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Jim Rogers Tells Us When to Start Buying Gold-video (20th May 2013) Contributed by Chetan Parikh
Is the gold rush over? Or is this just one last great buying opportunity?
As rally pushes prices higher, time to buy -- or save? (20th May 2013) Contributed by Chetan Parikh
The stock markets are shooting skyward and bond prices remain lofty. It’s enough to put investors in a cheery mood as we approach the summer holidays.
The Week Begins, and Silver Is Instantly Getting Destroyed (20th May 2013) Contributed by Chetan Parikh
Fans of precious metals have been getting creamed lately. Thanks to declining volatility and a growing sense that real interest rates are on the rise, gold and silver have been getting taken to the woodshed.
30 Big Ideas from Seth Klarman’s Margin of Safety (18th May 2013) Contributed by Chetan Parikh
With the possible exception of Warren Buffett, no investor today commands more respect than Baupost Group’s Seth Klarman. Since founding his investment partnership in 1983, Klarman has not only produced unrivaled returns (in excess of 20% per year), but he has also from time to time offered wise and timeless commentary on markets and the craft of investing.
PIMCO's Bill Gross Doesn't See A Bond Market Crash, But He Does See An End To The Epic Bull Run (18th May 2013) Contributed by Chetan Parikh
Bill Gross did not see the S&P 500 going up 15% in 2013, never mind by the middle of May.
What is the “Warren Buffett of Europe” Up To? (18th May 2013) Contributed by Chetan Parikh
Every first quarter of the year, the Spanish firm Bestinver Asset Management holds its annual meeting with investors. This year, the meeting had to be postponed until 16 April (from 4 March) because of administrative problems with the venue where it was originally scheduled to be held. The event is a small-scale replica of the Berkshire Hathaway meeting, but it is large enough to fill a 3,000 seat theater in IFEMA, Madrid’s main convention center, and includes an unlimited Q&A section.
Interview with A Remarkable value Investor – Josh Tarasoff (18th May 2013) Contributed by Chetan Parikh
I met Josh the first time in 2006, at the value investment seminar I attend each year in Italy. In that year Josh was finishing up his MBA at Columbia University specialising in value investing.
How to (Safely) Buy a Rising Market (18th May 2013) Contributed by Chetan Parikh
Predicting the direction of the major indexes on a day-to-day basis is an impossible feat. Attempting to play the market’s movements by the hour or minute will cause you to go insane (and lose all of your money in the process).
Longleaf Partners Q1 Report (18th May 2013) Contributed by Chetan Parikh
Mason Hawkins and Staley Cates of Southeastern Asset Management [VII, August 31, 2012] in their latest fund quarterly report describe their approach to activism – on display recently with respect to Dell and Chesapeake Energy – and describe how their fund holdings have evolved as “stock prices increased faster than values” in recent months.
“Warren Buffett is Bullish ... on Women” (18th May 2013) Contributed by Chetan Parikh
Warren Buffett in this Fortune essay explains why he believes women are key to America’s ongoing prosperity.
Markets Shift to Overdrive (17th May 2013) Contributed by Chetan Parikh
Do you see what’s happening here? This market is in overdrive. The melt-up has been relentless, with the broad market gaining more than 1% yesterday. Nearly 200 domestically traded stocks finished the day up 5% or more.
The Importance of Doing Business (17th May 2013) Contributed by Chetan Parikh
This month, an independent review panel is expected to release its findings regarding the World Bank’s Doing Business report. Speculation abounds that the panel might recommend outsourcing Doing Business, removing its rankings of countries for the ease of doing business in them, or even eliminating the report altogether.
From Petrodollar to Petrogold: The US Is Now Trying To Cut Off Iran's Access to Gold (17th May 2013) Contributed by Chetan Parikh
The US is moving to broaden its 'blockade' efforts of Iran to the movement of pure gold into the Islamic Republic. The US-led embargo of Iranian crude succeeded in slowing the flow of petrodollars into the nation but as Foreign Affairs committee chairman Edward Cohen remarked, there is "no question that there is gold going from Turkey to Iran."
Advisers vs. Machines (17th May 2013) Contributed by Chetan Parikh
Professional and individual investors have long had a hard time beating the broader market. And, says Mark Hulbert, the rise of computer trading programs may be making it harder than ever.
The three most dangerous words in investing (16th May 2013) Contributed by Jitendra Gupta
The Value Investing Congress just concluded in Las Vegas where approximately 20 speakers gave their pitches for their favourite stocks. I always find this conference a useful source of ideas to take a further look at. Some of the speakers have incredible track records and their analysis is very robust. The one aspect, however, that really caught my eye was not a stock pick.
‘Black Swan’ Author Says Market ‘Fragility’ More Important Than Risk (16th May 2013) Contributed by Jitendra Gupta
Nassim Taleb argues markets need ‘stressors’ to prevent catastrophic events
Tom Russo on Attending Berkshire Hathaway's Annual Meeting-Video (16th May 2013) Contributed by Jitendra Gupta
Tom Russo is a partner at Gardner Russo & Gardner and has managed to beat the S&P 500 index by 4.7 percentage points annually between 1984 and 2011.
The Buffett Formula — How to Get Smarter (16th May 2013) Contributed by Chetan Parikh
Most people go though life not really getting any smarter. Why? They simply won’t do the work required.
The Unintended Consequence of the Soaring Dollar (16th May 2013) Contributed by Chetan Parikh
It seems the S&P 500's recent strength is somehow comforted by the fact that the USD is riding high on its cleanest dirty shirt meme at 34 month highs but unfortunately for the Chinese (and their practical peg to the USD), things are a little less fun than in the old mercantilist manipulation days. The implicit benefit that dollar flows appear to be getting (via the wealth effect in the US stock market) is not there in China (lower equity ownership); in fact, the rising Yuan is drastically hurting them as despite export orders remaining in growth mode, the China Daily reports that "most exporters in the delta region have told us that the rising yuan value has led to a big profit decline."
Office Hours with Warren Buffett (15th May 2013) Contributed by Chetan Parikh
Warren Buffett is a businessman and philanthropist. As Chairman and Chief Executive Officer of Berkshire Hathaway Inc., Mr. Buffett has invested in a broad range of companies from See's Candies to Fruit of the Loom.
Four Important Facts to Remember About Gold (15th May 2013) Contributed by Chetan Parikh
When volatility prevails in the gold market, I love seeing so many different opinions because it promotes critical thinking and healthy markets. But because gold is unlike any other commodity, many perspectives can be extreme, such as “golden freudes” who take pleasure in gold bugs’ pain.
Thank god gold prices are falling (14th May 2013) Contributed by Jitendra Gupta
How many of us would like to walk into a shopping mall holding several grams of gold in the pocket to buy a packet of soap or other daily necessities? This is quite possible if paper currency loses its significance or value.
What If Your Portfolio Looks Like A Mutual Fund? (14th May 2013) Contributed by Jitendra Gupta
Charlie Munger, the Vice Chairman of Berkshire Hathaway (BRK.A), (BRK.B), is on the short list of the three or four investors that have had the greatest influence on my own individual approach to stock selection. Having his read the biography of his life titled Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger, I have great respect for him as a man given that he had to endure the death of a son, a divorce, and near bankruptcy all within a fairly short sequence of his young adult life. When he has a viewpoint on something, it usually pays to listen up.
Using Ray Dalio’s 5 Principles to Reach Your Investment Goals (14th May 2013) Contributed by Jitendra Gupta
Over the weekend I read through Ray Dalio’s principles, which is basically a guide to how to be happy and get things done. Ironically, the 123 page document written by one of the world’s best investors and founder of the All Weather Fund, doesn’t directly talk about investing at all. As one might imagine however, many of the principles outlined in the document are as relevant to successful investing as they are to success in your personal and professional life.
How to Determine a Good Investment (14th May 2013) Contributed by Chetan Parikh
I just wrote this post on my investment process and the idea of using screens. I found it interesting that Buffett doesn't even consider screens as a tool. I think most of the reason is that he doesn't use technology much, but other reasons include the sheer size of his investment portfolio and the fact that since the 1980s he has become much more of a business investor interested in the qualitative aspects of a business. He is much more interested in moats, management and competitive advantages than he is about P/E or P/B ratios.
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Why American History Is Not What They Say: An Introduction to Revisionism by Jeff Riggenbach Contributed by Chetan Parikh
Jeff Riggenbach's book is a godsend for anyone who needs a crash course in revisionist history of the United States. What is revisionism? It is the retelling of history from a point of view that differs from the mainstream, which always treats the victor (the state) as glorious and the conquered (individual liberty) as deserving of its fate.
Review of Austrian Economics, Volume 9 by Murray N. Rothbard Contributed by Chetan Parikh
Murray Rothbard had long dreamed of an Austrian academic journal. In 1986, his dream came true. The Mises Institute published it, and it changed everything. The Austrians could focus on internal development, highlight the contrast with the mainstream, and show their wares to the profession and the world at large.
Economic Calculation in the Socialist Commonwealth by Ludwig von Mises Contributed by Chetan Parikh
This is the essay that overthrew the socialist paradigm in economics, and provided the foundation for modern Austrian price theory. When it first appeared in 1920, Mises was alone in challenging the socialists to explain how their pricing system would actually work in practice.
From Bubbles to Boiling.
"In 1929 there was only one bubble, the stock market bubble. At the time the governments were disciplined, stuck to the rules and were not afraid to apply the necessary corrections. Governments still had gold reserves as an anchor and only few people were indebted.
The situation today is totally different. There are many bubbles, too many: the currency and credit bubbles, and their parallel debt bubbles, the stock market bubbles, the derivative bubble, the world wide real estate bubble, the travel bubble, the population bubble."
Bubble Bath
"In the wake of the bursting of the dot.com economic bubble, one refrain is commonly heard: how was it that reasonable people could get suckered into pouring money into endless new startups that had no product and no potential for profits, in an entire economic sector that had little history of profitability?
A recent Wall Street Journal article outlined how sometimes the delusions ran deep--and were intentionally laid. And are continuing."
Seeing Bubble.
"Lower interest rates, lower energy prices and the tax cut should restore confidence and spending. Should this fail to occur, present market values will almost certainly qualify as another "bubble". It's also possible that the drip, drip of bad corporate- earnings reports will slowly drain investors' confidence and spontaneously depress the market-and the economy. Alan Greenspan likes to say that a bubble becomes obvious only with hindsight. But even now the market is providing an impressive imitation.
When Bubbles Burst
Tulips. Dot-coms. Hey, manias happen. But most don't lead to economic disaster.
Who Blew the Dot-Com Bubble?
"Henry Blodget, Wall Street's loudest cheerleader for Internet stocks, made it to the front page of the New York Times last week. And thereby hangs a tale about the media and the bubble."
At diner, appetite dips for stocks.
"Newton eatery hit by market blues By Ross Kerber, Globe Staff, 3/8/2001 - Newton Eddie Cimen hears a lot of complaints at his Newton diner these days -about the markets, not the omelettes."
The Quest for Economic Freedom.
"The virtuous cycle, of dollar favorable capital flows and resulting "prosperity," depended upon the cooperation of a voluntary and able consumer, a voluntary and able international investor, an accommodative monetary policy, an accommodating administration and banking system, and most importantly, a benign global economic environment in which soft dollar deals would actually work. Almost none of these factors exists today, except for the few Japanese investors who have already forward sold enough dollars for the moment that they can afford to volunteer their complicity for a little while longer."
How Could Irving Fisher Have Been So Wrong?
"An analysis of why both the US financial system and economy are grossly maladjusted and acutely unstable."
The TSC Streetside Chat: Andrew Smithers, Founder of Smithers & Co.
At thestreet.com
In an interesting chat with Thestreet.com, Andrew Smithers, a Brit who heads Smithers & Co., a London based firm that provides advice to 80 of the world's largest fund money-management companies, suggests that the American stock market is in the biggest bubble it's ever had, and it exceeds the excesses of 1929, 1937 and 1968. For those of you who like to get to the bottom of the subject, Mr. Smithers has just co-written a book, 'Valuing Wall Street: Protecting Wealth in Turbulent Markets' (McGraw-Hill), in which he argues that the stock market is more overvalued than any time in history.
Letter of credit
'The Economist'
The recent issue of 'The Economist', (June 24th - 30th 2000) carries a brilliant piece in the 'Economic Focus' section (Pg. 106) about Andrew Smithers' new book, 'Valuing Wall Street: Protecting Wealth in Turbulent Markets' (McGraw-Hill). This book advocates a ratio called "Tobin's q" as the best way to judge whether stockmarkets are soundly valued - and concludes that Wall Street is oh, about two-and-a-half times higher than it should be. This article when read in conjunction with the preceding piece offers a better perspective.
The Meaning of 'Over-Valued'
By, Christopher Mayer at Mises.org
The author attempts to see whether the three common features of a bubble: one part fundamental (i.e. a technological revolution), one part financial (i.e. a surge in money and credit) and one part psychological (i.e. a suspension of belief in traditional valuation measures) exist in the current bull market. You might guess the answer, but read the piece.
Can the Stock Slide Be Stopped?
By, Llewellyn H. Rockwell, Jr.
What should be the right government policy towards a falling stock market?
The Beast Awakens
By Sean Corrigan at gold-eagle.com
A rise in the American CPI at 5.6% annualized over the last three months and 4% over the last six, has been the worst since 1990 and opens up the way for a savage reassessment of the mental construct into which asset valuations must fit. Juxtaposed with alarming proportions of margin debt and consumer credit, the picture seems precarious. Although the article talks about the American economy, these days the goings-on there have quite an impact here - investors in tech stocks will testify - it is worth a read.
"The Damn'd South Sea"
By Christopher Reed in the Harvard Magazine
Irrational exuberance pervades the stock market. Speculators pay ever-higher prices for shares despite scant evidence of underlying value. Skeptics warn that the bubble will burst. This must be England in 1720. Britain's greatest financial speculation and its unhappy ending, documented in a rich Harvard collection.
George Colony's
Modigliani's Message: It's a Bubble, and Bubbles Will Burst
By Floyd Norris, The New York Times
Dr. Modigliani says that there are two warranted prices for a share. The one he prefers is based on such fundamentals as earnings and growth rates. But the bubble, he says, is rational in a certain sense. The expectation of growth produces the growth, which confirms the expectation; people will buy because it went up. The trouble is that the bubble price is naturally unstable. It can keep rising only so long as expectations keep growing. But once you are convinced it is not growing anymore, nobody wants to hold a stock because it is overvalued. Everybody wants to get out and it collapses, beyond the fundamentals. Dr. Franco Modigliani knows something about the fundamentals. Now 81 years old, he won the Nobel Memorial Prize in economics in 1985 in part because of his pioneering work in just what those fundamentals are.
Bubble baths nothing new for investors
By Michael Pollak in the Akron Beacon Journal
Financial bubbles, those dangerous combinations of crowd psychology and alluring, wispy investment offers, have a long and painful past. Today's dot-com investors may get an education from three of history's hottest deals: tulipmania, the South Sea bubble and the Mississippi scheme. Careless folks have been losing their shirts on get-rich-quick schemes at least since 1634.
The Trouble with Bubbles
World Economic Forum - Worldlink March/April 1999
This time will be different, say the speculators eager to cash in on the latest investment frenzy. The problem is that each time it's the same. As JK Galbraith has said, financial genius is before the fall. This article is eminently readable, what with the precipitous fall in the NASDAQ.
Bubble psychology
By David Dreman
Forbes Magazine - March 08, 1999
THE DOW IS HEADED for 1,000,000. That's what investors expect, although they probably don't know they expect it. David Dreman explains that investor expectations are unreasonable whilst describing the anatomy of a bubble. If you are a BULL, read this to find out how much BULL-S… there is in this BULL market. If you are BEAR, read it anyway.
TRAPPED BY THE BUBBLE
'THE ECONOMIST': LEADER, 25th September 1999
Households and firms are on a borrowing spree. The private sector's financial deficit has risen to an unprecedented 5% of GDP (in the previous 50 years it has never exceeded 1%). Money-supply growth is rapid. And America's current-account deficit is heading for a record 4% of GDP this year. These are all classic symptoms of a bubble.
Economic basics predict apocalypse
By, Rick Ackerman - eXaminer.com
Dr. Kurt Richebacher (pronounced REESH-a-baisher), former chief economist and managing partner at Germany's Dresdner Bank says, a deflationary collapse lies ahead that will ravage the world's bourses and usher in a dark period of austerity and financial discipline. Where others see a New Era of productivity growth and industrial efficiency, he sees duplicitous bookkeeping and manufacturing's steep decline. They talk of a booming U.S. economy; he sees a profitless mirage. They worship capitalism's bold risk-takers; he scorns them for recklessly piling leverage to the sky. Someone's going to be wrong, but judge for yourself.
A fantastic contrarian piece!
Spinning Financial Illusions - The Story of Bubblenomics
By - William A. Fleckenstein
Fleckenstein begins by describing the various factors that collectively have created the financial environment in which we currently find ourselves. He then demonstrates that this is a bubble by comparing today to the late 1920s and offers some thoughts as to the potential severity of the aftermath of this bubble. Lastly, he makes a stab at guessing what might pop it.
Although the article relates to the stock markets in the U.S. and more specifically the tech businesses there, it may set you thinking about the implications of a deflation of the U.S. tech bubble. A fantastic article…
When Will the Bubble Burst?
By - George Reisman
For several years the stock market has made major gains, adding up to what has probably been the greatest bull market in all of history. Indeed, the persistence and size of the gains has drawn a growing number of new players into the market--to the point where it is now common to hear stories about doctors, lawyers, accountants, and people in practically all other walks of life cutting back on their normal activities in order to devote time to day trading on the internet.
Clearly, something is wrong. It simply cannot be that we can have a society in which everybody lives by day trading in the stock market. Something must occur that will destroy the conviction that the stock market is an easy source of gains. To understand precisely how and when this will come about, go on to read to the article…
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Bill Gates: My 13 favorite talks (4th December 2012) Contributed by Chetan Parikh
When we asked Bill Gates to curate a list of his favorite talks, his first response was, “There are too many to pick, really.” Here, he's whittled it down to 13 essentials.
Kill the Password: Why a String of Characters Can’t Protect Us Anymore (3rd December 2012) Contributed by Abhay Bhagat
It’s not a well-kept secret, either. Just a simple string of characters—maybe six of them if you’re careless, 16 if you’re cautious—that can reveal everything about you.
Microsoft Said to Speed Windows Upgrades to Once a Year (3rd December 2012) Contributed by Chetan Parikh
Microsoft aims to upgrade the software more frequently, about once a year, rather than every two or three years as it’s done in the past, said the people, who asked not to be identified because the product plans are private. The company plans to unveil the first of these updates in 2013, one of the people said.
Frozen Water and Organic Material Discovered on Mercury (30th November 2012) Contributed by Chetan Parikh
For the first time, scientists have confirmed that the planet Mercury holds at least 100 billion tons of water ice as well as organic material in permanently shadowed craters at its north pole.
Seeing the light: Ed Boyden's tools for brain hackers (27th November 2012) Contributed by Chetan Parikh
Ed Boyden, an engineer turned neuroscientist, makes tools for brain hackers. In his lab at MIT, he's built a robot that can capture individual neurons and uses light potentially to control major diseases -- all in his quest to 'solve the brain'.
The Scientific Blind Spot (26th November 2012) Contributed by Chetan Parikh
In 1870, German chemist Erich von Wolf analyzed the iron content of green vegetables and accidentally misplaced a decimal point when transcribing data from his notebook.
Having Broken CO2 Speed Limit, World Now "Stepping on the Gas" (26th November 2012) Contributed by Chetan Parikh
The United Nations Environment Program warns that global emissions of greenhouse gases are opening up a widening gap between reality and climate change goals
Galaxy Might Be Most Distant Seen Object (26th November 2012) Contributed by Chetan Parikh
Thanks to gravitational lensing by a cluster of galaxies, the light emitted by a small galaxy 13.3 billion years ago has reached Earth. John Matson reports
Global Energy: The Latest Infatuations (24th November 2012) Contributed by Chetan Parikh
In energy matters, what goes around, comes around—but perhaps should go away
Solar storm as desert plan to power Europe falters (24th November 2012) Contributed by Chetan Parikh
An ambitious plan to provide 15% of Europe's power needs from solar plants in North Africa has run into trouble. The Desertec initiative hoped to deliver electricity from a network of renewable energy sources to Europe via cables under the sea.
In His Own Words: Bill Gates Dishes on Computers, Religion and Being Smart [Excerpt] (24th November 2012) Contributed by Chetan Parikh
Bill Gates in His Own Words readers get a glimpse of the visionary Microsoft co-founder and philanthropist's philosophy on business, technology and life via some of his most memorable quotes
European Exoplanet-Hunting Space Telescope Nears Its End (23rd November 2012) Contributed by Chetan Parikh
A pioneering European space telescope that discovered the first rocky extrasolar planet is on its last legs, Nature has learned.
Planting Seeds of Dementia (23rd November 2012) Contributed by Chetan Parikh
A cascade of misfolded proteins may trigger Alzheimer's By Carrie Arnold Researchers have untangled some of the neurological events that may ultimately lead to Alzheimer's disease. Two new studies show that a protein implicated in this form of dementia can infect other neurons to spread disease across the brain. These problematic proteins clump together, which can lead to cognitive problems.
Galapagos' Extinct Tortoise Species Could Come Back to Life (23rd November 2012) Contributed by Chetan Parikh
A species of giant tortoises from the Galapagos Islands could be brought back from extinction despite the death earlier this year of the famed "Lonesome George," a tourist magnet and conservation icon who was the last of his kind.
Hunt for Life under Antarctic Ice Heats Up (23rd November 2012) Contributed by Chetan Parikh
On the heels of a Russian drilling effort that reached Lake Vostok, British and American teams also aim to penetrate ancient subglacial lakes By Quirin Schiermeier and Nature magazine
Curiosity Rover’s Secret Historic Breakthrough? Speculation Centers on Organic Molecules (21st November 2012) Contributed by Chetan Parikh
The report comes by way of the rover’s principal investigator, geologist John Grotzinger of Caltech, who said that Curiosity has uncovered exciting new results from a sample of Martian soil recently scooped up and placed in the Sample Analysis at Mars (SAM) instrument.
Brainwave-Controlled Helicopter Lands on Kickstarter (21st November 2012) Contributed by Chetan Parikh
The system uses a NeuroSky MindWave Mobile EEG headset to record brainwave data, which is then sent to software on either a tablet/smartphone or on a specially designed pyramid-shaped base. The software converts the brainwave data to flight commands, which control the flight of the spherical helicopter,
'Super-Jupiter' Discovery Dwarfs Solar System's Largest Planet (20th November 2012) Contributed by Chetan Parikh
In a rare direct photo of a world beyond Earth, astronomers have spotted a planet 13 times more massive than Jupiter, the largest planet in our own solar system.
Humans, chimpanzees and monkeys share DNA but not gene regulatory mechanisms, scientists report at ASHG 2012 (12th November 2012) Contributed by Chetan Parikh
Human Shares ove 90 % of their DNA with their primate cousins. The expression or activity patterns of genes differ across species in ways that help explain each species' distinct biolgy and behavior.
Mini Mover and Shaker: Single-Molecule "Engine" Vibrates Macro Object (12th November 2012) Contributed by Chetan Parikh
The random motion of a hydrogen molecule can drive the oscillation of a much larger structure By John Matson
Spooky Science: Make a Ghostly Illusion (12th November 2012) Contributed by Chetan Parikh
Halloween is a time for sharing ghost stories and watching spooky movies. But have you ever thought about the science behind some of these uncanny experiences? Haunted houses, for example, take advantage of the way your brain uses sensory information.
Climate Change Threatens Legacy Coffee (12th November 2012) Contributed by Chetan Parikh
Rising seas and severe storms are the most talked-about threats of climate change. But here's another: no more coffee. Because rising temperatures may cripple wild populations of Arabica coffee—the most cultivated species in the world.
Can Concrete Be Bendable? (10th November 2012) Contributed by Chetan Parikh
The notoriously brittle building material may yet stretch instead of breaking
Undead-End: Fungus That Controls Zombie-Ants Has Own Fungal Stalker (9th November 2012) Contributed by Chetan Parikh
A specialized parasite fungus can control ants' behavior. But that fungus also faces its own deadly, specialized parasites
The Energy Opportunity in Wasted Heat (9th November 2012) Contributed by Chetan Parikh
For every one unit of energy that is converted into electricity in power plants today, two units of energy are thrown away. This wasted energy is primarily in the form of heat – or thermal energy – and, there is technology available today that can turn this waste into a usable energy stream.
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7 Highly Effective Habits (1st March 2013) Contributed by chetan parikh
This is the first study to examine what factors are associated with an increased follower-count on Twitter over an extended period of time. Hutto et al. (2013) studied 507 Twitter users over 15 months and half-a-million tweets
Famous Resolution Lists: Jonathan Swift, Susan Sontag, Marilyn Monroe, Woody Guthrie (2nd January 2013) Contributed by Chetan Parikh
“Stay glad. Keep hoping machine running. Love everybody. Make up your mind.”
Ravi Venkatesan: Winning in India Can Help Companies Win Globally (15th June 2012) Contributed by Chetan Parikh
Under Ravi Venkatesan's leadership from 2004 to 2011, Microsoft India's revenues grew fivefold and the country became one of the fastest growing geographies for the software firm.
Churchill and Drucker: Perfect Together (23rd October 2010) Contributed by Chetan Parikh
Ties between the two men go way back. In May 1939, Churchill reviewed Drucker's first major book, The End of Economic Man, for The Times Literary Supplement, praising him as "one of those writers to whom almost anything can be forgiven because he not only has a mind of his own, but has a gift of starting other minds along a stimulating line of thought."
Excerpt: The Drucker Lectures (25th September 2010) Contributed by Chetan Parikh
Most people know Peter Drucker through his books and articles. But Drucker was also a great speaker, especially in the classroom, where his students would sit rapt, listening as he pulled facts from his encyclopedic mind and shared insights on countless subjects. This side of the "father of modern management" is captured in The Drucker Lectures, (McGraw-Hill, 2010). Edited by Rick Wartzman, executive director of the Drucker Institute and a columnist for Bloomberg Businessweek, The Drucker Lectures features 33 of his most important talks. The earliest was delivered in 1943. The latest were given at Claremont Graduate University in 2003, two years before Drucker died. The excerpt below, on "The Future of the Corporation," comes from one of those final lectures.
Activists get help from SEC (25th August 2010) Contributed by Chetan Parikh
It's a good time to be a corporate gadfly.
Why Corporate Governance Matters to Everyone (18th August 2010) Contributed by Chetan Parikh
So many of the problems we face today result from poor decision-making by private corporations. Prominent examples include the Gulf oil spill and the seriously weakened financial sector, which is imperiling the rest of our economy. However, so many who describe themselves as liberals or progressives seek to address such problems with more government regulation and programs instead of by preventing the bad decisions at the source, which is likely to be more efficient from a resource utilization perspective.
Relational Letter to Occidental Petroleum (10th August 2010) Contributed by Chetan Parikh
This letter to Occidental Petroleum’s board of directors from Ralph Whitworth of Relational Investors (VII, September 30, 2009) and Anne Sheehan of the California State Teachers’ Retirement System outlines why the activist investors are seeking to replace at least four board members: “[T]he board, as currently composed, suffers from entrenchment and ossification, which renders each of its members incapable of functioning as vigorous and independent shareholder representatives.”
How to Make an American Job Before It's Too Late: Andy Grove (6th July 2010) Contributed by Abhay Bhagat
Recently an acquaintance at the next table in a Palo Alto, California, restaurant introduced me to his companions: three young venture capitalists from China. They explained, with visible excitement, that they were touring promising companies in Silicon Valley. I’ve lived in the Valley a long time, and usually when I see how the region has become such a draw for global investments, I feel a little proud.
The new pluralism (22nd March 2010) Contributed by Chetan Parikh
Power in modern society is progressively being diffused, moving away from central government to interest groups, even to single individuals. Society and the body politic in democratic societies are becoming pluralist in new ways. This phenomenon was analysed by management guru and social science professor Peter Drucker in his book The New Age. A clear understanding of this development would help political and social leaders to cope with changing electoral aspirations.
The Drucker School of Management Honored as an 'Excellent Business School' by Eduniversal (24th April 2009) Contributed by Chetan Parikh
The Peter F. Drucker and Masatoshi Ito Graduate School of Management was recognized as an “Excellent Business School” by EDUNIVERSAL, an organization that helps students choose the best business schools worldwide. The Drucker school was honored to be among the 1,000 selected business schools in the world because of its strength in the US and international influence.
Peter Senge (21st November 2008) Contributed by Rohan M. Shah
Peter Senge (born 1947) studied aerospace engineering at Stanford University before moving into the field of organisational behaviour and becoming director of the Centre for Organisational Learning at MIT’s Sloan School of Management. He is credited with developing the idea of the learning organisation, based on his study of social systems and the relationship of the whole to its constituent parts. A learning organisation, he once said, “is continually expanding its capacity to create its future”.
Economic Depressions: Their Cause and Cure (3rd October 2008) Contributed by Chetan Parikh
We live in a world of euphemism. Undertakers have become "morticians," press agents are now "public relations counsellors" and janitors have all been transformed into "superintendents." In every walk of life, plain facts have been wrapped in cloudy camouflage.
Peter Drucker's "Unfinished Chapter:" (6th August 2007) Contributed by Abhay Bhagat
The influence the CEO has on people--individually and collectively.
Management: A movie guide (6th July 2007) Contributed by Chetan Parikh
I've read about shamrock organisations, horizontal organisations and federal organisations. I've read about intelligent enterprises and spider-web organisations. The most-quoted management guru Peter Drucker said that managing an information-based organisation is more like conducting a symphony orchestra than running a business on traditional lines. Others have compared it to running a jazz combo, and then there are those who say it's like running a sports team.
Q&A with management guru Jim Collins (18th June 2007) Contributed by Abhay Bhagat
The bestselling author answers our readers' questions about business, leadership - and mountain climbing.
Beware the 'Walking Dead': Analyzing Customer Data from a Multi-Service Firm (14th June 2007) Contributed by Chetan Parikh
Think of them as the "walking dead," a type of customer who currently maintains service with a particular company, but whose next action will most likely be to discontinue that relationship, according to a new study that examines how the customers of a telecommunications firm acquire and discard services over time. The paper -- "Modeling the Evolution of Customers' Service Portfolios," by Wharton marketing professors Peter Fader and Eric Bradlow and a former Wharton PhD student -- focuses in part on whether it is possible to predict future purchasing patterns by looking at past buying behavior.
At 3M, A Struggle Between Efficiency And Creativity (4th June 2007) Contributed by Abhay Bhagat
How CEO George Buckley is managing the yin and yang of discipline and imagination
Here Today, Discounted Tomorrow: Strategic Shoppers Know When to Buy, and at What Price (1st June 2007) Contributed by Chetan Parikh
Some shoppers just can't help themselves and buy mostly on impulse without regard to price. Others are die-hard bargain hunters, who only open their wallets for a discount. Then there are the strategic consumers, who are willing to buy full-price sometimes, but at other times they will wait for a bargain. According to new research by Gérard P. Cachon, professor of operations and information management at Wharton, and doctoral student Robert Swinney, it's these customers that retailers need to focus on in order to reap the full benefits of lean retail inventory management and variable pricing.
Marketers For Charity: Peter Drucker (1st June 2007) Contributed by Chetan Parikh
Few have had as great an impact on the business world as Peter Drucker. So, it is more than fitting to have his work amplified on Branding Strategy Insider during this years Marketers For Charity effort.
The best business books of all time? Here are the choices of our panel of CEOs and experts (25th May 2007) Contributed by Chetan Parikh
Robert Bruner still remembers the first book he read as a manager. It was 1988, and Bruner, now the dean of the Darden School of Business at the University of Virginia, was an up-and-coming professor, respected for his work in finance. But he'd never managed people before. And when he was charged with overseeing the first year of the school's M.B.A. program, Bruner began to struggle.Under fire, Bruner scrambled for guidance. He found it in Peter Drucker'sThe Effective Executive. In the book, published two decades earlier, the dean of management thinkers—known for his study of GM under Alfred Sloan—offered advice to managers burdened with exactly Bruner's problems.
Strategies: Pray for a public buyer (21st May 2007) Contributed by Chetan Parikh
If you own stock in a company that is ripe for takeover, you should hope the company is not acquired by a private equity firm.
A New Take on Corporate Governance and Anti-Corruption Crusades (18th May 2007) Contributed by Chetan Parikh
Most people assume that good corporate governance benefits shareholders, and that corruption in a banking system should be rooted out. But just how much benefit does a company really get when it improves its accounting and puts a few outsiders on its board of directors? And when does an anti-corruption crusade start to backfire, causing a chilling effect that denies loans to credit-worthy borrowers? India offers a chance to study both questions, which were the subject of papers presented at a global conference on India's Financial System held in April at Wharton. The conference was organized by Wharton's Financial Institutions Center with the Centre for Analytical Finance at the Indian School of Business in Hyderabad and the Stockholm-based Swedish Institute for Financial Research.
Adobe's Shantanu Narayen: India and Other Emerging Markets Are Going to Drive Trends in Software Evolution (18th May 2007) Contributed by Chetan Parikh
While a number of Indian IT companies are expanding globally, several major U.S. IT firms are increasing their presence in India. Among them is Adobe Systems, which views India as an important development center and a growing market for its products. In the second of a two-part interview with Knowledge@Wharton, Adobe president and chief operating officer Shantanu Narayen discusses the company's strategy regarding India and global expansion. In the first part of the interview, published in Knowledge@Wharton, he talks about Adobe's product strategy for the emerging trend of rich Internet applications.
Shantanu Narayen on Adobe's Future Direction: Product Strategy for the Next Generation of the Web (17th May 2007) Contributed by Chetan Parikh
A key element of what has been called "web 2.0" -- along with ideas such as user-generated content and social networks -- is the concept of "rich Internet applications," which use the web as a platform for innovative types of online experiences. A new generation of Internet-connected applications is beginning to emerge led by such companies as Adobe Systems. Knowledge@Wharton recently interviewed Adobe president and COO Shantanu Narayen about the company's latest product introductions. In the second part of this interview, published in India Knowledge@Wharton, Narayen talks about the key role that India will play in the company's global growth strategy.
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