The Great Indian Rope Trick and Other Illusions of Progress !!!!

Rajeev Srinivasan on how Indians are satisfied with illusions, not reality :::

source ::::rediff.com

natarajan

Indians live in a state of illusion: they believe there is progress, there is a democracy, and that the State is a benign mai-baapnanny State. It turns out that they are wrong on all counts, but apparently this political and economic theatre is quite enough as anodyne for the long-suffering ordinary Indian.

I was impelled to write this after reading ‘The Great Indian Rupee Trick’ by Krishnara at and a piece in The Economist magazine of June 13, 2011 (Big Mac index: Value Meal). Although the two disagree — the former suggests the rupee has a long way left to fall, while the latter suggests that the rupee is the most undervalued currency around right now — it is a tribute to the fecklessness of the Indian government that the rupee has tumbled so far so fast (from around $1=Rs 45 in 2011 to $1=Rs 61 now, some 30 percent).

I also happened to leaf through an old issue of National Geographic from 1988 with a story on Kerala, and it mentioned that $1=Rs 12 at that time. Thus, the rupee has, in about 25 years, lost 80 percent of its value, and quite a bit of that in the last few years (mostly coinciding with UPA 2). In simple terms, the fall of the Indian rupee reflects the lack of competitiveness of the Indian economy.

The dramatic increase in the current account deficit suggests the same thing: that there is little India makes that foreigners want; whereas Indians want to import a lot of things others make. It was blithely predicted by India’s mandarins that the rupee’s fall would lead to a surge in its exports, but on the contrary, India’s exports have actually shrunk by 4.6 percent year to year.

We don’t need to go far to understand why this has happened: it is because of pure economic mismanagement. The immense potential of the country and its people has been wasted — a colossal crime against the people and indeed against humanity, which has prevented half a billion people from clawing their way out of poverty.

Why have Indians allowed a clutch of clever political entrepreneurs to do this to them? It must be because Indians are satisfied with delusion (is that why Bollywood is so big?). They are happy with the illusion of progress; they are happy to have the illusion of a democratic republic; they are happy to have the illusion that our wretched are being looked after. In fact none of these is true, but they happily suspend their disbelief. They live in a make-believe world.

The fact is that India is falling further and further behind the rest of the world. Half the world’s poor, half the world’s blind, half the world’s sick and malnourished, are in India. Things are not getting better; they are getting worse by the day. India is regressing rapidly.

Remember how India was compared to China and other developing nations, courtesy Goldman Sachs and the convenient BRIC (Brazil, Russia, India, China) epithet? But have you noticed that these days India is increasingly bracketed with Africa — and sometimes contrasted negatively with sub-Saharan Africa, for instance in malnourishment — as the last reservoir of the world’s miseries? China appears to have decisively trounced India in the race for growth and prosperity.

There is, some argue, the effect of democracy, as though there were a democracy penalty. But this is absurd, because India is not a democracy. It is a hereditary feudal monarchy with a large set of court jesters and other hangers-on. Parliament is a chimera, or at best a smokescreen. There are what look like elections, what looks like an assertion of the people’s will. But this is a hugely expensive, elaborate charade like the Potemkin villages of Tsarist Russia.

In fact, Parliament is merely a place to park the hereditary scions of the ruling castes. Patrick French’s 2011 research (‘The Princely State of India‘, in Outlook magazine, January 17, 2011) showed that 100 percent of the Congress party’s members below the age of 35 were sons or daughters of some senior party person.

Furthermore, Parliament is just a rubber stamp. There is the gigantic Food Security Bill, which will add many a billion dollars to the nation’s budget deficit. It was enacted not after parliamentary debate, but as an ordinance, or executive order.

Similarly, a few years ago, the ‘nuclear deal’ with the US was signed by the executive without ever informing Parliament about how much was being given up in national security in return for virtually nothing.

Therefore, the Indian Parliament is merely ornamental, and a playground for the children of political bigwigs. But Indians are under the comfortable illusion that they live in a parliamentary democracy. Yes, that and ten rupees will get them a cup of coffee.

Then there is the fantasy that the Indian State is benign. And that it looks after its poorest and worst-off. Which is the alleged reason that the unelected National Advisory Council (a truly motley crew) has rammed through various hare-brained schemes such as National Rural Employment Guarantee Act, Right to Education, and the latest turkey, FSB. And what is the reality with all this spending — which amounts to hundreds of billions of dollars? The Indian State is actually a predatory State, the direct descendant of the colonial construct intended to loot and pillage.

In a March 23, 2011, article titled ‘India can’t fumble its ‘food right’ plan‘, the Wall Street Journal noted that, according to theGlobal Hunger Index, India is in the category of ‘alarming’ along with Haiti, Bangladesh, Sudan, Cambodia and Nepal. This is worse than war-ravaged Afghanistan and Iraq. The only countries were hunger is worse than India are: war-torn Congo, Haiti and Bangladesh.

Even worse, reporting on a study in the British medical journal LancetThe Economist pointed out in February 7, 2011 (‘Global Obesity: An expanding world. How men’s waistlines have grown since 1980‘) that there are only three countries in the world where people have grown thinner in the recent past (ie. 1980-2008): Afghanistan, Congo and India! That means malnutrition is endemic in India, while much of the rest of the world struggles with obesity. (Note that Congo and Afghanistan are wretched, war-torn States).

A more recent update is even more damning. Quoting the Asian Development Bank, The Economist of July 6, 2013 (‘Widefare‘) points out that of all the welfare states in Asia, India’s is the worst-performing: it has neither depth nor breadth. That is, neither is the alleged welfare net reaching a large proportion of the people, nor is the per-person welfare amount high. Even Pakistan manages to give its welfare recipients more.

So this is the reality of the welfare State: yet another figment of your imagination.

I will close with a final illusion: that of toilets in trains. Even in higher-class compartments, if you use the stinking toilets, you will notice that there is no way you can clean your bottom with dignity. There is a chained mug and a faucet, thus giving you the idea that you can wash yourself. Much of the time, there is no water. The rest of the time, you are frustrated because the chain is just slightly too short — there is no way you can wash yourself without twisting yourself into contortions, or without spilling soiled water all over the toilet floor.

The bureaucrat who specified the length of that chain — just three inches too short — is a perfect metaphor for India’s ruling classes. They have no interest in your welfare, only in giving you the frustrating impression that you can actually accomplish something, which of course you cannot.

All hyperlinks in the story are external links

 A thought provoking article by Rajeev Sreenivasan in rediff.com 

Impala Cheetah–ing Death !!!….A Close Call !!!

Desperate times require desperate measures – and when an impala was targeted by two vicious cheetahs, it made a jump for it that will not soon be forgotten.

The distressed animal was captured on camera leaping into a car full of tourists in order to escape the predators.

The terrified animal appeared to be seconds away from death when an unexpected window of opportunity appeared – quite literally.

Close call: The impala jumps into a car to escape two cheetahs in Kruger National Park in South Africa

Close call: The impala jumps into a car to escape two cheetahs in Kruger National Park in South Africa

The animal had been chased by the cheetah along with its herd when it realised it was the only one left behind.

As the two ferocious animals appeared to have cornered the impala – it leaped into a nearby car which happened to have its windows rolled down.

Samantha Pittendrigh, 20, happened to be filming the chase when the impala jumped through the passenger-side window of a Toyota  in front of her.

She said: ‘We started freaking out going crazy. We couldn’t believe it – we were absolutely dumbstruck.

‘We had absolutely no idea what was going on.

‘We watched the cheetah chasing the impala. We saw a few of them turn around in the bushes towards the road they were running from.’

 Sweet escape: A group of impala flee across a road in Kruger National Park, South Africa when one of them take an unexpected turn
 Sweet escape: A group of impala flee across a road in Kruger National Park, South Africa when one of them take an unexpected turnSwift exit: As the last impala cross the road, the cheetahs' intended meal finds a novel way to escape

Swift exit: As the last impala cross the road, the cheetahs’ intended meal finds a novel way to escape‘All of a sudden we saw the impala jump out of the bushes and then someone started screaming ‘it is in the car, it is in the car’.

‘We heard a little girl screaming in the car. The boy sitting outside the car filming looked a lot younger, so it must have been a family.

‘People in other cars screamed ‘open the door, open the door’.’

In the confusion, one of the passengers managed to open a door and the impala is seen just seconds later trotting across the road to freedom.

The cheetahs are just yards away but do not give chase.

The footage was captured in Kruger National Park, South Africa, where according to park rules you must stay inside your vehicle at all times.

As the terrified impala realises it is the cheetahs' chosen meal, it looks for a way out, and spots the car

The bewildered cheetahs are left with long noses and empty stomachs as the impala disappears into the car

The bewildered cheetahs are left with long noses and empty stomachs as the impala disappears into the car

Miss Pittendrigh, who is studying supply chain management at the University of Pretoria, was with her friends Tanith Human, 20, Carmen Thvle, 21, and Michelle De Jager, 21.

Unlike some of her friends, she has made several trips to Kruger National Park but was left stunned by the trip.

She added: ‘My family are so jealous. In all the years my parents have been going to Kruger Park they have never seen anything like it and we do go regularly.

‘It really is a once-in-a-lifetime thing and we managed to be in the right place at the right time.

‘I was very happy to witness something like that but I felt a sorry for the cheetah.

‘There are so many impala, it is not like they will miss one of them.’

However, the world’s fastest land-animal was not completely ‘cheetah-ed’, as one of them managed to make a kill a mere dozen feet along the road, according to Miss Pittendrig

source:::mailonline.com

natarajan

Read more: http://www.dailymail.co.uk/news/article-2359288/Cheetah-ing-death-Impala-escapes-hungry-predators-jumping-car-tourists-let-coast-clear.html#ixzz2Yf9u0Is3
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Children Build Castles in the Sand While Elders Are Building castles in Air !!!

sand castle 5

A little girl is on her knees scooping and packing the sand with plastic shovels into a bright blue bucket. Then she upends the bucket on the surface and lifts it. And, to the delight of the little architect, a castle tower is created.

All afternoon she will work. Spooning out the moat. Packing the walls. Bottle tops will be sentries. Popsicle sticks will be bridges. A sandcastle will be built.

man in office

A man is in his office. At his desk he shuffles papers into stacks and delegates assignments. He cradles the phone on his shoulder and punches the keyboard with his fingers. Numbers are juggled and contracts are signed and much to the delight of the man, a profit is made.

All his life he will work. Formulating the plans. Forecasting the future. Annuities will be sentries. Capital gains will be bridges. An empire will be built.

little girl in beach

Two builders of two castles, they have much in common. They shape granules into grandeur. They see nothing and make something. They are diligent and determined. And for both the tide will rise and the end will come.

Yet that is where the similarities cease. For the girl sees the end while the man ignores it, Watch the girl as the dusk approaches.

As the waves near, the wise child jumps to her feet and begins to clap. There is no sorrow. No fear. No regret. She knew this would happen. She is not surprised. And when the great breaker crashes into her castle and her masterpiece is sucked into the sea, she smiles. She smiles, picks up her tools, takes her father’s hand, and goes home.

The grownup, however, is not so wise. As the wave of years collapses on his castle he is terrified. He hovers over the sandy monument to protect it. He blocks the waves from the walls he has made. Salt-water soaked and shivering he snarls at the incoming tide.

“It’s my castle,” he defies.

two-cartoon-men-yelling

The ocean need not respond. Both know to whom the sand belongs… I don’t know much about sandcastles. But children do. Watch them and learn. Go ahead and build, but build with a child’s heart. When the sun sets and the tides take – applaud. Salute the process of life and go home.   

source:::: Reblogged from Propel Steps of Dinesh Kumar Radhakrishnan,

natarajan

World”s Biggest Commercial Complex @ China ….19 Million Sq Ft!!!

The world’s largest building has opened in China capable of fitting 20 Sydney Opera Houses – or three Pentagons – inside.

The New Century Global Center in Chengdu, Sichuan province, is a staggering 19million sq.ft. and contains shopping centres, a Mediterranean village, a water park, an ice-skating rink, and multiple hotels.

However, visitors to the glass panelled building need not worry about the weather as the giant complex will have its own artificial sun.
Giant among men: New Century Global Centre in Chengdu, southwest China's Sichuan province is the world's largest freestanding building

Living it large: Workers clean the glass roof of the New Century Global Centre which opened to the public this weekend after three years of construction

Pride of Chengdu: The gigantic complex is so large it fits 20 Sydney Opera Houses or nearly three Pentagons and boasts several hotels and shopping centres

Pride of Chengdu: The gigantic complex is so large it fits 20 Sydney Opera Houses or nearly three Pentagons and boasts several hotels and shopping centres

The building is 500 metres long, 400 metres wide and 100 metres high, reports said.

 

According to Chinese officials, the New Century Global Center is the largest freestanding building in the world, and took three years to complete.

 

‘This is an ocean city built by man,’ Chinese guide Liu Xun told AFP.

He added that the artificial sun built inside the building will provide light and heat 24 hours a day for shoppers exploring the around 400,000 sq. metres of boutiques and stores.

The building sits directly opposite the Chengdu Contemporary Arts Centre, designed by British-Iraqi architect Zaha Hadid, at the heart of a booming area of Chengdu.

All you need: Visitors to New Century Global Centre can browse 400,000 sq. metres of shops inside the complex
High ceilings: The gigantic dome-like glass roof is 100metres (328ft) high and has an 'artificial sun'

Family fun: As well as the shops, hotels and the artificial sun, the building also has an indoor water park

source :::::mailonline.com

natarajan

 

” Uttarakhand Tragedy Casts Shame On India”s Disaster Management “

The Uttarakhand tragedy casts shame on India’s disaster management

It’s headquartered in South Delhi’s plush Safdarjung Enclave. It holds press conferences about human tragedies in luxurious five-star hotels. The Prime Minister is its ex officio chairman, and its vice-chairman equals a Cabinet minister in status. Other members, mostly retired bureaucrats and police officers, rub shoulders with ministers of state. Welcome to the National Disaster Management Authority (NDMA).

 

With its performance – or more accurately, the abysmal lack of it – in the rain-ravaged Himalayan state exposing its defunct status, the NDMA stands exposed for the great man-made tragedy it is.

 

Its National Executive Committee has not met at all between 2008 and 2012. Seven years after it came into being, the authority doesn’t even have a working plan.

 

 Rescue operation: The armed forces have worked tirelessly to help flood victims, but why was the NDMA's role so unsatisfactory?
Rescue operation: The armed forces have worked tirelessly to help flood victims, but why was the NDMA’s role so unsatisfactory?

 

The Comptroller and Auditor General (CAG) has slammed the NDMA’s functioning in a report tabled in March 2013. Most NDMA projects, conceptualised soon after it was constituted in May 2005, have failed to get started.

 

The body formally came into existence in September 2006. Projects like earthquakes, flood and landslide risk mitigation have been in cold storage despite being approved way back in 2007. Due to improper planning, projects are abandoned midway or are lying incomplete.

A senior bureaucrat in a state government who closely worked with the NDMA in the last two years explains what plagues this body.

“The absence of strong leadership at the centre of this body is a key problem. Since the prime minister is its ex officio chairman, the onus of leading it on a day-today basis falls on the vice chairman,” he says.

According to the officer, the NDMA, which has several senior retired bureaucrats as members, needs a very strong vice-chairman.

“At present, we’ve felt many times that there is a lack of coordination in the chain of command,” the officer says.

All that translates into a disaster: evaluation of the disaster preparedness at all levels of government has taken a severe hit. The Uttarakhand situation underlines this with blood.

NDMA chief M. Shashidhar Reddy doesn’t agree. He puts the onus for the NDMA’s latest failure on the meteorological department.

“Lives could have been saved if the weather office had issued precise forecasts. The IMD followed a standard format of weather forecast and used certain terminologies like rainfall, heavy rainfall, but how are we supposed to translate it into action? They need to pinpoint where and how much it is going to rain,” he says.

The white elephant

Not even the most terrible statistics can wake the NDMA. For instance, the CAG says that as much as 59 per cent of the nation’s land area is prone to moderate and severe earthquakes; 23,000 lives were lost in six major earthquakes between 1990 and 2006. And it doesn’t take an official report to realise that landslides in the hills and floods in some parts of the country are an annual feature.

Some of the key roles that the NDMA is expected to perform are: lay down policy on disaster management, approve national Disaster Management plan, lay down guidelines to be followed by Central ministries and state authorities, and provide such support to other countries affected by major disasters.

 

“The performance of NDMA in terms of project implementation had been abysmal. So far, no major project taken by NDMA had seen completion. It was noticed that NDMA selected projects without proper ground work and as a result either the projects were abandoned midway or were incomplete after a considerable period,” the CAG report says.

“In many cases, NDMA realised midway that some other agency was already executing projects with similar objectives. Timelines in most of its projects were absent and where ever they were given, they were not adhered to,” it says.

Reddy’s response? “We are ready to work on it but the government auditor needs to be sensitised about disasters,” says the NDMA chief.

The National Disaster plan (NDP) hasn’t been formulated even after seven years of the enactment of the Disaster Management Act. The NDP was to define the guidelines for prevention of disasters, preparedness and roles and responsibilities of different arms of the government.

One of the key objectives of the NDMA is proactive prevention of loss of life and property in disasters. Even here the NDMA has failed miserably

MAIL TODAY COMMENT

The less-than-satisfactory role played by the NDMA in the relief and rescue operations in Uttarakhand raises serious questions over its relevance.

Created to serve as the nodal agency in times of emergency, the NDMA has instead served to provide sinecures for out-of-work politicos and retired babus.

How seriously it takes its job is evident from the fact that its national executive committee didn’t meet even once between May 2008 and September 2012.

 ABHISHEK BHALLA and BHUVAN BAGGA   in mailonline.com  India

natarajan

Animals Caught On the Wrong Foot !!!!! Found In Tight Spot !!!

Shropshire fire and rescue service had to remove a cow whose head had become wedged in a tree, in Coseley field, Shrewsbury.The animal was sucessfully released unharmed. We now will have a look at other animals in a tight spot.No animals were harmed during the making of this picture gallery and they all escaped unscathed.

Shropshire fire and rescue service had to remove a cow whose head had become wedged in a tree, in Coseley field, Shrewsbury.

The animal was sucessfully released unharmed.

 

A curious cow in Cornwall whose head got stuck in a washing machine drum. Fortunately the cow escaped injury after her ordeal

A curious cow in Cornwall whose head got stuck in a washing machine drum. Fortunately the cow escaped injury after her ordeal

 

A baby elephant is seen trapped in a manhole of a drainage ditch in Rayong province, eastern Thailand. It took three hours to free the animal.

A baby elephant is seen trapped in a manhole of a drainage ditch in Rayong province, eastern Thailand. It took three hours to free the animal.

 

This six-week-old cub became trapped after playing with a car wheel and was  found by a passer-by with the brake disc part of the wheel stuck around  his neck in Lawrence Road, Ham, near Richmond.

This six-week-old cub became trapped after playing with a car wheel and was found by a passer-by with the brake disc part of the wheel stuck around his neck in Lawrence Road, Ham, near Richmond.

 

A six-month-old male husky called Keano who  trapped his head in a brick wall, in Whitchurch, Hampshire.

A six-month-old male husky called Keano who  trapped his head in a brick wall, in Whitchurch, Hampshire.

 

Scarlett the Siberian Husky chased a stone into clay pot and then got her head stuck.

Scarlett the Siberian Husky chased a stone into clay pot and then got her head stuck.

 

Casper the Cat from Bury St. Edmunds, Suffolk with his head stuck in a wheel.

Casper the Cat from Bury St. Edmunds, Suffolk with his head stuck in a wheel.

 

source::::The telegraph UK

Natarajan

 

 

 

Microsoft Was a Decade Ahead in Inventing a Tablet !!!!!

Apple’s iPad is a revolutionary product that is cratering the PC industry. But it wasn’t Steve Jobs’ idea.

A full decade before Jobs launched the iPad in 2010, Bill Gates launched Microsoft’s touch input tablet computer.

Here it is:
Bill Gates tablet 2000

Bill Gates with a Microsoft tablet in 2000

Two years later, Gates showed up with an improved model, a color tablet. It used the Windows XP Tablet operating system.

Here it is:
Bill Gates tablet 2002

Bill Gates in 2002

 

Unlike today, Microsoft didn’t manufacture the tablet itself. Lenovo produced the tablet in 2000 and other partners, like Fujitsu, made the XP tablet in 2002. Here’s a closer look at the Fujitsu tablet.

 Windows XP Tablet

Fujitsu Windows XP Tablet from 2002

So if Microsoft was a decade ahead, why did Apple become the King of the Tablets?

Last July, during an interview with Charlie RoseBill Gates explained that Jobs “did some things better than I did. His timing in terms of when it came out, the engineering work, just the package that was put together. The tablets we had done before, weren’t as thin, they weren’t as attractive.
source:::: businessinsider.com
Natarajan

 

 

 

Watch Warren Buffett “s Interview in 1962 !!!!

Warren Buffett will tell you that his investment career began in the 1940s when he bought shares in a company as an 11-year.
However, there isn’t much footage of the Oracle of Omaha available before the 1980s.
Reformed Broker Josh Brown points us to this rare 1962 interview with Buffett on ValueWalk.com.
In this brief clip, Buffett discusses the predictive power of the stock market.
“The stock market has been a good forecaster from time to time in the past,” he said. It also has been a rather poor forecaster occasionally.”
He addressed an ongoing sell-off in the stock market.
“For example, the last four or five years, the stock market has been booming along presumably forecasting better business which has really not materialized,” he said. “So maybe the stock market is correcting a previously incorrect forecast this time.”
Watch the whole clip here:

 

 

source::::businessinsider.com

Natarajan

Best Quotes Of Warren Buffett On Investment Strategy !!!!

Warren Buffett has just joined Twitter

Hopefully this means we’ll hear from the Oracle of Omaha on a more regular and informal basis.

Buffett has established himself as the most successful investor in history.

And he has never kept his investing methods secret.

In fact, when he shares his tips, he often does so in an approachable and entertaining manner.

So, as we get ready for this week’s annual meeting of Berkshire Hathaway shareholders, we reflect on some of Buffett’s best investing quips.

We compiled a few of Buffett’s best quotes from his TV appearances, newspaper op-eds, magazine interviews, and of course his annual letters, which are always-must reads.

Investing novices and experts alike can learn from the advice that the he has articulated through the years.

If we’ve missed any of your favorites, let us know in the comments.

 

Buying a stock is about more than just the price.

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Source: Letter to shareholders, 1989

You don’t have to be a genius to invest well.

“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.”

Source: Warren Buffet Speaks, via msnbc.msn

But, master the basics.

“To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well-taught courses – How to Value a Business, and How to Think About Market Prices.

Source: Chairman’s Letter, 1996

Don’t buy a stock just because everyone hates it.

“None of this means, however, that a business or stock is an intelligent purchase simply because it is unpopular; a contrarian approach is just as foolish as a follow-the-crowd strategy. What’s required is thinking rather than polling. Unfortunately, Bertrand Russell’s observation about life in general applies with unusual force in the financial world: “Most men would rather die than think. Many do.”

Source: Chairman’s Letter, 1990

Bad things aren’t obvious when times are good.

“After all, you only find out who is swimming naked when the tide goes out.”

Source: Letter to shareholders, 2001

Always be liquid.

“I have pledged – to you, the rating agencies and myself – to always run Berkshire with more than ample cash. We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.”

 Source: Letter to shareholders, 2008

The best time to buy a company is when it’s in trouble.

“The best thing that happens to us is when a great company gets into temporary trouble…We want to buy them when they’re on the operating table.”

Source: Businessweek, 1999

Stocks have always come out of crises.

Stocks have always come out of crises.

A soup kitchen in 1936

Wikimedia Commons

Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”

Source: The New York Times, October 16, 2008

Don’t be fooled by that Cinderella feeling you get from great returns

“The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities ¾ that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future ¾ will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”

Source: Letter to shareholders, 2000

Think long-term.

“Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now. Over time, you will find only a few companies that meet these standards – so when you see one that qualifies, you should buy a meaningful amount of stock. You must also resist the temptation to stray from your guidelines: If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”

Source: Chairman’s Letter, 1996

Forever is a good holding period.

“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

Source: Letter to shareholders, 1988

Buy businesses that can be run by idiots.

Buy businesses that can be run by idiots.

I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.

Source: Business Insider

Be greedy when others are fearful.

“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.”

Source: Letter to shareholders, 2004

You don’t have to move at every opportunity.

“The stock market is a no-called-strike game. You don’t have to swing at everything–you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!'”

Source: The Tao of Warren Buffett via Engineeringnews.com

Ignore politics and macroeconomics when picking stocks.

“We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen. Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War, wage and price controls, two oil shocks, the resignation of a president, the dissolution of the Soviet Union, a one-day drop in the Dow of 508 points, or treasury bill yields fluctuating between 2.8% and 17.4%.

“But, surprise – none of these blockbuster events made the slightest dent in Ben Graham’s investment principles. Nor did they render unsound the negotiated purchases of fine businesses at sensible prices. Imagine the cost to us, then, if we had let a fear of unknowns cause us to defer or alter the deployment of capital. Indeed, we have usually made our best purchases when apprehensions about some macro event were at a peak. Fear is the foe of the faddist, but the friend of the fundamentalist.

Source: Chairman’s Letter, 1994

The more you trade, the more you underperform.

The more you trade, the more you underperform.

Public domain

“Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can calculate the movement of the stars, but not the madness of men.” If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.”

Source: Letters to shareholders, 2005

Price and value are not the same

“Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.

Source: Letter to shareholders, 2008

There are no bonus points for complicated investments.

“Our investments continue to be few in number and simple in concept: The truly big investment idea can usually be explained in a short paragraph. We like a business with enduring competitive advantages that is run by able and owner-oriented people. When these attributes exist, and when we can make purchases at sensible prices, it is hard to go wrong (a challenge we periodically manage to overcome).

“Investors should remember that their scorecard is not computed using Olympic-diving methods: Degree-of-difficulty doesn’t count. If you are right about a business whole value is largely dependent on a single key factor that is both easy to understand and enduring, the payoff is the same as if you had correctly analyzed an investment alternative characterized by many constantly shifting and complex variables.”

Source: Chairman’s Letter, 1994

A good businessperson makes a good investor.

“I am a better investor because I am a businessman, and a better businessman because I am no investor.”

Source: Forbes.com – Thoughts On The Business Life

Higher taxes aren’t a dealbreaker.

“SUPPOSE that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”

Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist.”

Source: New York Times

Companies that don’t change can be great investments.

“Our approach is very much profiting from lack of change rather than from change. With Wrigley chewing gum, it’s the lack of change that appeals to me. I don’t think it is going to be hurt by the Internet. That’s the kind of business I like.”

Source: Businessweek, 1999

This is the most important thing.

This is the most important thing.

Wikipeda

“Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1”

Source: The Tao of Warren Buffett

Time will tell.

“Time is the friend of the wonderful business, the enemy of the mediocre.”

Source: Letters to shareholders 1989

BONUS: On Wall Street advice

“Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway.”

Source: The Tao of Warren Buffett….businessinsider.com

Natarajan

Read more: http://www.businessinsider.com/warren-buffetts-best-investing-quotes-2013-5?op=1#ixzz2Uh9wS79f