Category Archives: money

Investment analysis

When looking at any ratio, an investor should compare between companies that operate in the same industry. Different industries have different business needs, so investors must modify their analysis accordingly.

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"Sweep-In" accounts

“Sweep-in” accounts or any of its variants offer the returns of a fixed deposit while providing the flexibility/liquidity of a savings accounts. It’s like a hybrid that provides the best of both worlds.

The money you deposit into the bank account is broken up into chunks and the chunks are then converted to fixed deposits. Whenever a withdrawal request is made, depending upon the ask, one or more chunks of FD’s are broken and transferred back to the account. Simple.

So, if you are looking for a place to stash your cash, it doesn’t get any better than this.

Security is in excellence, not in job

Javed Akhtar, Poet

I have often narrated this incident when asked to speak in schools and colleges. The best professional advice I ever got was when I was 15 years old. I had just completed my schooling from Aligarh when my father took me to visit his friend, Khwaja Ahmed Farooqi, in Delhi.
He took us out for lunch and asked me, “What do you want to do in future?” Now at 15, you think you can do anything and everything, so I gave him five or six alternatives. He then suggested that I should become a grass cutter.
I was naturally somewhat startled by this piece of advice but he went on to say: “But only on condition that you become the best grass cutter in the world. So, if the President of India wants the Rashtrapati Bhavan lawns to be trimmed, you should be the one person he thinks of.”

He then said something which I will always remember: “Koi kaam mamuli nahin hota, kaam karnewallah mamuli hota hai (no work or job is small; it is only the worker who may be small).” Success is ultimately not in the job itself; it is in how well you do your job.

Know when to give up support

Alok Kejriwal, CEO, contests2win.com

Our start-up was in its second year when the dotcom bubble burst in 2001. I decided to ask our venture capitalists, ICICI Ventures, for more funds. Renuka Ramnath, the CEO of ICICI Ventures, patiently heard me out.
When I was done, she said something that changed the way I thought about business. She said that at some stage, every child has to learn to walk on its own. At first, it may stumble, fall and hurt itself. But it learns an important lesson—self-sufficiency.

With that, Ramnath refused to finance us any more. But her words inspired me to look for finance the way real businesses do. From then on we not only became profitable but also created three new companies.

Invest in your career

Prasoon Joshi, AD Man, Lyricist

My father always told me that I should love life not money; money will come without you chasing it. Following his advice, I spend a lot of time in activities that would further my career and other interests. This has been very rewarding.
I believe that investments are essential. Going by my father’s advice, I invest in my profession, and I make money from that. I don’t think it’s a good idea to count when you are investing in yourself. You will certainly save if you calculate, but it’s not worth it in the end.

You don’t have to be an industrialist

Rahul Bajaj, Chairman, Bajaj Auto

One evening when I was 16, my father sat with me for a post-dinner conversation. He said that according to Indian tradition, when a son turns 16, the father should start treating him as a friend.

And so, he was speaking to me both as father and as friend. He made it very clear that though I was born in a business family, there was no compulsion for me to take on the reins later.

I was free to pursue whatever career my heart desired. I specifically remember him telling me that it was absolutely fine if I wanted to be a tennis player or a mountaineer. But, he added, I must always aim at being the best.

There should be no compromise on this. If I chose tennis, I should aim at winning at Wimbledon, or if I climbed mountains, I should aim to climb Mount Everest.

Even if I wanted to be a cook, he said, there was no harm in it as long as I aimed to become a top chef. It was my choice to stay with the family business. But his emphasis on excellence has always inspired me to push boundaries.