I moved my blogs to three different blogs, one on comments regarding business and technology, one on musings about life and another on reflections on investments. Please continue to visit my blogs.
Rational Business and Technology
Rational Musings About Life
Rational Investment Musings
Sunday, August 10, 2008
Tuesday, October 16, 2007
ETF portfolio
WSJ posted a portfolio that closely resembles mine. In a previous post, I blogged about having direct investment in a business (and not its stock) as a means of diversifying just because earnings( esp of small businesses) tend to be more stable than stocks. In a crude way, this can be achieved through private equity. You guessed it, there are ETFs for private equity too. Here is a snapshot of the portfolio -
Also, I made a mindmap of all the top level ETF categories that you need to consider to make it diversified. You can make it weighted more towards one level or the other depending on various factors (which is for another blog).
Monday, October 8, 2007
Subprime crisis in India is going to happen !
http://www.rediff.com/money/2007/oct/08spec.htm
The logic is simple. Low dollar value with not-so-increasing prices - less revenue for indian companies - less salaries for employees - not being able to pay mortgages (which are probably 50% of the salaries) - investors not being able to charge as much rent - defaults
Classic subprime cycle that happened in US is going to happen in India.
The logic is simple. Low dollar value with not-so-increasing prices - less revenue for indian companies - less salaries for employees - not being able to pay mortgages (which are probably 50% of the salaries) - investors not being able to charge as much rent - defaults
Classic subprime cycle that happened in US is going to happen in India.
Retail in India did'nt think about land !
http://ia.rediff.com/money/2007/oct/08guest.htm
I blogged about the importance of selecting a land and calculating the project's ROI with land prices. As this blog is about mind boggling things that appear trivial to grasp for you but others would not get it. Retail sector in India apparently made a blunder of underestimating the difficulty of grabbing land proximity to the city !
I blogged about the importance of selecting a land and calculating the project's ROI with land prices. As this blog is about mind boggling things that appear trivial to grasp for you but others would not get it. Retail sector in India apparently made a blunder of underestimating the difficulty of grabbing land proximity to the city !
Thursday, October 4, 2007
Good decisions have nothing to do with the result
Each minute in our life is made of decisions. All we can do is analyze the situation, take into account all the data and all the decision choices, assess the risks and rewards of each decision and take one. If you do all that, it is a GOOD decision, IRRESPECTIVE of what the result is. Now comes my book recommendation.
Book Recommendation - Hard Call: Great Decisions and Extraordinary
People Who Made Them by John McCain and Mark Slater. Not all the
stories are good, but some of the stories are great enough to make the
book a good read, especially the story that the book starts with.
Book Recommendation - Hard Call: Great Decisions and Extraordinary
People Who Made Them by John McCain and Mark Slater. Not all the
stories are good, but some of the stories are great enough to make the
book a good read, especially the story that the book starts with.
Life and Happiness
I have two recommendations for ya'all people - Goes back to a few us who are on constant search for meaning of life and such. Each of the videos tell a lot of gripping lessons about "leading life:
Movie Recommendation - The Pursuit of Happiness:
http://imdb.com/title/tt0454921/ . I somehow missed the movie when it
was released but it is a very good movie and it has some very good
subtle messages about happiness told in an interesting way.
Video Recommendation - The last lecture of Randy Pausch, a CMU professor
and pioneer of vision and virtual reality who is going to die in a few
months :http://youtube.com/watch?v=4HqdnjgkExY
Movie Recommendation - The Pursuit of Happiness:
http://imdb.com/title/tt045492
was released but it is a very good movie and it has some very good
subtle messages about happiness told in an interesting way.
Video Recommendation - The last lecture of Randy Pausch, a CMU professor
and pioneer of vision and virtual reality who is going to die in a few
months :http://youtube.com/watch?v
Friday, August 3, 2007
Looking for land
I was looking for land for a specific project and looking for the right set of land is not as trivial as it looks like. Here are some factors that you need to look at -
Size of the land
The size of the land should be inline with the potential future expansion of the project. The questions you need to answer are 1) what are the adjacent technologies or markets that you might enter ?
Resources
1. Water: The questions you need to look for answers are 1) what is the type of bores are present in the land ? 2) how well it had fared over the drought years ?
2. Availability of labor: How much labor is needed for the project ? What type of skill set does the project need ?
Proximity
What are the proximity needs of your project ? How much near to the city does it need to be ? What are the expenses that you might incur (or save) depending on the land being nearer to a city ? Does the land need to be accessed by a road ? How frequently do things need to go back and forth from the land and what size transportation do those things need ?
Quality of soil
Weather
Proximity of supporting industries
Price
Price is the most trickiest. People forget that you should not spend more money on land than you can make out of the project that you are going to put on the land. Do not include the potential increment of real estate prices into the project ROI calculations. Treat the land price and the corresponding spend as an expense.
Size of the land
The size of the land should be inline with the potential future expansion of the project. The questions you need to answer are 1) what are the adjacent technologies or markets that you might enter ?
Resources
1. Water: The questions you need to look for answers are 1) what is the type of bores are present in the land ? 2) how well it had fared over the drought years ?
2. Availability of labor: How much labor is needed for the project ? What type of skill set does the project need ?
Proximity
What are the proximity needs of your project ? How much near to the city does it need to be ? What are the expenses that you might incur (or save) depending on the land being nearer to a city ? Does the land need to be accessed by a road ? How frequently do things need to go back and forth from the land and what size transportation do those things need ?
Quality of soil
Weather
Proximity of supporting industries
Price
Price is the most trickiest. People forget that you should not spend more money on land than you can make out of the project that you are going to put on the land. Do not include the potential increment of real estate prices into the project ROI calculations. Treat the land price and the corresponding spend as an expense.
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