The Indian Cricket Portfolio

The 2^nd year MBA is application of knowledge gained so far and I thought it’s time to take this fact more seriously. So I decided to ‘apply’ the finance knowledge to Indian cricket team. The conclusion is that cricketers do resemble to various financial products. Here are the details of Indian Test team:

Virender Sehwag: He is our classic bull run. No one can beat him in that. No one has time to think what is happening before the index (score) doubles, triples and so on. For bowlers though, it’s a big crash!

Gautam Gambhir: He is a convertible bond of the team. We need his ‘capital’ in opening of innings. Once innings is stable, he can convert himself from steady bond into a dividend-paying stock.

Rahul Dravid: The Wall is like a protective put on Wall Street. Limits the downside risk, but also decreases the upside potential. The Wall seems to be built by quality cement – cannot be brought down by opponents; but then cannot be brought down by owners as well!

Sachin Tendulkar: The Master Blaster is a guaranteed continuous risk free arbitrage. He makes the team a market maker by setting the terms – big time opportunity for any business. Sachin is perhaps the only player who continues to create risk-free arbitrage even if the market is efficient. Who wants to lunch with Warren Buffet when Sachin is still there!

VVS Laxman: The Sultan resembles an investment in sovereign bonds – stable and almost risk free. Good to have in the portfolio.

Yuvraj Singh: He is the growth stock of team India. Full of excitement when flourishing.

MS Dhoni: The Captain Courageous is the revolving line of credit for team India. Always needed to pull the situation out of crisis. So long as he is there, the team can safely stay away from bankruptcy and even hope for a turnaround!

Harbhajan Singh: Bhajji is like an investment in gold. In India, it is a very valuable commodity; full of ‘sentiments’ and gives good returns. Even the ‘volatile’ nature is under control. But on foreign soils it’s just another commodity with average returns!

Zaheer Khan: Zaheer is a value stock. Essential to have in a portfolio with long term view.

Ishant Sharma: The pacer resembles a high-beta stock. Very volatile with both high downside risk and high upside potential. Hmm…the good thing is that beta always tends towards unity in the long run.

Ashish Nehra: The born-again bowler looks like a long in-the-money put. Limits downside and keeps upside potential unchanged. We should hope he does not become out-of-money! The premium paid will go waste.

Now the next idea is to ask Harvard Business School to make a case study out of this to act as the ‘basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation’. Isn't it high time to make sense out of HBS case studies!

What success means...

MS Dhoni, Narayana Murthy, Shahrukh Khan, Barack Obama have something in common – they were not standing on the shoulders of the giants but rose up and saw beyond the vision set for them. They believed in what they saw and they believed that it was their raison d’être to achieve what they saw. The greatness lies in that they had the courage to walk over the unknown to reach there.

My friend once said ‘If you come from rich successful family, you are almost half successful right from the birth’. Such lucky bunch of people get the giant shoulder to stand on right from their childhood. Many things come for granted for them because they think it’s a commonplace. They are able to physically see the world of success – they see successful people early in the life and can envisage their own future similar to these successful people. They take such successes almost for granted because for them, it really exists in front of them, everywhere! It’s the way of life for them. May be this is what is meant by ‘it’s in the blood’! Nothing succeeds like success.

For people like Dhoni, Murthy, SRK, Obama etc., there is a challenge leering around. They have seldom seen success physically – success in a person, or in some institution – with own eyes in their early lives. Most probably, they see people failing (or not very successful). In a sense, it’s more of a physical failure around them. They see failures and only hear/read about success. For them, it’s a matter of choice between the physical failure and ‘somewhere there’ success. For them, success is in third person – something that exists, but not anywhere around. These men are in true sense leading themselves. They are the self-leaders first and leaders next.

It’s a simple concept that what can be perceived can be learnt easily. Newtonian physics is easier than quantum physics. Visible success is easy to learn and imitate. Third-person success is difficult to perceive and follow. A self-leader has to go there to see it in person. To go there, the self-leader has to cross the bridge that joins his world with the successful world. This bridge is long and tough. It is easy to get lost in the self-doubts that are lurking like sharks. There is hardly anyone to look up to, to guide. The only weapon to fight all this is the passion to cross the bridge; the burning desire to see what lies on the other side of the bridge; be game to take into stride come what may.

So what success means to such people? For them, success is in believing that success exists. Success is in being a self-leader. It is in choosing the‘somewhere there´ success over the physical failure existing around them. Success is to strive to convert the third-person success into a first-person success; and be a third-person success to self-starters like they themselves were once, thus carrying on the legacy.

Tandulwadi Fort Trek

Wanting to get closer to the nature and away from city life, I went for trekking to Tandulwadi Fort. It’s a stop-over fort from Shivaji maharaj’s time and is in the middle of deep forest. Nearly 1900 feet high, the fort is surrounded by mountains and forest from all sides. A legend goes that there is a treasure somewhere along the way to top, but no one has yet found it! Also, man is yet to find the hidden caves there! And the view from the top of confluencing of rivers Vaitarna and Surya! …simply A.W.E.S.O.M.E.

Tandulwadi Fort: From the base

It takes almost 2.5 hours from the base (Tandulwadi village school), assuming you stop a lot in between and enjoy the picturesque natural beauty. Except for the final 45 minutes, the hike is not difficult. Its just walking and climbing the hill. The last 60 feet of the climb to the top is tough. We have to climb the rocks and it’s quite steep.

Final part of the hike: It's steep and rocky

I saw the confluence of rivers for the first time and what a great view it is from the top! Two rivers coming from two different directions and becoming one so suddenly is simply miraculous. Thanks to monsoon, the river is full and flowing swiftly. It is a delight!

Union of Rivers Vaitarna and Surya - A beautiful view

The cool wind makes us feel fresh despite the tough climb. There are lots of cliffs around the fort. Some have naturally created water reservoirs. There is a collection of 7 man-made water-reservoirs (called ‘hundi’ in Marathi) on the fort. It is said that they are so deep that there is a route from one ‘hundi’ to another 'hundi' from under-water.

After spending nearly 3 hours on the fort, we started descending by 4 PM. We reached the base by 5:30, a bit late due to missing the actual road. But as is said about any trek, you keep walking and you will reach the destination! How effortless it seemed to walk on concrete road after the arduous descend!

More pics here: http://picasaweb.google.com/sunil.pande/TandulwadiFortTrek?feat=email#

It was a great adventure. It feels nice to be back trekking after 4 long years of break. Can’t stop to think of another one soon J

Trek details:

Nearest Railway station	Safale (Take Virar-Dahanu shuttle; Safale is the 2nd station – 15 minutes)
Base	Tandulwadi Village (10 minutes from Safale through bus/cab)
Height	1900 feet
Time to reach the top	Approximately 2.5 hours from the base
Drinking water	Advisable to carry water since water on fort is not potable
Best time to visit	Monsoon/winter ; avoid in summer
Must see sights	Monsoon lake on the fort, ‘sapta-hundi’ and confluence of Rivers Vaitarna and Surya

My CFA Level 1 Journey

Everyone who has cleared any level of CFA has most probably put in lot of efforts. So I am not going to write about how I went about clearing level 1. Instead, I am going to write about my journey to Nepal (I wrote L1 in Kathmandu) and the stay there, both of which were full of incidences in itself! Right from the moment I left home, it was an adventure.

Before I start, a disclaimer: It might seem, after reading this post, that Nepal is a creepy place with strange people. Far from that – Nepal is a scenic country with very friendly and helpful people. We have only ourselves to blame for all the tough time we had – it was complete mismanagement and poor planning.

So here I begin.

Journey from Mumbai to Gorakhpur was quite pleasant. Travelling for first time in AC coach was very exciting. The best thing about AC coach is that there is not much competition to stand at door! Standing at the door and watching the beautiful landscape was fun.

 When Gorakhpur arrived, I was thrilled by the thought that my first-in-my-life stepping on foreign soil was less than 2 hours away! We hired jeep to reach Sanauli, the India-Nepal border. Soon I had left India and entered Nepal. Little did I know that the real adventure had just begun!

There is almost a monopoly in bus service from Sanauli to Kathmandu. After exploring the options (very few options actually), we were lured into boarding the lone bus leaving at 4 PM. The bus agency promised us that we will reach Kathmandu by 11 PM.

If we were seriously thinking of intense study in the bus, then the thought was dealt with an immediate death – the bus’ condition was beyond any imagination. The bus was devoid of sufficient lighting. Apparently, there was no driver’s ‘seat’, so the driver stepped in gallantly with a plastic chair!

The roadside throughout the travel is full of greenery. This, coupled with a cold weather, keeps you fresh inspite of poor travel conditions. I tried to forget about exam for some time and enjoy Nepal’s fantastic countryside. The bus was running at snail’s pace and by 7:30, we were sure that we won’t reach Kathmandu before midnight.  Later, people accompanying us told that the bus service always promises less journey duration to fill the bus.  In very dim light, we pulled our books and tried to study. Chilling wind from fissures of closed windows was striking constantly.  There was a constant gush of cold wind from fissures of closed windows.

When it was 10PM, the driver turned on a ‘tape-recorder’. It had only one song, which it was playing continuously. Totally irritated after some time, we asked to stop it. The officials’ said the driver wanted some music to keep him awake – it’s for our own safety; and they had no other song to play! So we had to let it continue. By 11, we had only covered half of the way. The mountainous terrain was about to begin. An hour after dinner, the driver abruptly stopped the bus. The officials said they will come in an hour – the driver needed some sleep! It was crazy! In the mid of a valley, they wanted to sleep!  So it was that the Robinson Crusoes of the bus were Castaways for an hour, right in the middle of steep mountain terrain, with valley on one side, rocks on the other, completely isolated from the world! 

The journey restarted and without any new absurd event, we reached Kathmandu at 5 early morning. We checked in a hotel – according to receptionist, the hotel would provide any facility on demand. Surprisingly, I was not feeling sleepy. The idea of big exam just a day away was finally sinking in. I and my roommate decided to study the whole day.

With a strong resolve, we start studying. Exactly at 6, the electricity goes off. We think the hotel will immediately start the backup supply. We wait for some time, nothing happens. I reach for the phone in the room, but it is not operating. Already tired from the crazy bus journey, all this is annoying. I go down to the receptionist to understand the situation. Apparently, there is load shedding going on; hence, there will be no electricity for next three hours! According to receptionist, ‘Nepal is exporting electricity to India; hence the scarcity’ !

 I think a hot water bath would be refreshing amidst all this. I ask for hot water to the receptionist. I am sensing betrayal in his eyes.

Receptionist: You will get hot water only when electricity is back. We have solar heater which will start only with electric supply.

Me: You had said we will get any facility ‘on demand’.  

Receptionist: Only when we can provide for the facility. Here, electric supply is out of our hands!

Me: You can surely heat water on stove.

Receptionist: Shaab Ji, Nepal imports gas cylinder from India ...we cannot afford using it to heat water!

Hearing about this import-export, more than Nepal, I wanted to sympathize with Adam Smith!

The hot water bath remains just an idea. I leave for my room and get much-required sleep.

Electricity is back by 9. The telephone is working too. I ask the receptionist about their solar system. It will start in an hour, he says.

I start studying with renewed vigour. Target is to revise the full syllabus – an audacious goal.

It’s 10:30 and I check if hot water is available. I am in for another surprise. Water supply has ceased to exist in our bathroom! This is very irritating. I check with others. Equality reigns in all rooms, throughout the hotel!

I go to the receptionist. He says the water tank has run out of water; it will take an hour for tank to get full. Not wishing to hear his new theories on this matter, I stop arguing and leave.

We decide to go out and have tea. It’s cold out there, and tea is very refreshing. There is internet cafe there providing VoIP, so we call our home and tell we are ‘safe’ and ‘sound’. 

Afternoon has arrived, and we are yet to pace up our studies. Few co-travellers come and ask whether we wish to go for lunch. Lunch would be good, I think, and so we six go for lunch. By the time we return, it’s 2 PM.

I am hoping that I can bath now and start studying afresh. Alas, water is still not available. The good thing is, we have a nice balcony where we can sit and study under the Sun – this is welcoming, after so much coldness. We sit there and study. By 5 PM, it is becoming dark and cold is creeping back.  Amidst all this, we come to know that water came and went in others’ rooms; but didn’t come in our room. This is discouraging. We cannot tolerate inequality. Receptionist says we have to wait for another hour till tank gets filled! Then says there will be load shedding from 6 to 8 PM; and hands us 2 candles. For me and my roommate, it’s tea time. With no electricity, it’s dark now. With almost everything having gone wrong, energy level is down. We both are feeling dejected.  On the eve of a big exam, with so much to study, we start discussing religion and life! Try killing time and wait for a ray of light – literally and otherwise.

Fortunately, for us, water supply came by 9 PM. We had a nice hot bath after 3 days and it was blissful. Our attempts to study had failed throughout the day. It was very cold out there and I was drained, especially after the day’s events.

In retrospect, it seems that I was slowly getting comfortable with hard reality – my incomplete preparations. In all this, there was a strong lesson to learn: When we know that we are in a bad situation due to our own mistakes and now situation is helpless, the first thing to do is to get comfortable with the reality. When things are out of control, it’s difficult to just watch them and do nothing. But at times, the best way to handle such situation is just that – to do nothing. In such cases, it is good that time waits for no man. Time has to pass.

Time did pass for me and many good things happened on the exam day. The weather, though cold, was refreshing. The journey to exam centre was along the country side so full of oxygen. I had never seen a school as magnificent as the one we had as exam centre. It’s an old school, much like an old monument. Spread across a huge span of land, it is full of greenery and surrounded by hills on one side. Sitting on the lush green grass on a bright morning with sun rays providing much needed warmth, anyone will feel energized and full of spirit.

The rest, though they say, is not history yet! The journey has been great so far and inspiring to take it to the next level – CFA Level 2, here I come J

 

'Customer Care' by a PSU !

I got a nice New Year Day experience – thanks to our sarkari institution called BSNL. I had a ‘fruitful’ and ‘interactive’ session with BSNL JTE (Junior Telecom Engineer) and his bunch of telecom operators.
Last week, we had lodged compliant to BSNL as the broadband connection had stopped working. I had visited our nearest BSNL exchange to know the status of the complaint. I was shocked when the JTE asked me to bring our modem to the exchange so that they can check if it is working – apparently, they had set the rule of resolving complaints without ever visiting their customers! The JTE proudly explained: ‘All our customers come here and get their systems configured’! So much to what I learnt about ‘visiting customers, probing them, learning (!) from them’ in one of our MBA subjects!
Of course, the modem was working fine. Now he will send the operator, I thought. ‘You will receive a call from our operator’ – so says the JTE, ending his day’s efforts on resolving our complaint.
It would have been a surprise if I had received any call from their operator.
Hence, on New Year day, I again call the exchange to know status of the complaint. The JTE asks me to come there with the modem! As if the modem will behave differently in the new year! I remind him of his checking our modem last week. He persists. I have no option but to go there. This time, though, I do my homework – I read modem installation procedure and network-related stuff.
The JTE greets me with a smile. He connects our modem to his laptop, starts internet. It is working. That is it! ‘It’s working here’, he says. I remind him that that is exactly what I had said when he asked to bring modem.
I tell him that our PC is not correctly configured for the modem. Fortunately, he is generous enough to allow me to show why I think so. I insert the modem-CD and start to show how the installation procedure of the CD is faulty. Apparently, the JTE is computer-phobic, so calls his operator. I soon learn that the operator is not just computer-illiterate, but also does not have any operator under him to call and get rid of it all! So he tries his creativity:
Operator: What is this firewall?
Me: It has got nothing to do with this internet connection issue.
Operator: Since how long is internet not working?
Me: Since 6 months.
Operator: Then you must not have paid the bill for last 6 months.
Me: If you remember, last time I had brought our latest bill. You yourself saw the payment details.
Operator: But have you paid the previous months’ bills?
Me: The latest bill does not show any dues – you must have seen. That means we have paid 1500 Rs. in bill for no real purpose. You see, it is high time we get the internet connection back.
The JTE comes to his rescue.
JTE: Have you tried resetting the modem? It is not working for 6 months.
Me: Sir, I am a computer engineer. I have tried all these things before coming here. And the modem is working all the time, the problem is with settings.
The JTE brings another modem’s CD. The modem is of different make. I tell him the CD is only for corresponding modem. He says may be CD is faulty and we can get it done by his CD. Completely astonished with his ignorance, I explain him the CD is provided by makers of the modem; if modem is of different make, CDs are different. All this still eludes him. ‘It’s like you are suggesting opening your neighbour’s house with your house’s key; it will not open!’ I say, almost giving up.
A tall, daunting operator walks in. He is the one who had heard my complaint the last week. He is in an attacking mood. I am a bit frightened. Seems like it’s going to be a 2009 David versus Goliath.
Operator: I had told you the modem is working. Your telephone line is working, so we cannot do anything further.
Me: If a customer’s internet is not working, it’s your responsibility to provide timely service.
Operator: We cannot go to each and every customer and solve his problem.
Me: Yes, that’s why you ask customers to bring their modems to your office! I can see that.
Operator: But the problem is in your house’s computer!
Me: How can you be so sure without even coming and looking into our computer? (Looking at JTE): So please send one of your operators to my house to check why it’s not working on my PC.
Operator: You first call hardware engineer and check if your computer is working fine.
Me: Sir, I am computer engineer and I have already checked everything before coming here.
Operator: Going to customer requires transportation charges...
I am about to ask whether BSNL is a social organization to be unable to expend for transportation, when another operator reminds it’s time for lunch!
Me: Ok, I will provide for transportation, I will wait till your lunch gets over, but I am not moving without getting my net connection.
The JTE is back in action now.
JTE: See, had you got laptop, we could have shown you that your net works anywhere, not just here.
Me: I pay 250 Rs. per month which includes the maintenance fee. It’s your duty to come and give service at customer’s place.
Operator: That 250 Rs. covers only your rent.
Me: Ok, if I get my laptop, then you will do what is required?
JTE: Of course, that’s our duty!
Slowly, I pull my laptop out of my bag. JTE and the Goliath operator look at each other, as if betrayed. JTE must be repenting for bringing laptop into picture. Everyone there is stunned at the idea of being forced to work. With my camera, I bet I could have captured ‘the shocked faces’ of year 2009!
The JTE sits down to start his ‘duty’. The operator also joins him.
The operator starts doing the required settings: the proxy addresses, registering on BSNL, establishing the connection etc.
Not surprisingly, he is not adept at it. I grab the opportunity.
Me (looking at JTE): See, when your experts take so much time in setting it up, how can a common man do it on his own? And you say it’s not your responsibility...
Operator: Our responsibility is only to deliver hardware and ensure the line is working fine. This thing is none of our business.
Me: So please tell me what exactly is your business!
Seems like they have finally embraced the idea of working more, talking less.
By now, the operator looks cooled down. He is doing the settings. He is kind enough to tell me all that he is doing (I need this to repeat it on my PC back home). End of the battle is on the horizon.
Eventually, internet is working on my laptop.
Reluctantly, I thank the operator – just in case it still does not work on my PC, I have to come back.
It is almost an hour and half since I came here – it’s the time taken to get them to action!

To summarize, the actual work was a matter of just 10 minutes; but took 2 hours! I got a firsthand experience of the lethargy in PSUs. The irony of all this is, they had succeeded in resolving yet another complaint without visiting the customer!