Latticework of Mental Models: The Halo Effect

Complexity is the indispensable thread in the fabric of world of business today. As a result, in spite of all the secrets formulas and all the self-proclaimed thought leadership, success in business is as elusive as ever. Unlike hard sciences there are no immutable laws in management because managing business isn’t a science.

Rajiv Bajaj, Managing Director of Bajaj auto, said this in one of his talks

I joined the company [Bajaj Auto] twenty years back. In my college I was trained to think ‘Just in Time’ because it was supposed to be one solution for all the problems. And then somebody said, Just in Time is not enough. They said there must be Kaizen, World class manufacturing, Toyota production system, Kawasaki system, automation and robotics. Then they said you must also know CAD, CAM, simultaneous engineering, re-engineering, six-sigma, TQM, and you must wear six hats, follow seven habits, look for blue oceans, be a bit of a maverick and indulge in management by walking around. Every time I learnt something new, I found myself back at the starting point. There was always the new book on the shelf, and there was always the new consultant on the seminar circuit. And these guys would do anything to keep themselves in demand and keep all of us confused. So I decided to ignore all of these.

Rajiv Bajaj turned around Bajaj Auto from a loss making company in the year 2000 to the most profitable auto company in world and it’s pretty clear from his talk that he didn’t do it just by blindly listening to those management experts and celebrity CEOs who claim to have the next new thing.

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Annual Report Review: Bajaj Auto

Here is my review of the FY16 annual report of India’s leading two-wheeler company, Bajaj Auto.

Click here to download the PDF review (4 MB file), or read it in the panel below.

Let me know your thoughts and questions on this review in the Comments section of this post, plus any additional thoughts from your own review of Bajaj Auto’s FY16 annual report. Also share any suggestion(s) you may have to make future reviews better and easier for your understanding.

Statutory Warning: This is NOT an investment advice to buy or sell shares. Please make your own decision, as blindly acting on anyone else’s research and opinions can be injurious to your wealth. I own the stock, and thus my analysis is biased, and may be wrong. I have been wrong many times in the past. I am a registered Research Analyst as per SEBI (Research Analyst) Regulations, 2014 (Registration No. INH000000578).

Latticework of Mental Models: The Zero Price Effect


Would you buy something if it were discounted from Rs. 500 to Rs. 200? May be. What if it was discounted from Rs. 500 to Rs. 10? Possibly. How about if it were discounted to zero? Absolutely! Getting something for free feels good. Isn’t it? But don’t get too excited. Although the ‘cost of free’ […]

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Latticework of Mental Models: Deliberate Practice


There are moments in life when you are in awe of someone so much that you wish to be in that person’s shoes, doing what he or she is doing. For that matter, everybody aspires to be really good at something. It could be a sport, an art, playing a musical instrument or any other […]

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Latticework of Mental Models: Antifragility


As a kid, one of the most fascinating thing I ever witnessed while conducting my own zoology experiments, was to watch a lizard leave it’s tail behind. I am sure many of you must have found it intriguing that a lizard, if threatened, can voluntarily let go of its tail. It’s common in many lizard […]

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True Wealth Workshop 2016: Want to Meet Us In Your City?

After covering nine tier-2 Indian cities in 2014, we plan to conduct the second round of Safal Niveshak’s True Wealth Workshop starting this September. This is going to be a three-hour Workshop in a non-metro city, through which we plan to help people learn the most important rules of value investing, personal finance, and long-term […]

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Latticework of Mental Models: Straw Man Fallacy


A policeman, while on his usual late night patrol, finds a well dressed gentleman squatting under a streetlight. “Is there a problem sir? Are you looking for something?” Policeman asked the man. “I lost my car keys officer.” Replied the gentleman. “Do you need some help?” “Thanks. I sure could use some help. It’s been an […]

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Value Investor Interview: Rajeev Thakkar – Part 2


Note: This interview was published in the January 2016 issue of our premium newsletter, Value Investing Almanack. To gain instant access to more such interviews and other interesting stuff on value investing and business analysis, click here to subscribe now. Read Part 1 SN: Is there a mechanism in Mutual Funds where you repay cash […]

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