Entrepreneurship | wealthymatters

The Tata Way

October 20, 2014 Leave a comment

Have you ever wondered what makes a business last many generations? If so, the Tatas can teach you some things.Tata began operating as a trading firm in 1868.Today,the business consists of round a 100 professionally managed companies. Read the essay below by Ratan Tata to get an idea of the attitude that builds multi-generational businesses:

“I believe it’s really important to have companies survive over the longer term. I hate to see major corporations disappearing from the scene because someone has cashed out, because the managers have been unable to escape their comfort zones, or because boards have not been sufficiently nimble to change with the times. When these things happen, decades of effort and innovation go to waste. It’s bad when businesses don’t fight it out, whether the enemy is a competitor’s new product, an industry-transforming innovation (such as transistors), or the impact of something clearly outside a company’s control (like climate change). Read more of this post

Filed under Entrepreneurship, Theory, Tool Kit Tagged with good values, innovation, multi-generatioal business, postaday, Question the unquestioned, Ratan Tata, Tata

Don’t Underestimate The Power Of Enduring Companies

October 20, 2014 Leave a comment

Here 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.

One Swedish company that supports this point is Atlas Copco, an engineering business that has been in our family’s portfolio since 1873 and is still one of the leading global players in pneumatic machinery and mining equipment. I remember my grandfather, when he was chairman, citing it as an example of a business that had been able to reinvent itself over and over again. In the early days, for example, Atlas sold materials for railroad construction, but that activity was hit hard by the recession of the 1870s. Fortunately, other innovations came through, notably in pneumatics, while the company later was nimble enough to acquire patents from Rudolf Diesel to make diesel engines.

Facing Down The Odds

October 18, 2014 2 Comments

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

Filed under Entrepreneurship Tagged with billionaire, Deccan Horse, developer, DLF, Gurgaon, Jat, Jat Billionaire, KP singh, Kushal Pal Singh, postaday, Rajiv Gandhi, Whatever the Odds

3 Things Gates Learnt From Buffett

October 18, 2014 Leave a comment

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

Filed under Entrepreneurship Tagged with Bill Gates, billionaire, lessons from Warren Buffett, postaday, Warren Buffett, What Bill Gates learnt from Warren Buffett

Sinister Gold Import Theory

October 17, 2014 Leave a comment

As Arvind Subramanian takes over as the Chief Economic Advisor, here’s an essay he co-authored last year:

Gold has been all over the news in India lately because high and rising imports of the shiny stuff led directly to a deterioration of the current account, which in turn exacerbated the rupee’s vulnerability over the past few months. Read more of this post