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Don’t Underestimate The Power Of Enduring Companies


wealthymattersHere is an excellent essay by Marcus Wallenberg,chairman of SEB (Skandinaviska Enskilda Banken),founded by his great-great-grandfather in 1856. He also serves as the chairman of Saab and Electrolux and sits on the boards of directors for Investor AB and AstraZeneca, among others.

Joseph Schumpeter focused his attention largely on new businesses and their role in eating the breakfast of established companies. But in my view, “intrapreneurs”—risk takers on the inside—are just as important as entrepreneurs in promoting new ideas and new technology.

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Lessons From 22 Year Old Shoes


wealthymatters

Do you still have a pair of shoes that are 22 years old? I do.

They still fit, but that isn’t why I keep them. I haven’t worn them for more than two decades. They are beat up and have no traction, which is kind of important for a basketball shoe. I keep them, despite pleas from everyone to throw them out, because of the lesson they taught me and that I never want to forget.

Back in the early 90’s, when I was a young teenager, I wanted to have the very best. Since I was easily influenced by marketing and friends, I wanted to have the first pair of Nike Air Force 180 shoes. How could you pass up the Admiral, David Robinson, and the commercials that went with it (now that I watch it 20 years later, it’s pretty embarrassing, but I promise it was awesome at the time)?

I don’t even like the Spurs — I’m a Jazz fan — but Mr. Robinson was pretty awesome, plus there just aren’t a lot of good athletes to admire. But anyways, that’s off-topic. Read more of this post

Oil Economics


wealthymattersSo how will falling crude oil prices benefit India? The slide in crude oil prices to four-year lows is a huge positive for India as the country depends on imports for more than three fourths of its consumption. It is expected to help improve pivotal macroeconomic indicators such as current account and fiscal deficit besides giving a fillip to energy firms, tyre makers and consumer companies.

India’s net imports of crude oil amount to about a billion barrels every year. So, if crude oil prices average about $100 per barrel in the current fiscal (vs about $106 per barrel in the first six months of the financial year), the country’s import bill will fall by $10 billion (about Rs61,000 crore), which is close to one-third of the current account deficit or CAD in 2013-14. Analysts say that if crude oil averages at $100 per barrel this fiscal, India’s CAD will reduce to 1.3% of GDP from 1.7% in the previous year. Read more of this post

Facing Down The Odds


wealthymatters

There is little Kushal Pal Singh hasn’t seen. He built the city of Gurgaon out of nothingness. He also saw it begin to crumble under its own weight.

He almost sold DLF for Rs 26 lakh, but later also saw the value of his shareholding in it climb to Rs1,87,920 crore. Now, it’s declined to just Rs14,701 crore.

In 2007, he was celebrated for bringing India’s biggest IPO.Seven years later, he stands condemned by Sebi, for failing to disclose material information in that very offer. He has also seen both friends and foes occupy high places.

He is among the first who had the vision of a large-sized modern building that is as good as any in developed countries. Now, cash flow questions are being asked about many of his ongoing property projects.

Consistent with the title of his autobiography ‘Whatever the Odds’, his ride is neither smooth nor straightforward.

When KP Singh ventured into Gurgaon in the late seventies, no one would have imagined what it would become over the next few decades. Good fortune and intent and perseverance all played a part. Read more of this post

3 Things Gates Learnt From Buffett


wealthymatters

Few people in the US are more successful than Bill Gates. But that doesn’t mean the billionaire knows everything. There are still important business lessons to be learned by America’s richest man -and who better to learn them from than Gates’ friend and fellow billionaire Warren Buffett? Earlier this year Gates traveled to Omaha for Berkshire Hathaway’s annual shareholders meeting. He outlined the three most important lessons he learned from Buffett.

Look at the Big Picture

When Gates first met Buffett, his immediate instinct was to focus on the surface of his success: picking and investing in stocks. But Gates quickly learned that key to Buffett’s success runs much deeper -it’s about the big picture of a business. “He has a whole framework for business thinking that is very powerful,“ Gates writes.

Be Honest with Shareholders Read more of this post

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