Archive for the ‘Uncategorized’ Category

I was playing around with the historical data of Sensex and its valuations (available from BSE website).I took the monthly data from Jan 1991 to September 2012 (261 data points). A basic analysis of the data points: PE Multiple percentile range (For e.g. In 70% of the instances, the PE ratio was above 16.4): PE […]

You come across many rich people (Really rich!) who in a way apply value investing precepts to their businesses. Usually in private transactions it is difficult to find inefficiencies caused by an irrational seller since one would be buying from the owner himself and usually owners would have a very good understanding of their business […]

This is a wonderful read for multiple reasons. Some of them:   – I supposedly read a lot of Crisis related material but did not come across David Li. Either I did not “get it” or his formula was not covered in depth. We have seen a lot of Black Scholes bashing, but not enough […]

For the behaviorally inclined, a post worth reading and a blog worth following

I don’t know


I really have come to believe teaching MBAs that one of the most  important things you learn as an MBA is how to pretend you know the answer to any question even though you have absolutely no idea what you’re talking about. And I’ve found it’s really one of the most destructive factors in business […]

I pretty much got convinced when I read this that Facebook is in no way having a better business proposition than google when it comes to ads. These made perfect sense: Search is taking over the world. Click for more >The reason the search business has swallowed such a huge percentage of global ad spending […]

An interesting article on the Black Scholes Model and its foibles. Link Some timeless quips from Buffet and Munger Link: Mr. Buffett on the use of higher-order math in finance: “The more symbols they could work into their writing the more they were revered.” Mr. Munger on the same theme: “Some of the worst business […]