Blog on Value Investing | Safal Niveshak

How Much is Enough?

June 20, 2018 by Vishal Khandelwal | 33 Comments

As I was talking with my daughter Kavya about the importance of making a living doing work she loves, and saving and investing well, she asked a question that trumped me. I was not prepared for it.

“How much is enough, Papa, to live a happy life?” she asked.

Kavya’s question reminded me of a recent post I did about my talk to a group of friends. The focus of my talk was on a few important questions I have tried to seek answers to at various stages of my life, and that have helped me tremendously in choosing a path that, when I look back at, I am glad I chose.

One of the questions that I talked about was – How much is enough?

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The Turkey Illusion

June 13, 2018 by Anshul Khare | 5 Comments

Note: This post was originally published in the May 2018 issue of Value Investing Almanack (VIA). To read more such such insights on behavioural finance and other deep thoughts on value investing and business analysis, click here to subscribe to VIA.

When anyone asks me how I can best describe my experience in nearly forty years at sea, I merely say, uneventful. Of course there have been winter gales, and storms and fog and the like. But in all my experience, I have never been in any accident…of any sort worth speaking about. I have seen but one vessel in distress in all my years at sea. I never saw a wreck and never have been wrecked nor was I ever in any predicament that threatened to end in disaster of any sort.

Those were the words of E.J. Smith, captain of RMS Titanic, the ship that sank in the North Atlantic Ocean on 15 April 1912, after colliding with an iceberg during its maiden voyage, drowning 1500. Out of 2200 people onboard only 700 could be saved.

Since it has never happened in the past it’s unlikely to happen in the future. That’s perhaps the most dangerous assumption to make when the stakes are high. Smith’s mistake wasn’t in failing to predict the disaster. No one could have. His blunder was in not preparing for it.

On Titanic, there weren’t enough lifeboats for 2200 people. To add insult to an injury, the lifeboats actually had the capacity for more than 700 people but in confusion to get the ladies and the children first, many lifeboats were lowered partially filled. They hadn’t practiced the emergency evacuation protocols properly.

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Feynman’s Hack and the Map of the Cat

June 7, 2018 by Anshul Khare | 15 Comments

Richard Feynman, a celebrated scientist and the winner of Nobel prize in Theoretical Physics, was infamous for barging into any classroom (unrelated to Physics) in his university. He would then ask questions and make his fellow professors uncomfortable.

One day Feynman decided to attend a Biology class. Being aware of Feynman’s history of mischief, the Biology professor posed a condition to discourage him. Feynman could attend the class provided he would do all the assignments and write research papers like everyone else attending that class. To the professor’s surprise, Feynman agreed.

Feynman’s first assignment required him to study the nervous system of cats. So he went to the librarian in the biology section and asked her if she could give him a map of the cat.

“A map of the cat, sir?” she asked, horrified. “You mean a zoological chart!”

The Most Important Question We Never Ask

June 4, 2018 by Vishal Khandelwal | 14 Comments

A few years ago, the key executives of Disney summoned a study of their theme parks to figure out what kids found most absorbing.

Were they more enticed by Mickey and Minnie Mouse, or were they more in awe of Cinderella’s castle? Were they attracted more by the sweet-smelling snacks or colourful toys that were sold at the parks?

The study revealed that it wasn’t the Disney magic that captured the young children’s attention the most. Instead, it was their parents’ cell phones, especially when the parents were using them. And because the parents were always staring at their phones, the kids wanted to as well – even when they were surrounded by giant mice, spinning teacups, and the magic of pumpkin turning into a carriage.

Today, more of us are hooked to our devices, which in turn keep us hooked to work…and away from the more important things in life. An average American spends over two hours on his or her smartphone every day.

An average Indian smartphone user spends almost three hours every day on his or her device. We check them first thing in the morning, and often the last thing at night.

Now, what are the consequences of such an addiction towards cell phones?

Consistency, the Playground of Dull Minds

May 30, 2018 by Anshul Khare | 7 Comments

Two men went to a priest to resolve a dispute.

Having listened to the first, the priest said, “You are right.” When the second man insisted on being heard, the priest listened to him and said, “You’re also right.”

The priest’s wife was overhearing the conversation from the next room. She called out, “But they can’t both be right!” The priest paused for a moment, reflected on what the wife said and then concluded, “And you’re right too.”

How wonderful that we’ve met with a paradox, observed Great Danish physicist Niels Bohr, “Now we have a hope of making some progress.” Bohr wasn’t the only one who thrived on contradictions. It’s said that Einstein discovered relativity by way of resolving an apparent conflict between electromagnetism and mechanics.

A physicist is only too happy, writes Carlo Rovelli in his book Seven Brief Lessons on Physics, “when he finds a conflict of between successful theories: it’s an extraordinary opportunity.”