Sunday, October 4, 2009
People sometimes ask Montek Singh Ahluwalia questions loaded with “aspirational objectives,” such as when India will “get rid of poverty.” Few are as well equipped to respond as Ahluwalia, one of the architects of India’s breathtaking economic transformation.
The current income of an average Indian citizen is about 1/15th that of a U.S. citizen. Ahluwalia envisions increasing India’s per capita income ten fold. He sees this as a matter of “simple arithmetic.” To achieve this advance, India must sustain GDP growth of 9% a year (which corresponds to a 7%/year growth in personal income) -- for 32 years. By 2040, India’s 1.5 billion people could be living more like Americans. “Regrettably, I won’t be around to see it,” says Ahluwalia.
By 2020, though, assuming such sustained economic growth, he would be around to witness “more modest results.” Indians would double their annual income to $6,600, and the nation would be able to “provide a basic level of services to the vast majority of its population,” essentially leaving behind its problems of poverty. This kind of growth, “an extremely worthwhile objective” for India, would also leave its mark on the rest of the world. It would inspire other emerging economies, for one thing. It would also shift the balance of power in global trade, with the combined economies of India and China taking on the U.S.
So can India really achieve this kind of relentless economic progress? Ahluwalia’s not sure, but invokes the successes of Japan, Korea and China, and sees reasons for optimism. Over the past eight years, India’s averaged a 7.2% GDP growth rate, and looks likely to land on its feet after the current worldwide recession. On the other hand, the nation’s vibrant democracy (420 million voted in the most recent elections) can make agreement on economic policy and its implementation difficult. Ahluwalia is “not complaining,” but acknowledges that this kind of participative society “means we’re taking longer to get done what needs to be done.”
He sees institutional strengths that will enable India to push its development agenda forward: a sense of confidence pervades Indian society; past reforms have “unleashed tremendous energy in the private sector;” the economy has opened up to greater domestic and foreign markets; and in spite of changes in government, the general economic policies continue to evolve. Ahluwalia acknowledges that defeating poverty may not address everyone’s goals for success. The true objective for India, he believes, is “inclusive growth,” an equitable and constructive distribution of economic gains via market forces, government and public means.
Friday, October 2, 2009
Thursday, June 18, 2009
Following an introduction by Kauffman Foundation President and CEO Carl J. Schramm, the discussion is led by Harold Bradley, chief investment officer of the Kauffman Foundation, and features Duncan Niederauer, CEO of the NYSE Euronext, and Peter Bloom, managing director of General Atlantic Partners, a global growth private equity investor. The 90-minute discussion addresses current challenges in the equities markets and the trading of stocks, bonds and derivative securities in a global marketplace.
Friday, June 12, 2009
Friday, May 1, 2009
Thursday, April 30, 2009
Tough times and volatile markets come and go, but solid investing principles are timeless. Good advice right now and in any market: go with S.I.M.P.L.E. investing:
Step back – Take a deep breath. Everyone knows that mattresses might seem like the safest spot for your money. But historically, the stock market has provided an opportunity for long-term returns.*
Investigate, then diversify – Take advantage of free research and investing tools instead of jumping on a hot tip or trying to act fast. Remember to balance your portfolio across investments.
Max out retirement vehicles – Take full advantage of any employer match for your 401(k). Otherwise, you leave money on the table. No 401(k) available? Grab the tax-deferred benefits of an IRA.
Pay yourself first – A cliché for sure, but not as easy as it sounds. Unless you have savings automatically deducted from your paycheck or bank account. It's like pre-paying bills in retirement. Talk to your employer's HR department.
Live like an investor – Adopt an investing way of life by committing to the long-term view. Your saving and investing habits can even set an example for the kids in your life.
Earn rewards – Set milestones and small rewards for yourself when you "earn" it on your smart financial plan.Even if you only follow one or two of these tips, you'll be better off than you are today. So trust yourself. Then grit your teeth and get to it.
Thursday, April 23, 2009
1. Spend $20 on an experience rather than an item.
2. Pursue meaningful life goals
3. Be open and receptive to what's happening right now, in the moment.
4. Nurture meaningful relationships.
5. Recognize your strengths.
6. Count your blessings.
7. Keep an optimism journal.
8. Seek advice from your neighbor.
9. Get out and sweat.
10. Do unto others.
Thursday, April 16, 2009
Saturday, April 11, 2009
Click here to read one hundred characteristics and attributes of people who start companies—some born of experience, education or birth. Most can be learned by study and practice.
Tuesday, April 7, 2009
Three tips for 2009
Be realistic about scenario planning
It’s necessary to develop plans on the assumption that several different futures are possible and to focus attention on the underlying drivers of uncertainty.
Since the effectiveness of such a strategy depends on an organization’s ability to adjust rapidly as the fog starts to lift, managers must identify and intensively monitor key indicators suggesting which scenario might unfold.
Look beyond the crisis
Strategic planning: Three tips for 2009
Even in these tumultuous times, strategic planning doesn’t have to be an exercise in anxiety—or futility.
Read the entire article on Strategic planning: Three tips for 2009 by Renée Dye, Olivier Sibony, and S. Patrick Viguerie in the The McKinsey Quarterly, the business journal of McKinsey & Company.
Friday, April 3, 2009
Phase One Establish a Company
Step 1. Stress-Test Your Big Idea
Step 2. Build Your Founding Team
Step 3. Draft a Business Plan
Step 4. Play the Name Game
Step 5. Incorporate Thyself
Phase Two Prototype the Product
Step 1. Stake Out Intellectual Property
Step 2. Create an Advisory Board
Step 3. Build Your Prototype
Phase Three Develop the Beta Product
Step 1. Start Staffing Up
Step 2. Assemble Your Back Office
Step 3. Launch Your Beta Test
Step 4. Revisit the Business Plan
Phase Four Launch the Product
Step 1. Build a New Board of Directors
Step 2. Develop the Sales and Marketing Plan
Step 3. Open an Office
Step 4. Hit the Market
Read the entire article by Michael V. Copeland and Om Malik on Cnn Money.
Thursday, March 19, 2009
Removing half a billion people from poverty and into the productive workforce will profoundly affect on the world economy. India and China are doing just that with insane growth rates and lots of what used to be American jobs: China is the factory floor and India the back-office, software shop. China is top-down party driven. India is a messy, vibrant democracy.
This may be the complementary duo that changes the world. Including your world.
Hear Professor Tarun Khanna in a discussion about his book, Billions of Entrepreneurs: How China and India are Reshaping Their Futures and Yours. Called well worth reading by The Economist and entertaining by the Financial Times, Khanna's book shows how Chinese and Indian entrepreneurs are creating change through new business models.
Tuesday, March 17, 2009
Worth a read if you have the time.
An excerpt from his letter:
"Amid this bad news, however, never forget that our country has faced far worse travails in the past. In the 20th Century alone, we dealt with two great wars (one of which we initially appeared to be losing); a dozen or so panics and recessions; virulent inflation that led to a 21.5% prime rate in 1980; and the Great Depression of the 1930s, when unemployment ranged between 15% and 25% for many years. America has had no shortage of challenges.
Without fail, however, we’ve overcome them. In the face of those obstacles – and many others – the real standard of living for Americans improved nearly seven-fold during the 1900s, while the Dow Jones Industrials rose from 66 to 11,497. Compare the record of this period with the dozens of centuries during which humans secured only tiny gains, if any, in how they lived. Though the path has not been smooth, our economic system has worked extraordinarily well over time. It has unleashed human potential as no other system has, and it will continue to do so. America’s best days lie ahead."
Read the complete text of Buffett's letter to shareholders on the Berkshire Hathaway Website.
Thursday, March 12, 2009
If you had purchased $1,000.00 of Delta Air Lines stock one year ago you would have $49.00 left.
With Enron, you would have had $16.50 left of the original $1,000.00.
With WorldCom, you would have had less than $5.00 left.
But, if you had purchased $1,000.00 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214.00 cash.
Based on the above, the best current investment advice is to drink heavily and recycle.
It's called the 401-Keg.
A recent study found the average American walks about 900 miles a year. Another study found Americans drink, on the average, 22 gallons of alcohol a year. That means, on average, Americans get about 41 miles to the gallon.
Makes you proud to be an American!
Merck's $41 billion acquisition of Schering-Plough (Link)
Though Merck & Co. has agreed to pay Schering-Plough Corp. $2.5 billion if it fails to get financing for its proposed $41 billion takeover of the rival drug maker, according to a filing with the Securities Exchange Commission.
Pfizer's takeover of Wyeth for $68 billion. (Link)
Roche's bid of a $47 billion deal with Genentech. (Link)
Another article from CNN Money on Big Pharma's new landscape.
Now, Pfizer, the world's top drug maker, and French firm Sanofi-Aventis are in the race to buy a stake in Indian Wockhardt Ltd's biotechnology business.
I guess the good thing is that economy/recession/meltdown don't seem to affect the biotech industry.
Read about the article: Biotech industry expected to grow despite global meltdown
Saturday, March 7, 2009
Saturday, February 28, 2009
Friday, February 13, 2009
Tuesday, February 10, 2009
The government is engaged in an unprecedented - and expensive - effort to rescue the economy. Here are all the elements of the bailouts.
Click here to read about it.
Also, read about 'The crisis': A timeline
A shocking series of events that forever changed the financial markets.
Monday, January 26, 2009
Under the terms of the cash-and-stock transaction, each outstanding share of Wyeth common stock will be converted into a shareholder right to receive $33 in cash and 0.985 of a share of Pfizer common stock.
Pfizer will begin to face U.S. generic competition in 2011 for the cholesterol drug Lipitor. Next year, Wyeth loses patent protection on its own top drug, the antidepressant Effexor XR.
These are the indicators of crisis, subject to data and statistics. Less measurable but no less profound is a sapping of confidence across our land — a nagging fear that America's decline is inevitable, and that the next generation must lower its sights.
Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America — they will be met. "
Read the full text on TIME