Year: 2009
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Innovative business models from India
A business model nurtured in the western world is not necessarily a good model for the emerging countries. The Business Week article India Inc.: A Lesson in Business Design talks about how India is trying to radically reinvent the business models to suit the special conditions in its local markets. Rule of 10% -delivering goods…
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Irony of Credit Default Swaps
This article on Credit-default swaps and bankruptcy highlights another instance of collateral damage of CDS (Credit Default Swaps) contracts to the economy. There was another detailed article in FT on the unintentional and negative outcomes of CDS contracts (which I will find and post again here). It is a commonly held assumption that when a…
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Whither Annual budgets
This article Corporate planning through the fog describes how annual budgets will become a thing of the past. The markets and economy are changing so rapidly, more now than ever, that a budget may become useless in the next quarter. Here is what other companies are doing. I was a bit perplexed by this article…
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Efficent market hypothesis revisited
Perhaps no other theory in Investing has been proved right and wrong so many times in its history as Efficient market hypothesis, an idea that all the available information about a company is already reflected in the stock price. Therefore no one should make abnormal profits or losses when the price accurately reflects the inherent…
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Francis coupla and Wall street killer formula
This Wired.com article Recipe for Disaster: The one formula that killed Wall St is probably the closest to answering the question I always wanted the answer for. “How could so many brilliant bankers go wrong?” Before quant models came along, investors have no way of knowing the correlations between different variables that will impact the…