A load of crap from an idle brain

Easily one of the best biographies i have read, Losing My Virginity by Richard Branson is an easy read.  Not too complicated by the jargons of business, Branson writes in his own easy way about how he built a multi billion pound business after having started off life as a dyslexic child.

Yup, its tough to believe that a man who lives such a colourful life, flies over the pacific and atlantic oceans in a balloon, jumps off planes, does all kinds of wierd stunts to keep his business in news was dyslexic as a kid.  He had trouble reading, was one of the worst student in class.  But started off his life running a music store, which moved on to record label (Virgin music), music business to one of the most loved airlines in the world (Virgin Atlantic) to running a telecom company (Virgin telecom) to tens of other business.

The book starts off with his exploits on trying to cross the Atlantic in a balloon where he cheats death to his childhood life and then to his music business where his label published such world class music groups like the Rolling Stones, Phil Collins, Janet Jackson etc.

The dirty tricks that British Airways use to discredit, defame and try to kill the small and fledging Virgin Atlantic is also described in vivid detail.  The end of which Branson sues the whole top brass of British Airways and gets not only monetary compensation, but also an unreserved apology from the British Ariways brass.

Virgin Group founder Richard Branson says one of his prime business criteria is “fun.” Fun made Branson a billionaire, and few business memoirs are one-billionth as fun as Branson’s, nor as niftily written. Not only does it relate his side of near-death corporate experiences, it tells how the chairman literally cheated death by gun, shipwreck, and balloon crash.

Branson’s empire–now encompassing interests in an airline, pop music, soda pop, e-commerce, and financial services–began when the dyslexic 16-year-old dropped out of school in 1968 to found the British magazine Student. His headmaster said, “I predict that you will either go to prison or become a millionaire.” Briefly imprisoned for dodging customs selling records, Branson got his first million by releasing Tubular Bells, a maverick recording all the stuffy executives rejected. (1998′s Tubular Bells III puts the series’ sales over 20 million.)

Despite wild tales of Branson’s wife-swapping and Keith Richards fleeing naked from Branson’s studio at gunpoint with another man’s woman, the most shocking parts of the memoir concern British Airways’ James Bond-like “dirty tricks” campaign against Virgin Atlantic, resulting in the biggest award for damages in English history.

Though it’s filled with famous names, witty quotes, and pulse-pounding accounts of lunatic balloon adventures, it is as a business thriller that the book really scores. His instinctive bet-the-ranch tactics could cost him all, or earn another billion. Either way, Branson will likely remain the most entertaining entrepreneur in Europe

-source: Amazon

Losing My Virginity: How I’ve Survived, Had Fun, and Made a Fortune Doing Business My Way
Author – Richard Branson
Pages – 416
Publisher – Crown Business

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We are in the midst of a daily scam unraveling.  What does this say about the times or the society we live in?  I suppose, we were always corrupt, it was ingrained in our DNA.  Its only now that the skeletons are tumbling out.  Whether its the 2G scam, Adarsh scam, Commonwealth games scam, Kargil coffin scam, mining scam of Karnataka, the land scam concerning Yedyurappa, Satyam scam, Telgi scam, Harshad Mehta scam and the thousands other that are swirling in the news.

The scams were always happening. Its just that only now they are unraveling.  Does anyone remember the time when buying a scooter, ambassador car, telephone etc used to have a waiting time of years.  Today, you can throw in some money and take your pick.  Liberalisation has in fact brought down corruption a lot.  Earlier not a single file moved in the government office without bribe being paid.  Today a lot of government job can be done on the internet without the need for stepping into an office.  Just a decade ago, the government run PSU banks ran amuck. I remember having the misfortune of going to the banks to create a Demand Draft and know the headaches I had to endure.

Today, the private banks have revolutionised the business.  Hardly anyone of the present generation visits those PSU banks. The PSU banks are bending over backwards to win their business. Getting a driving license is not a chore anymore too. Many of the government work is either become efficient due to private sector competition or due to the introduction of technology.

Does it mean that all is hunky dory?  No, it isnt. The poor even today have to endure the red tape of the government.  Getting the loans granted by the government in their hands is at the mercy of the officer who is disbursing it.  After a catastrophe, the government declares an ex-gratia.  But the official overseeing the disbursal will make sure he get his cut before the money is given.  This trait of feeding over the dead body has been prevalent for decades.  Today, its a bit more difficult as you can call up the media to raise a muck and make sure the money is disbursed faster without any corruption in between.

So, why is it that so many scams are surfacing?  Truth is that the scams have been in our midst for decades.  Kalmadi was not involved in the sports graft for the first time.  He is a survivor in that business for decades.  His family and his cronies have made millions over these years.  People knew that yet didnt raise the muck because it was mostly hidden.  One didnt have access to all the information. Today the Right to Information (RTI) act and other kinds of citizen & judicial activism has increased. People are more aware of their rights and hence all these skeletons tumbling out.

Another reason is because the political parties themselves use these scams to settle scores. Its a simple theory which goes like… you expose one scam of mine and i do the same about you.  None of them are about public welfare nor is that only one political party is responsible for the mess.

Both the BJP and Congress are 2 sides of the same coin.  Both corrupt to the core.  If you were believing that the BJP led NDA was supposed to give you an alternative, you were living in a fools paradise. The NDA and its constituents are as equally bad as the UPA if not worse.

The Radia tapes doesnt reveal anything new.  Its a known issue that during the license permit raj of the 70s to 90s, businessmen used to pamper the politicians in power so that they could bag business or made sure that some of the laws were tweaked in their favour.  Today with lots of bidding and laws being online, its gone down to a large extent.  Even the media was nothing holy.  Currying favour with the media to carry their side of the story by politicians and businessmen was the norm earlier too.  Today its given a respectable name like Corporate Relations or Public Relations.

Anyway what i find baffling is the common man’s surprise at all these events.  Let’s face it.  We Indians have corruption engrained in our DNA.  We are taught from young on how to circumvent the rules, how to bribe the policeman to get away, to bribe the municipality to extend the height of the house by another floor etc.  If there was no TDS, am sure none of the so called “middle class” in India would pay taxes.  In fact the middle class of India are the biggest hypocrites you can encounter.

How did Raja, Kalmadi, Chavan, Yeddyurappa, Karunanidhi, Lalu, Mayawati etc come to power?  We voted them to power.  To satisfy our silly egos, to protect our so called religious casteist, regional beliefs etc we vote them to power.  Integrity is not something we are known for.  Everything and anything goes.  We are good at masking our incompetence with the national slogan of chalta hai attitude.  As government officials, we take bribe to do our work.  Our police takes bribe from the mafia and look the other way as they go about killing innocents and trading in arms and drugs.  We ourselves screw up our society and then blame all and sundry.

The rot is set.  Its a part of us.  Its in our system.  Its in our blood.  So, lets look within ourselves and cleanse ourselves as we go about uprooting this cancer of corruption from our midst.

Above pictures courtesy: Akalol & Indiabuzzing

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Sold off some of the laggards like Suzlon, Reliance Communications (not sure how the 2G scam will hit this stock) and Punj Lloyd (holding on to a bit of the stock).

Bought 3I Infotech & Noida Toll Bridge for the first time. Increased my holdings in Graphite India & MIC Electronics.

With the 1:1 bonus shares issued by Dabur & TVS motors, the portfolio looks good

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Finally, managed to finish the book.  The biggest audio book i have ever listened to or read.  It took more than a month to finish listening to this audio book.  It was like a never ending read and just like the 80 odd year old Warren Buffett, the audio book went on and on and on.

Most surprisingly, it was engaging and i was never bored.  Considering the short attention span that i have and the trouble i have listening to a 5 minute talk without my mind wandering off;  I managed to hold my concentration well to listen to the whole book.

For starters, the book is not exclusively about the investments of Warren Buffett, its just a part of that.  The book is all about Buffett, the man, his family, friends, investors, rivals (if any), his fears, his interests, his integrity, his failings, his winnings.

If you are someone who idolises Warren Buffett, then stay away from this book.  It does present him in a not-so flattering way.  There are constant references to how Buffett shies away from confrontation with people, his little quirks, his almost complete dedication to his work that he almost ignores his wife who loves him unconditionally.  The ignorance leads to separation of Buffett and his wife (but they never divorce).

Its said that when the book released and Warren realised the not too flattering account of him in the book, he distanced himself from the author of this book, Alice Schroeder.

The book starts with a detailed background description of Warren’s parents, Warren’s growing up days. His almost obsessive pursuance of money from a young age.  At a age when youngsters of his age are busy playing, Warren distributes papers, chewing gums, pepsi, works as a caddy etc to earn his pocket money, file income taxes for the first time at the age of 14.  Warren’s interaction and working with his guru, Benjamin Graham is also mentioned in the book and also Graham’s influence on Buffett.

At the age of 11, he buys 3 shares of Cities Service Preferred for himself, and 3 for his sister Doris.  He sells the shares at a small profit and then looks on as the stock price goes up 10 times.  That’s when he learns his first lesson. And that is “If you really believe in the company, then the holding period for the stock is almost forever”

His investments in Coca cola, Geico Insurance, General Re, Borsehims Jewelry, Net Jets, Star Furniture etc is legendary. Not to mention the down to earth and modest nature of the man who stil stays in the same house he bought in 1957 for about $31,500.

Inspite of being the world’s richest person he doesnt indulge in the usual rich people’s intersts like yachts, jewellery, mansions, ranches etc.

For someone who was known as being tight fisted when it came to donating money to his own children, he decided to donate a significant amount of his assets to The Bill & Melinda Gates foundation.  The following saying by him highlights his thoughts about wealth

I don’t have a problem with guilt about money. The way I see it is that my money represents an enormous number of claim checks on society. It’s like I have these little pieces of paper that I can turn into consumption. If I wanted to, I could hire 10,000 people to do nothing but paint my picture every day for the rest of my life. And the GDP would go up. But the utility of the product would be zilch, and I would be keeping those 10,000 people from doing AIDS research, or teaching, or nursing. I don’t do that though. I don’t use very many of those claim checks. There’s nothing material I want very much. And I’m going to give virtually all of those claim checks to charity when my wife and I die.

Some more quotes by the man which i have found interesting over the years i have read about him.

• It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently

• Only when the tide goes out do you discover who’s been swimming naked

• You only have to do a very few things right in your life so long as you don’t do too many things wrong

• I always knew I was going to be rich. I don’t think I ever doubted it for a minute.

• I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.

• I buy expensive suits. They just look cheap on me.

• If past history was all there was to the game, the richest people would be librarians.

• Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.

• Price is what you pay. Value is what you get.

• Risk comes from not knowing what you’re doing.

and my most favourite one….

• Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.

The Snowball: Warren Buffett and the Business of Life
Author – Alice Schroeder
Pages – 832
Publisher – Bantam

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Blackburn have edged closer to opening up a new frontier in English football by becoming the first Premier League team to have Indian owners.

The club confirmed that talks with the Venky’s conglomerate over a £46million deal are close to conclusion and a takeover should be completed next month. The price includes £25m to buy the club from the family of the late Blackburn benefactor Jack Walker and a further £15m to clear debts.

Venky’s managing director Balaji Venkatesh Rao, whose father founded the company, said: ‘It’s very much confirmed and we will be announcing it formally in the next 10 days.

‘It’s a £46m deal. I wouldn’t say that is cheap or expensive but we will have to pump in some more money later on. The money is up front from our own sources. We are not here to compare with anybody but this is a first for India. It’s a prestigious moment for everybody and one we should cherish.’

Read the full article here

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