Top Clicks on Alpha Ideas This Week

Here are the most clicked items on Alpha Ideas this week:

Fund performance of Prof Bakshi (AI)

A very reliable bear market indicator (AI)

The RBI circular which is sending shock waves (RBI)

How Vikram Kothari conned 7 Banks (BS)

Fortis: What are you buying? (AI)

Lessons from the richest man in Babylon (Morningstar)

Mistakes were made (PPFAS)

Chart: All the Tata Companies (AI)

Book Review: How to read a cash flow statement (AI)

A Multi-Bagger’s Mini Cycles (AI)

Weekend Mega Linkfest: 23 Feb,2018

Some off beat reads for the weekend:

Why Justin Trudeau is being snubbed in India (Atlantic)

Trump’s Miss. Universe gambit (New Yorker)

Italy: Mussolini is now back in the mainstream (Guardian)

Imran Khan: The Zero Man (Cyril Almeida)

China scare spreads to New Zealand (ATimes)

10 Brilliant innovations by IITians (BI)

The reinvention of Bharatnatyam (Manu Pillai)

Road Trip: 8,500 km in a Tata Hexa 4*4 (TeamBHP)

No play, only work for Babus (Gossip Guru)

How to eat,pray and live in Amritsar (Nat Geo)

The last Ringal weaver of Jaiti (Rural India)

Office Emails and what they say about us (Arre)

What is real romance? (J Mathrubootham)

How to fight isolation when you work from home (Life Hacker)

The top 100 Hotels in the world (T&L)

On Frauds : Nothing Changes

This article in today’s FE caught my eye:

Chartered accountants’ apex body ICAI today said it has issued show-cause notices to the auditors of Punjab National Bank and Gitanjali Gems in connection with the Rs 11,400 crore fraud at the public sector lender.

Besides, the institute has summoned a deputy general manager of the bank seeking details about the fraud. Further, the ICAI has also written to the Reserve Bank of India requesting it to provide the list of the corporate borrowers of public sector banks having outstanding loan amount of Rs 2,000 crore and above. The list would be examined by the Financial Reporting Review Board of ICAI for any possible violation of applicable standards of accounting as well as auditing.

The Disciplinary Directorate of ICAI has issued show-cause notices to all central statutory auditors of PNB.

This reminds me of this very memorable excerpt from John Kenneth Galbraith’s book ‘The Great Crash of 1929‘ :

“In many ways the effect of the crash on embezzlement was more significant than on suicide. To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter.

Weeks, months or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss. There is a net increase in psychic wealth.)

At any given time there exists an inventory of undiscovered embezzlement in – or more precisely not in – the country’s business and banks.

This inventory – it should perhaps be called the bezzle – amounts at any moment to many millions of dollars. It also varies in size with the business cycle.

In good times people are relaxed, trusting, and money is plentiful. But even though money is plentiful, there are always many people who need more.

Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly.

In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial morality is enormously improved. The bezzle shrinks.”

Different eras.Different Geographies.Same Human Nature.

Nothing Changes.

Portfolio of Auburn Ltd

This post is in continuation of my coat tailing series (see here)

To know what other top investors are  buying/holding/selling in India, subscribe to our Investor Wisdom Newsletter

Auburn Ltd is the public market investment arm of home-grown private equity fund ChrysCapital Investment Advisors India Pvt. Ltd.

It’s holdings as on 31 December,2017 as per stock exchanges is as given below:

Company Name Symbol Entity Name Value (In Crores)
Larsen & Toubro Infotech Limited LTI AUBURN LIMITED 696.9
The Mandhana Retail Ventures Ltd TMRVL Auburn Limited 7.52

Book Review: In the Name of God

This Book belongs to the fiction genre which I rarely read nowadays.

The reason I picked up the Book is that one of the key characters in the Book is Nirav Choksi,a Diamantaire .

I thought this Book would be a fictionalised account of Nirav Modi’s wheelings and dealings.

Instead, the Book turned out to be about murders,smuggling etc

The story line has many sub-plots and twists and succeeds in holding the attention of the reader till the end.

Do Buy this Book if interested in some time-pass reading.