Why refugees use boats? #immigrants #europe

Category – business and money

Reading time – 3 minutes

This story is taken from the book, factfullness.

It is eye-opening write-up. It tells us that; even if intentions are good and legislation in place, still beneficiary may be deprived of a benefit due to misinterpretation of things and complexities of a process.

In year 2015, as people tried to flee to better lands amongst middle eastern Syrin war. As many as 4000 refugees drowned in meditarranean sea; as they tried to cross it with inflatable boats.

They paid loafty money to mediators and found themselves with their families; in the middle of no where.

This happened in spite of Geneva convention aggrement; which enables refugees from Syria to seek asylum in Europe.

But, when people tried to reach airports they faced effects of anti illegal immigrants directive, which was designed to stop illegal immigrants. This directive required airlines company to ship back illegal immigrant for free.

Hence, on airport counter every asylum seeker was seen as illegal immigrant. Hence Geneva convention failed to help them due unclear and complex process.

Why didn’t they use good boats.

Because, there is EU policy to confiscate illegal boats. Hence, if people used boats they will be captured and gone

Hence, desperate people used inflatable boats which are very unstable and risky.

Hence inspite of remedy (permission of asylum under Geneva convention); it was really hard for refugees to reach Europe to seek asylum.

Inspiration – Factfullness by Hans Rosling

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Selling below cost and still earning profits! #factfullness #money

Category – business and money

Reading time – 5 minutes

This story depicts out the box thinking and alternative approach to a business.

Businesses aim for profits; but sometimes innovative thinking is required to defeat competitors.

Profits are not visible directly, but are indirectly produced by a business model.

Here is one story, that shows exactly how a business can be profitable; even if it gets price below cost of raw material.

Rivopharm is a family pharmaceutical firm in Swiss Alps. It won contract to supply antimalarial drugs to African countries through UNICEF.

It was in bid with other competitors. In its bid value requested for each pill, was lower than the cost of the raw materials.

How this company could offer such a low bid.

Investigations revealed this.

UNICEF contacts are big contracts with long long tenures. It involves big money.

Rivopharm had invested earlier in robotics. It factory had speed. Its factory could make more pills per day than competitors.

Raw material arriving in to the factory on 30 day credit.

Raw material of drugs arrived to its factory in trains. And, within two and half days, it could produce and pack all raw material into final finished pills.

Raw material in the factory

By Thursday, after delivering pills at Genova headquarters of WHO; they get paid on same day. So, in 4 days they get paid for their supplies.

Robots working to make pills

Suppliers of raw material give them time of 30 days to repay.

Hence, large amount of money that they get, accumulates interest in bank account for 26 days!

Delivery of pills and payment by WHO on day 4.

It compensates for their discount and also provides profit.

It also brings more offers at their door as their brand value increase as a reliable generic drugs supplier.

This all is impossible with conventional drug manufacturing facility.

Hence, business is profitable. Not from conventional way of analysis but from Innovative approach.

And their robots don’t demand payhikes or leaves. They complete projects on time.

Inspiration – Factfullness by Hans Rosling

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Leadership lessons from navy SEALS #extremeownership #sniper #personalgrowth

Category – psychology

Reading time – 5 minutes

Jocko Willink and Leif Babin are former Navy Seals who fought in IRAQI town of the Ramadi.

They have now written about their experiences of war and lessons that they learnt, in a little beautiful book , “The Extreme Ownership.”

Let’s see what we can learn from this book.

1. Leader must take extreme ownership of everything bad that happens to his team and mission. He should not blame anybody else.

2. There are no bad teams, only bad leaders.

3. Leader must have a unwavering faith in his mission and team. He must be able to make his team believe, that their mission is vital and must.

4. Leader must not try to nurse or assert his ego. He must accept his mistakes and improve plans of their mission.

5. Cover and move. Each member is vital and win is only possible by teamwork. Each member of team should support other members.

6. Simplify your message and processes, so that team can easily understand it even in extremely daunting situations.

7. Prioritize things. Get decisively engaged, so that you and your team doesn’t have to think about retreating ever.

8. Decentralise Power. Delegate responsibility to your team members, so that efficiency can be increased.

9. Each member should take responsibility in case he finds mission is getting offtrack.

10. Practice with discipline all your important tasks, so that doing them takes minimum effort. Discipline gives freedom.

11. Always know that most of the times leaders have to make decisions based on incomplete information. Have courage to make quick decisions.

Inspiration – Extreme ownership by Leif Babin and Jocko Willink.

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Basics of stockmarket (shares) for Indian babies and children. #stocks #equity #mutualfunds

Category – business

Reading time – 8 minutes

Sorry, for the heading of the blog. This was to get your kind attention.

This blog is about stocks, also known as shares, with particular focus on Indian general masses, who want to enter and explore share market.

It is simplified basic knowledge about share markets.

Babies will not need it. But their dads will need it, to secure their future. Hence in a way this blog is for those babies too; who are going to discover in future, that their daddy knew next to nothing about economics and investing.

As uncertainty, looms in the economy with unpredictable future, you need to have knowledge about all the spheres of the investing.

If you have money, it should grow with time and this can be done by wise investing.

So let’s clear our basic doubts about shares.

First let’s clear biggest confusion according to my analysis. It is terminology which blogs use to explain shares. It is confusing.

We must know that ;

equity = share = stock = security

First you should know this fact that they call shares with so many names. As different sources write different names, it can be daunting. They all are interchangeable.

We will use term share in this blog, to avoid confusion.

“Share is a physical or digital certificate that gives buyer partial ownership of a business.”

Let’s imagine a business is worth 100 rupees. Its owner divides this into 100 shares each worth 1 rupee.

Now, he puts them in stock market ( stock exchange) from where people can buy or sell these shares.

So, if someone buys 40 shares of this company, he becomes 40% owner of the company. Any one who invests 1 rupee, he becomes 1% owner.

So shares help businesses in raising money for their operations.

His investments are now dependent on the performance of the business. If it grows, he earns money and if business falters, he looses money.

He can buy or sell shares anytime on the stock exchanges.

There are two main stock exchanges in India –

1. The Bombay stock exchange ( BSE)

2. The National Stock exchange ( NSE).

Companies are listed on stock exchange. And only listed companies can sell their stock in stock market.

These are regulated by SEBI ( Securities and exchange board of India); which is a statutory body responsible for fair working of the exchanges.

It penalises for wrong practices and frauds and formulates rules and regulations for working of stock exchanges.

Hence, one can invest money in stock market without worrying about frauds or cheating, as far as stock companies are concerned. Whole system runs on trust.

These days stocks are available in digital format and can be easily purchased or sold using apps like zerodha, Angelbroking etc. Whole process is very simple.

You need to make a demat account with regulator and after kyc verification (know your customer) verification; you can purchase and sell from comfort of your home.

How does initial price of a stock is decided?

It is random value in decimels decided by the company promoters. After that performance of the business and demand and supply and perceptions about future decide the price of that stock.

Total number of stocks issued is called total shares outstanding.

If we multiply number of shares issued with the price of one share, we get market capitalisation ( market cap) of the company.

All companies listed on stock exchange are divided into groups based on market cap.

1. Large cap –

Top 100 companies in terms of their market capitalisation. These are safer and successful companies. Examples in India are TCS, HDFC, L and T, wipro etc.

2. Mid cap –

101-250 in list of companies based on market capitalisation. Examples are pfizer, emami, bayer etc.

3. Small cap –

Above 250. These are generally lesser known volatile companies.

Now based on performance of the company, its management, brand value, public sentiments and many external factors like war, disaster, competition, fads;there are fluctuations in the price of stock in the market on day to day basis.

But generally in long term ( 10-15 years ); if business of the company is sound, it results in rise in stock price over time in spite of the short term wide fluctuations. Hence stock market investment is for long term.

If you don’t have 10-20 years of time to let your money grow, it can be less fruitful mode of investment.

What happens when stock prizes rises?

Company can give you part of the profit, that is called dividend.

Or it may hold extra cash for liquidity and expansion.

It may invest gains for further expansion of the business.

Why the people worried about Sensex rising or falling. What is this sensex?

Sensex is a metric using which we can guess overall performance of the economy.

We can’t check each and every stock daily. So we have devised a simple measurement number. It simplifies monitoring.

Sensex and nifty are such numbers. They are stock market indices. They tell the direction of the market, whether towards positive or negative.

Sensex belongs to Bombay stock exchange. It is made up of 31 hand picked companies, which are picked by private firms.

For example, sensex companies are picked by Sand P global. Companies are not fixed. Based on performance new companies enter and go.

Nifty belongs to the national stock exchange. It is made up of 50 stock. Hence, it is called Nifty 50.

Hence, next time you see a news anchor worried about fall in sensex, you will know that, she is talking about the performance of choosen list of companies on that day. Their performance is averaged based on their size and sector.

Few more terms that you hear everyday.

Bull market – when the market is on the rise like horns of a bull.

Bear market – when market is on fall like a crouching bear.

Blue chip companies- companies which are reliable performers.

What is initial public offering?

IPO – Initial public offering –

Each company starts as a small privately owned company. With Time it grows and it needs more money to expand. It then lists itself on Stock exchange, so that anyone in public can buy its shares as IPO. It raises a lot of money for the company.

A board of governors is appointed to oversee working of the company. Its data and performance are public. It is responsible to its shareholders for maintaining good performance.

Hence, IPO is the initial offering stock by a private company, which enlists itself on the stock exchange so that its stock can be bought and sold by general public.

This blog is aimed to provide introduction to the share market to Indian readers.

Inspiration – many financial books.

Get money for living in your house – reverse mortgage loan #personalfinance #happyretirement #reversemortgage

Category – business and money

Reading time – 5 minutes

Many of us are not financial experts. We don’t know what to do with our excess money.

We fail to save for the future.

We don’t know, what will we need when we grow older. We put too much faith in our kids.

We presume that they will take care; like we did. But world doesn’t work that way. It is always better to be self reliant especially in old years.

Things change with time. People also change.

Sometimes it is very tough to bear our senescence. We may still have to work to put food on the kitchen table.

If you have a house, which you own; then there is a way to earn regular income from it.

Thus can help you to enjoy your old age, without worrying about bills.

This remedy is called reverse mortgage loan.

To get it you must be above 60 years of age.

You ought to be living in the house with your spouse. No body touches your house; till either of you is alive.

You get regular income from bank for an amount which is equal to 60% of the current value of your property.

Minimum tenure is 10 years and maximum is 20 years.

When both husband and wife who have taken reverse mortgage loan die, then two things can occur.

Bank asks heirs to pay the loan and reclaim the property.

Bank sells it to recover the loan amount and rest is given to your legal heirs.

If you want to reclaim your house while alive, you can repay loan to get it back.

It requires you to live in that house without prolonged absence.

Sounds good. Yes it is a good option for senior citizens who have problems with liquidity.

Inspiration – many financial blogs and videos.

Things that mentally strong people do. #motivation #selfdevelopment #business

Category – Business

Reading time – 1 minute

1. They avoid self pity. It solves nothing and clouds consciousness. Instead strong people practice graditute.

2. They don’t give key of their happiness to external source. They avoid people pleasing or expecting things from people. They observe and avoid judging .

3. They take calculated risks. They do rational rule breaking. They try to cross little beyond their comfort zones, where progress usually begins.

4. They don’t fear change. They know change is rule of the life. They try to embrace it with open heart and mind.

5. They don’t dwell in the past. They learn from it and move on.

6. They try to never repeat the same mistake twice.

7. They know that it cannot always stay good and smooth. They accept and face difficulties.

8. They take full responsibility of their life and actions.

9. They see long term and have broad perspective.

10. They know that journey makes 99% of any endeavour and they try to savour it.

11. They know no defeat is final and no win is eternal.

12. They see problem in the situation, not in people.

13. They stick to their paths, even if everything falls apart. Grit is rare talent that mentally strong people posses and it is their most formidable tool.

Inspiration – Many books

18 lessons for your personal finance! #money #business #psycology

Category – Business. Reading time – 5 minutes

Personal finance is such a sticky thing. After you grow out if childhood, you come to know about this money thing. Now your dad stops fulfilling your unreasonable demands and starts to expect, that you are going to earn some money now.

Eighteen years of pizza, burgers and your TV recharges needs to be billed to you from that moment.

You were sent to school to learn how to earn. And you scratch your head that school completely forgot to teach you, how to earn money.

You wonder how will arithmetic and algebra and mediveal history, will get food on your plate.

You see towards your friends and they too are under axe of their parents, to earn their living.

In this post let’s discuss few basic concepts, that help in managing personal finance in current scenario.

And that’s the time when one needs to learn about personal finance. Earlier you start, better it is for your lazy body.

Let’s get this stuff.

1. Don’t compare with others. Everyone is running different race with different rules and different rewards. Choose your race correctly, that suits your mindset, skills and personality.

2. Nothing is free. Yes, that free voucher, with that costly phone is indirectly to be paid by you. And, you must also understand that your time and attention are also a form of capital that Marketing people are in pursuit.

3. People, beliefs and culture change with time. So don’t keep your ideas rigid. It was risky to board in car of a stranger, but now it’s fashionable due to UBER.

4. Always leave some room for errors, unexpected events and unknown forces. Don’t be a overconfident. Don’t board Titanic without lifeboats.

5. Past cannot predict future. Experts cannot predict future. No one predicted 2008 or 9/11 or covid.

6. Negatively gets more focus and attention. Try to go beyond all those negative vibes floating in sea of social media.

7. Personal finance is a relatively untouched part of the conventional knowledge. So, start learning about it.

8. Set ceiling of your satisfaction. Don’t keep running. Rest, relax and enjoy. Afterall, that’s why you work.

9. Use power of the compounding. And be aware that it takes time. There are millions of articles and videos that explain compounding to you.

10. Getting rich is easier than staying rich. All those sports stars who retired young can easily slip into poverty.

11. You can do average things and fail multiple times, but you can still become rich.

12. Financial freedom is the biggest success possible.

13. Be rich. Don’t focus on looking rich. Be humble and save money.

14. Dollors saved are equal to dollors earned in value.

15. Go for cash flow instead of capital gains. If you can generate positive cashflow other things will take care of themselves.

16. Try to build assets which put money in your pocket, even when you are not working. That elusive thing is called passive income.

17. Whenever you calculate your gains always keep inflation in mind. It reduces purchasing value of your money. This 100 rupee note will be less useful five years from now.

18. Don’t try to be cheap. Try to be useful to others. Don’t die fighting for pennies. Keep your heart big and vision broad. Don’t be 11 th fruit seller in a row on roadside. Enter business with substantial returns for your efforts.

How to finish almost everything that you start! #personalgrowth #habits#psychology

Category – Business
Reading time – 5 minutes

Starting is easy. Every year millions of people start things. They take resolutions. They start journaling. They even start evening walks and blogs.

Many more testosterone filled souls start revolutions. But it is both frightening and disheartening that 92% of the revolutions fail. Especially violent revolutions.

Non violence has better chance of succeding, as it stays for longer duration and gets more moral support. So we humans are excellent starters but very poor finishers.

Projects, books, loveletters, charities, homeworks, commitments, most of businesses in long term don’t finish well.

So, finishing a thing is an extremely rare skill, that is must for every restless entrepreneur.

What can you do. Here are few things

1. Don’t aim for perfection.

Nobody was perfect and nobody will be. Do best whatever you can do. And just don’t mess up voluntarily. Accept that you are normal ape, that is not perfect.

2. Divide and rule –

Divide big work into small tasks. It frightens less. It remains manageable. It keeps your brain away from panic and chaos. If you want to write a book try to write a page first.

3. Make things fun –

Attach some reward or pleasurable activity with your work. Listen to music. Go out while drinking your coffee if you should. Watch a cricket match on reaching home.

4. Remove noble hurdles –

They represent part of perfectionism. Things like, ” If I do this, then I will… need to be avoided.

5. Measure progress –

You will get idea about how much have you accomplished.

6. Find your space –

Identify time and place, where you are generally most productive. I know you count bathroom in, and it’s ok, if you are creative there.

These things will help you finish a lot more thing. A half done work is not useful to anybody.

Inspiration – Finish by Jon Scuff
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how future leaders should be working? #simonsinek #leaderseatlast

Category – Business

Reading time – 5 minutes

I am not a big fan of leadership books. They are all little bit skewed in their content. They are either very superficial or they paint too idealistic picture of a leader.

As mankind has progressed, rules have changed. We need new type of leadership for future businesses and organisations. Good old paternistic bosses, who wagged their tongue as a whiplash are useless in a generation of individualism.

Leaders of present times need to carry a smile and graditude on their faces and every employee commands a certain degree of respect and freedom. Time and again different studies have confirmed that happy employees lead to happy customers and hence a happy balancesheet for the company.

Few perks and freedom to feel control over their job; leads to more productive workers. This feeling of control erodes away any feeling of insecurity that is prevelent in present job system, where health benefits and pensions are literally absent.

Employees in small teams who trust each other and are free of interteam competition; is a dream of every manager. After 1980, individualism became an accepted theory and fences started appearing between people. This created a dehumanised society; which focuses on profit before environment or poor people.

Rich pay less taxes. They find all possible loopholes to evade taxes. This leads to ever increasing inequality and rich finally end up in such a strong position that they lobby strongly against any change in tax laws.

Self employed and salaried people pay significant part of their income in taxes; as they do not posses knowledge and resources to use tax system loopholes.

So at the end of the day, employee feels good if he had a decent treatment in office. A respecting boss and cordial working environment that permits few human mistakes will make them forget all the odds stacked against them.

So we need leaders who have respectful way of getting things done by their workers and who are ready to handover some control to their workers; so that they feel that they are driving a part of this company.

We need more of oxytocin surge; which leads to feeling of friendship and generosity and lesser levels of cortisol.

Inspiration – Leaders eat last by Simon Sinek.https://www.amazon.in/Leaders-Eat-Last-New-Chapter/dp/0670923176

12 things that businesses produce – Basics of business – #business #money #productivity

Reading time – 3 minutes
Category – Business



If you have started a business. That’s a good thing. Congratulations for your efforts.

All businesses of World produce value, which they provide to the masses. This is the value for which people pay their hard earned money.

Here are various forms in which businesses provide value –

1. Product –

They produce a physical or digital product which solves problems of customers.

2. Service –
They serve to solve particular problem of customers like doctors, financial advisor, lawyers, coaches, teachers etc.

3. Shard resource –
Produces a durable entity that can be shared by multiple users.
Like marriage palace, gym, theatre, mall etc.

4. Subscription –
They have recurring fee for a service or product.
Like Netflix, editing softwares etc.

5. Resale –
Here we buy a product at margin and sell it on a profit.
Like retail stores, online stores etc.

6. Loan –
Money is given with predefined interest on loan.

7. Ticketing or licensing
For a particular fee a specific facility is provided for limited duration.
Like movie tickets, licence of guns, coupons, discount cards etc.

8. Insurance –
Transferring risk from buyer to seller after charging some amount.
You know there are so many of them around. They are continuously spamming your phone and emails.

9. Capital –
Purchase of ownership in a business.
Venture capitalists and investors.
You need to have good knowledge before you do that.

10. Aggregation
Potential buyers are aggregated in a common place to publicise and create some revenues.
Like trade fairs, conferences.

11. Agents –
They don’t produce themselves. They help produces to reach their customers. Like ad agency, PR agency, literary agents.

12. Lease
In it particular assett is given on a fee to use. After customer goes next customer uses it.
Like boat, castle, car, motorcycle etc.


So, whatever business you do try to know what you are creating.

Also it is very important to notice that we might be missing few more things. Will like to hear from your side.

Inspiration – Personal MBA by Josh Kaufman.
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