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Remembering Khwaja Ahmad Abbas

A small, modest, ground-floor flat in Juhu was his home and, on the first floor, a tiny cubbyhole served as his workplace. It was in the cubbyhole that we used to meet.

There were no chairs, only mattresses with cushions in the makeshift study. One sat next to him on the floor. He had no writing table, just a raised wooden platform with numerous nib-pens and inkwells, both red and blue. (He used red ink for exclamation marks, something he had a weakness for.) And, of course, the cubicle was full of clippings, periodicals, books and postcards. On the walls were displayed signed photographs of himself with Khrushchev, Tito, Nasser, Nehru. Despite the clutter it was not an untidy room. A chaiwala brought oversweet tea in glass tumblers at regular intervals—that was the extent of his hospitality. To say he lived frugally would be superfluous; he was a communist, even if linked to the glamorous film industry.

From this cubicle he wrote, directed and produced fourteen flop films. And scripted Raj Kapoor’s iconic Awara, Boot Polish, Shri 420, Jagte Raho, Bobby, Mera Naam Joker and many others. He also published sixty books, fiction and non-fiction. He was a busy communist.

Forever in debt and forever scrounging around for money, he borrowed from friends and moneylenders. All the films under his banner, Naya Sansar, were not minor box-office disasters but gigantic box-office disasters. ‘Some people say I am mulish, trying out themes of social realism without compromise,’ he explained. ‘“Give the people what they want,” they advise. But I believe in doing what satisfies not only my personal ego but also my social conscience.’

Abbas’s films would start promisingly. Sadly, after the first half, he would slump into sermonizing, making his cinema didactic and tedious. Fully conscious of the hazards of mixing propaganda and entertainment, he persisted. ‘All the money I make from Raj Kapoor, I put into my flops,’ he joked. He admitted history would remember him only as the producer who introduced Amitabh Bachchan to Bollywood (Saat Hindustani), a fact Amitabh himself acknowledged, saying if Abbas had not given him a break, he would have gone back to his boxwala executive job in Calcutta.

He worshipped Jawaharlal Nehru and lovingly recalled all his meetings with Panditji, especially the last one at Teen Murti, a week before Nehru passed away. As Abbas walked up to greet him, Nehru, weak after his stroke, tried to get up from his chair. Abbas urged him not to bother. ‘Abbas, I may be about to die but I haven’t forgotten my tehzeeb (culture).’ When he recounted this story his eyes welled up.

I remember him for his loyalty to a wonderful romantic vision, and also the lunches he bought me. On the first of the month he would collect his monthly salary of Rs 500 from the Blitz office and treat me at the Jehangir Art Gallery restaurant, Samovar. ‘You can have beer if you like,’ he would say.Today I have money, tomorrow I won’t.’wrote Vinod Mehta

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Karma in India

If the due process of law was followed  in time then Vijay Mallya would have been history by now !….the irony is that the victims,the KFA Employees ( a captain on a panel voiced this) want him free so he’s able to pay them their dues….for if he goes behind bars so goes their hopes!….

a stock market scamster comes to mind who was arrested & convicted as he owed the  banks heavily but has been on bail  on an Apex Court Appeal now pending for years and has been able to repay the Banks despite his accounts being frozen ! ~ tacit!? …think about it !….manipulated & rigged stocks & got into trouble….then manipulated & rigged stocks again to repay !….the World is round indeed !

wrote Gaurav

Hmm…maybe NSEL victims should plead for Jignesh Shah’s release !

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Jayant Sinha is doing you a favour

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Liar,Liar,EBITDA on Fire

Depreciation charges are a more complicated subject but are almost always true costs. Certainly they are at Berkshire. I wish we could keep our businesses competitive while spending less than our depreciation charge, but in 51 years I’ve yet to figure out how to do so. Indeed, the depreciation charge we record in our railroad business falls far short of the capital outlays needed to merely keep the railroad running properly, a mismatch that leads to GAAP earnings that are higher than true economic earnings. (This overstatement of earnings exists at all railroads.) When CEOs or investment bankers tout pre-depreciation figures such as EBITDA as a valuation guide, watch their noses lengthen while they speak

wrote Warren Buffett

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Stocks for the long run?

Are equities always the best investment for the long run? It is the message that is usually sold to individual investors. The message is based on theory; equities are riskier than government bonds so should offer a higher return (the equity risk premium, in the jargon) to compensate investors. And the message seems to be borne out in practice, most of the time.

But there is an important caveat. Much of the data quoted by investment advisers is based on America, which is something of an outlier; it turned out to be the most successful economy of the 20th century but that was not guaranteed in advance. An investor in 1900 might have picked Germany as a rising power, only to see their assets wiped out in the 1920s hyperinflation and the Second World War; they might have picked Argentina, which was a perpetual disappointment. In other countries, there have been very long periods in which equities have not been a great investment.

Elroy Dimson, Paul Marsh and Mike Staunton of the London Business School are the acknowledged experts on global investment returns, having compiled data covering 22 countries over more than a century. As of February 2013, the longest period of negative real returns from US equities was 16 years. But it was 19 years for global equities (and 37 for world ex-US), 22 for Britain, 51 for Japan, 55 for Germany and 66 for France. Such periods are much longer than most small investors would have the patience to wait.

Another way of looking at the same issue is whether equities beat bonds over the long term; whether the risk premium is really delivered. This chart, a favourite of Albert Edwards of SocGen, shows the returns from equities (MSCI World, including dividends), long-dated government bonds (over 10-year maturity) and 3 months dollar cash since 1996. Bonds are still winning, even after the big recovery in equities since 2009.

from The Economist