Chinese economy: Is it going to crash?

Last updated on: October 27, 2007 at 6:27 am By Desh Kapoor

I have been saying that Chinese market does not seem to inspire a lot of confidence in me. But now, Mr Buffett backs up my claim, albeit on price concerns. I think it is robustness of the market that worries me! Billionaire Warren Buffett said investors should be ``cautious'' about China's stocks after the country's benchmark index more than doubled this year. ``We never buy stocks when we see prices soaring,'' Buffett told reporters today in Dalian, northeastern China, where he's visiting a subsidiary of his Berkshire Hathaway Inc. ``We buy stocks because we're confident of the company's growth. People should be cautious when they see prices rising.'' Read more

Short term Foreign Money and the Impatient Poverty Healers!

Last updated on: October 27, 2007 at 5:35 am By Desh Kapoor

Today I read a note from an NGO-leftist type of a guy from my alumni egroup.... pointing to the short term infatuation on part of the foreign exchange and stock exchange investments in India and how it would not be helpful, while publishing the credit mess from Merrill Lynch. It just makes me feel cheated. And this is what I replied back: ....And, which, FE is of the "long duration" variety? Are the world's wealthy - in typical Punju lingo - "mere Chache ke puttar" that they will simply wire money to RBI till cows come home?I mean what do we expect the world to do for us? And why?India and Indians should invest in other countries because it will benefit us. Similarly it is with the others!However, what the inflow of money does for the investors is boost their savings .... and adds more individual investors to the mix.. and slowly the wealth that was in the hands of a few..... is distributed through broad ownership of stock - diffused in the economy.Yes, the Ram Pyari living in a poor Rajasthan village would not benefit from it directly - but anyone who had hopes that building a bridge in Delhi across Yamuna would be of any benefit to her is living in the same hallucination!Economics and Money does not always work directly! The FE increase has its own benefit..... as does increased investment in Indian stock exchanges and proliferation of VC funding. Now, a young MBA can come up with an idea in his hostel room and get funding if its worth it. Read more

Taj and the Goddess

Last updated on: October 27, 2007 at 4:51 am By Desh Kapoor

Devotees burst crackers during immersion of Durga's idol on the banks of Yamuna near Taj Mahal. source Read more

Bullish Analysts shoot all over on the Banks and finance!

Last updated on: October 25, 2007 at 12:54 pm By Desh Kapoor

The financial markets are in bad shape and things aint getting better. Today Merrill Lynch slumped to the biggest loss in its 93 year old history! It was pummelled by almost an $8 billion liabilities from the subprime credit mess in the market. Look at this video and see how the top analysts baulk when this guy Peter Schiff puts down the financial stocks! As for Goldman Sachs - the stock that everyone seems to be recommending in the clip - here is today's news: 'It was a bad quarter and worse than anything we would have expected,' said Goldman Sachs (NYSE:GS) analyst William Tanona in a research note. This is one reason why I hate any analyst on the TV or media... they have very little idea what they are talking about. Even the mighty Jim Cramer is only 50% there! Read more

China: You need Legal Permission to Reincarnate!

Last updated on: October 25, 2007 at 5:49 am By Desh Kapoor

This August China's State Administration of Religious Affairs announced Order No. 5, a law covering "the management measures for the reincarnation of living Buddhas in Tibetan Buddhism." This "important move to institutionalize management on reincarnation" basically prohibits Buddhist monks from returning from the dead without government permission: no one outside China can influence the reincarnation process; only monasteries in China can apply for permission. Therefore, now, you need Chinese Government permission to be reincarnated. Read more

Rural B-School Empowers Women in India!

Last updated on: October 25, 2007 at 5:25 am By Desh Kapoor

In 1990, I went to Insitute of Rural Management, Anand. It was and remains one of the premier Business School that caters to Rural Management specifically. It was started with a dream that since Indian MBA students need to understand villages as much as the corporate intricacies! Well, we did learn a lot about rural life. Yet it was an elitist institution of sorts. THAT was revolutionary in terms of business school education. Now, a lady called Chetna Gala Sinha has taken that concept to its logical conclusion - an MBA school for the rural poor - Mann Deshi Udyogini Business school ! The students are semi-literate who need education in business subjects to start using funds loaned via the micro-finance lenders. This school - for rural women - also helps in spreading empowerment to women. Sagar of "Development through enterprise" introduces Mann Deshi Udyogini Business school thus: MDU was started in December 2006 by the Mann Deshi Mahila Sahakari Bank (MDMSB), which is a co-operative society providing micro-credit to rural women entrepreneurs in Satara district of Maharashtra state in India. Chetna Gala Sinha, the founder-chairperson of MDU, is an Ashoka fellow and she started the MDMSB in 1998 in order to cater to the credit needs of rural women. According to Chetna, the idea of starting a business school came from an enthusiastic semi-literate woman, who kept pestering her for know-how about the wholesale vegetable business and other startegies to improve her own vegetable business. MDU was started in December 2006 with a Rs. 7 lakh (about $17500) grant from HSBC. Read more

How can India progress?

Last updated on: October 25, 2007 at 1:35 am By Desh Kapoor

We are a country and a society that is badly wounded and impoverished over the centuries. I would argue that it has as much to do with our attitude of self-induced helplessness as much as it is to do with the needless aggression of the outsiders. Nevertheless, a beginning needs to be made somewhere to reach at a better level of existence than we are as a mass. It goes without question, that there will probably never be a time when every one is happy. But there needs to be a basic standard of living and at the very least an attitude of respect for even the poorest and their lives.Its not as if this society has never had experienced that high. It has - longer than anyone has. There are certain lessons that can be learnt from that experience and I think it is important that we all reflect a bit on them - before making judgments to throw the "baby with the water out of the bath tub"!Here is an article on my blog - where you can see the details of the numbers, but essentially - I am convinced now that 3 things are critical for the prosperity of any society or nation:1. Scientific temper should reign as opposed to religious temper.2. Dominance in trade is a paramount3. Military dominance cannot be foresaken for sustenance of the prosperity. Read more

Quote of the Day

Last updated on: October 24, 2007 at 11:30 pm By Desh Kapoor

Hearing nuns' confessions is like being stoned to death with popcorn. - Fulton J. Sheen Read more

Now, there are book rentals!

Last updated on: October 24, 2007 at 12:57 pm By Desh Kapoor

After the movie rentals and success of netflix... here is a company that is using the same model to build a business in book rentals! Kind of taking on the libraries! Here is how it all works: Here's how it works: add desired books to your Pool, and then we ship them to you! Enjoy the books for as long as you want with no late fees! Read more

Are stock tips in finance mags worth it?

Last updated on: October 24, 2007 at 12:46 pm By Desh Kapoor

Many of the small investors follow the recommendations and tips of fancied stock analysts.. but are these tips of any use? Well, here are the results from an objective test.... these highly-paid guys failed miserably! The conclusion: the buy recommendations of columnists in prominent business magazines on average underperform an equal-weighted benchmark over the weeks, months and first year after publication. Read more