And just like that...

It all started much like most things do; a seemingly distant dream. The dream, while rosy, did not consider the distance that one would have to travel even to get to the starting line. A long laborious road ensued. Then, as the flowers blossomed radiantly one final time before grudgingly yielding to autumn, we made our way to the City.

The City was vibrant, as at any time of the year. Skeptical faces surveyed through the conundrum, looking for familiarity in an expansive sea of the unknown. Enthusiasm ran high, as did the tabs at every conceivable bar in the neighborhood. Ever as slowly through the mist appeared, half a pint at a time, the new kids of the block.

The unknown beat a hasty retreat to accommodate the evolving bonds. Time flew by in the blink of an eye. The first act was on and the appearances changed to suit the occasion. While the circles remained, content was conspicuous by its absence. The mission: not to kill, but rather to not be killed. The alcohol had quickly sunk, allowing the water to float above. While conversations were aplenty, interest was left at the door. The song and dance was quite elaborate, just as the wine and cheese were cheap.

As time passed by, the race was getting clear. While the thoroughbreds pulled through to gain a lead, the also-rans watched with a sense of awe and bewilderment. Nevertheless, in true Hollywood-esque manner, the odd dark horse nudged through the crowd to make it a true photo finish. While the winners painted the town red, the mere mortals were left to clean the mess. Lessons were learnt and backs were broken. It was the inevitable truth and yet none of it was spoken. While many chose to blend into the background, a chosen few rose through the ashes, a phoenix at a time.

Elsewhere, the Trojan horses snuck through the gate, the guard opening his eyes too late. The enemy emerged from within the Trojan, attacking all in sight with toxic waste. And as they attacked the heel of Achilles, the mighty fell one at a time. The king saw the writing on the wall, change was plotting a mighty fall. The world as we knew it saw change; we doubled as unpaid targets at the shooting range.

When we thought we weathered the storm, another one rocked the boat. Life has taught us many a lesson, none as many as the time here. There was suspense; there was drama, a pinch of romance and some action. Why, there even was an elaborate Bollywood song and dance. Preached we were by the god and the soothsayer. We even learnt that greed is good. Some made us laugh, some made us weep. Some made us listen, others put us to sleep.

We look at the mirror, where we are today. We reflect on how things were two years back. And we notice the change. Change beyond just the debt and the long list of Facebook friends. Change in the attitude and the knowledge. Change in the attitude towards life. A few friends made for life. The number of bars visited in NYC. Change was the flavor of the season and that is what we saw.

Along the last mile, few moments away from walking down the river quay, we wonder whether it was a good dream, a nightmare or just another two years of life. The answer would be different for each of us. In many ways, it may be all of the above. All we know is that we spent a good time of our life here and had a great time whilst doing so. We leave with a mixed emotion of exhilaration and disappointment. Like all great journeys, this too has come to an end. It started one windy morning in August… and just like that, it will all be over.

Kya Tha Woh Seherr

manzil pohounch humne jaana
kya haseen tha woh safarr
tha kya woh jalwa
tha kya woh seherr

mile jab hum pehlee baar
naach aata naa thaa
chhaa jo hum gaye manchh par
aangann ab tedaa naa thaa

dheere dheere haule haule
unki ungli pakad hum naache
mitti se shuru toh kiya
antt mein bane pakke dhaanche

manzil toh hai aa gayee
naa rahee koi kasar
shuruwaat thi toh tal se
jaa kar pohounche hum gadar

chehre the woh naye
dost humne jo banaaye
naacha khoob saath saath
sukhbir ke dohe gungunaaye

iss hasee gaane ke baad
ek mayusee hai ab chhayee
dil baith sa hai gaya
vidhaiee ki ghadee jo aayee

raah apni apni pakad
jo hum hai chale
aao milke ek saath
bolein balle balle

-max

Down to Business - I

“Promise me that you won’t become a Yankee fan” he said. As Ted Sullivan laughed at his own joke, Rohan was not sure if he was serious or whether he was joking. Ted was from Boston as he told him later. A manifestation of a deep-rooted rivalry, Ted did not want to be the recruitment officer for the rival camp. Rohan did quip guardedly, “I am a soccer fan and I am not much into baseball. So, I guess I will not be a Yankee fan.” As Ted proceeded to stamp the visa and told Rohan about the amazing times he had had in New York City, Rohan realized that he was two more stamps away from the big apple.

Rohan had never doubted the fact that he would get the visa. He had been to the US before, travelling to New York and Los Angeles for work. That was a fun trip. He work hard and partied hard. While most of his brethren thought of spending frugally in the US, Rohan had gone all out. This time it was going to different. He was in pursuit of his dreams; something he had dreamt of every night for the past two years.

Picture Source: NYU Webpages

The tie came off, as did the jacket. As awesome that he felt, it was a hot June afternoon in Mumbai and the sweat was slowly trickling down his forehead. Realizing that he would soon miss the small things in life back home, he stopped for a cold glass of sugarcane juice. One glass quickly turned to three as sudden pang of hunger made him realize that he had not eaten since morning. As he sauntered down the street in search of a taxi, his mind wandered again. Rohan could see a bagel with cream cheese in front of his eyes. He wondered whether it was the heat, the hunger or the call of the City.

He still had two months to go, but Rohan was already thinking as though he had to leave the following night. He decided to make the most of the next few days. The first stop was a roadside vendor where he picked a couple of wada pavs to fill himself up. The juice had left him pretty full, but he coaxed himself into gobbling them down. It was almost as if this was his last chance to appreciate the staple fast food of the city. The city that he had come to call home for three eventful years.

Picture Source: George Koshy
A few blocks further down the road, Rohan found that elusive taxi. Torn between taking the taxi all the way and hopping onto the train, he knew he had lost it when he mumbled to the driver, “Bhaiya, Mahalaxmi chalenge?” Mahalaxmi was the closest train station to the American Consulate. While the trains would not be crowded at this hour, it was not exactly wise to travel suited up. The crowds, the heat, the humidity and the ensuing sweltering feeling were not entirely conducive for the formally dressed traveler. Rohan stood at the door, half to beat the heat and half to feel the wind in his face. And as he felt the cold breeze rustle his previously well-kempt hair, he could not help but wonder whether these were the winds of change…

This is a pilot for the book: Down to Business

The Stern Dog Millionaire

So what happens when you take a bunch of creative students in a premier business school? You get the SternDog Millionaire, a parody on the highly successful movie Slumdog Millionaire by Danny Boyle.



The entire video has been worked on by NYU Stern students [and Dean Frasier]; right from the concept, the story, the screenplay, the lyrics, the vocals, the actors and the entire production.

More than 50 students worked on this project. Let us see whether any of the schools have a decent enough response. The only one that comes to mind is Rammy Babaji from Fuqua who created the 'Damn it feels good to be a Banker'.

Enjoy the III part video

Part I

Part II

Part III


A fitting memory to the two years in school.

The Grass is Green

Picture Courtesy: Random find on Xanga.com

- Grass is greener on the other side.

- If you like what you do, time just flies.

- There is nothing like school life.

Was in the corporate world. Now, back to school. Well, been here for a year and a half. Almost done and I do not want to leave. The corporate life beckons. Hopefully. Jobs are not to be seen. I have one for now. Or do I not?

Sometimes I think I am tired of thinking about how expensive life is in NYC. As always, I could do with the money. Just this time, the value of that marginal dollar is a lot higher. Yet, as frugal as they are, school times are simply brilliant. As little sleep as I may manage [it is five in the morning], school times could not be more perfect.

I know that things cannot be the way they are forever. How I wish. But, take the debt away, place some more money in the wallet and life could not be better and hope could then be forever.

Three Cheers to school.
Three Cheers to NYU.

Of Greed and Jealousy

The inspirations for this post are the original post by Amitabh Iyer where he points out this article in the Live Mint by Vir Sanghvi. Other unlikely inspirations are the question that I had in an Investment Banking interview [Yes they are still being held, contrary to popular perception], the Corporate Finance class by Aswath Damodaran and the general bad press that Investment Banking has received in this past year.

Disclaimer 1: I am a business school student, worked with a 'bulge-bracket' firm and will hopefully enter the industry again.
Disclaimer 2: None of my colleagues or recruiters are likely to ever read this or trace it back to me. So it is not for their interest and therefore for mine. :D

Picture Courtesy: www.LeveragedSellOut.com
"Greed is good" - Gordan Gekko

I remember a statement from one of the senior Investment Bankers at Goldman Sachs: "People hate us for what we are and what we earn... But, boy would they want to be one of us."

Now, while the statement was from a pompous righteous ass who probably thought no end of himself and his own brethren, he may not have been too far from the truth. For years now, there has been a carefully cultivated aura about an Investment Banker and his [unfortunately, it remains a majority type-A male driven industry] trade. When and how it started is difficult to point out. Nevertheless, it is difficult to dismiss this as a non-existent phenomenon.

For a career that is extremely hard to get into [that may not have to do with mere merit and other academic skills] and stay, it is a fairly popular one. For a career that is extremely brutal in terms of its hours and its reputation as a strain on personal self-respect, it is a fairly popular one. For a career that is known to be filled with many righteous ass-holes who think they are gods greatest gift to mankind [and womankind if you know what I am talking about], it is a fairly popular one. For a career that is known to not be rocket-science and to not be stimulating at most times, it is a fairly popular one.

First, let me try and address the hatred aspect of the story. People do not like other successful people. Period. In a capitalistic economy like the United States, where success is often measured either by the number of ex-wives or by the cut of the suit, it is not difficult to understand why there is an universal hatred for those who have these material things in life. And with money comes the trio of power, extravagence and arrogance.

Picture Courtesy: www.wikipedia.org

Most of the developing world and parts of the developed world love to hate the United States of America. There are multiple reasons for this, all funneling themselves to the basic tenets: power and arrogance. The United States has the power, thanks to its military hegemony status, that allows it to dictate terms to the world. And it has the arrogance that it is the best [arguably true] that the world has to offer.

Ask any [well, the vast majority] American whether they subscribe to this view and they will resonate with a thumping yes [understandably so]. Try and ask this very question to someone in China, Russia or Turkey and they may not share the same view. They might go to the extent of saying that the Americans are good for nothing, extravagant and arrogant. For them, the Americans happen to be their favorite punching-bag and the cause of all evil in the world. And yet, given a choice, most would kill to work in the US and live there.

As a second example, let us consider the software giant Microsoft. Love it or hate it, Windows has the largest OS market share in the world. Apple and Linux fans, check the figures and then take a hike. Bill Gates is depending on the day, the richest person in the world. They are not the best innovators, yet they know how to mass produce and market products. Let us face it, they did not develop the Windows idea, Apple did that. The Internet Explorer I believe was based on the Netscape Navigator and it was Lotus 1-2-3 that came up with the first integrated spreadsheet and word processor suite and not the Microsoft Office suite.

Picture Courtesy: Time Magazine archives

Microsoft is like McDonalds. They may not make the best burger in town, but they darn well know how to market one in order to make the sale. People love to hate Microsoft. And this is not just the Apple folk. Those who believe that Microsoft is a piece of crap. Those who very happy when the Yahoo! deal did not go through for Microsoft. Just take a look at the number of worms and viruses that aim to attack Microsoft. While Google has overtaken as the best techie firm to work for, techie geeks will still kill to work in Redmond, WA.

Finally, let us consider the case of two sporting giants. One is the Australian Cricket team under Steve Waugh. The other is the Scuderia Ferrari team with world champion Michael Schumacher, Jean Todt and Ross Brown at the helm. For those who do not know what either of these were, consider the ultimate dream team in a sport that you love. These guys dominated their arenas in such a manner that there was no competition for miles. People loved to hate them. Why? Because they were that darned good. And the rest were jealous of what they had managed to achieve. They were the team to beat, they were the team to hate. And they were arrogant as hell. It was my way or the highway. When the champion spoke, they expected people to sit up and listen. And the rest of the world did not like that.

Before you scorn in disgust, let me tell you that these are mere examples. I have no intention of suggesting that Investment Bankers are high and mighty like the US of A, brilliant in market strategy and penetration like Microsoft or rock-stars like Michael Schumacher. Rather, the point is to demonstrate the hatred and spite that people may have for others, most of which is not grounded on sound ideas. This is not limited to Investment Banking. Hardly so. This is applicable to the Real Estate developers, Diamond merchants and others as well.

I also do not wish to point out that Investment Bankers are rocket scientists. Rocket scientists are found where they are likely to be found: NASA and ISRO. The guys at Google, the guys at Intel, the gals at Pfizer and Genentech, these are the people who are the brilliant minds in this world. Yet to claim that Investment Bankers are pathetic and of no real value-add is to make an unfair suggestion. Some of the bright minds start with IB as a career right out of undergrad college, MBA or PhD programs. Finance and Accounting is an art, rather than a science. The very fact that it deals with money reflects the need to have smart minds in the industry.

The industry has had its share of genius. Unfortunately, I am not the best person to comment on them, given my own limited knowledge. I will try and highlight a few.
- Warren Buffett - Widely regarded as the single biggest genius when it comes to identifying investment opportunities.
- Michael Milken - The father of high-yield debt, before he got mired in insider trading and manipulation.
- John Meriwether - The man behind LTCM
- George Soros - The man who broke the Bank of England.

Picture Courtesy: Business Week archives

Barring the first, you would question my choice of identifying stalwarts in the industry. The integrity of Michael Milken, John Meriwether and George Soros has been questioned at some point in history. In fact, Milken was sentenced to imprisonment for his role in some real shady deals at Drexel Burnham Lambert. The fact remains that they were indeed great financial innovators. Well, the problem that beset them was a simple one: GREED.

If we circle back to the current crisis, it is unfair to blame merely the Investment Bankers. Of course, they have a pivotal role to play and this cannot be ignored. Take a step back. Let us say that tax is a totally voluntary thing. You pay if you want to and can evade it if you so wish. Hypothetical case, chimeric case. Consider it. How many would really end up paying the tax. My guess would be none. Show me a good deal and I will take it.

The Investment Bankers did a similar thing. They saw an easy way to make easy money. I believe at some level, everyone realized that this bull run in real estate prices was not sustainable. Sub-prime lending was not sustainable. It would fall on its face. But, here is what they also thought.
- Let us make hay while the sun shines. Bad idea, the sun sets faster than you realize.
- We are the smart ones. We can do better than the others. Wrong idea. On average, you perform average.
- Things have been good. Why worry? They looked at the statistics and convinced themselves that all was right. They did not realize that their glasses were colored.

While we blame the Investment Bankers, take a moment to think about the following
- Sub-prime home owner: You don't have the money. You buy on credit. You know you cannot afford it. What were you thinking?
- Mortgage Salesman / Mortgage Lender: You don't check the client. You pick people on the street to buy them houses in a weird sense of socialism. You give this to Investment Bankers. You take your cut. You could not care about the rest. Dude, what were you thinking?
- Investment Bankers: You buy all the mortgages you can. Try to sell all you can. Keep the risky ones for self. Can you be more GREEDY? What were you thinking?
- Government: What on earth were you doing? Do not blame poor Dubyaman, he didn't even know what was happening.
- Economists and Finance geeks: What were you doing? Why was this so difficult to predict. Barring the great Dr. Doom - Roubini himself that is.

Moving back to the topic, a common argument against Investment Bankers and Consultants questions their value addition to the system, the industry and the world in general. At face value, this may seem to have some credence. The Investment Banker does not create anything of true tangible value. He does not innovate cutting-edge technology like the i-phone, hybrid cars or sources of alternate energy. Nor does he work towards creating a life-saving drug for the eradication of the hepatitis virus, the human immuno virus or for that matter even a common cold.

Yet, he raises money for those who perform just these tasks. All the Google, Wikipedia and Genentech of the world are all dependent on raising capital. Well, without the Investment Banks, this would still be possible. Not easy, but possible. Besides this, the Investment Banks help create liquidity, a ready market for trading securities and help structure complex products to reduce risk.

Reduce risk you would ask with your eyes and mouth wide open. Is that for real? You would think that I am kidding you. Well, it is true. These are difficult times. The intention was to diversify risk. GREED got in the way. Unusual and unlikely probabilities got in the way. Two firms down and a complete mess later, we still do not know how it happened and who is to blame.

Spare a thought for the Investment Bankers. See what their absence is doing to the markets. Firms cannot raise capital. Capital spending is down. Recession in progress. Houses have lost their equity. All those who were screaming that Lehman Brothers be forced to go down [like it did] did not realize the sort of systemic spiralling effect it would have on the entire eco-system. With their 401[k] now suddenly in dire straits, people suddenly wished LEH had not gone down after all.

Alas... if only we could turn back time.
LEH, rest in peace.

Going gets tough

The old adage is When the going gets tough, the tough get going. I am not entirely sure if that applies to the current market scenario. For, even the toughest tend to slide down the slope that the falling Dow Jones [and other stock indices] have created.

I am not sure if I am tough and would hardly want comment on it. Nevertheless, I will say that the conditions are indeed very tough. Every once in a while, me and my friends look at the malaise and its never ending downward spiral and wish to hang our boots in hopelessness.

In times such as this, I make it a point to watch this video. It is ludicrous and almost insanely hysterical. And yet, it makes a good point and sends across a strong message. Here is finding meaning in a medium where I believe none was really intended.

Video Courtesy: Joel Pena Arias through www.youtube.com

Musings on markets

I was inspired by the blog 'Musings on Markets' that has Prof. Aswath Damodaran writing on his views on the state of the world markets, corporate finance and valuation. I do not need a lot to get inspired, but this one person is arguably the father of modern corporate finance.

If you don't believe me, check this out...

Inspired, I wrote my own hideous and childish lines...

teree raah dekte reh gaye
dil ke armaan dil mein hee reh gaye

vaada toh kiya aapne
vaade vaade hee reh gaye

socha abhi abhi aayega
socha kabhi bhi aayega

par woh nazar mein naa aayaa
dooor jaata hee chalaa gayaa

rouu mein yaa gamm mein hassoon
iss utaar chhadhao may kitni deir mein phassoon

aye market tu kab waapas aayega
ujde chaman kab bhagaayegaa

ek baari aaaja aaajaa aaaa jaaa...
uuuuuuuuu uuuuuuuuu

The future

Its been a hectic week...and it has ended with two sleepless nights [1.5 hrs in the last 48]. It has been a lot of my favorite topic of the semester. It has been a lot of what I want to do going ahead... Corporate Finance, Excel modeling and estimating the value of a company [in my case, LVMH - Louis Vuitton Moet Hennessy]

It's been an interesting journey through all of this. Nevertheless, the most gratifying piece is the knowledge, realization and ratification that I am pursuing a dream that is exactly in line with my goals.

Looks like I am indeed fit for banking! Be it the two straight nights of no sleep or the decisive handling of the model, I believe I got it right!