Gizmos or Blue Chips -- The Choice is Yours!!

Every time the SENSEX touches a new high, newspapers publish the same old story – Retail left in the lurch, Retail Investors not participating, Retail miss the bus!! ..Though media might cite reasons like inflation, lack of government initiatives, lack of research capabilities on the part of retail investors as reasons for their non-participation, they fail to highlight the latest trend among youngsters with fat pay pockets and high disposable incomes – Spending big time on Gizmos!!

A small analysis was made by me and my firm on this topic. The launch date of various I Phone models over the last five years was tracked and their launch prices were noted. Price of five blue chips in Indian Equity Space – TCS, Tata Motors, HUL, HDFC and Sun Pharma was also noted on the launch dates. These blue chips are well known and are either the market leader or among the top 3 players in their respective domains (both at the time of investing as well as at the time of this report).

Had a person invested in these blue chips instead of buying the phone, the absolute returns that the scrips would have generated as on Sep 30 2013 is shown in the table. The table speaks for itself!!

I am not against buying gizmos!! But a person should also pay attention to his personal finance!! He should have a long term view, understand the importance of starting early to invest, invest wisely and prudently!! Deferring smart phone purchases or buying a stripped down version of it could actually make a huge difference to the retirement corpus of an Individual!!

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Haven't written a blog for 20 months....The longest gap between my successive blogs ever since I started blogging! This blog is about this gap, some decisions which I took and how they changed my career and set the tone for my entrepreneurial journey. My entrepreneurial journey has completed 21 months. The journey begun just 2 months after I entered wedlock. It was a tough decision to take. I was not quite comfortable with my previous employer. I decided to put down my papers on a hot Wednesday afternoon in New Delhi and rushed home.

It was a tough decision to take. Just a month into wedlock, quitting one's well paying job is not that easy. More tough was deciding to take up an entrepreneurial role ahead of four offers from reputed cos. Opportunity costs were huge. Brushing aside all criticisms, I became the working partner of a wealth mgmt firm Shri Rama Investment Advisory & Support Services which was established by Shri T.Ramabhadran, one of the doyens of Indian Banking Industry. The society around me posed numerous questions, few intriguing, a few embarrassing...Why Business after an IIM degree???? Are you incompetent to get a corporate job??? Why unnecessarily take up business when opportunity costs are huge?? Even of my classmate while on a call sarcastically remarked....When are you going to close down your business and join corporate again??

I come across such questions on a day to day basis. These questions actually motivate me and inspire me to put in all hard work. Its been 21 months, My business has evolved quite well. Today, it is T.Ram Financial Services Private Limited, a wealth management firm catering to HNIs and MNIs and managing INR 400 Mn..This 21 months was a great learning experience. I used to get inspired by lot of rags to riches stories when I was a kid. The stories helped me overcome criticisms and establish a small outfit on my own. 

Though my firm may not be worth millions, I am happy that I earn for myself and provide employment to 10 people. I thank my boss who identified my penchant for equities and made me a fund manager at 24. Today at 26 , I am one of India's youngest alpha generating fund manager. I thank all my clients who reposed faith in me after my boss's untimely demise. Entrepreneurship is all about 3Ps -- Patience, Perseverance and Passion. Have the 3Ps, put in your best efforts and leave the rest to God. 

Pursuance of passion is the key to success. My passion was fund management. The wall street bankers did not even take notice of my passion when they visited my B School. Now, I thank them sincerely. But for their rejection of my candidature, I would not have ventured on my own, Now, I am happy that I am generating superior alphas than majority of the fund managers in this country. Last but not the least, I thank my father and my wife. they both were very supportive of my cations from the beginning. But for their support, things would have been difficult and different as well.

To all guys who contemplate entrepreneurship....Don't keep on contemplating....be Passionate....be Patient and have Perseverance. Just take the plunge and succeed.  Remember... your fat salary cheques will never give you the same happiness that you will get when you sign your own salary cheque as well as sign salary cheques for others!!

HARVARD DONATIONS!!

Blogging after a gap of nine months.....wanted to blog on a variety of topics..Ayodhya Verdict,hype surrounding the stupid micro-finance in India, CWG scam etc etc...But did not get any time!! Finally taking 10 minutes of my lunch time to blog.....!! Recently, I came across articles on Ratan Tata and Anand Mahindra donating $50 Mn (225 c) and $ 10 Mn (42 c)to their Alma Mater, the prestigious Harvard Business School. A wave of thoughts flooded my mind after reading this article in press.
The popular sentiment is they were generous and had the gratitude to remember their Alma Mater. No doubt, these were truly noble gestures!! But I wondered, Does Harvard whose financial condition is way ahead than any other University in India truly deserve this donation?? An University whose excess funds are multiplying every year in equity markets really want this charity??
Look at the state of Jharkhand..the state where Tatas set up their first steel plant languishing way behind with a literacy rate of less than 40%. The money that Tata donated to Harvard could have been used by him to build 100 elementary and primary schools in Jharkhand!! Tata could have used this to create an international management institute on the lines of IIMs and Harvard and named it The Tata School of Business!!
The donation that they have made would have made a huge difference had they did it to something more worth while!! If Harvard needs money, US Govt will chip in, Micrsoft will donate, the numerous I bankers that HBS had produced will make the amount in a matter of few seconds by going long- short. But who will develop the rural areas of India?? Who will improve the basic infrastructure here?? India needs such donations from her sons...If they dont who else will????

Sorry State of Affairs!!

Blogging after a period of six months...on Valentine's Day!! Hold on...it's not going to be a romantic one..A blog after perturbed by the Pune terror attack!! Over the last 50 years, thousand of our brothers and sisters have fallen prey to the terror acts committed by Pakistan. Pune attack cannot be treated as yet another attack. One should note the perfect timing..just 2 weeks before Indo-Pak talks and when the entire Maharashtra police were busy protecting the stupid movie halls showing an arbit movie starring a Muslim hero, who wanted players from Pakistan to play for his franchisee. The entire English media opposed and bashed Bal Thackeray who took SRK on this Pak players issue. Once again the Sena tiger has proved that there is nothing wrong in PAK and Muslim bashing. Will Indian government take stringent action against Pak and the perpetrators of this crime?? The answer is obvious --- NO.
As long as India bows to US pressure,India will never win her battle against terrorism.Look at Israel..a small attack is enough to provoke it. Look at the force and guts with which it retaliates. India does not have the guts to do it. Few experts might claim that PAK is a nuclear power and a war with it would have a disastrous effect and justify India's impotency (inability) to wage a war against PAK.
What should India do??
Option 1:
1. Wage a war against Pakistan. Wipe out the country from World Map. We do not have the guts to do this. Only few leaders like Patel, Indira Gandhi or Advani can take such bold steps. A govt run by a puppet with strings pulled by a foreigner can never do this.
Option 2:
1. As option 1 seems impossible, India should take action to protest its citizens against such actions in future. A complete revamp of internal security and intelligence forces is needed. Politicians should stop their minority appeasement policies. Modis and Thackerays are the right persons to deal with minorities. When you have a senior leader from the ruling party visiting and consoling the parents of a terrorist who was killed in an encounter,Pune attack is not a surprise at all. Revamp of intelligence forces looks highly improbable, given the corrupt nature of our bureaucracy and the deterioration in the quality of people entering govt service.

Given the current state of affairs,we poor Indians have no other choice but to read about these attacks on Newspapers and hope against hope that we do not become the victim of one such attack!! Truly sorry state of affairs!! Even God cannot save this country!!

Bye!! Mumbai! Bye!!

I am penning a blog with a heavy heart for the first time. Oh!! Mumbai!! Its time for me to say good bye to you!! I have lived in Mumbai for just six months but those fond memories would remain etched in my mind for ever. Mumbai is truly a city of dreams..a city that had nurtured and turned the dreams of many a aspiring professional into reality.

Mumbai with its cosmoplitan outlook would make a person hailing from any part of India feel at home. I cannot forgot those numerous evenings that i spend on the shores of Marine Drive and Mahim beach. These places stand testimony to my reflections on life, career and dreams. Those streets of Matunga filled with flowerly fragrance had left an indelible footprint on me. The restaurants of Matunga - Manis and Ramnayaks made my taste buds feel at home. Those siddhivinayaks and mahalaxmis satisfied my spiritual thirst.

The spirit of Mumbai is evident everywhere. The fervour of the Mumbaikars in celebrating festivals like Ganesh Chaturthi and Janmashtami, the numerous tamper free meter taxis, people standing in que to board the BEST buses speak volumes about the spirit of Mumbai.

I can never forget those friday nights that I spend watching new releases at Aroras, PVRs and E Squares. I can say without even an iota of doubt that I spend my happiest days of my life at Mumbai. Those CR and WR locals will continue to run in my thoughts. Its time for me to move out of Mumbai. Oh Mumbai!! though i take leave of you. I will remain a Mumbaikar at heart. Be it RBC!!Be it Poisson!! or Phoenix!! Mumbai truly Rocks!! Oh!! Mumbai!! Call me back again....I would like to be a Mumbaikar forever!!

She!!

I would never forget her in my life. i belong to those rare genre who does not like the philosophy of love at first sight. But she completely swept me off my feet when i saw her for the first time on May 27th 2007. It has been 27 months since i fell in love with her but those 27 months were like 27 minutes. Her girl next door looks coupled with her simplicity fascinated me.

She talks less. I talk more to her. She followed me to Bangalore too. There were numerous occasions when she had been my lone companion. For a boy who was away from home for the first time, she was a friend, a philosopher and a guide. She provided me the much needed mental comfort during my testing times. She was really nice to bear the brunt of my anger many times. She had a small quarrel with me and refused to talk to me for three days. Those three days were like three yugas!!

She moved with me all the way to Mumbai. She was my sole companion during the long weekends and long nights at Mumbai. She even fetched me food when I was stuck at home during torrential downpour. I would have starved to death in rain if she had not fetched those pizzas and parathas. There was a small misunderstanding and we broke up. I dated another of her kind. I really found her uncomfortable and the relationship did not last long. While returning from a party, i told her she is not for me and I bid goodbye!! I returned to my old loyal friend.

I promised never to ditch her again and she too welcomed with a smile!!

Hi friends.......wondering who she is!!!! She is none other than my Nokia 1110!!!

GOOD TREK!!

On a cold cozy saturday morning, Karthik and me set off on an adventure trail. We caught the Deccan express at 7:30 AM and reached Karjat at around 9:30 AM. We packed our bags with biscuits, chocolates, chips and energy drinks to keep us on foot till evening. A share auto took us to Kondawadi, a village 10 KM from Karjat. This village is our ground zero. From here, our trail and our tryst with Sahyadris begin.

Our trek was all along the banks of river Ulhas and the numerous streams that flow into river Ulhas. I was trekking after a long time..after 5 long years..i distinctly remember my last trek along the banks of River Coleroon. As we began our trek, we were greeted by an overflowing stream. We took some snaps of the roaring stream. Mr Rain lashed the area and we took shelter under a tree and munched some cookies. We trekked over a fresh water rivulet for nearly a kilometer after which my foot got stuck in a slush!! I removed my slippers, put them in a cover and continued trekking on the path which was ridden with pebbles.

Soon, we spotted a water fall. We meandered our way through a stream and reached the falls. After cleaning me of all the slush and taking few snaps, we headed for Kondana Caves. Now began our steepest climb. After having confined myself to four walls of my room at IIM B for last two years...i found it a bit difficult to ascend. i took frequent stops and guzzled pepsi to regain my lost strength!! After wading through numerous streams and after two hours from ground zero, we reached Kondana caves. A huge waterfall is at the entrance of the cave, The cave is to be approached through its side entrance. Kondana cave was once a buddhist stupa, now it is in ruins. This is the first time i had watched a waterfall by standing behind it...It was a wonderful sight!!

After spending some time there, we began our return journey..back to the polluted city of Mumbai. This trekking experience was awesome..After a long time, i breathed fresh air. I was far from the maddening crowd..the roar of the river still reverberates! Kondana is a wonderful place..the nature still very pristine and virgin!!