Blog – Value Investing Almanack – Safal Niveshak

Spotlight: One Big Tupperware Party That’s Stock Market

May 5, 2018

There are strong parallels between Tupperware parties and the stock market investing. A Tupperware party is a whirlpool of psychological forces that suck the partygoers into making unnecessary purchases. A stock market isn’t much different.

In 1938, Earl Tupper developed a technology for air-tight plastic containers. His patented “burping seal” design distinguished his product from the competitors. However, despite being a revolutionary product, Tupperware sales did not pick up for first ten years.

Then in 1949, one of Earl’s sales representative, Brownie Wise, began selling Tupperware products through home parties. The idea was that housewives would invite friends and neighbours at home and the party would be a combination of social event and sales presentation.

InvestorInsights: Hari Ramachandra

April 30, 2018

Hari is a Senior Director of Engineering at Salesforce. He is part of the Einstein Analytics Group and his work involves empowering thousands of startups and successful companies at scale by democratizing big data, analytics, artificial intelligence. He is passionate about bringing positive change to society with the help of technology and business. Hari is a frequent guest at The Investors Podcast and share his thoughts on his blog bitsbusiness.com.

In this interview, Hari talks about his journey and experiences in self-learning and investing over the years.

Safal Niveshak (SN): Please share about your background and your education.

Hari Ramachandra (HR): I come from a small town (now it is a bigger city) Mysore. My father was a government employee, a civil engineer by profession and a musician by hobby, I grew up in an atmosphere where art and education were equally valued. My father is a staunch follower of Mahatma Gandhi and spent his evenings and weekends teaching “Bhagavad Gita” to adults and kids in Mysore and nearby villages. His principles and philosophy have had a lasting impact on me.

I started my career as a Mechanical Engineer. I was fascinated by robotics, however over time I was drawn towards software engineering. It was 1998 and Internet was the new big deal. I quit my secure job at Wipro Infotech as a design engineer in their printer division to join a small internet startup in my hometown. I had to take a large pay cut, but it was one of the best decisions I ever made. It gave me the experience of running a business from sales, customer relations to software development. I was exposed to the world of business and deal making through my CEO and founder. I got to travel with the sales team and present to key customers. I learnt first-hand the challenges in selling products and the importance of customer satisfaction. I had to present at multiple events to small and big audiences. I practiced intensely to overcome my nervousness. This experience has helped me immensely throughout my career.

After working for some time in the startup world, I realized the immense opportunity and promise the Internet had and wanted to play in the big league. Hence, I set my eyes on the United States of America. Thanks to some of my good friends, who encouraged me to pursue higher education in the US, I landed here in 2000 for my masters’ in computer science.

Timing wise, it could not be worse. Few months after I registered for my masters, the dot-come bubble crashed and with that my dreams and those of many students like me were shattered. There were mass layoffs and companies stopped sponsoring H1B visas, which was essential for immigrant students like me to work in the US. I was lucky to be selected for a fellowship offered by IBM in collaboration with my University, which helped me sustain myself till I found a IT consulting company to sponsor my H1B.

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BookWorm: Home Deus

April 15, 2018

Yuval Harari is arguably the most influential thinker and writer of this century. His books will make you think in ways you haven’t thought before. Harari brings remarkably original ideas gift wrapped in a captivating style of expression. In Sapiens, Harari showed us where we came from. In Homo Deus, he shows us where we’re going.

Yuval Harari’s first book, Sapiens, turned my world upside down. Technically, it was a book on human history but the insights were anything but ancient. It was jaw dropping from the first word to the last. Sapiens ranks among the five best books that I have read, ever!
[Read more…] about BookWorm: Home Deus

Beware the Mirage Called Financial Freedom

April 15, 2018

9th January 2018 was the last day at my office. I quit my software job to spend more time pursuing the work that I love, i.e., reading, writing, and building my personal projects. I received calls from a handful of friends when I broke the news. Most of them congratulated me and some showed concerns too about my seemingly hasty decision.

However, one of them asked me a sincere question – “Are you financially free to justify this bold decision?”

It’s hard to discuss money without bringing up the topic of financial freedom, isn’t it? Unfortunately, the idea of financial freedom, like the concept of God, has been abused so much especially in last 10-15 years that it has lost its meaning.

If you’re in a job or profession where you spend a significant amount of time doing things which you’d do even if you weren’t paid for it, you can stop reading here. There’s little this essay can offer you.

However, if you are spending 40-50 hours every week doing something which you’d rather not (but still have to because it pays the bills) then read on.

Behaviouronomics: Disposition Effect

April 10, 2018

Most investors are too early to sell their winning stocks and too reluctant to let go of their losing stocks. This tendency is more pronounced when people get fixated on the stock price alone and forget about the quality of the underlying business.

I remember this conversation I once had with Ashish, my ex-colleague, a few years back.

“Man, stock market is too risky.” Ashish shook his head.

“What makes you say that?” I quizzed him.

“I bought DLF stocks in 2008 for 1 lakh, and now they’re down by 90 percent. But my DLF flat appreciated by 20 percent in the same time. Such an irony that it’s the same company where the stock is a loser, but their product is profitable. I sold the flat recently.” He said.