scenic lake. This fateful boat was the newest and technologically the latest and most well built. This boat had two decks – the lower and the upper deck. The journey began with full load of tourists on both the decks, as they progressed; the guide noticed a herd of elephants on the shore to his left and announced the same. Immediately every one on the boat ran from their right to the left edge of the boat in a flash, the boat overturned, the bottom end of this lake is made of clay and the overturned boat got stuck in the clay. Most of the tourists on the lower deck survived while most on the upper deck got stuck in the clay and died of breathlessness before any help arrived. In all, about 43 people died. High court came down very heavily on the authorities and imposed a blanket ban on boating till further notice, suspended all those in charge in the tourism department and forced the authorities to come up with a safety plan for the future. I am sure the technical design of the boat should have taken this extreme scenario into consideration. We felt very sad and sorry for the lost lives, most of them very young which included a newly married couple from Andhra on their honeymoon.
Relate this story to what harm a herd mentality can do to you and forget the rest of the story. Never follow the herd. Think and act. Make your own choices in life and take responsibility for the consequences. Create and tread your own path to success.
Good Luck!
In October 2009, I visited a number of places in Kerala along with my friend Ravi. When we reached Thekkady, we were told that the high court of Kerala imposed a blanket ban on boating. Thekkady is famous for its boating, so with the main attraction no longer in play, we decided to go trekking and had a gala time through the forest assisted ably by two very knowledgeable guides.
On our way back, we asked them what happened on the fateful day. One of them narrated the incident as if it unfolded in front of his eyes. There are a number of boats that are used to ferry the tourists on an 8 mile journey up and down the most scenic lake. This fateful boat was the newest and technologically the latest and most well built. This boat had two decks – the lower and the upper deck. The journey began with full load of tourists on both the decks, as they progressed; the guide noticed a herd of elephants on the shore to his left and announced the same. Immediately every one on the boat ran from their right to the left edge of the boat in a flash, the boat overturned, the bottom end of this lake is made of clay and the overturned boat got stuck in the clay. Most of the tourists on the lower deck survived while most on the upper deck got stuck in the clay and died of breathlessness before any help arrived. In all, about 43 people died. High court came down very heavily on the authorities and imposed a blanket ban on boating till further notice, suspended all those in charge in the tourism department and forced the authorities to come up with a safety plan for the future. I am sure the technical design of the boat should have taken this extreme scenario into consideration. We felt very sad and sorry for the lost lives, most of them very young which included a newly married couple from Andhra on their honeymoon.
Relate this story to what harm a herd mentality can do to you and forget the rest of the story. Never follow the herd. Think and act. Make your own choices in life and take responsibility for the consequences. Create and tread your own path to success.
Good Luck!
Sunday, January 24, 2010
The art of negotiation
I am sure most of you (like me) have read a lot on this topic. We face this challenge day in and day out. We are always negotiating... with our boss, our colleagues, our customers, our suppliers, our family members, relatives ... and the list is endless. An incident narrated by one of my managers when i worked for IBM had a profound impact on me. He told us one should try and learn the art of negotiation from the little kids around. He had a wonderful daughter. His daughter, when she wanted to watch a particular channel on TV, would successfully negotiate with her parents and grandparents. She would always win. When the parents are strict, she would run to the grandparents and use her soft skills and eventually win over her parents too. She would request, plead, cry.... do what it takes to get what ever she wanted. I tried to use this technique successfully when I bought an apartment, where I had to negotiate with the builder /property developer.
Few points that I would like to share on this topic are:
1. Prepare your mind set to win. Make it believe this is a do or die situation and you have to win.
2. When two people are negotiating, usually the one who has more patience and who is a better communicator wins.
3. You should do your home work. Work out all possible scenarios in your mind and determine what you are ready to let go in each scenario.
4. You should always endeavour to close the deal on a negotiation table. Scenarios which are viewed / perceived as win-win make both parties happy and set things up for a lasting relationship.
5. Never sit on the negotiation table when you are constrained for time. Negotiations usually run out of scheduled time and you should be prepared.
6. Never give up. The last resort should be to agree that you disagree today and agree to meet again (fix a date).
Try it in your next round of negotiation and share you success story with me.
Good Luck!
Few points that I would like to share on this topic are:
1. Prepare your mind set to win. Make it believe this is a do or die situation and you have to win.
2. When two people are negotiating, usually the one who has more patience and who is a better communicator wins.
3. You should do your home work. Work out all possible scenarios in your mind and determine what you are ready to let go in each scenario.
4. You should always endeavour to close the deal on a negotiation table. Scenarios which are viewed / perceived as win-win make both parties happy and set things up for a lasting relationship.
5. Never sit on the negotiation table when you are constrained for time. Negotiations usually run out of scheduled time and you should be prepared.
6. Never give up. The last resort should be to agree that you disagree today and agree to meet again (fix a date).
Try it in your next round of negotiation and share you success story with me.
Good Luck!
Sunday, January 10, 2010
Systematic Investment Plan (SIP)
Why SIP?
1. It enforces discipline in you to save money regularly
2. You can start with as low as Rs500 a month
3. It benefits immensely from the principle of rupee cost averaging
4. Historically, over a long period of time, SIP has consistently outperformed the returns available from other investment options
5. If you really have to – for a genuine reason – you can always opt out of a SIP (no lock-in period except for tax schemes-3 years)
6. The entry and exit costs of an SIP are zero
Choose the right SIP for you and start investing today. You have a broad range of choices from 100% equity to 100% debt schemes to suit your risk taking ability. These seemingly small drops of investment, if continued over a long period of time and enhanced to keep pace with your rising annual income, can contribute significantly towards securing a financially sound retirement for yourself or financial security for your kids.
Personally, I am invested in HDFC Tax Saver SIP. I started this when my little angel was born. Rs.5,000 gets debited from my salary account on 1st of every month and is invested into, predominantly, equities. So far I have no complaints – only a reason to rejoice. Below is the snapshot of my investments and returns so far.
I strongly urge you to start investing today. Select an SIP and enjoy the benefits over time.
The usual caveat, though i have nothing to benefit here: past performance is not necessarily indicative of future. You must consult your financial advisor before acting upon any information.
Good Luck!
1. It enforces discipline in you to save money regularly
2. You can start with as low as Rs500 a month
3. It benefits immensely from the principle of rupee cost averaging
4. Historically, over a long period of time, SIP has consistently outperformed the returns available from other investment options
5. If you really have to – for a genuine reason – you can always opt out of a SIP (no lock-in period except for tax schemes-3 years)
6. The entry and exit costs of an SIP are zero
Choose the right SIP for you and start investing today. You have a broad range of choices from 100% equity to 100% debt schemes to suit your risk taking ability. These seemingly small drops of investment, if continued over a long period of time and enhanced to keep pace with your rising annual income, can contribute significantly towards securing a financially sound retirement for yourself or financial security for your kids.
Personally, I am invested in HDFC Tax Saver SIP. I started this when my little angel was born. Rs.5,000 gets debited from my salary account on 1st of every month and is invested into, predominantly, equities. So far I have no complaints – only a reason to rejoice. Below is the snapshot of my investments and returns so far.
(The following image is readable in its enlarged form)
I strongly urge you to start investing today. Select an SIP and enjoy the benefits over time.
The usual caveat, though i have nothing to benefit here: past performance is not necessarily indicative of future. You must consult your financial advisor before acting upon any information.
Good Luck!
Monday, January 4, 2010
What are you good at?
Today is Sir Isaac Newton's birthday. We all know Isaac Newton as a well known physicist and scientist. A little known fact about Isaac Newton is that he lost 20,000 pounds (approx. $2 million GBP) in today's money) due to his speculation in the South Sea Company stock in the 1720s during the bubble. He later commented "I can calculate the motions of heavenly bodies, but not the madness of people."
Moral of the story - Identify what you are good at and then excel in it.
Good Luck!
Moral of the story - Identify what you are good at and then excel in it.
Good Luck!
Sunday, January 3, 2010
Begin with the end in mind
The only certainty for each one of us is “death”. 99.9% of the people (including me) are not prepared for it. As Stephen Covey aptly puts it, when you begin with the end in mind the whole game changes – Things which are unimportant get faded away and the ones that are more important to you start getting more attention. You do things that are closer to your heart and you do them in a hurry not to a scheduled calendar which often gets postponed for the nth time. Family gets centre stage and every thing else moves to the periphery.
Life span is limited with no known scientific calculator to measure it before hand. The best we can do is to accept the fact that death could happen any time and fill every moment of it with cherished memories. There is no time for quarrel and egos. Keep smiling and have fun.
You must help your family prepare financially for the eventuality. This is a much easier task, but not widely practiced in India. Take a pure term insurance policy that covers risk of death. This is a must for every bread earner of the family. No excuses. There is lot information available on the net. Search and choose the right policy. The idea is to pay the lowest premium and enjoy the maximum term of coverage. The premium rates have come down considerably now and are in the range of Rs15,000 per annum for a sum assured of 1 crore for a person in early 30s. Use online premium calculators to calculate your premium with each policy provider. The thumb rule is you should opt for coverage of 10 times your gross annual salary. Do not club this with any other investment such as ULIPs. You get to loose. Keep your investments and term life insurance separate.
Love your family, don’t post pone the good deeds and don’t forget to take a term life insurance policy.
Good Luck!
Life span is limited with no known scientific calculator to measure it before hand. The best we can do is to accept the fact that death could happen any time and fill every moment of it with cherished memories. There is no time for quarrel and egos. Keep smiling and have fun.
You must help your family prepare financially for the eventuality. This is a much easier task, but not widely practiced in India. Take a pure term insurance policy that covers risk of death. This is a must for every bread earner of the family. No excuses. There is lot information available on the net. Search and choose the right policy. The idea is to pay the lowest premium and enjoy the maximum term of coverage. The premium rates have come down considerably now and are in the range of Rs15,000 per annum for a sum assured of 1 crore for a person in early 30s. Use online premium calculators to calculate your premium with each policy provider. The thumb rule is you should opt for coverage of 10 times your gross annual salary. Do not club this with any other investment such as ULIPs. You get to loose. Keep your investments and term life insurance separate.
Love your family, don’t post pone the good deeds and don’t forget to take a term life insurance policy.
Good Luck!
Teachers shape our early life
As I step into this New Year 2010, I went back in time to re-live my early schooling years and to say a profound thank you to all my teachers. Each one of them lived beyond their call of duty in shaping my academics, which then helped shape my personal and professional life. To honour their privacy, I will not name them here.
St. Andrews High School, Saidabad, Hyderabad (I studied here from LKG to Class VI).
English teacher: In class III, she insisted that we read all the signboards as fast as we could on our daily school bus journey (for some it was walk to the school, for some others it was a crammed rickshaw journey). I started reading the signboards (big and small from a moving bus) and over time picked up the art of reading them fast and comprehending them quickly.
She also made us listen to the “All India Radio” 8 am News in English every day and write notes while we heard the news on the “Live Radio” and then recite them in the early morning prayer at 9 am. This practice, I believe, helped lot of us sharpen our listening our public speaking skills considerably. She also suggested that we read “The Hindu” daily newspaper.
The then Principal: She picked select few students and took personal care in improving our skills in various subjects. I was fortunate to be among the select few. I never felt the necessity to go to a paid tuition, all the doubts got clarified in this forum.
David Memorial High School, Tarnaka, Secunderabad (Class VII to Class X)
The then Headmistress, who later left to work at another school in Habsiguda during our Class X. Even though she no longer was with our school, she spared her valuable personal time to teach us various subjects at her residence after the school hours and weekends to ensure that we excel at our class X state board exams. I truly admire her for her time, moral values and unselfish nature.
I first saw her at her office in my Class VIII, when I fought with her over a mathematics mid-term exam answer. The marks for the question in dispute would not only give me a 100/100 in Maths paper, but also help me topple the consistent class topper, Mr. X. I managed to argue forcefully and convinced her. She over wrote the marks with red ink and changed the totals and expected to see a smile on my face. I wasn’t smiling – she asked why? I didn’t have an answer. I guess I was still angry that things were not right the first time around and I had to literally fight to make things happen the right way. From that day to several years down the lane I enjoyed getting mentored by her. She taught us many subjects but more so many values and morals in life that we still try to uphold.
Mathematics Sir: Maths was my favourite subject. I completed class X mathematics during the summer vacation after class IX. So when the actually class started i had all the answers ready for each chapter. I was the first one to answer any question asked by our Sir. He was greatly impressed. He let me teach few concepts, this is the first time, I believe, I learnt teaching skills. This also meant that i had time to go that extra mile in answering tougher problems. This meant several sessions with our Sir, he taught me how to try and solve each problem in multiple ways.
I will write about my college, engineering and MBA teachers some other day. The important message is catch hold of good mentors early on in your life. Together with our parents and friends they truly help shape our destiny.
Good Luck!
St. Andrews High School, Saidabad, Hyderabad (I studied here from LKG to Class VI).
English teacher: In class III, she insisted that we read all the signboards as fast as we could on our daily school bus journey (for some it was walk to the school, for some others it was a crammed rickshaw journey). I started reading the signboards (big and small from a moving bus) and over time picked up the art of reading them fast and comprehending them quickly.
She also made us listen to the “All India Radio” 8 am News in English every day and write notes while we heard the news on the “Live Radio” and then recite them in the early morning prayer at 9 am. This practice, I believe, helped lot of us sharpen our listening our public speaking skills considerably. She also suggested that we read “The Hindu” daily newspaper.
The then Principal: She picked select few students and took personal care in improving our skills in various subjects. I was fortunate to be among the select few. I never felt the necessity to go to a paid tuition, all the doubts got clarified in this forum.
David Memorial High School, Tarnaka, Secunderabad (Class VII to Class X)
The then Headmistress, who later left to work at another school in Habsiguda during our Class X. Even though she no longer was with our school, she spared her valuable personal time to teach us various subjects at her residence after the school hours and weekends to ensure that we excel at our class X state board exams. I truly admire her for her time, moral values and unselfish nature.
I first saw her at her office in my Class VIII, when I fought with her over a mathematics mid-term exam answer. The marks for the question in dispute would not only give me a 100/100 in Maths paper, but also help me topple the consistent class topper, Mr. X. I managed to argue forcefully and convinced her. She over wrote the marks with red ink and changed the totals and expected to see a smile on my face. I wasn’t smiling – she asked why? I didn’t have an answer. I guess I was still angry that things were not right the first time around and I had to literally fight to make things happen the right way. From that day to several years down the lane I enjoyed getting mentored by her. She taught us many subjects but more so many values and morals in life that we still try to uphold.
Mathematics Sir: Maths was my favourite subject. I completed class X mathematics during the summer vacation after class IX. So when the actually class started i had all the answers ready for each chapter. I was the first one to answer any question asked by our Sir. He was greatly impressed. He let me teach few concepts, this is the first time, I believe, I learnt teaching skills. This also meant that i had time to go that extra mile in answering tougher problems. This meant several sessions with our Sir, he taught me how to try and solve each problem in multiple ways.
I will write about my college, engineering and MBA teachers some other day. The important message is catch hold of good mentors early on in your life. Together with our parents and friends they truly help shape our destiny.
Good Luck!
Saturday, January 2, 2010
6 idiots
I watched the movie "3 idiots" today and it appeared to be a miniature version of our "6 idiots" (see me first blog post). The only difference was the 3 idiots in the movie meet after a long gap of 10 years, while the 6 idiots continued to be in touch from the date of graduation (engineering) and will continue to do so. The film tries to portray what good friends can do to you. We lived it in flesh and blood and can vouch for the true value of friendship. Please do watch the movie.
Yours 6 friendly idiots!
Yours 6 friendly idiots!
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