The blog writer has explained the
importance of First Principles Thinking. To explain it better he gave an
exceptionally good example which rightly hits the nail on the head.
“Another way to think about this distinction comes from another friend,
Tim Urban. He says[3] it’s like the difference between the
cook and the chef. While these terms are often used interchangeably, there is
an important nuance. The chef is a trailblazer, the person who invents recipes.
He knows the raw ingredients and how to combine them. The cook, who reasons by
analogy, uses a recipe. He creates something, perhaps with slight variations,
that’s already been created.
The difference between reasoning by
first principles and reasoning by analogy is like the difference between being
a chef and being a cook. If the cook lost the recipe, he’d be screwed. The
chef, on the other hand, understands the flavor profiles and combinations at
such a fundamental level that he doesn’t even use a recipe. He has real knowledge
as opposed to know-how”
This one is especially good for
investing people who often complain today that there is sea of information
floating around:
“A lot of professional investors read Farnam Street. When I meet these
people and ask how they consume information, they usually fall into one of two
categories. The differences between the two apply to all of us. The first type
of investor says there is too much information to consume. They spend their
days reading every press release, article, and blogger commenting on a position
they hold. They wonder what they are missing. The second type of investor
realizes that reading everything is unsustainable and stressful and makes them
prone to overvaluing information they’ve spent a great amount of time
consuming. These investors, instead, seek to understand the variables that will
affect their investments. While there might be hundreds, there are usually
three to five variables that will really move the needle. The investors don’t
have to read everything; they just pay attention to these variables.”
The article is worth reading. The
link is provided below:
Mahendra Singh Dhoni (Indian Cricketer) sued Amrapali group (troubled by
financial crisis) for Rs. 150 crores. This was with regards to nonpayment of
endorsement fees.
What is missing part in the article pertaining to the act of
suing by Mahedra Singh Dhoni?
A new trend has emerged from Nirav Modi episode (Punjab
National Bank Scam).
Celebrity brand ambassadors immediately take a turn and
start suing the brand holding company, no sooner the company is in trouble.
Priyanka Chopra may cut ties with
Nirav Modi.
When they were brand icons and enjoyed the customary
royal treatments received from the brand holding company they were relishing the
royal treatment.
Classic case of Amitabh Bachchan (Brand ambassador of Kalyan
Jewellers) having food in Gold plate.
One has to remember that Sakshi Dhoni was one of the
directors at Amrapali group.
Indeed a fine arrangement.
M S Dhoni will be the
brand ambassador and Mrs. Dhoni will be Director with the Company.
We have to note “His wife Sakshi Dhoni still continues to hold a 25% stake in the stalled
business venture with Amrapali group owner Anil Kumar Sharma.” as per an article appeared in DNA
Newspaper (updated April 22, 2016).
I hope
whether M S Dhoni will reveal whether Sakshi Dhoni is still stake holder in the
business venture.
It seems M S Dhoni’s wife received brand equity from
Amrapali group.
This practice is followed by Times of India group (Bennett, Coleman & Company, Ltd.,).
Arrangement might have been:
M S Dhoni will be the brand ambassador
Small amount may have been paid as fees and
remaining might have been in the form of equity
M S Dhoni will be provided with a seat on the
board i.e. Sakshi Dhoni
Sakshi Dhoni will be provided brand equity (may
be sweat equity)
If and when Amrapali Group will get listed and M
S Dhoni willbe making huge listed gains
Note:
Hear one part I leave it to tax experts i.e. M S Dhoni
will be paying small tax on the fees as compared to if the whole amount would
have been paid. Also, whether Sweat equity will be taxed on issue to Sakshi
Dhoni I leave it to Tax experts. If not taxed, then a good way of avoiding tax.
The above is also practiced by other celebrities such as
Salman Khan.
“Actor Salman Khan,
who will be the brand ambassador of yatra.com, has also picked up a minority
stake in travel agent Yatra Online Pvt. Ltd.” (Livemint).
The above practice was explained in an article Citizens Jain
– October 8, 2012 The New Yorker issue:
“Another innovation, conceived by his brother Samir, is referred to as
“private treaties” or “brand capital.” Under this program, the newspaper offers
a deal to smaller companies: it accepts ads in exchange for equity in a
company. B.C.C.L. insists on one-third cash as a down payment and accepts
real-estate ownership in lieu of equity; the resulting ads appear throughout
the paper. The company has a stake in more than three hundred and fifty
companies, and this accounts for up to fifteen per cent of its ad revenues.”
In case of Bennett, Coleman & Company, Ltd. one of the
failed deal is the famous Videocon Group (ICICI – Kochhar – Dhoot ).
May be some of the above holding
would have been Brand Equity issued to Bennett, Coleman and Company Ltd.
Let’s recollect here what Irrfan
Khan (Indian Actor) stated on redefining heroes:
“That is my basic concern things need to be redefined... It pains me
when a film actor or a cricketer is a youth icon. I don't have anything against
them. They are great entertainers; they are useful to the society . They
contribute to people's lives. But they are not heroes. We haven't redefined
heroes. Heroes are different people. Heroes are people who sacrifice their own
concerns and do something bigger, who change people's lives. We film stars and
cricketers shouldn't be aspirational in such a big way for the healthy growth
of the society . It's a sign of consumerism at its extreme. That's why I find
it so cool and so hip to see that photograph of the women scientists of ISRO
celebrating a launch. That's heroism. That's cool, that's hip! Lekin main agar
kahin se udhaar le kar , kuch bana ke, thodi der ke liye aapka time pass kara
de raha hoon, just because I am famous, you aspire to become me that's not
cool, that's pathetic.”
Let’s cheer true heroes as said by Daniel J Boorstin:
"Celebrity-worship and hero-worship should not be confused.
Yet we confuse them every day, and by doing so we come dangerously close to
depriving ourselves of all real models. We lose sight of the men and women who
do not simply seem great because they are famous but are famous because they
are great. We come closer and closer to degrading all fame into notoriety."
"In our world of big names, curiously, our true heroes tend
to be anonymous. In this life of illusion and quasi-illusion, the person of
solid virtues who can be admired for something more substantial than his
well-knownness often proves to be the unsung hero: the teacher, the nurse, the
mother, the honest cop, the hard worker at lonely, underpaid, unglamorous,
unpublicized jobs."
Power of a typographical error is best felt today where many
news agencies / website directly take feeds from the main reporting site and
displays it without curating it.
The news get reported and is displayed across everywhere in
the same way.
Main news agency: Money control news (April 07, 2018)
Headline: DSP Blackrock Mutual Fund sells 29.99 lakh shares
of AIA Engineering
Content:
“On April 6, 2018 Bhadresh Kantilal Shah sold 29,99,999
shares of AIA
Engineering at Rs 1,400.06 on the BSE.
However, DSP Blackrock Mutual Fund - DSP Blackrock Midcap
Fund bought 5,72,000 shares at Rs 1,400.”
Headline says DSP Blackrock Sells 29.99 lakh shares however
content says Bhadresh Kantilal Shah has sold same number of shares. DSP on the
contrary has bought 5.72 lakh shares.
1 day ago - On April 6, 2018
Bhadresh Kantilal Shah sold 29,99,999 shares
of AIA Engineering at Rs 1,400.06 on
the BSE. However, DSP Blackrock Mutual Fund
- DSP Blackrock Midcap Fund bought
5,72,000 shares at Rs 1,400. On Friday, AIA
Engineering ended at Rs 1,400.60, down Rs 47.45, or 3.28 percent
on ...
1 day ago - On April 6, 2018
Bhadresh Kantilal Shah sold 29,99,999 shares
of AIA Engineering at Rs 1,400.06 on
the BSE. However, DSP Blackrock Mutual Fund
– DSP Blackrock Midcap Fund bought
5,72,000 shares at Rs 1,400. On Friday, AIA
Engineering ended at Rs 1,400.60, down Rs 47.45, or 3.28 percent
on ...
1 day ago - On April 6, 2018
Bhadresh Kantilal Shah sold 29,99999 shares
of AIA Engineering at Rs 1400.06 on
the BSE.However, DSP Blackrock Mutual Fund
- DSP Blackrock Midcap Fund bought
5,72000 shares at Rs 1400.On Friday, AIA
Engineering ended at Rs 1400.60, down Rs 47.45, or 3.28 percent on
the ...
DSP Blackrock Mutual Fund sells 29.99
lakh shares of AIA Engineering. 2 hours ago. Business
/ MoneyControl/. Bhadresh Kantilal Shah sold 29,99,999
shares of AIA Engineering. Your Reaction. You
have shown 0 out of 3 allowed reactions for this News. 0% 0% 0% 0% 0% 0% 0% 0%
0% 0% 0% 0% ...
1 day ago - DSP
Blackrock Mutual Fund sells 29.99
lakh shares of AIA Engineering. April 7, 2018 | Filed
under: Entertainment | Posted by: net. DSP
Blackrock Mutual Fund sells 29.99
lakh shares ofAIA Engineering Bhadresh Kantilal
Shah sold 29,99,999
shares of AIA Engineering.
1 day ago - Bhadresh Kantilal
Shah sold 29,99,999 shares
of AIA Engineering.. DSP
BlackrockMutual Fund sells 29.99
lakh shares of AIA Engineering. This article is
published at 07 April 2018 10:52 from Money Control India Financial News, click
on the read full article link below to see further details. Read Full
Article ...
DSP Blackrock Mutual Fund sells 29.99
lakh shares of AIA Engineering. Posted on April 7,
2018 by.DSP Blackrock Mutual Fund sells 29.99
lakh shares of AIA Engineering. Published on
2018-04-07 ...
