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When Data Science Led To Losses


wealthymattersAbout 5 years ago, a telecommunications company wanted to be able to predict whether a customer would cancel their service or not. If the company could catch a customer right before they fall out and convince them to stay put, then the company keeps revenue.

So the analysts and data scientists were set off to races on developing a model that could help the company better predict when customers were planning to quit their service.

After about a year and a couple hundred thousand dollars worth of resource hours the team had developed a successful model. It was 85-90% accurate. They then worked with process managers, and customer service teams to develop playbooks and guides to help approach customers who may not be interested in the service. A few more hundred thousands of dollars dropped into the project. Once they felt like the algorithm was set and the team members were trained they went forward to implement the project. Read more of this post

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Decoding your CIBIL CIR


wealthymatters.comIf you have just bought your CIBIL credit report and need some help understanding it or if you are considering forking out for one and want to know what you will get,the following write up is for you:

Here is the information found on a CIBIL CIR:

Payment history

Days Past Due (DPD) appears in the account(s) section of your CIR. It appears with one other piece of information — the month and year of payment. DPD indicates by how many days a payment on that account is late that month. Anything other than ‘000’ is considered negative by a lender. Up to 36 months of this payment history (with the most recent month displayed first) are provided in this section. Read more of this post

Rakesh Jhunjhunwala In His Own Words


wealthymatters.comBelow is a favourite but somewhat dated Rakesh Jhunjhunwala interview.I frequently revisit the article to read about how he started out.Every time I wonder  how I might be able to do what I want to do with so few resources,I find reading his story inspiring.Also I like his way of limiting risk,dealing with loss , having flexible targets and dealing with unfavourable opinions.The red ink is mine.It’s to highlight the parts I find interesting.As a side note,I also like reading the account of the 1993 blasts,if for no other reason than to remind myself about the spirit of Mumbai and the grit of all Mumbaikars. Read more of this post

Rakesh Jhunjhunwala Quotes


wealthymatters.com“If a girl is beautiful a suitor will come. If a stock is beautiful, a suitor will come. So I don’t search for suitors when I buy the stock.”

“I have learnt two things about the press and wives. When they say something – don’t react.”

“India will remain in a phase of very good economic growth for the next 30 years.”

“Markets are like women — always commanding, mysterious, unpredictable and volatile.”

“Anticipate trend and benefit from it. Traders should go against human nature.”

” Successful investors are opportunistic and optimistic ones.”

“The mother of bull all runs is still to come.”

“I have two-three dreams in life. The first dream is that when I die and only truth of life is death, how many people come to my funeral and say, a good man has died. That is the greatest ambition in my life. Second thing is I want to earn the greatest wealth of the world in the most legitimate manner; practical legitimate manner and leave the largest part of it to charity.”

“Respect the market. Have an open mind. Know what to stake. Know when to take a loss. Be responsible.” Read more of this post

Rakesh Jhunjhunwala On Investing Your Way To Wealth


wealthymatters.comMr. Rakesh Jhunjhunwala, combines diverse skills as a equity trader, visionary investor and incubator of new businesses through private equity.He is the first dollar billionaire from India to have made all his money by investing–primarily in stocks.Converting Rs 5000 to a billion dollars is no mean feat.Moreover since he deals exclusively in Indian stocks and often in publicly traded companies, whose shares we all have access to,it’s well worth spending time learning how to invest one’s way to wealth from him.

Firstly,Rakesh believes that the choice of asset class is important . As he says”If you bought gold in 1970 and sold it in 1980, you bought the Nikkei Index in 1980 and sold it in 1989 and then bought the NASDAQ [till before the dot-com bust], you would have made 33% compounded returns in three decades.”Personally, under the guidance of Mr Radhakrishna Damani, he made a lot of money shorting stocks at the time of the Harshad Mehta scam post 1992.As he says,”My decision to aggressively invest in the asset class of Indian equities at the right time was a very important determinant of my success.”As Rakesh believes that the mother of all bull runs is still to happen in India ,for people like us,sticking to Indian securities as an asset class might not be such a bad idea! Read more of this post

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