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Votonomics

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The Indian general elections -First off, please VOTE, Second,  Vote for a change

The Indian general elections -First off, please VOTE, Second, Vote for a change

I got my new voter id card (I had an old one issued in 2005 as well) yesterday. The process is quick and painless but the queue isn’t. I had to make my way through a long serpantine queue for almost 3 hours – thankfully, the saving grace was the sun had set and this made it bearable to stand in the cool of the summer night.

On a side note, what makes this election special from a Voting economic perspective? Read the rest of this entry »

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Written by Naveen Athresh

April 9, 2009 at 11:00 am

Economics of a Tata Nano

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The Tata Nano logo

The Tata Nano logo

Image credit/source: The Tata Nano website (http://tatanano.inservices.tatamotors.com/tatamotors/)

https://ecofin.wordpress.com/2009/03/24/the-tata-nano-launched-in-multiple-variants/

https://ecofin.wordpress.com/2008/01/10/specifications-of-the-tata-1-lac-car/

https://ecofin.wordpress.com/2008/01/10/the-tatas-1-lac-car-the-nano-officially-lauched/

Can they really achieve profitability or is it just an exercise for Tata Motors to say they did it first, build market share in the entry level segment (they have effectively created an A- segment in the entry level segment in automobiles in India!) and built the world’s cheapest car ever even if they don’t make any great profits as their margins would be wafer thin? Read the rest of this entry »

Written by Naveen Athresh

April 1, 2009 at 4:28 pm

Should a recession affect your purchasing decision making?

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Is the reduction in purchasing decisions/actual purchases made a good thing or a bad thing during recessionary times. While technically, India is still motoring along at over 5.5% GDP growth and is tipped to be the 2nd fastest growing economy in the world for 2009 (a miserable year for other world economies), should the discerning consumer cut down on his purchases of items? Read the rest of this entry »

Written by Naveen Athresh

March 1, 2009 at 9:12 am

Berkshire Hathaway Annual report 2008 / a must read

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http://www.berkshirehathaway.com/2008ar/2008ar.pdf

You can’t be mistaken when you are reading from the greatest punters in the Financial space – Warren Buffett. The Chairman’s letter to shareholders did not dissappoint me. It was filled with the usual interesting titbits on his insurance ops and business, the concept of insurance ‘float’, his profit margins, the stake he took in Goldman Sachs, GE etc. during the troubling cashflow starved times of late 2008, the usual caveats on on the derivatives business and the future of Berkshire! Oh btw – there was no mention of “fruit of the loom” as marketwatch said there would be!

As I have said many times before, I am a self proclaimed protege of Warren Buffett and anything he does interests me. His annual reports are always looked forward to by much ado and this time was especially different to get the views of the man who I consider is king in stock market investing alongwith with his mentor Ben Graham and associate, Charlie Munger.

Has the retail bubble in India burst?

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I had blogged about retail opportunities in India about an year and a half ago here – https://ecofin.wordpress.com/2007/07/25/retail-opportunities-in-india/

It was not even an year ago that we witnessed almost every large corporate worth their salt open up stores in the name of “retail” looking for every opportunity to outwit and throw out your neighbourhood “kirana store”.

But, less than an year later, they have a sad story to tell. Read the rest of this entry »

Written by Naveen Athresh

February 25, 2009 at 4:00 pm

Why I feel SONY BRAVIA pricing is optimum now

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Two economic concepts we learn from the below link of the “SONY way” are:

1. Horizontal division of labor – SONY practices this as is clear from the link – what is horizontal division of labor? The answer can be found at this link.

2. SONY is currently facing a low margin, high turnover business in LCD TV’s and cannot exit it easily. If it reduces prices to match competition (typical of a red ocean strategy), then it has to drive up volumes (on its sales channel) to make up for it’s lost margins.

Source: http://business.nikkeibp.co.jp/article/eng/20081222/181031/ Read the rest of this entry »

Written by Naveen Athresh

February 24, 2009 at 10:24 am

Barack Obama – Mr. President of the United States of America!

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He is the ultimate modern tech savvy Blackberry wielding Mr President of the United States of America. For once, I see genuine hope in the way the US will go about sorting out its financial mess and it’s foreign policies.

Checkout: http://www.whitehouse.gov

As with most Americans and millions from other countries and their citizens, I did not miss his swearing-in ceremony that was held in Washington DC on 20th January 2009 on television – that marked a new era in world history!

Good luck – President Obama. May god be with you in all your endeavours! We have hopes on you to revitalize the world and of course, with it, the United States and my country, India!

Brand Obama is sure flying high!

Written by Naveen Athresh

January 22, 2009 at 7:52 pm