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The Accidental Prime Minister

the-accidental-prime-minister-original-imaesr4x3fwfzpwa
The Accidental Prime Minister

Brief the Author: Sanjaya Baru

He was Prime Minister Manmohan Singh Media Adviser and chief spokesperson from May 2004 until August 2008. In April 2014, Penguin India published The Accidental Prime Minister Baru’s tell-all memoir about his time at the Prime Minister’s Office (PMO)

Let’s move on to the book………….

The book starts with the detailing of Manmohan singh as to how he started his career and ideation as why he was appointed as prime minister for 2 duration when the congress party was the ruling party. Manmohan an economics graduate who had returned from cambridge after his graduation , was working in Delhi School of Economics for a while. Then he went to become the secretary to the finance minister and he was encouraged to join the government by one of former student Mr Isher Montex. But as time flew by he became the Finance minister under the PM rule of Narasimha Rao. Manmohan singh was known as man of few words and his work loud enough to prove his talent and work. But there are lot twist and turns that happens in our life that makes that there enough Drama . Once Raul said to Singh when the latter was planning to return to India that “Sometimes in life it is wise to foolish”. But in think it wasn’t a wise decision to be foolish enough to become a puppeteer under the Sonia Gandhi. He is one of the best economist and Finance minister that the country, but not a strong leader who create huge impact among Indian citizens and does not fit the role of PM. First term of rule is credited to be a good one , but they spiraled downwards when they put tight spot in various corruption cases which are still impending in the court.

Sanjaya Baru the author was appointed as media advisor to PM by Manmohan Singh himself and therefore had direct and easy access to the PM. He handled dealing with issuing any statement regarding any issues, Resolving the controversies and thus the end to end process of handling the media and in the process handling the issues internally with the minister where his role played a important part. My understanding till now based on the reading , Manmohan singh was just face of the congress party. Every minister and politician were more concerned with impressing Sonia Gandhi , rather the PM itself. He never had the political authority that he was supposed have and final call for any decision on any policies laid in the hands of Sonia. Singh himself quote once that “He was accidental Prime Minister” which was true. Neither did he have the complete political authority or an extra effort taken to change things better policies. Despite his good work as economist, Finance Minister, and reformist,also known for his integrity was known as puppeteer due to the corruption under UPA-2 government. He was quite,did not respond to the media or did he take effective steps, just stayed away giving a bad impression.

Despite all his shortcoming he put a great fight, made an effort to bring out good policies, tired to prove he was independent and was not under the influence of Sonia. He was open to suggestion of people outside his government apart from his own which helped to improvise and implement them. He always related economic growth with the efficient implementation of foreign policies, making ourselves visible in the worked market and improving the relation with the borders and the trade between the countries as well. He was person behind the Indo-US deal and he had support of sanjaya Baru, Subramanyian and few other who understood the impact of the deal as the PM himself. He also did take initiatives to resolve issues with the Pakistan as well.

During the UPA-2 he lost complete power over anything. He did have the power to select his own cabinet ministers, lost control over the foreign policies, so on and so forth. He was quiet enough and was strong enough to take the measures or implement any policies as in the first term. He let Sonia do the job and made way for Rahul to take the leadership which didn’t happen though. He didn’t have any say in the corruption cases that came up during the period as well. This tarnished the reputation of the government as well himself. He was known for neo-liberal values, great intellect knowledge in foreign policies, economic reforms and great finance minister. He believed in liberalisation and he did bring in during his tenure as FM. Thus an accidental Prime Minister who happened to in wrong place and in right time for Sonia Gandhi

But I must praise the man for his intellect, knowledge that he had. he was probably one of few knowledgeable people that congress had. But due to play of politics he was placed in position that he was misfit for. He was not great leader nor politician, but more of a reformist who would have contributed where he could have efficiently displayed his skills

After reading the book it gave fair idea what went behind in PMO office and so much was revealed, so much politics was going on within political party. “Politics within politics”.Funny isn’t to see a reputed image of person get tarnished in the face of media as well the people of the country because he was an accidental Prime Minister. After reading the book , it gave me good brief of different politics that happens behind of what we see in reality.

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The Rise and Fall of Nations

rise and fall of nation

Ruchir Sharma is an investor, and has written widely on global economics and politics. As Chief Global Strategist and head of the Emerging Markets Equity team at Morgan Stanley Investment Management, he manages over $25 billion in assets under management. A long-time columnist for newspapers and magazines around the world, Sharma is the author of The Rise and Fall of Nations: Forces of Change in a Post-Crisis World (Norton/Allen Lane, June 2016) and Breakout Nations: In Pursuit of the Next Economic Miracles.

The Rise and Fall of Nations is my third book in the genre of finance and economics. The book takes us through ten rules of changes in the post crisis world. The factors that play a very important role in growth and development of a nation and prevent any downfall. I feel the author takes through all of these factors with detailed research and facts to make us understand their importance.

People play very important role not only in each other’s life and also contribute to growth of the economy and indirectly /directly the development of the nations. For four years of BC i.e before the crisis of 2008, the world was growing at higher phase and there was boom in the economy. But the situation turned around vice versa post BC and entered a period of AC i.e After the crisis.It is in the AC period the reality stuck the entire world. Hype surrounding globalization has led to a vice versa situation “deglobalization”. He also talk about countries that rapid growth and expected to have such continual growth and saw a rapid decline and also vice. He widely talks about how population growth, availability of talent tool and efficient talent pool have direct impact on the GDP. The impact on decline in population will have direct impact in the labor force and thereby effecting the economic growth. In many countries people entering the workforce is lesser than the population leaving out of workforce. These mainly due reducing fertility rates and early retirement age. Also its observed that many women are restricted from entering the work force as there is at least one rule restricting them from pursuing a career.

Also another way to add the work force and increase the talent pool is by welcoming immigrants. In countries like US, most of the workforce of engineers, tech professionals are represented by the immigrants. Refugee act as major source or addition to the workforce. They also add to the population, and hence impact on economic growth and GDP of any country. The book also talks about how countries can exploit and benefit from immigrants and also to attract more of them entering into their country.

With the advancement in technology, has always contributed to the development of any nation directly or indirectly. But it has also has significant impact on lives of individuals as well. But pros also comes the cons of advancement in technology as well. With advent of robot, and use of it in workplace in place of humans has caused fear of losing jobs and also of robots dominating us. The high density of robot are mostly found in countries like South Korea, Germany, Japan and China, to name a few.

The next factor the author talks about is how political scenario, type of governance, crisis prevailing in any country can also affect the economic growth. The author has given has given a detailed analysis to each point he talks about in the book. It makes understanding of factors, and it’s impact as he not only provides us deeper analysis, but also is support with appropriate data to support his point. He compares political cycle of any country to circle of life, where there are always going to huge growth and also downfall. There is never going to smooth for both economic growth as well the political temperament of any country. In life any crisis moment or downfall bring out best in the personal and him/her more stronger than before. Same applies in crisis in any nation. Any crisis or downfall inn economic growth in any nation, pushes the leaders to bring out the best reforms, cost cutting and bring about the stability in the economic growth. But also it has been observed, more the political leaders stay in power, they become stale and make growth becomes stagnant. He also about the monarchy, autocratic and democratic rule and how countries who fall into the mentioned category of rule have progressed in terms of economic growth. He also takes through the pros and cons of each rule to convey the none of them came be considered to best rule. It is one better over other some aspects and not better various other factors.

I have always heard rich getting richer and poor getting poorer. Living in a country like India, they is wide gap and inequality between wealthy billionaire’s and poor people. But I understood the complete impact of this inequality can impede the growth of any country. There few examples of countries which tried to bring out the balance in these gap, but at the cost of the growth. A country should concentrate on bringing in growth to the country and spreading out the wealth thereby minimizing the gap. But many countries fail to keep balance between the both. Also from the side of businessman it is important not only to create wealth for themselves and but also contribute to the growth of the countries. Achieving growth in business using political ties only benefit the business at the behest of nation’s growth.

Government spending on development of country, level of interference or meddling with the running of government offices and the also how privatization or development of entrepreneurial skill also are some factors which determine either growth or deterioration of the economic growth of the country. One important check to a certain whether the government is overspending is to check percentage of spending in correlation with GDP and how effective has it been in the growth. It is important not to just spend the money, but also to put to use in productive investments that accelerate the growth. For any nation it is also important to encourage the growth of new entrepreneurs, innovative ideas and technology to come up rather than cutting deals with the existing wealthy businessmen based in political benefits

He also takes through how geographic location, trade routes and strategies if adopted and implemented along with the trade policies can help any country grow. Also development of infrastructure facilities like strengthening of trade routes through road, efficient use of port makes is one factor which increases the visibility of any country and more friendly to trade with.

Investing in manufacturing and commodity and its growth as a part of GDP of a country is important for development and economy growth. This investment binge also leads development of other sectors such the road, supply network and other infrastructure facilities of the country. Concentrating on development of services industries may not and will not contribute most to economic growth and GDP of the any country. Only in country like India where service industry like IT has grown to huge extent and contributed to GDP and development other other relevant sectors.But the growth is not significant enough. Hence investment in manufacture sector is a good binge and lead to a strong growth of any country.

Inflation and deflation of prices plays a important role in development of any country and to decide on any investment decision. Inflation has become significant part of our lives and there is has rise in prices of goods and commodities and hence no incidence of deflation at all. The data suggest us that before 1930’s there has no incidence of high inflation that we see today. Both inflation and deflation has been under control and hence have strong economic growth. The general rule is lower is the inflation rate, is good for the growth of any country. But at same there both bad and good side of deflation as well. When the supply is more and demand is less, price reduces and leads deflation and that is not a good sign. Both of them have balance out and should be maintain at appropriate level for the development and accelerate the growth of any nation.

Usually the instinct is the that anything is cheap is good. But not necessarily it needs to be good. There many factors that needs to considered especially with respect to currency and economic growth of any country. The general rule is that cheap currency along with healthy and positive economic growth is always good. It also proves best to invest in those countries. High value in currency, obviously indicates fall of the economy which may due inflation. In many countries, they devaluate the currency rather than letting market to decide the price. This is done to artificially show growth and attract investment. But this is bad signal, despite cheaper price, there are no signs of healthy and stable economic growth. Any bad sign due to impact bad deflation or too much inflation, the locals are first to get the intuition and big players in the economy follow the them

Debt of any country as significant part of country GDP is also not a good sign and leads to fall of a nation. If the rise of debt is 5% for consecutive five years is followed by the slow economic growth and Fall of nation. It is hence important for a country to keep country and take measures to prevent the fall. These can understood by analyzing the current account of any country. If the trade deficit are more, so are the debt. Piling of debt and investing them in places which does not contribute to the development, increase in import of luxurious goods and lesser exports leads lower or no economic growth as well. The another rule is that if banks have deposits upto 80% then they are enough to lend money to borrowers.

The relation between the media and nation is of love and hatred. The more hype the nation gets that the growth of the country is good, then it is a clear indication that the growth is reached the peak and it falling down and vice versa. Most of the headlines published in TIMES is proved wrong in reality. There is no research that goes into or any integrity shown before publishing these headlines. When the economic growth reaches its peak and that is hyped about it as going good and expected even better growth to be posted by the country. But they are on the verge of downfall and they do. When they do downfall, the love for the country turns to hatred and then the existence of the region and country is forgotten about. It is at this time of negligence, the corrective measures are taken to rectify the mistakes and strong economic reforms are brought into leading to stable growth and back into the limelight. The book ends with based on the ten rules that are discussed in the book, the countries to look forward for growth, countries that were developed and have down to average and yet stable enough. Countries like Africa despite the current state and history with corruption, still show hope and signs of recovery and have economic growth if proper measures are taken.

For me as a reader, I felt that as progressed, it draggy and boring enough. Though he has given good enough examples and data to validate his statements, it way too much information too grasp for any person. And this is book i took longest to finish it off(2.5 months). That’s not usual time that I take finish off a book. Hence I would rate the book 3 on 5

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Liar’s Poker

Liar's poker

Michael Monroe Lewis is an American Non-Fiction author and financial journalist. His bestselling books include Liar’s Poker(1989), The New Thing (2000),Money-ball: The Art of Winning an Unfair Game(2003), The Blind Side Evolution of a Game (2006), Panic (2008), Home Game: An Accidental Guide to Fatherhood(2009),The Big Short: Inside the Doomsday Machine(2010),Boomerang: Travels in the travels in the New Third world(2011) and Flash Boys(2014). He has also been a contributing editor to Vanity Fair since 2009. His most recent book is The Undoing Project

Liar’s Poker is a non-fiction, semi- autobiographical book describing the author’s experiences as a bond salesman on Wall Street during the late 1980’s. Lewis was art history and economics student in reputed and prestigious Princeton university. He wanted to pursue his career in the field of investment banking. He attended the interview with Lehman brothers and didn’t get through it and failed other interviews for the jobs.One fine day he was invited by Queen Mother where his cousin worked for a banquet. He was lucky enough to meet wife of the managing director of Solomon brothers and managed to impress her.

Through an interview was arranged and finally got a job in one most profit making investment banking company Solomon brothers.We never know luck and fate take turn and sometimes in ways that is unexpected.They had 3 months training program before got into their core job and was shocked or taken over the varied behavior of the other trainees and corporate culture of the firm.The trick to survive is to retain your cool even under the pressure and give the best.This benefit the firm as well have growth of the person.The trading floor is on 41st floor of the building where people were always trading and mood of the floor was changing with respect to the changes in the market or any changes that US governments make.It became difficult for a trainee to distinguish between a salesman, trader and manager or manager director.Though salesman takes to investors to buy the bonds,traders took risk in bets that they played with in the market and manager took charge over them.But eventually each one of them irrespective of the role / position they were on 2 phones simultaneously.

The traders never had time to turn and pay attention to the trainees and they were made fun of.They had interaction with all main heads and bond traders of the firm and the hot heads of the company shared their tips to the trainees.Finally the department of equities who were addressing them for the week and the trainees never gave them much of the importance.Though Solomon brothers where one of the 2 or 3 companies who were underwriters for the stock,but within the firm it was the most ignored department and didn’t have much power.Solomon Brothers were mainly involved in Bond trading and sort of the only company that made major business through bond.They were in the beneficial position who could push the customers out.

The equity department head come put to talk about the history of the equities,the process of the company and was in the process of attracting few trainees to their department.They had selected 6 members including Lewis for this,to get to know about the department better. Let’s get back to floor 41 where bond trading was the core activity and lifeline of the company. The salesman has direct contact with institutional investors such as pension funds to whom the bonds are sold. The trader puts the bet over the bond and the salesman sells for that amount. Tradesman were efficient salesman as place bet and convinced the actual people to sell them at a better price. Salesman were better traders as they traded with the investors to sell the bond. Both play interchangeable, but the only difference is to the position and the advantage one has over the other. Traders are more closer to money than over salesman.

Finally the classroom training program was over and the trainers were allocated the respective department. He was bond salesman and was now working from London office. The team who was most notorious and known for bullying everyone around even the senior most person was the mortgage bond department. It was this department that made huge profits and was also avoided by most people for their notorious behavior. They took 6 new trainers into their team. The head of the team was role model in the company and she was taken as example if wanted to convey people to do different and achieve great heights.Wall street is place that brings borrowers of money and lenders together. Until the year 1978,the term borrowers referred to large corporations ,federal,state and local governments. But the fastest growing group was not anyone of them mention above but homeowners.The savings and loan grew and volume of outstanding mortgage loans grew from 55 million dollars in 1950 to 700 million in 1976.In the year 1980 it grew up to 1.2 trillion dollars which surpassed the combined US stock markets .Thrift was the word which was interchangeably used for saving and loans.Every year a skit was performed in Solomon brothers to create awareness among the employees as to how it works. Bob Dall main job in Solomon brothers was working for mortgage department and was also curious about how it works.He brought money at certain rate and sold at higher rate. On certain occasion he was a buyer as well.He has great passion for trading ,although he didn’t have official responsibility for Ginnie Maes, but began trading for him.The whole funda of mortgage bond is the bank gives loan to homeowner and the firm persuades the investors such as insurance company to buy mortgage bonds.The homeowner would pay back money to bank through installment and that money is given back to the bond owner.There is slight risk for default that the loan might not be paid at all.He started establishing a mortgage bond department and first recruit in the firm was Linnie who was working in back department.He started in the firm as postmaster department ,got promoted to clerical post and slowly moved in the trading department. And slowly they brought more resources into the team and Linnie became the head and Dall moved out due to health issues. But the team was mistreated by other team such as corporate and government department and the bonus given to them was lesser . But with change in few policies by the federal government, it changed the fate of mortgage department in Solomon department. Overnight from ignored department they became the most profitable department contributing to around 40% of the firm’s profits. They had the advantage of the fact that Solomon brothers where only one who were dealing with mortgage bond and were had no competitors in the Wall Street. Slowly Lonnie was not involved with the day to day activities and was mostly involved only in taking major decisions of the department.With the increase profits from mortgage department, it also started getting attention of the trainees who joined the firm.Some of the few best and smart traders were Andy stone, Howie Rubin and few others. Howie was considered the next Lewie. But the main disadvantage in Solomon brothers was the compensation benefits that the employee received. They didn’t match with profit got in by the traders which was also a major discouragement.The best traders slowly started getting offers from other firms as well. Simon Howie got a offer from Merrill Lynch, a 3 year contract with pay scale of 1 million per year.Before the Solomon could understand what was happening 2 other smart mortgage traders also left the firm as they received better offers. When Andy Stone got better offer from Merrill Lynch,a 2 year contract with 4 times the current pay scale. The few of them from higher comes tried to convince to not leave and hence Stone didn’t take the offer.But anyway left after few years.

Between 1981 to 1985 the only competition to Solomon brothers was First Boston.But others also slowly advertising that they were also into selling mortgage bonds. As a result of which Ranieri and Co was deteriorating so rapidly and there was so many factors contributing to it and attrition rate of the employees is one of the important factor. The inefficiency in the mortgage bonds was ruined with the establishment of CMO (Collateralize Mortgage Obligation). But it had achieved what Ranieri has hoped to achieve.With the establishment of CMO trading of Mortgage bonds became easier in limitless number of ways.They sliced and diced home mortgages to sold to investors. The terms such IO and PO were frequently used. Usually bond trading was heavily concentrated on the liabilities of the balance sheet, but with the mortgage bonds,the asset side of the sheet was also valued more.

But in Solomon brothers bad times were slowly starting and slowly rift among higher managers were begin to start. Ranieri , Strauss and other were shifted to higher roles so that they could help in increase in efficiency of Management.But the effect was bad and thereby resulting in chucking out Ranieri. Slowly the mortgage department in the firm started falling and many smart traders were in better position in other finance firms. Ranieri also started his own firm Ranieri & Co. On the other hand there were news about Howie doing its round. He had placed wrong bet and hence led to loss in huge millions. After this he left Merrill Lynch and joined First Boston.

Now let’s talk Mike Lewis and how he learnt and grew in the company. He got transferred to London office and he belonged to the Strauss dynasty. He learnt and was under the guidance of the two best traders. One was Alexander who positioned he took over in London and former shifted to the New York office. Also another person was his colleague who gave life lessons as well. The only difference between him and other were that he was just little smarter than others which gave him an edge over others. The main trait with Alexander was that he had the knack of identifying what was profitable and had the guts to take risk. He wasn’t like other salesmen who followed what others did and was afraid to risk. He would call Mike from New York give him a tip suddenly asking him implement them with the investors. These tips were market movements which help him to sell bonds to customers and I reap benefits for him as well.

This help him gain confidence among customers and it reached a point where they would call and want to speak with. Mike asking for suggestions and were to bet. It took 6 months to understand the trick and working of the department. He was initially working for small scale investors, later he was given large scale investors. He and Alexander came with a trick in warrants and entered into agreement with Germany to establish their firm and sell the new type of warrants that they formulated. They took help of the opportunist and took the entire credit to himself. In order to revenge for that Mike and Alexander entered into a deal in Japan and the opportunist was not kept in loop which effected his bonus and promotion. He later left the firm for other job. Despite him and many other traders had done a good job and brought business in billions, they were still paid less in bonus when compared to the work. There were people who did nothing in their current job, they got better bonus. Hence the attrition rate increases and went for a better opportunities. The head trader of British bonds left the firm for better pay and in Goldman sacs and was begged by Solomon Brothers to stay back. But he said screw loyalty and took up the better offer.

Then comes junk bonds into the market.The whole concept of junk bonds was conceived and created a market Milken. He was one who was also helping hand for all those falling bonds as well.Junk bonds are below the investment grade,but at same time the most volatile ones and earn more than the set standard rates or if at loss ,earning much lesser the existing market rates. Perelan was bidding to buy Solomon brothers with the help of Drexel and in fact created a lot of commotion. Lot of traders were leaving the firm and were joining the camp of Drexel and Milken. But Gruedfand entered in a deal with Warren Buffet and thereby prevented Perelan from takeover of the firm. This created another new market Mergers and acquisitions. But Solomon brothers,they rigid and were stuck with just bond trading and not ready to enter the money churning market such junk bonds and M&A.

Later company reached a phase where they were assessing the management of the firm and improving even further. In this process, they involved in the process of removing people out of firm. This news not only spread among Solomon globally and also to outside world. In usual scenario,no one from outside world knows what happens within the firm. Even the profits posted by the firm was worse than the previous years. But yet the bonus/Compensation benefits given were better off this year.Mike Lewis also received a better bonus than expected

The main lesson learnt by me if we have great idea ,strong belief in it ,we can create a history and whole world will remember them.But also important give the freedom to let employee to what they believe in and at same not acting as others do out of fear will help us in a long run. Sustaining your self through ups and downs and coming up through it also important. As employee in investment banking, we have be keen on details and understand the volatility of the market. With experience we transform ourselves from a geek to great achiever in our lives

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Beyond Harvard-Mark.H McCormack

beyond-harvard

The book Beyond Harvard was recommend by my cousin,and I found the book pretty interesting. If I could learn and emaculate at least some in my own life,it is for the better and it will bring the best in me.This book is dedicated to Mark H. McCormack who was an American Lawyer,Sport agent and also a writer.He was founder and Chairman of the International Management group,now known as IMG an international management organization serving sports figures and celebrities.Some of his books were The Terrible Truth About Lawyers and What They Don’t Teach You at Harvard Business School, which spent 21 consecutive weeks at #1 on The New York Times bestseller list.The whole concept of Sports marketing was brought in by him and he changed the entire business scenario in the industry.He felt that the sportsmen had a commercial value and that their potential needs to taped fully.There were few traits which came so naturally and it is this that made the business men that he was.Mark was very intelligent,very sociable and comfortable among any cohort group of people.He was perceptive,good listener and observer,hard worker,well organised and punctual.Most important off was standards that he set to achieve was high ,focus was always on profit and believed in having maximum connection with people.But was also a forward thinker,great leader who believed in inspiring and motivating people who worked for him. The first part of the book is all about people and relationship. Mark always believed in creating new relationship with people ,maintaining contacts with the people even if they do not a role in the immediately.They may be of a great help in future.He always believed in networking and he was live version of Linkedn. He was one stop man who could get the task done and bring solution any issues.He believed talent is great important,if he could benefit from it and was could help the other person,he always ready to do it.He always motivated and inspired people around him and especially those who work for him.He was always generous with the networks.He made sure he help those who are in need to contact the right person for the right thing. Being always prepared before any meeting and having done thorough research about the client that we are having meeting with.Also it is important to have proper knowledge of the people with whom we might in party or social gathering as it acts as factor to gather new contact to our network.Everyone with whom we interact or work with are important and understanding what motivates a person to give his best,stay long in an firm and contribute plays a very important role.After reading the book in understood,he gave personal attention to his employees and his clients.If any employee with good potential and talent comes to notice he makes that employee can learn and makes the best of the career ,also retain him in the firm as long as possible.Any client leaves the firm, he ensures he understands the issues ,resolves and makes to rectify them and get the best deal for them.Stay true to yourself is something that i don’t find in people nowadays.Being true to self and transparent to your client the fact and promising what you can actually deliver is very important and it helps in developing trust and loyalty with not only clients,but also with the existing as well prospecting clients.Another thing I observed was he never made any financial promises to his clients when making a deal.Treating an person as human being and accepting them as they is trait which is found in him only.The main factor that made clients choose over any other in the business was he provided an complete package to them starting from bank details,dealing with the investments and as well as looking for any investment opportunities and he also made sure he communicated and consulted with them before any taking the final decision.Thereby both the client and him as well other agent handling the client in IMG are in same update and are aware of any changes if any.With trust comes longevity, if the effects the business in short tern financially,but helpful for the business on long term basis. Just as it is more important to find new talent from outside world and help supporting them,it is also to do the same within the company. The main trait which I found in him that I don’t find in the chairman or any higher management officials is that he is always accessible and boost morale of not only mid-management but also for employees who work below them. As a manager it is important to be an enabler, boost self esteem and look for talent in widest possible pool. The main motto in IMG when recruit was hire people who are smarter than the person in the office. Also it is important to have role model and mentors. Maintaining internal relationships help in employee retention, loyalty and respect. Building trust, loyalty, giving the employee the right kind of space when are working so as to nurture their talent, identifying potential talent with enthusiasm company so there can have fast progress in career are some of the factor which play a very important role in maintaining effective internal relationship with the current many but also in employee retention.

Good and effective communication both internal and external is the best way to create first impression with the client. But also acts as lifeline of any business. If promise something to a person, own it,follow it up and complete the task. Organize the information, keeping up with the time,respect others always keeps us in the edge over the others. Respect the people their cultural differences and thinking from their perspective is a very important trait of any smart person. Small trivial things can be play a significant role. He was very particular getting people’s names correctly. He checked and doubled checked it regularly. This seems trivial matter, but was given importance by him and was one way impressing the other person. Always back up person from your company if he plays very junior, it not only motivated and inspires to do more. It also shows the team spirit. If a task is delegated to a person, it is important to be more proactive and go a extra mile to complete the task given. When organizing a meeting in hotel or any other place,make sure to create a environment so that efficient communication can happen and it can be successful in the end. There is proverb that Old is Gold, hence any good advice by anyone is never old.

Next section of the book is all about negotiation and what goes behind it.Whenever we are meeting a client we should be fully prepared about not only we need of the deal,but also from the client side.Common sense plays a very important role in marketing and negotiations.Adopting Problem solving and consultative approach gives better results. Also work backwards when the client faces challenges.Tone and context matter as well.Always when meeting with the client for negotiation it is important to set positive tone before we proceed the negotiations or selling .Values and ethos do matter and showing them as well respecting those of the clients also matter.When selling a product or representing an sport show passion and full commitment towards them.the tricky or rather the smart thing to do when we are selling is take price out of the equation and it can turn out to powerful strategy to get the deal done. Important trait that everyone need to learn is to give listen and observe more before speaking. When in a meeting read the mood and pitch in at the right time. I also learn sometimes silence can be powerful way of communication. Whether we are in meeting or when we are Sharing bad to our employees sometimes silence speaks louder than words. When negotiating or selling, never overpriced the product or the deal. Whenever making a deal with the client especially new ones, promise them what we actually can do and then outperform. Innovation and thinking out of box is one of the main element of marketing as well as negotiations. Sometimes necessity becomes the driving force for invention. Use ambassadors where ever we to support our case. Use of barter system help achieves the deal, minimize financial expenses and helps in developing a long standing relationship for the business

The third and final section of the book is all about growing a business.When you or anyone who starts or intends to starts a business in near future it important to have strong values and moral principles.Apply them in your business and also make sure we apply them in the business structure as well.It is also important to remain professional all the time and reputation is very important.Build in strong core values and have some room for some innovation.Set a high standard and have a high target to achieve.Pursue perfection and give importance to small and menial things.It might have high impact in the business.Every loss and win that we have in our business as well as in or life matters and we learn from every aspect of it.Take it with positive stride. Information is of great essence and power and use of it properly we help understand and in growth if the business.Matching right contact with the right opportunity at right play a very significant role.It is not only important to gain experience and also necessary to use them appropriately in new ventures and expanding the same in expanded it geographically. Budgeting helps to prioritize on spending and reduce unwanted expenses. Right pricing help us getting the deal and puts us in the right place over the other competitors. Stay ahead of your competitors and growing the business and giving a chance to employees to also in career was main trait of Mark. There is saying that keep friends closer, enemies even more closer. Likewise keep competitors closer and have an update as To what they are up to. Having the entrepreneurial spirit and love for the work that we take help in growth. If we do it passion work is never work. Always look ahead, even at the expense of short term gains. Always look it for opportunities and never underestimate THEM. Never be afraid to take risk, always have long term goals.

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The Warren Buffet Way-Review

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Robert G. Hagstrom is Senior Vice President and Director of Legg Mason Focus Capital. He has authored the New York Times best-selling The Warren Buffett Way and The Warren Buffett Portfolio, as well as The Nascar Way. He lives with his family in Wayne, Pennsylvania.The book takes about the principles that laid foundation and influenced Warren buffet in his decision making skills.He is successful investor of all times and there no one even today’s generation to match of his skills.I am usually a person who read fiction and never read books related to management and financial investment books.Ever since I wanted to start a career in investment I got inspired to start reading those and my first try was The Warren Buffet Way.

Warren Edward Buffet was born in Omaha and was seventh generation of Buffets to call Omaha their home.They ran a grocery shop and once warren buffet worked there for a while.Since his childhood he was always fascinated by numbers and was calculating machine even before he entered kindergarten.At the age of 10 he was introduced to son of Sidney Weinberg who was a senior partner in Goldman Sachs. He was famous person in the Wall Street .Warren buffet was intrigued with the stock market at very young age.So he would often visit his father’s brokerage firm and also visit Harris Upham brokerage in New York twice a week .He was interested in learning about securities,bonds and stocks .Not only that he visited the stock exchange with his relatives every week and reading trade column in Barron’s.He started understanding the numerical patterns.He brought his first shares of stock at the age of 11.He later enrolled himself in University of Pennysylvania’s Wharton school of business and finance.After graduation he got back to stock market and started detailed research.He got connected to brokers and subscribed to various publishing services.Then he came across a book The Intelligent Investor written by Benjamin Graham.Inspired by this approach towards investment and stock market,he attended classes of Graham which was class of 20.Turned out Buffet was brightest among the students and there was amazing chemistry between Benjamin Graham and him.After graduation he returned to Omaha,he joined his father’s brokerage firm,recommending stocks based upon the Graham’s approach.Later he got job in Graham-Newman and worked for 2 years until the firm broke off

The Buffet Partnership was started with totally 7 partners and total contribution of 105000$.The deal was the partners got 6% per year on their investment and 75% of the profits made above this.,whereas buffet received remaining 25% of the company’s profit.Initially the company brought undervalued stocks based on the Graham’s stock criteria .They also brought stocks of 2 merging companies are brought and sold to create risk less profit. As years progress the company made good progress and presented good growth and thereby attracting more investors to company.This in turn more partnership were formed and later it had to reorganized to single partnership by Buffet.Initially the firm confined to buying undervalued securities and merger arbitrage. But by the end of 5th year,he purchased in business the Dempster Mill Manufacturing company which was a farm equipment company. Despite shift in the market psychology and change inflection point Buffet Partnership was showing a outstanding results.But also with the change in market psychology,the market was highly speculative and stock were highly priced.He decided to end the partnership. In 1889 Berkshire Cotton Company was started and as it progressed they combined operations of other mills.In the year 1995 buffet merged Hathway manufacturing with Berkshire and named it as Berkshire Hathway. Though the textile industry didn’t work out buffet had learnt few lessons in business which had a long term impact.one was about corporate turnarounds and not necessary they succeed all the time.Enough capital was not generated to buy an insurance company.In March 1967,Berkshire Hathway purchased outstanding stock of 2 insurance companies who has their headquarters in Omaha.They were National Indemnity Company and National fire and Marine Insurance Company.Another addition to this GEICO and owned nearly half of it outstanding common shares by the 1991.In the next 3 years the company’s performance was fantastic.Another addition to berkshire hathway apart from many insurance companies were Ajit Jain.He had amazing management skills,decisiveness and smartness.What amazed to me about buffet was that he didn’t have the looks of big business tycoon.He liked being logical,simple and understandable.He tries to avoid complexity in business.Even in the annual report published by the company the data provided are very transparent.The report shows both the sides of the organisation,the risk and uncertainty involved.

Warren buffet education was influenced by 3 different people who had 3 different distinct philosophies towards investment. They were also very powerful people in this profession. They were Benjamin Graham, Philip Fisher and Charlie Munger. Buffet was influenced deeply by Graham. He initially learned the philosophies of investment through him and also worked for his company. Graham always believed in taking logical approach when considering whether to buy a stock or not. He developed strategies which helped investors to analyze in logical way. He also believed that it is important to buy undervalued stock No matter what market value so that there is always a good amount margin of safety. Also believed that to calculate the intrinsic value of stock it important to calculate the future growth of the firm as well. But calculating the growth is difficult for any analyst.

Philip Fisher started his career as a investment counselor and a gratitude from Standford graduate school of financial administration. Even in colleges with the help of his professor he visited various companies, understood their operation and came up with solutions to resolve them. Later he often recap with his professor. Learning’s from this were invest in companies with above average returns and also the companies should have better management. His main philosophy, was that it important for any investor to first analyse the company and industry thoroughly first. Understand their operation, how consistent have their earning have been, efficiency of the management and their future prospects of the firm. He felt that thorough research was lacking in these investors. Also invest in those companies or industries which are easy and understandable. Buffet met Charlie Munger through Dr. Davis when he had returned to Omaha at a local diner. Charlie was a lawyer practicing in Los Angeles. But had great interest in stock market and just intrigued by them. He always kept track of them. Later he started a investment firm simultaneously practicing law as well. The approach followed by Charlie was similar to that buffet. Later Charlie joined on Berkshire board and today he is vice chairman of the firm. Charlie laid business foundation apart from involving in investment decisions with buffet. Both of them took all the decisions and were always in the same page.there were certain set principles or tenets that acted as a guide in this decision making processes and they were grouped in 4 broad categories. They were Business tenets, Management tenets, Financial tenet and Market tenet. There are totally 12 tenets which served as principles based in which Buffet as well his firm Berkshire Hathaway worked. Although all the investments made by him didn’t follow all 12 of them at once. In some investment he applied few of them and forego the rest. In short it was combination of them. There were 9 amazing case studies in the book that help us understand how buffet applied his principles. The only exemption who has deviated this principles were General Dynamics and Wells & Fargo company(bank). With General Dynamics he initially brought arbitrage stocks in Dutch action. The major lesson from the case studies where the firm should have consistent operating history a period of time. The industry should be easy and understandable, efficient management. A firm with efficient management make sure they turnaround the company when it falls in a worst situation and bring it back to normal. The investment should be made for longer term to reap better benefits. Warren buffet after brought at better discount rate and ensures that there a good margin of safety. He always buys shares of a company and preferred the stock market to delay the recognition as it gives him occasion to buy more shares at bargain prices. It is also important to analyze the long term prospects or the future prospects of the company as well. Buffet also said for every penny invested in the market, the return should be at least one dollar. For me as a learner, I learnt that for a firm which makes excessively good amount of profit it either pays more dividends to its shareholder or buyback /repurchases of shares else they invest in buying or expanding in other business. They buy other companies from business line or other which might not be doing well. This increases the expenses of the firm and reducing the profit that is earned. This leads firm to a very bad position of the firm and it leads to change in management and liquidating the business. Another learning is that Buffet is not interested short term appreciation and is not in a hurry to sell that stocks. He prefers to keep them as long as the firm is functioning well management is efficient, competent and honest and business is not over valued. But it is not important that we analyze and buy stocks or owning business, it also important that we manage the portfolio that we invest in. Though decisions to buy stock are taken majorly based on margin to safety approach but there 3 other important constructs for portfolio management which buffet developed. There 2 types of strategies one being active portfolio management and other index management. Both the strategies offer more diversification, but do not offer exceptional returns on the investment made. But according to buffet there is a third category that is focus investment. This simply means that choose and invest in few stock that are likely to give above average returns over long period of time, rather than investing in bulk and also can sustain the short term fluctuations. He further talks about how focus strategies have advantage over the convectional diversification. We all know stock market, probability plays a very important role and one plays one of the determining factor of the stock prices. There were lot of theories explaining this concept and they are amazing and can be better understood in reading them. But I am was amazing to know the role of probability in the equity investment market though

People who are into the stock markets can divide their strategy into two ways one is prime bet and other action bets. Prime bets are serious bets. Action bets are for longer shots and hunches. Focus investing has been recommended by from the time of Graham. People like Graham, Philip, buffet and few others are known as superinvestors and believed strongly in focus investing. They even did study on it and compared it with conventional investing and found they got better returns though the focus investing. Also they were involved investing in stock market with the long term returns and invested in business or stocks after details research. But nowadays it’s different what they the investors tell the client and what they follow are completely different. Also the performance of people who recommend where invest, sell, buy or hold of the stock based on their return they in short term. They analyze their performance for each quarter and hence they do not get the exponential return on the investment but also they do not get to deep research on the recommendations they give. It is because of their nature of working on short term return, they are not able to achieve what people like Warren buffet, Graham was able to.

 What shocked me was psychology and economics go hand in hand in the investment world.Psychology play  a very important role in investing and combination of both the economics and Psychology and using it as framework to look though the issues of the finance is today’s world known as behavior framework.There are many theories in relation to this  that has been published various academicians. Overconfidence and overreaction bias characteristics of any investor plays a very bad role.Today’s investors think they are over smart,have superior knowledge than other /their colleagues and are not  ready to accept their mistakes. Also sometimes,rather often the investors follow what other people follow or act accordingly to the trend  with understanding where they are headed and their impact.This effect is known lemming factor.Lemming is rodent whose behavior is not understandable to any scientist studying them and is usually not very stable. Also investors should be  psychologically ready even bad effect of the stock market and stop reacting to them,rather they should analyze them and rectify the mistakes.According to buffet the definition of risk is different from others.Generally according to modern portfolio diversification, in order to reduce the impact of the its important diversification and selling the stock off in shorter time.But according to buffet risk refers to harm or anything bad.Also holding the investment for a longer period of time can minimize the risk or there can no risk.

Time and patience play a very important role in economics and investing.There are 2 sets of strategies involved in stock market that short term and long term.The risk involved with the short term is high and return is unpredictable. In  long term investment, return are much higher and risk involved  is lesser when compared to short term strategies. Also it is important for an investor be rationale in his decision making process in stock market.Rational meaning taking decision very logical and full knowledge rather than taking decision based on speculation or what others in the herd/group is following.Thus in long term investment,it important to consider the time factor and have perseverance to patience.In investing filed it not only important to have IQ and talent as they similar to  horsepower to a motor (they are considered as inputs),but also necessary to have output in proportion.To get the desired output it is required to have rationale decision making process and also do a thorough research before deciding where to decide and how much to decide and hence  acts as tip of iceberg