Wealth and Ship

Courtesy: Anu, my IIM-B Classmate

Read on About wealth …

In 1923, nine of the wealthiest people in the world met at Chicago’s Edgewater Beach Hotel. Their combined wealth, it is estimated, exceeded the wealth of the government of the United States at that time. These men certainly knew how to make a living and accumulate wealth.

Attending the meeting were the following men:

The president of the largest steel company,
The president of the largest utility company,
The president of the largest gas company,
The president of the New York Stock Exchange,
The president of the Bank of International Settlements,
The greatest wheat speculator,
The greatest bear on Wall Street,
The head of the World’s greatest monopoly,
& a member of President Harding’s cabinet.

That’s a pretty impressive line-up of people by anyone’s yardstick. Yet, 25 years later, where were those nine industrial giants? Let’s examine what happened to them 25 years later.

1. The President of the then largest steel company (Bethlehem Steel Corp), Charles M Schwab, lived on borrowed capital for five years before he died bankrupt.
2. The President of the then largest gas company, Howard Hubson, went insane.
3. One of the greatest commodity traders (Wheat Speculator), Arthur Cutten, died insolvent
4. The then President of the New York Stock Exchange, Richard Whitney, was sent to jail.
5. The member of the US President’s Cabinet (the member of President Harding’s cabinet), Albert Fall, was pardoned from jail just to be able to go home and die in peace.
6. The greatest “bear” on Wall Street, Jesse Livermore committed suicide.
7. The President of the then world’s greatest monopoly, Ivar Krueger, committed suicide.
8. The President of the Bank of International Settlement, Leon Fraser, committed suicide.
9. The president of the largest utility company, Samuel Insull, died penniless.

What they forgot was how to “make” life while they got busy making money.

Money in itself is not evil; it provides food for the hungry, medicine for the sick, clothes for the needy; Money is only a medium of exchange.

We need two kinds of education:
a) One that teaches us how to make a living and
b) One that teaches us how to live.

There are many of us who are so engrossed in our professional life that we neglect our family, health and social responsibilities.

If asked why we do this we would reply that “We are doing it for our family”.

Yet, our kids are sleeping when we leave home. They are sleeping when we come back home! Twenty years later, we’ll turn back, and they’ll all be gone, to pursue their own dreams and their own lives.

Without water, a ship cannot move. The ship needs water, but if the water gets into the ship, the ship will face existential problems. What was once a means of living for the ship will now become a means of destruction.

Similarly we live in time where earning is a necessity but let not the earning enter our hearts, for what was once a means of living will surely become a means of destruction for us as well!

So take a moment and ask yourself…

Has the water entered my ship? I surely hope it hasn’t yet done so!

Courtesy: Anu, my IIM-B Classmate

Cheers,

Vijay Srinivasan
9th December 2012
Mumbai

Different People with Same Streaks

This past week I have had the privilege and opportunity of networking with a wide variety of folks from different parts of the U.S. and some from outside the U.S. as well.

I would say it was one of the best weeks I have spent doing some serious learning while at the same time doing some serious networking.

At the end of the day, people everywhere are the same. They are dedicated, simple and serious about their pursuits. They like to network, they like to learn from others. They are sincere in most everything they are doing.

I met a great group of folks who hailed from various parts of the U.S. and we had a great time. Some of these same folks continue into next week’s program, yielding more opportunity to network and learn from each other.

We talked a lot about U.S. politics, unemployment statistics, Afghanistan War, the imminent fiscal cliff facing the U.S., about our business activities in general, and various global affairs. But one thing we did consistently was “laugh” – yes there was a plethora of jokes pouring out from several guys which made all of us laugh heartily.

I think it is important to relax in the evenings, not just with a drink and chat, but to also loosen up a bit, let the guard down and laugh a lot. Apart from the health benefits of laughing, it also mentally and physically relaxes us. The ability to make people laugh, or even the ability to just laugh, is unfortunately, rather limited in this world. Some people mistake laughter as an excuse not to ponder over the more serious matters of business and life.

Nothing can be farther from the truth.

Just to even get an analytical capability to do something important for your own business depends on one’s ability to relax the mind, open it up a bit, and think rigorously. Such a process is facilitated enormously by being able to laugh at oneself and at others. If, as a team, all the members of a team are able to relax and joke about worldly matters, they can also achieve productivity enhancements working on a business problem together.

Well, at the end of the day, it was most enjoyable working with various cultures and people with different insights. It is amazing how a team can interconnect so well, having worked during the week on business problems together.

Here is a toast to the team – raise your glasses !

Cheers,

Vijay Srinivasan
8th December 2012
Mumbai

Justice and the Rule of Law

When life takes a turn for the worse in a seemingly uncontrolled manner, responsibility for one’s own actions which caused the turn in life cannot be wished away. One has to ultimately bear the cross. There is simply no escape – may be there is escape in India, but not in the United States of America.

Yes, you guessed it right – this post is about Mr Rajat Gupta, former global head of McKinsey, who was sented to two years in prison for an insider trading case last week. It is a huge fall from grace and a loss of all reputation for a very powerful man – a global consultant who was the first Indian to head McKinsey and by virtue of his role and consulting prowess, became a trusted advisor to many CEOs around the world.

Should we bother about this case simply because he is an Indian ? Because he is a philanthropist ? Because he helped set up the Indian School of Business in Hyderabad ?

No. There is no reason really to empathize with his situation – though many of the world’s global business leaders wrote to the Judge overseeing his case, supporting a lenient approach in sentencing him. The family members of Mr Gupta wrote to the Judge, and those letters make an appealing reading of a man devoted to his family and public causes close to his heart.

All the effort by various folks involved in Mr Gupta’s life surely had an impact on the Judge. Instead of going for the 8 years suggested by the sentencing guidelines, the Judge decided that 2 years in prison and a USD 5M fine would do.

Like most people, I have been tracking the case closely because the U.S. Government’s case was initially considered to be weak, and Mr Gupta was supposed to get through the charges as there was no direct evidence against him. So, I was sympathetic and hoped that he would eventually win against the Government.

But as the trial progressed, it became apparent that Mr Gupta violated the trust placed on him as a Director on the Board of Goldman Sachs by a publicly traded company. Here’s what the Judge had to state during the sentencing: “The proof of some of these tips was not only overwhelming, it was disgusting,” Judge Rakoff said on Wednesday. “A terrible breach of trust.” [Quoted from NYTimes coverage "Ex-Goldman Director to Serve 2 Years in Insider Case" By PETER LATTMAN dated 24 October 2012].

A shocking observation, validated by the Jury a few months ago based on the circumstantial evidence placed in front of it by the U.S. prosecutors.

Why Mr Gupta did what he did is for someone to speculate and come to some kind of conclusion. I think it is a tragedy that Mr Gupta forgot his roots and his experience and chose to disclose non-public information to a hedge fund manager who happened to be his close friend on the way to making millions.

All this shows that it is not an uncommon practice in Wall Street – the investment bankers should be seriously worried about the capability of the financial task force which prosecutes white collar crimes, looking for malpractices and having successfully prosecuted 70 people on Wall Street so far in the past 3 years. They are smart people, and so they probably thought they are smarter than surely the government blokes.

So, in conclusion, I think Mr Gupta got less than what he deserved for committing a financial crime. It does not matter how big or how large-hearted one is – ultimately, even in a “victimless crime” like this case is purported to be, trust cannot be thrown away to the winds. People who backstab will not go unpunished – history and the right conscience of society will eventually catch up with the folks who belie the trust placed on them. Letting a friend make money quickly before the stock market closes is as serious a crime as if one committed that crime by oneself, if the information is based on a confidential conference call with the board members of a large financial institution (or for that matter any non-public information which can be leveraged in the market).

Will this sentencing happen in India ? Unlikely, though there have been cases in the past which had taken a long time to come to sentencing. Quick movement and closure is the key in finding justice in such cases.

Cheers,

Vijay Srinivasan
28th October 2012
Mumbai

Ten Ways to be HAPPY

Courtesy: Ashraf, my secondary school classmate

1. ACCEPT the things that you can’t change. If you can and want to change them, DO IT.

2. LET GO of the people who are holding you down. If you considered them, you already know who these people are.

3. BLAST your favourite upbeat song and sing at the top of your lungs, dancing as you go.

4. GO for a run. A nice, long run. Run until you feel GOOD ; at the very least, you’ll be tired enough that the feelings will seem less major.

5. CALL someone you LOVE. Just hearing their voice can make your day better.

6. SMILE at a stranger. It will make both of you smile.

7. SEND an anonymous compliment.

8. WRITE down everything you don’t like about yourself. Rip it up.

9. WATCH your favourite movie.

10.TRUST yourself.

Courtesy: Ashraf, my secondary school classmate

Cheers,

Vijay Srinivasan
21st October 2012
Mumbai

Enjoy Life Now – It has an Expiry Date!

Courtesy: Ashraf, my secondary school classmate

Love the people who treat you right and have compassion for the ones who don’t………

When I was a kid, my Mom liked to cook food and every now & then I remember she used to cook for us.

One night in particular when she had made dinner after a long hard day at work, Mom placed a plate of
bread jam and extremely burned toast in front of my dad. I was waiting to see if anyone noticed the burnt toast.

But Dad just ate his toast and asked me how was my day at school.

I don’t remember what I told him that night, but I do remember I heard Mom apologizing to dad for burning the toast. And I’ll never forget what he said: “Honey, I love burned toast.”

Later that night, I went to kiss Daddy good night and I asked him if he really liked his toast burned.

He wrapped me in his arms and said, “Your momma put in a long hard day at work today and she was really tired. And besides……..a burnt toast never hurts anyone but harsh words do!”

You know, life is full of imperfect things… and imperfect people…. I’m not the best at hardly anything, and I forget birthdays and anniversaries just like everyone else.

What I’ve learned over the years, is that learning to accept each others’ faults and choosing to celebrate relationships is critical for a happy life – on both sides, the giver and the recipient.

Life is too short to wake up with regrets……….

Love the people who treat you right and have compassion for the ones who don’t………

ENJOY LIFE NOW.
It has an expiry date!!!

Courtesy: Ashraf, my secondary school classmate

Cheers,

Vijay Srinivasan
7th October 2012
Mumbai

Old Contacts

It is well known that it is always important to maintain contact with friends and associates who have impacted one’s life in some positive manner. This principle also applies in case one has positively impacted his/her friends – people do remember positive actions and support rendered at critical stages in their lives.

While “networking” refers to the generation of new contacts in business or industry, one cannot underestimate the importance of rejuvenating old contacts from one’s previous life. When I recently attended the IIM Bangalore Alumni Meet, I realized that I have not seriously attempted to maintain and renew my old alma mater contacts – seniors, classmates and immediate juniors. Of course, I am part of the Yahoo mail group of my class of 1987, but that does not really lead to the objective of regeneration of institutional contacts.

Events like the alumni meet do help in a significant manner, as emails follow after the meet. Phone calls happen, and who knows – there may be business looming somewhere in those calls. It could be mutually beneficial. So, why not invest in ensuring any contact is captured, contacted once in a while, and also met occasionally ? I am doing this now – though I should say that I have met old school contacts on and off over the years. However, after a quarter century, those contacts and classmates have arrived at significant junctures in their respective lives and a rejuvenation attempt, done sincerely, creates interesting possibilities for both sides.

Continuous and constant networking yields positive results, if done without an immediate personally benefiting goal apart from the mutual interest to know about each other and the respective areas of expertise. The same thing applies to old contacts – they just want to know how you are doing in your chosen field, and how they can be of any help in the future. Now, I have access to my secondary school classmates who have put together a great group online after so many years. It is always refreshing to see an email from your classmate who was known as a prankster in the secondary school, and kept everyone including the teachers guessing !

So, I am into this regeneration of contacts from yesteryears in a concerted and coordinated manner. This effort also applies to ex-colleagues from previous companies. Just yesterday I met an old colleague who worked with me for couple of years and has been a CEO of a startup in Mumbai. He is now moving on as CEO of another startup in Delhi, and it was great to meet him after some time and have a cup of coffee. There was no immediate consideration of any sort, but I offered help in terms of providing contacts to him in his new  industry, and he appreciated the support. After all, we are there to help each other and why not offer help if you do understand what is needed and can offer the help in a practical, beneficial manner ?

It was a great meeting, and I am continuing my non-stop efforts to meet other contacts. I am sure all this effort will eventually fructify into something very meaningful. The key issue of importance is the investment of personal time. It is critical to invest time and stay committed during the meeting to understand each other. Things will follow soon.

Hope this helps the budding youngsters who are going to shape the future of business.

Cheers,

Vijay Srinivasan

16th June 2012

Mumbai

Information Integrity

If there is one thing that can be learnt from the travails of Mr Rajat Gupta, it is that information is sacrosanct and should not be traded for anyone’s benefit, knowing full well that critical information will be traded. When information is shared due to the necessity of one’s job or position, it is done with complete trust and integrity and the recipients need to reciprocate the trust. When that hard-earned trust is misplaced and then misused by the recipient, then judgement of the giver and the user of the information will be called into question.

The other key learning is the deciphering of human greed. Why is it that folks who are rather well off want to make more on morsels of information that can be secured using illicit transfer of such information from the famous and powerful people, knowing that such use of information for personal gain is not only prohibited by law, but is totally immoral ?

I am not passing any opinion on the verdict of conviction by the jury in the Rajat Gupta case – the jury may or may not be right. All evidence presented in the case is circumstantial and is unlikely to hold up if the case ever makes it to the Supreme Court of the U.S.  

But the point is, should this case ever have occurred in the first place ? Why do people in high and mighty positions, sometimes misuse their positions for personal benefit ? How come a long distinguished career could just be thrown away (Mr Rajat Gupta was the global Managing Director of McKinsey) for an urge which could have been controlled by the most sober and calm individuals if only had they reflected on the repercussions of their intended actions ?

Repeated and successful prosecutions of insider trading cases on Wall Street over the past couple of years should have given a pause to any criminal conspiracy, but unfortunately the  case precedes this time period and in hindsight, I am sure that the people involved in trading of information in this case would not have dared to do things that they did in fact. Exchange of securities related information happens all the time all over the world, but such information exchange is mostly casual and based on hearsay. Sometimes it could have led to profits from trading on that information. But, in the current case which has caught the limelight given the powerful personalities involved, these folks are the originators of the actions leading to the information. So, it becomes a case of fiduciary trust and integrity.

I do not know whether the conviction will ultimately lead to a jail term for Mr Rajat Gupta. Today, there was extensive coverage of the case in The Times of India newspaper – one full page. I disagree that acts of philanthropy and good deeds should be taken into consideration while determining the outcome of the case. I also disagree to associate national or ethnic origin in any way to this case – we are seeing a case of human failure, and the ultimate determination of whether it was indeed a premeditated failure is yet to be taken by the ultimate Court of Law. So, let us not prejudge, but take in the learning from the case for our future life design, and advising the youngsters who contemplate a high-achieving life of riches in securities and banking (and for that matter, in any endeavour of life).

Cheers,

Vijay Srinivasan

16th June 2012

Mumbai

Balance Sheet of Life

Courtesy: Anu, my IIM-B Classmate

Our Birth is our Opening Balance!
Our Death is our Closing Balance!
Our Prejudiced Views are our Liabilities
Our Creative Ideas are our Assets

Heart is our Current Asset
Soul is our Fixed Asset
Brain is our Fixed Deposit
Thinking is our Current Account

Achievements are our Capital
Character & Morals, our Stock-in-Trade
Friends are our General Reserves
Values & Behavior are our Goodwill

Patience is our Interest Earned
Love is our Dividend
Children are our Bonus Issues
Education is Brands / Patents

Knowledge is our Investment
Experience is our Premium Account
The Aim is to Tally the Balance Sheet Accurately.
The Goal is to get the Best Presented Accounts Award.

Some very Good and Very bad things …
The most destructive habit……. …….. …..Worry
The greatest Joy……… ……… ………… …Giving
The greatest loss…….. Loss of self-respect

The most satisfying work…….. …….Helping others
The ugliest personality trait……. … …..Selfishness
The most endangered species….. ….Dedicated leaders
Our greatest natural resource…. ………. …Our youth

The greatest ‘shot in the arm’…….. ..Encouragement
The greatest problem to overcome…. …….. …Fear
The most effective sleeping pill……. Peace of mind
The most crippling failure disease….. … …….Excuses

The most powerful force in life…….. ………… . Love
The most dangerous act…… ..A gossip
The world’s most incredible computer…. . ….The brain
The worst thing to be without….. ………… ….. Hope

The deadliest weapon…… …….. ……….The tongue
The two most power-filled words……. …….. ‘I Can’
The greatest asset……. ………. …….. ….Faith
The most worthless emotion … ……… ….Self- pity

The most beautiful attire…… ……… ……..SMILE!
The most prized possession.. …….. …..Integrity
The most powerful channel of communication. ……Religion

When you stop Dreaming, Hope ends;

When you stop Believing, Love ends;

When you stop Caring and Sharing, Friendship ends

Courtesy: Anu, my IIM-B Classmate

Cheers,

Vijay Srinivasan

6th May 2012

Mumbai

Vicissitudes of Life

Ups and Downs – our lives are full of vicissitudes.

Positive or Negative ups and downs, but usually the word “vicissitude” has a negative, unfavourable connotation. The sufferings and hardship are usually captured in this word.

There is no life, whether rich or poor, that has always got only a smooth, unperturbed ride through time. Everyone goes through life’s ups and downs.

But there are only a few who face life’s vicissitudes with a reaction which deals with the hardship in a positive manner. Life’s “downs” have a big impact, no doubt. But they also teach us on how to conduct our life further, so the learning from a “down” is usually stronger than the learning from a “up”.

How to face life’s challenges and come through as a winner – that is the subject matter of many a self-help book. In the past, I had not developed the skill to react in a positive manner, but my wife and a couple of friends helped me to find my feet in dealing with the vicissitudes of life. Now, I take an analytical view of the negative situation on hand, and analyze the outcomes and the manner in which those outcomes could be converted for a positive benefit.

Let me tell you, it is not an easy task. One has to take a very Buddhist view with a calm demeanour, and not have any impatience in dealing with the problem which has caused disturbance. One has to identify the causes, and the reasons why things went undetected in advance. Given that we do not have the ability to foresee what is going to happen in the future, the only thing we can do is to stay prepared at all times, with skills that are necessary to deal with the issues when they indeed arise.

The big advantage of having faced similar, or even worse challenges in the past life, is that it instills an ability not to always expect a smooth ride. The problem with the current generation of youngsters is that they always expect a smooth ride in life – they have to learn from their parents that life is not indeed a smooth ride all the time. One has to get prepared and get ready.

Such a skill is unfortunately not taught in schools or colleges. It is critical to first calm oneself, if you are agitated nothing can be accomplished. Once the mind is calm, you are able to see things that normally you would not see. Just try to first reach calmness. Do not get angry or agitated.

That is the way we can move ahead in dealing with the vicissitudes of life. Be calm, and be positive.

Things will start moving in the right direction in your life. You will see it soon.

Cheers,

Vijay Srinivasan
31st March 2012
Mumbai

Just Look Up !

Courtesy: Anu, my IIM-B Classmate

THE BUZZARD:

If you put a buzzard in a pen that is 6 feet by 8 feet and is entirely open at the top, the bird, in spite of its ability to fly, will be an absolute prisoner. The reason is That a buzzard always begins a flight from the ground with a Run of 10 to 12 feet. Without space to run, as is its habit, It will not even
attempt to fly, but will remain a prisoner for life in a small jail with no top.

THE BAT:

The ordinary bat that flies around at night, a remarkable nimble creature in the air, cannot take off from a level place. If it is placed on the floor or flat ground, all it can do is shuffle about helplessly and, no doubt, painfully, until it reaches some slight elevation from which it can throw itself into the air. Then, at once, it takes off like a flash.

THE BUMBLEBEE:

A bumblebee, if dropped into an open tumbler, will be there until it dies, unless it is taken out. It never sees the means of escape at the top, but persists in trying to find some way out through the sides near the bottom.. It
will seek a way where none exists, until it completely destroys itself..

PEOPLE:

In many ways, we are like the buzzard, the bat, and the bumblebee. We struggle about with all our problems and frustrations, never realizing that all we have to do is look up! That’s the answer, the escape route and the solution to any
problem! Just look up.

Sorrow looks back, Worry looks around, But faith looks up!

Courtesy: Anu, my IIM-B Classmate

Have Confidence in Yourself and believe in the Solution !!

Cheers,

Vijay Srinivasan
5th February 2012
Mumbai