A CONSTITUTIONAL OF JAMMU AND KASHMIR Jammu and Kashmir is a mountainous state located in the northern part of India covering an area of 2,22,236 square kilometers and comprises a population of 12,541,302 as of 2011. It is one of the most popular travel destinations and consists of three divisions – Jammu, Kashmir, and Ladakh. Article 370 of the constitution came into effect in 1949, which was drafted in Part XXI of the constitution, according to which the constitution pardons the state to grant independent position. It bounds the Parliament’s control to make laws of the state. Matters like proprietorship of property, fundamental rights, and citizenship are sheltered under a discrete rule for Jammu and Kashmir. Resolution to scrap Article 370 On 5 August 2019, a resolution was driven by Home Minister, Mr. Amit Shah to scrap Article 370 of the constitution to reorganize Jammu and Kashmir to serve as a Union territory and also Ladakh region to stand as a separate entity in the capacity of a Union territory. However, it is imperative to understand what actually constitutes Article 370 and how it affects the vital aspects such and governance in Jammu and Kashmir. What is Article 370? Article 370 is considered to be the first article drafted in Part XXI of the constitution explaining about the ‘Temporary, Transitional and Special Provisions’. This Article could be understood as temporary in the sense that the Jammu and Kashmir Constituent Assembly had a right to modify/delete/retain it. However, Jammu and Kashmir as a state chose to retain it. Another interpretation was that agreement was temporary until a referendum. History of Article 370 The provision of Article 370 was drafted in 1947 by Sheikh Abdullah, who had by then been appointed Prime Minister of Jammu & Kashmir by Maharaja Hari Singh and Pt. Jawahar Lal Nehru. Sheikh Abdulla had argued that Article 370 should not be placed under temporary provisions of the constitution. He wanted “iron clad autonomy “for the state which the Center didn’t conform with. Provisions of Article 370 This article mentions that state government’s consensus is necessary for applying any law other than defence, foreign affairs, finance and communication. Hence the resident of this state lives under a separate set of laws related to citizenship, ownership of property, and fundamental rights as compared to other Indians. As a result of this provision, Indian citizen from any other state cannot purchase land or property in Jammu & Kashmir. Further to mention that under this Article, no power resides with the Centre to declare financial emergency under Article 360 in the state. However, emergency in state can be declared only in case of war or external aggression. Union government can therefore not declare emergency on grounds of internal disturbances or imminent danger unless state government desires. Conclusion The abolition of Article 370 of the constitution would terminate Kashmir’s special status as compared to other states in its 1st schedule of our constitution. The demand to the eradication of Article 370 has been continually enunciated by the BJP. The committee formed by BJP to voice the elimination of Article 370 explained that serves no significance and causes unnecessary suspicion to many in Kashmir. But most importantly, it is this article that gives a constitutional finality to the entire region of Jammu and Kashmir being an integral part of India. Vaishali GuptaMBA FP 2019

Communication is a very important aspect of our lives and is a part of our basic functionality. Communication can be very easily understood as the Basic Exchange of Information. It is nearly impossible to go through a day without the use of Communication. Communication is sending and receiving information between two or more people. We have discussed communication in layman’s terms, now let’s look at the proper definition of communication. “Communication ( derived from a Latin word communicare, meaning ‘to share’) is the  act  of conveying  meaning  from  one  entity or  group  to  another through  the  use  of  mutually understood sings , symbols and semiotic rules.” -Wikipedia Let’s look at Another definition of communication, “A process by which information is exchanged between individuals through a common system of symbols , sings or behaviour.” -Merrian-Webster Now,  let’s compare both  the  definitions. Both the definitions focus on two things which are “exchange of information” and “medium” of exchange of information. For communication, there should be some information which we have to exchange otherwise communication cannot  take  place , secondly the  medium  is  very  important  for the exchange  of  information. Medium can be anything , for example message that we have to share can be sent through a letter/application ( i.e; in written) or can be explained through symbols , like when we wave to someone just to say hello or sometimes we can convey the message using our body language( I.e;- behaviour ). Communication is so important, that directing abilities of a manager mostly depends upon his/her communication skills. He/she should have the capacity to clearly explain his/her views, ideas, facts, etc. and make the subordinates understand them. How much professional knowledge and intelligence a manger possesses becomes immaterial if he/she is not able to communicate effectively with his/her subordinates and create understanding in them. The process of communication can be explained in the figure given below:- The elements involved in the communication process are explained below:-

1. Sender:- Sender means the person who conveys his thoughts or ideas to the receiver .
2. Encoding:- it is the process of converting the message into communication symbols such as words , pictures, gestures, etc.
3. Message:- It is the content of ideas , feelings , suggestions , order, etc. intended to be communicated.
4. Channel:- channel or media is the path through which encoded message is transmitted to the receiver , e.g., face to face , phone call , internet , etc.
5. Receiver:- The who receiver communication of the sender.
6. Decoding:- it is the process of converting encoded symbols of the sender.
7. Feedback:- it includes all those actions of receiving indicating that he has received and understood the message of sender.
8. Noise:- Noise means some obstruction or hindrance to communication , e.g., a poor telephone connection, an inattentive receiver , faculty decoding , etc.

Communication can be broadly categorised into two parts.

1. Verbal communication:- The use of auditory language to exchange information with some other people. It includes sounds , words , or speaking, the tone , volume and pitch  of one’s voice can all contribute to effective verbal communication.
2. Non-verbal communication:- Communication between people through non-verbal or visual cues . This includes gestures , facial expression, body movement , timming. Touch and anything else that communicate without speaking.

Non-verbal communication is more effective than verbal communication. Aditya Kaushik MBA-FP(2018-20)

Global equity markets have been on roller coaster ride since beginning of 2018. India being no exception! Starting off on high note, NIFTY crossed the magic number of 11,000 in  the month of Jan, tanked below 10,000 in the month of Mar and now back-up and ready to conquer the high of 2018. That’s over 2,000 points move in a span of 7 months, after that a continuous correction is going on in the market till now and this correction will continue till the general elections may get over. The factors supporting to it are high crude prices, volatile currency, US imposed trade war, Fed rate hikes so on and so forth. Domestic factors like inflation, RBI policy, state elections which includes major states like Rajasthan and Madhya Pradesh will also keep market participants on the edge. From an Investor’s point of view, this is a good opportunity to invest in market. As the volatility picks one should be ready to build a portfolio, as you get good stocks at lower price. But, if you think that anybody can invest in the stock market and make good money out of their investment then you are very wrong. The reason lies in the market situation where you would be able to make good profits from the market only when the market is in a good position. You have to know how knowledgeable you are in the stock market so that you can make right decision about your investments without any problem. You would find that if you make mistakes unknowingly while choosing the best stocks, then it would be your own losses that would take a lot of time to recover your losses. In the market the best thing that you should do is to research the market fully and you also need to know the risk factor as well. You can try and make good income if you feel that you have the maximum faith in the market. Most of the investors do not try to know the insights of the market due to which they take the wrong decision and tend to lose a lot of money in the market. You have to know well how soon you can grasp the market well so that you get the maximum level of income. You might also make some mistakes and get outdated information of the market due to which you always lose your cash. So it is your responsibility to be very sincere and try to make good use of the latest information of the market with full research on any company you are going to invest. Conclusion – Market condition is very good to invest and one can recover all losses, from previous investments. Invest in market with proper research, whichever company’s stock you are going to buy, do full research on it. Or else take advice from the expert before you make any decision on any investment. Shubham Thakur MBA-FP(2017-19)

In 1956, Buffett started his investment partnership with $100; after thirteen years, he cashed out with $25 million. In mid-2004 his personal net worth had increased to $42.9 billion, the stock in his company was selling at $92,900 a share. Early Influences Warren Buffett’s approach to investing is uniquely his own, yet it rests on the bedrock of philosophies absorbed from four powerful figures: Benjamin Graham, Philip Fisher, John Burr Williams, and Charles Munger. According to Graham: A true investment must have two qualities—some degree of safety of principal and a satisfactory rate of return. Graham reduced the concept of sound investing to a motto he called the “margin of safety”. The real test was Graham’s ability to adapt the concept for common stocks. The first approach was buying a company for less than two-thirds of its net asset value, and the second was focusing on stocks with low price-to-earnings (P/E) ratios. Graham said investors would benefit most if they find undervalued stocks. Philip Fisher was another significant influence in Warren’s life. Warren learned the significance of investing in businesses having an above par potential, from Fisher. He also learned the importance for a company to have competent management. Firms that can increase profits and sales quicker than the market average impressed Fisher. He looked for companies that had high-potential products. These products were capable of allowing sales increases in the future. Such firms have higher profit margins. They’re also cost-effective and have healthy accounting controls. William’s theory, known today as the dividend discount model, or discounted net cash-f low analysis. Buffett condensed William’s theory as: “The value of a business is determined by the net cash f lows expected to occur over the life of the business discounted at an appropriate interest rate.” Investing principle’s Warren Buffett ignored the stock market all through his career. As per Warren, buying shares in a firm and buying the firm are same. He buys firms which he knows well. Firm should hold positive potential for long run. Warren Buffett evaluates the managers on three dimensions rationality, candor and independent thinking. Management should operate in logical tenets. Warren Buffett works with the managers who are candid with their shareholders and to their employees. According to Warren, we should check the return on equity not the earning per share. We should always look for the firm which have excellent profit margin. We should look to owner’s earnings to get the true reflection of a value. We should buy the business when it at good discount relative to its value. According to Buffett, diversification serves as protection against ignorance. The more knowledge you have about your company, the less risk you are likely taking. Choose the best business available when managing the portfolio. There’s no need to dive rsify it widely. Also, it’s not compulsory to cover all major sectors. Hold onto businesses you understand most and perform well. Manish Thakur (MBA-FA 2018-20)

The father of value investing, Benjamin Graham authored the book The Intelligent Investor which was first published in the year 1939. The book eventually gained fame as the bible of the stock market. Graham’s disciple Warren Buffett has been quoted, “I read the first edition of this book early in 1950 when I was nineteen. I thought then that it was by far the best book about investing ever written. I still think it is.” The book is a lengthy read and the revised version comprises of modern commentary and references for each of the 20 chapters. Since the original work is about 80 years old, certain topics such as interest rates and time-sensitive subjects show the sign of age. However, the crux and fundamentals of the book are equally relevant in the modern day investing. The book covers various topics and is to a large extent an exhaustive list of major and minor issues to be considered for the fundamental analysis approach of investing. In spite of a long list of topics, the major focus of the book revolves around the three concepts, namely, Enterprising vs Defensive investor: Investors are categorized as either “enterprising” or “defensive”. The approach in investing differs for each of the categories. The enterprising investor: An enterprising investor should see their investments like they’d see other business. The defensive investor: Not every investor has the time to view the investments in the light of analyzing the business, such investors are categorized as defensive investors and are suggested to follow a defensive strategy which includes aspects of conservative investment which require little effort in portfolio management, research, selection and monitoring of individual securities and overall portfolio. The margin of safety: “We say that to have a true investment there must be present a true margin of safety. And a true margin of safety is one that can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience.” Graham describes that there are two different prices of a stock, namely: 1. The price Mr. Market believes its worth. It is the price at which the stock is selling on the market. 2. The worth of the stock as per the investor. This worth is referred to as the “intrinsic value”. The goal of the investor is to buy the stock at a price far below the intrinsic value. This gives a margin of safety thus limiting the downside. The concept of intrinsic value is highly subjective and differs from investor to investor. There’s no fixed way to calculate this value and there are many variables which are largely out of control. Thus, the margin of safety can be said to guarantee a higher chance of profit than that of loss but it doesn’t eliminate the chance of losing altogether. Mr. Market: Graham tells a story of a businessman called Mr. Market, who is the investor’s business partner. Mr. Market approaches the investor each day with either of the two offers “to buy the investor’s stake in the business” or “to sell his stake in the business to the investor”. Further, Mr. Market is described as an emotional man whose enthusiasm and despair affects his willingness to sell/buy the stake. As a result, his offer price to buy/sell the stake is higher on the days he is jubilant whereas the offer to buy/sell the stake is low on days he is depressed. In such a situation an intelligent investor shall opt to “Buy low and sell high” thereby making the most out of the situation. Thus an intelligent investor should do business with Mr. Market only to his advantage. Thus, the key to profitable investment is to stay alert and ready when a favorable offer comes up. THE KEY TAKEAWAYS: The extensive reading provides many important lessons for an intelligent approach in investing. The key takeaways from the book are mentioned as under; The three principles of intelligent investing: These principles are often referred to as the key to value investing. They are as follows: 1. An intelligent investor always analyses the long-term evolution and management principles of a company before investing. 2. An intelligent investor always protects him- or herself from losses by diversifying investments. 3. An intelligent investor never looks for crazy profits but focuses on safe and steady returns. Do not ever trust Mr. Market: The analogy wherein Graham personifies the entire stock market as a single person called Mr. Market, time and again mentions that how Mr. Market shall try and lure the investors by offering various prices for different stocks. Graham suggests that the best way to deal with Mr. Market is to avoid all his offers as he doesn’t seem to be very clear, highly unpredictable and extremely moody. Thus, an intelligent investor must rely on his research and should resist Mr. Market’s allurements. Formula investing (Dollar cost averaging): This refers to a consistent approach to investing wherein a fixed amount of money is invested in a predefined portfolio at regular intervals irrespective of the market condition at the point of investment. Over time such an investment results in an average return as it smooths out the market fluctuations. Approach to Value Investing: The focus of a value investor should be more on the operating performance and the dividends of the firm they own rather than the shifts in their stock prices. Also, the investors must realize their rights and ownership and should employ them seriously and consistently. The book boasts of some great quotations, some of the notable ones are listed as under: “On the other hand, investing is a unique kind of casino—one where you cannot lose in the end, so long as you play only by the rules that put the odds squarely in your favor.” “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” “The intelligent investor is a realist who sells to optimists and buys from pessimists.” “People who invest make money for themselves; people who speculate make money for their brokers.” “Investment is most intelligent when it is most business-like.” “The genuine investor in common stocks does not need a great equipment of brains and knowledge, but he does need some unusual qualities of character.” “The intelligent investor (needs) an ability to resist the blan¬d¬ish¬ments of salesmen offering new com¬mon-stock issues during bull markets.” “It is amazing to see how many capable businessmen try to operate in Wall Street with complete disregard of all the sound principles through which they have gained success in their own un¬der¬tak¬ings.” “Some of these issues may prove excellent buys – a few years later when nobody wants them and they can be had at a small fraction of their true worth.” “A prime test of the competent analyst is his power to distinguish between important and unimportant facts and figures in a given situation.” Therefore, it can be concluded that the book The Intelligent Investor is indeed a culmination of guiding principles. It enlightens both amateur investors as well as the seasoned ones for the purpose of value investing. ZURISHA AFTABMBA-FA(2017-19)

What is a Random Walk? A random walk is one in which future steps or directions cannot be predicted on the basis of past history. Academics parry these tactics by obfuscating the random-walk theory with three versions (the “weak,”the “semi-strong,” and the “strong”) and by creating their own theory, called the new investment technology. The first, the firm foundation, theory suggests that the valuation of an asset is based on the intrinsic value, and the investors could win on the fluctuations around this intrinsic or real value. The second, castles in the air, theory argues that investors should act in response to crowd’s expectations. The idea is explained by Keynes’ example of picking the six prettiest faces out of a hundred that are going to win the price. Here, the investor does not have to calculate the real value of the corporation; he has to predict what the average opinion is likely to be. What is more, the author of the book suggests that both theories work in practice, but in different time frames. The second, third and fourth chapters show the historical examples of market price overvaluation (Tulip-Bulb Craze, the South Sea Bubble, and the Wall Street Crash of 1929), speculative Movements from the 1960s through the 1990s (the “Tronics” boom, the conglomerate boom, the Bubble in Concept stocks, Nifty Fifty, the biotechnology and property bubbles) and finally the largest bubble of all – overvaluation due to dot-com boom. The examples are discussed in order to point out that well often the valuation of assets is defined by the psychological factors, such as madness of people, which leads to overvaluation and subsequent price-drops. The dozen examples confirm that market efficiency is not a coincidence. The author’s main idea through the whole book is that markets are efficient, and when the inefficiencies (all mentioned above crazes)occur, it will not take a long time for the market to go back to its natural stage of efficiency. Thus, he goes to explanation of the commonly accepted investment models and techniques, pointing out their limited ability to predict something in terms of market’s “random walk”. The next three chapters are concerned with technical and fundamental analyses for prediction of the future value of stocks. The author gives explanation to two most used on Wall Street techniques. Technical analysis studies the performance of the market prices based on the historical data. The investors use complex charts and forecasting models based on trends to speculate on predicted performance. Contrary to technical analysis, a fundamental study evaluates the health of the business by careful examination of financial statements, market performance and competitiveness of the financial entity. The author gives a favor to the second option for predictions of the assets’ prices as far as the technical analysis cannot make reasonable predictions in frames of the random-walk theory. On the other hand, the fundamental analysis looks at a broader range of data, which allows formulating a complex view on the company as a market-player. However, even the most sophisticated approach may have serious flaws, such as unpredictable events (like 9/11 tragedy), unreliable financial data (like Enron’s bankruptcy), human failings and more. In reality, financial analysts may have a minimal advantage due to advanced and regular access to valuable information and materials. Chapters 8 and 9 discuss the modern portfolio theory. The basic idea is that people should diversify their portfolios of assets using the findings of Harry Markowitz. The economist discovered that portfolios with risky stocks could be organized in such a way that the portfolio as a whole could have less risk than the individual assets in it. The author argues in favor of this approach providing the practical examples of the reduced risk in well-diversified portfolios (the portfolio of 50 equal-sized US stocks, the international diversified portfolio, including the stocks of emerging markets or even the portfolio with various classes of assets). However, in chapter 9 Malkiel introduces the capital asset pricing model as a framework to explain the fact that diversification cannot eliminate all risk. Therefore, the associated with the portfolio or asset risk can be divided into systematic and non-systematic risk. Whereas non-systematic risk can be diversified by wise portfolio management, systematic (or so-called beta) risk cannot be diversified. It is used as a tool to evaluate the return. The only way to expect the higher long-run investment returns is to bear the greater beta-risk. Chapter 10 provides an outlook to behavioral finance that applies emotional and cognitive biases of people to their investment decisions. From the behavioral point of view, Malkiel learns that long term investing in hot-assets does not make any sense. In addition, careful investor should not over trade by selling promising stocks. Thus, Malkiel advises to sell only losers-stocks. The next three chapters give the author’s practical advice on investment decisions. Specifically, the author encourages ensuring that the investor is properly insured. Then, he offers investing mostly into tax-sheltered accounts. Regarding the investment instruments, Malkiel believes that in the long run, it is evident, that stocks will produce more return, than bonds yield, and beat the level of inflation. However, for the any shorter than a decade period, the expected returns are random and depend mostly on the risk taken by investors. Therefore, for the short goals, the investor should tend to a diversified portfolio with investments in risk-free assets, like bonds and cash. This is the main conclusion of the previous practical and theoretical analysis of the financial markets. Finally, the last chapter “Three Giant Steps Down Wall Street” gives a summary on the whole book and suggests the concrete steps to investors. For those investors who lack analyzing skills, Malkiel suggests investing in an index fund. Otherwise, for do-it-yourself investors, he offers to look at companies with consistent growth, pay for stock no more than firm foundation value, guess the future trends and trade as little as possible. To sum up, the book “A Random Walk Down Wall Street” is a useful guide for both students, who study Finance, and professional investors and analysts. In my view, the book does not contain the innovative ideas or theories in investing; however, it explains the existing approaches and views on investment opportunities in an easy and comprehensive way. The prompt examples and investment history overview give a complex view on investing as a science and a real life activity at the same time. Besides the summary of the world’s most popular investment theories and practices, the author gives precious advice for individual investors that sound convincing from the mouth of a successful investor and economist. The simplified philosophy of is a perfect complement to a “Random Walk Down Wall Street” for those investors, who take advantage in learning successful investment experiences. The most of the topics in this book is taught by our Sir Mr. Kushal Bhateja and I thank him from the bottom of my heart.

Abstract: 

In this book, the author wants to teach us how to pick our assets or securities for investment in the long term. This book mainly described Magic formula which gives Benjamin Graham’s idea of picking stocks at cheap rate with a margin of safety. It also explains a concept that when we are buying the stock we should consider it as we are buying a business and we should be aware of their financial and operational stability. In the end, this book summarizes us that exactly how we can apply the magic formula.

Briefing of All Chapters: 

The author has tried to take the path of Lehman’s technique and approached to deep technical methods for buying the stocks and understanding the business of any industry or country. In the 1st and 2nd chapter, the author wants us to know how to analyze different types of risk taken to generate return. Some avenues to be mentioned are G-secs, corporate bonds and other different businesses to generate returns by investing in them rather than keeping the money in piggybank. In the 3rd, 4th & 5th chapter, author explains us that buying a stock means we are buying a portion of business and we should first be aware of its worthiness and future earnings so that we can generate return on our investment as per the risk. Then he talks about wide price movement due to crazy guy called Mr. Market. He tells us that we should buy the business on discount with margin of safety which can lead us to safe and profitable investments and that we should buy good business at bargained prices with high return on capital. Then in further chapters author has explained the MAGIC FORMULA by BEN GRAHAM with an example which shows that the return from 1988 to 2004 was 30.8% annually whereas of S&P 500 was 12.4%. This formula has worked for both large and small companies and has been incredibly accurate of how a group of stocks will perform in the future. But, we should know that according to the formula we should pick the stocks with higher return on capital and has the ability to earn above average profits. In simple terms Mr. Market may price stocks based on emotions in short term but in long term, it’s all based on value.

Magic Formula:

It ranks the companies based on two factors, return on capital which is given by EBIT/(Net working capital + Net fixed assets) and earnings yield which is given by EBIT/(market value of equity + net interest bearing debt). We then rank all the stocks according to their highest to lowest return on capital and then with highest to lowest earnings yield, then we have to choose our group of stocks according to their rank and group them but we should also consider its future earnings sustainability. Conclusion: By choosing any asset or securities for investment, we should understand the business and then apply the magic formula but we should also consider its earnings sustainability. We should trust the magic formula for long term and be sure with our decisions on buying a good business. Ayush MazumdarMBA-FA(2018-20)

The book “The Dhandho Investor” is written by Monish Pabrai. He is managing a hedge fund called Pabrai investment fund. Since its inception, Pabrai fund has delivered an annualized return of over 28%. He has been favorably profiled by Forbes and Barron’s and has made guest appearances on CNBC, Bloomberg TV and radio. Dhandho is a Gujarati word. “Dhan” is from Sanskrit word “Dhana” meaning wealth and “Dhandho” literally means “endeavors that create wealth” At the beginning of the book, you will find successful business stories of Papa Patel, Mani Lal Chaudhari, Richard Branson, and Lakshmi Mittal. The author has also quoted a few incidents from his life to make a connection with the reader. After the initial chapters of successful stories, you will find the book into Dhandho Framework, which is nothing but the principles that have made the journeys of above mentioned gentlemen successful. The principles mentioned are 1) Focus on buying an existing business: It is always better to buy a fraction of an existing business.  Because it is less risky than starting a new business and fraction of a business can be brought through a stock market which clearly gives many advantages. 2) Buy a simple business in industries with an ultra-slow rate of change: Invest in the business which is simple to understand and whose cash flows are easy to measure. 3) Buy distressed businesses in distressed industries: Some assets are sold at discount because of their wretched near term prospects which can otherwise have a brilliant future, if worked upon in the right direction. Here, the author is saying that the purchase price should also be attractive. 4) Buy business with a durable competitive advantage-Moat: Invest in the business which has product differentiation and cost advantage that is durable. The author also says that businesses with durable moat even don’t last forever. All businesses have a time frame within which it prospers. 5) Bet heavily when the odds are overwhelmingly in your favor: Investing is all about looking for misprices business opportunity and betting heavily when the odds are in our favor. 6) Focus on Arbitrage: They allow us to earn high return with no risk. Invest in the business that is successful in bridging the product and service gap in the existing world. 7) Buy business at big discounts to their underlying intrinsic value: Invest only when the market value of the asset is significantly below the intrinsic value. It is also known as margin of safety. 8) Look for low risk, High uncertainty business: Low risk and high uncertainty is a wonderful combination because high uncertainty in business will lead to low price and low risk means minimum downside risk. Downside risk can be reduced by buying the asset or share at low depressed price.  9) It’s better to be a copycat than an innovator: Here, the author is saying Innovation is a crap-shoot but good cloners are a great business to invest. It is not only cloning others’ idea but also lifting and scaling it up. Good cloners will essentially improve upon the ideas of innovators. Moving forward, you will find the author to be giving a lot of examples of the businesses which have created an extra ordinary wealth through their endeavors. The author always emphasizes on his rule: Heads, I win; tails, I don’t lose much! This essentially means taking bets which have very low risk but high return. There will also be a mention of finance concepts like DCF analysis, Fortune formula by William Poundstone, margin of safety, Greenbatt’s magic formula etc. You will also able to find the quotes of Warren Buffet and Charlie Munger throughout the chapters. Numerous case studies of McDonald’s, Microsoft, Frontline, GEICO, Stelwart Enterprises, American express, Universal stainless and alloy products etc. can be found throughout the book. The beginning few chapters focus on various criterion that help us choose the investments which could be great to invest in. The Concluding chapters of the book Abhimanyu’s Dilemma- The art of selling, to index or not to index-This is the question and Arjuna’s focus: Investing lessons from a great warrior are very enriching because it says how to exit our investment. Abhimanyu’s Dilemma-The art of Selling: Making an investment is only half of the battle. We also need a vigorous strategy to sell. A Dhandho investor should try to sell when the market price exceeds the intrinsic value. To Index or Not to index- That is the question: Only handful of money managers are successful in besting the index. He says that most of the investors should consider buying an index to be a good option. One can also incorporate some of the index like traits in the portfolio and also manage some of the assets actively. Arjuna’s Focus, Investing lesson from a great warrior: Dhandho investor only invests in simple and well understood business. This is to eliminate 99% of possible investment alternatives. He concludes the book by saying that “Life focused purely on maximization of wealth or creature of comfort for self and family is a sub-optimal approach to living”. He also says that “We cannot change the world, but we can improve this world for one person, ten people, a hundred people, and maybe even a few thousand people”. The stories inside the books are real and teach us important investing lesson that is really inspirational. K PoonkundranMBA-FA(2017-19)

World Financial Planning Day (Oct 3, 2018) is a way to move forward towards the vision of everyone having access to advice from competent and ethical financial planners and resources to plan well to live well. It’s a great time to remind consumers across the world about the value of partnering with a CFP^CM professional. On the occasion of #WFPD, ICoFP hosted a seminar at its Delhi Campus where senior leaders from the Financial Services Industry were invited to share insights about Financial Planning and how it is has become need of the hour for each individual. ‘Financial Planning is not a profession, it’s a religion. We must embrace it’, said Mr. Anil Chopra, Group Director-Corporate Affairs, Bajaj Capital Limited. Other dignitaries included Mr. Sanjiv Bajaj, CFP^CM, Vice Chairman, Bajaj Capital Limited; Mr. Sameer Mittal, Sr. Director, Ameriprise; Mr. Anil Chopra, CFP^CM, Group Director-Corporate Affairs, Bajaj Capital Limited; Ms. Shilpi Johri, CFP^CM, Financial Planner & Author; Mr. Atin Khanna, CFP^CM , Associate Vice President - Area Manager - Priority Banking, Kotak Mahindra Bank Ltd.; Mr. Devinder Singh, CFP^CM , Senior Vice President and Chief Manager, UTI Asset Management Company Limited The event started with offering prayers to Maa Saraswati with lamp lighting ceremony and welcome address by our Chief mentor Ms. Jai Vani Bajaj. The event witnessed participation from industry, colleges as well as budding student aspirants. Mr. Sanjiv Bajaj addressed the audience with how to have a positive approach being a Financial Planner at all times. He also talked about Behavioural Finance wherein he stated the fact that about 87% of people still do not follow behavioural finance but how important it is to be followed in the market. ‘A financial planner is someone who prevents their clients from taking stupid decisions’, he said. Mr. Sameer Mittal, who was the keynote speaker for the day, explained the golden principles to follow in order to become and remain a successful Financial Planner. Mr. Anil Chopra delivered an inspirational talk on how Bajaj Capital brought the concept of Financial Planning in India. He also explained the 5 important Es for Financial Planners i.e. Education, Examination, Experience, Ethics, Engagement. At the end, he touched upon a vital topic Asset Allocation, explaining in gist about all asset classes. Ms. Shilpi Jhori explained the Role & Use of Social Media in Financial Planning and Mr. Atin Khanna talked about the Ethical issues in Financial Planning. Keeping up the curiosity, Mr. Devendra Singh explained the Future of Financial Planning Profession in India and how huge an investment corpus the country potentially has. He well managed to explain the students the future aspects with a few facts. The event was gracefully ended with the felicitation ceremony wherein we honoured ICoFP students who have successfully cleared their CFP^CM Certification over the past one year. At ICoFP, we are committed to FPSB’s vision to establish financial planning as a global profession and the CFP marks as a global symbol of excellence in financial planning. Manya KakkarAcademic AssociateICoFP, New Delhi

There’s a new highway in Pakistan, new rail terminal in Kazakhstan, sea port in Sri Lanka and a bridge in Laos. What is common between all these is that these are all part of China’s project called the Belt Road Initiative. The BRI is a $4-8 trillion infrastructure project spreading over 3 continents and almost 60 countries. It is planned to create new routes in and out of China for trade. Most countries China has invested in have high risk of not being able to pay back but China still continues to give out loan to them. So WHY does China give loan to economically unstable countries? The answer to this is simple; China wants to become the Economic Superpower of the world beating USA, the current holder of this position and BRI is a perfect plan to make it possible. Most countries are vulnerable to pay back the debts. Take for example Sri Lanka, China gave $1.5 billion to build a deep sea port and Sri Lanka couldn’t pay off so, in return, China took the port on a 99 years lease taking full control of the port. China also has a 40 year lease of strategic port in Pakistan, Chinese naval base in Djibouti and is now going for a similar deal in Myanmar. Seeing the pattern, why do these countries get into a contract like this? Its because China presents it as a win-win situation for both sides and offer loans without many conditions unlike other countries or financial institutions. Belarus, Hungary, Mongolia, Kenya, Cambodia, Indonesia, Greece, Malaysia, Kyrgyzstan, Poland and many more have all signed a deal with China. This mostly benefits China in occupying the world a modern day colonization. Like, there is a railroad network connecting China and London, gas pipelines connecting China through Caspian Sea and a speed train network in South East Asia. China might not be getting back the debts but it sure is achieving some economic goals. Figures show that 7 out of 10 largest contract companies are Chinese. Chinese people are employees as labour force. China has taken some serious steps and is sure not far away from dominating the world economy. Udit AdlakhaMBA-FA(2018-20)