Sunday, August 1

Making the eldest cost centre into a hedge fund manager

You remember what I talked about last time about my son getting educated on stock investments? Well, now we started on a new experiment. The genesis of this comes from the last parents teacher association meeting that I attended and the fact that I got him a summer internship at a friend’s software development shop to learn about website design for his business. Anyway, the teachers told us that the students have to make a good cv for the formal internship next year and concentrate on the extra-curricular activities to differentiate himself from the others. He is ok in sports, but not championship / trophy level, he is much better at the mental stuff. He does like playing football and guitar but not to that extent.

Anyway, so the idea was sparked in my head and I fired off an email to some friends asking if they would be interested in investing money in a UK Stock market fund run by Karn, say £200 per head investment, 3 year lock-in period, quarterly investor calls, with an independent investment committee of non subscriber experts and we pay him on an agreed % return basis.

So he has agreed to do so, he is now busy thinking up a name of the fund. Told him to think of a good name, it has to reflect solidity and trust, also explain what it does, but also has to give a frisson of excitement. He will line up the portfolio on www.iii.co.uk and send a spreadsheet around every 3 months, get the independent investment committee to help and guide, and have a quarterly call.

So aiming for him to come up with the first list of stocks for about £1000, about seven people have already signed up, and one friend’s son also wants to invest. I did warn everybody that he is still a kid and he could lose the lot, there could be a double dip recession, there could be horrible returns in the UK, so they have to be warned that this should be looked upon as lost money. That did not worry the friends that much and looks like its a good start. And even if he loses the money, I think it would be an invaluable lesson on how to protect capital at the very least and try to make alpha. I will keep on reporting on the progress of the fund and what kind of returns he is making. Lets see if this experiment works out.

But more importantly, if you had to advice him, what would you say he would invest in? What kind of stocks do you think would be good for a good return over the next 3 years?

Working from home

I am currently starting a new transformation programme and will end up with approximately 20-25 people additional people in the building. A significant number will be consultants but many will be internal permanent and contractor employees as well. Number of desks that are allocated to me? Zero. So I am having to beg borrow steal sneak and squat in about 4 different floors in the building.

This is obviously not beneficial and has been escalated to senior management. Although given the seat situation, I really dont know where they will find the space. I hear there are some spaces in the window cleaner's boat, but not sure how many will like to work there. So homeworking it is.

But that's good when you have an established unit working and people know each other and a team has been formed, when you are forming a team, then its much more difficult.

I was speaking to a friend of mine who has young children and he said that its tough to do calls with babies at home. I recalled what I used to do, try to bunch up calls to take at home, open the call and announce that you are at home and have a baby. Made a sling out of my ma's sari and put the baby in the sling, lying down or up against my left shoulder. Bought one of those phone headsets which has a mute button and off you go.

Its not pretty or hunky dory, you can end up with a shoulder full of drool, or suddenly you hear "abababdbssaababababab" or the baby grabs your pencil while you are trying to take notes or you suddenly find that your baby has decided that your ear makes for a perfectly good teether or decides to use your head as a drum or wants to participate in a call about budgets. All which has happened to me and its not fun, but there you have it.

 

Having had the joys of home working for the past 12-13 years, I am still not sure if anybody has really cracked the home working situation properly, specially within the financial services world. Also came across this article on the differences between men and women home working. I quote:


Everybody knows that men and women think differently in a lot of ways. But do those differences matter when it comes to working remotely and managing remote teams? According to Sally Helgesen, it matters a lot. Managers who don’t appreciate those distances can do themselves, their companies and those employees a great disservice.

What do you think? What have been your experiences with homeworking and managing output with teams who are homeworking?

Monday, July 26

Capturing Histories

Sent out this email to the wider Dasgupta clan. Lets see how this experiment works out.

 

I thought of sending this email to all the wider Dasgupta clan because I need help with this. I am going to try to do an experiment while Baba and Ma are here. I am going to give them 2 copies of the same book.


http://www.amazon.co.uk/o/ASIN/0811843270?tag=betteraddons-20


This is a book which helps in capturing the memories of a grandparent for their grandchild. All our respective parents are now getting quite old and we should try to capture their histories in Bangladesh, Nepal and Jubbly so that we can pass this on to our grandchildren. Once Baba and Ma have filled this out, I will get it scanned and put up on a dedicated website. I already have reserved a domain name,
http://dasguptaonline.com/


But I need help, I am pretty sure that given their failing health, memory and eye sight problems and and and, they will need help to get this going. And that means that somebody has to volunteer to guide them through filling out this book. If we have some volunteers, I am happy to purchase more copies of this book and then send them back with Ma/Baba when they go back in September. Only thing is, I need them to be then scanned and then we will put it up on the website so that all our children can read up on their family histories.


Any volunteers to look at Jethima, Boro Pishi, Pishi, Itu, Choto Kaku and Kaki, and and and?


On a separate note, we have loads of old photographs but they are currently mouldering away in albums in various cupboards. I would like to propose that we try to scan them, send them to me, I will get a dedicated website constructed and pay for it, and then we have it all.


We are all quite busy at the moment with our lives, our careers and are spread out all over the world. What keeps us together is the sense of family and the history together. It would be regretful if we reach our old age and then think, damn, I wish I had captured my parents memories. Its already quite late, we have lost so many and their memories have gone with them.


What do you think of both ideas? Any volunteers for the first and suggestions for the second? If it is a question of cost of scanning, please do not worry, just take the albums to the nearest photographer, ask them for a cost of the scan of all the photographs and I am happy to assist in this. Only proviso, the photographer has to send the photographs to me via the internet or something. And will need people's assistance in identifying the people.

Sunday, July 25

A debate over climate change

We had a presentation on climate change in the office and I just want to pick up on one part of it. Here is the particular slide.

Let me explain the slide first. The X axis shows GDP growth while the Y axis shows the Emissions CO2 per capita. So you end up with (a) Lesser Developed, (b) Industrialising, © Industrialised, and (d) Low Carbon Economy. The last fourth quadrant being the nirvana land, yes?

So what’s the trajectory like? If we do nothing, then the red line is operational and we will keep on going up the increased wealth with increased emissions route. The parallel bottom descending lines from the red line to the dark blue line are due to green new deals, a climate change deal if you will. The top light blue line relates to a catastrophic climate event which will pull the entire world or the country back into lesser developed status while the yellow line exhibits what will happen if we have a technological breakthrough via carbon sequestration or some other fancy technology.

This is just an illustrative slide to show what potential trajectories there can be, but I have 3 issues

1. cost: This slide does not talk about what will be the impact of adopting the green deals or the geo engineering technical solutions. If you factor that in, then the optimistic blue line at the bottom will be pulled up sharply increasing the trend line. In other words, if a country like India has to actually pay for carbon storage or other carbon emission technologies, it can very well decrease its growth rate.

2. combination: There is a strong possibility that all four elements are simultaneously applied, we can have growth, we can have new green deals, we can have geo engineering and we can end up with a catastrophic climate event such as typhoons or cyclones or something like that. Then where do we go? In other words, the choice is frankly now out of our hands.

3. Other factors such as water shortage: What happens if we have a catastrophic non climate event such as volcanic eruptions? Or severe drought? or water shortage? What then?

I further pointed out that the cost of getting people to work on this via the private sector seems to be a bit wonky, the PE ratio’s of green tech companies are hovering around the 60-100 mark. That’s ridiculous. What on earth are those valuations telling me? That’s a clear and present danger of a huge bubble.

So I am going to sit this one out I am afraid, not very clear and until and unless there is more clarity, not going to invest in this sector. This doesnt mean that I am going to stop my attempts to reduce pollution and the like, that’s on the supply side but on the demand and fixing side? Jury is still out.

Saturday, July 24

Further developments on Karn

I wrote before on what my son Karn is doing in terms of his economic and financial education. While talking to a friend of mine over email, I was telling him what Karn was up to now and thought of sharing that.

 

That little shit came to me to do a deal 2 days back. Said that if he manages to ace his triple science gcse paper by getting a grade 8 which apparently nobody in his school has got, he wants a debit card. I was puzzled, why is he asking this? Surely things like a party, or a new pc or games?
No, he figured out that physical cash is stupid, if you spend via a debut card and carry no or very minimal cash, you get more interest on your savings. Not much but every little helps!


And he has discovered girls. Sighs. Or they have discovered him. Damn mobile is like a constant chiming pain in the backside.


And thanks to Madhu's and others advice, he is building a website with dreamweaver, plans to set it up on a free advertising based webhost and put in free games and stuff for others to play. His idea? Baba, this is as close I can get to a perpetual money machine. Free hosting and ad kick backs and I don't have to do much other than add a free game every week. He plans to earn $200 per year or so. Plus he needs the debit card to sign up to the payment system.


And he has found PENNY STOCKS!!!! Bloody hell. Created a monster.

Sunday, July 18

Progress this week

Well, Its been a very busy week at work, but at the same time, there was quite a lot of movement on the charity side. Here are the few updates:

  1. We had a good initial meeting with my friend Christian who is now going to be the Director of MBA at Essex Business School and another colleague from the bank. We discussed various ways that we can link up with the educational opportunities in terms of course ratification, courses in risk and insurance, providing more training for our chaps, etc. These things take time, lets see how far this goes. We might end up going up to Essex, doing couple of lectures and then discussing this further.
  2. Last week I mentioned about meeting up with a person from Manchester Business School. Couple of more people from MBS got in touch with me, I am quite excited to see what we can do with them but the timing sucks at the moment. Will need to pick this up in September, frantically busy at the moment with the august 2nd week workshop and then Baba/Ma arriving and and and. Also filled out a rather long and a bit clunky questionnaire from the President, University of Manchester. Seriously, guys, get some professional help on that.
  3. IT4CH: Well, we now have this charity officially recognised as the charity for IT for the bank :), quite chuffed about this as well. This means that the supply of systems is now on a sustainable basis.
  4. 200 laptops for schools. We got to meet another school and we will be donating 200 laptops to this school most probably on an annual basis going forward. Lets see how this works out.
  5. 100Books. Got an email from Praveen Swami, the main karta dhartha for this charity in India which aims to provide 100 books to each government school. He is looking for volunteers in Delhi who can help out. So if you are based in Delhi and can help out, please do join the facebook page and offer help.
  6. Finally, got in touch with this wonderful lady, Lyndsey Buchanan, via my friend, Annie Tennant (who is a total charity fiend in her own right). She is running a marathon to raise funds for the Bhopal Medical Appeal. Will hopefully meet her at Annie’s wedding and see what else can I do to help.
  7. Oh! by the way, completely forgot, have joined up in a mentoring effort at the firm, hope to meet my first mentee in the next few weeks, lets see what comes up..

Saturday, July 17

My experiences with #iPhone OS 4.0

I decided to write out my frustrations with this bloody upgrade. Poxy thing has just weirded out. Cant run bloomberg applications so cant check my stock prices and details. I cant take good photographs because the gorillacam application no longer loads.

It now has one inbox across all the inboxes but it has to be connected to the internet before it can move things to trash. Typing emails is hit and miss, it runs out of memory and craps out. After you have typed in 2 paragraphs on it, very painfully, to have lost the draft is bloody frustrating.

The bloody thing is slower than an arthritic snail on a bed of dry salt. The mobile phone performance sucks, one can hardly hear it. But it has folders, YEAH!

What on earth are these buggers doing? Absolutely horrible. I have removed more than 60% of the apps and its still slow.

Saturday, July 10

Help out Indian schools with a donation of books

One of my friends, Nilanjana Roy, invited me to this facebook group. The concept is simple, please put some money and a coordinator together, get about 100 books in various genres and then gift to a Indian government school. Brilliant idea, eh? Offered to help with some money and suggestions here. Early days yet, so lets see what happens. I am happy to take this out further. Quite exciting, eh? I think this can be a brilliant idea :) Please do consider joining into this and helping out this project if you can. Ma Saraswati will indeed bless you with 4 additional brains that will exist in a pocket dimension attached with an invisible wormhole in your left ear, you will be frightfully brilliant, handsome and people will admire your singing and the shape of your feet.

What are you waiting for? Go sign up to the facebook page. Incidentally, check out who has joined, some of the greatest and good of Indian society, eh? Another reason..

 

 

 

So what else has been happening in the charity space last week?

1. Had a nice little corporate dinner and earned about £450 for IT4CH as a honorarium.

2. Proposed some ideas for a sustainability competition at work, which included proposals for essay competitions, academic studies/paper competitions, funding for sustainable products, etc. Lets see where that goes.

3. Now that I am in transaction banking, I am trying to find out ways to get something green into the payments space. I can just see making good amount of dosh being green, so have couple of nice little meetings coming up.

4. Met up with a great chap from my old alma mater, Manchester Business School. Over the past few years, a new director has taken over and he has really shook up the place in a good way. Previously we had some bloody boring directors. but the new director is good. So we had some nice chats about things we can do with the firm and the school such as funded scholarships, joint research links, perhaps discounts for domestic students wanting to do an MBA, etc. etc. Lets see what happens, I have offered to mentor 3 students this year anyway…

Tuesday, July 6

The influence of a teacher stops at eternity

You might recall that we are trying to improve the financial literacy of British children by an investment trading game that we run for school children. One of the ways we are thinking about expanding the scope is by training teachers to do this rather than rely on the LSE SIFE team.

So one of the things that the firm sponsors is TeachFirst. This is an initiative which tries to bring teachers into challenged secondary schools in the UK. The charity assists in helping top graduated become excellent teachers. Not too many, 5-600 teachers per year and the idea is to make a small but significant difference. So we had a nice little meeting with them, along with the LSE SIFE team, we discussed ways of getting the trading game packaged up and then given to the teachers, we discussed ways of getting a competition going and again, funding for this wouldn't be a major issue.

Also spoke to our internal brokerage about seeing if they could support us, but lets see where that goes.

I am quite chuffed about this all, if we can get these 5-600 teachers yearly to use the trading game and push it out to the students, hey, big impact :) Very happy.

Saturday, July 3

Archaeology and Bible, keep them separate

There was this fascinating lecture which I attended this week delivered by Professor Hugh Williamson at the Anglo-Israel Archaeological Society at the British Museum.

It was a fascinating lecture and I learnt so much about the Bible and Archaeology. It was full of professors, people with spectacular beards and corduroy wearing historians, archaeologists and other luminaries.

My contact with Archaeology goes back to Professor Shankar Tiwari who was the father of a close school friend of mine. His house was brilliant. It was full of statues, coins, reliefs, strange piquant smells from the chemicals he used, dogs, tons of books. It was a total chaotic house and I loved it. I loved the idea of going into the wild and finding out new things, digging up history. Here’s one report of what he had done. He used to spend patient hours explaining what he had found, the history of India and the local areas. I would say that my interest in history is heavily influenced by him. For example, he spent much time in Bhimbhekta. That area shows that man has inhabited those lands with a recorded history and evidence going back 100,000 years. Then you had Wilbur Smith’s Sunbird. As usual, I would get excited when I read about something that proves the Bible was right, for example around the issue of Noah’s Ark.

To cut a long story short, going around in places like Greece, Turkey, Italy, Egypt, India and Israel, you could see the places and remember what you have read in the religious, mythology and history books. Israel specially is gobsmacking. It perhaps has the highest density of historically important events per square meter than anywhere else in the world. Well, at least for the dead kings, generals and priests. Which is what Professor Williamson said. Once history is extended to the ordinary citizen, then the links between archaeology and the Bible become even more diffuse. But more on that later.

Chaim Herzog and Mordechai Gichon wrote a fascinating book on Battles of the Bible. It talks about the various battles fought in Israel down the ages and is a thoroughly good read. Comes highly recommended. The group talks about how archaeology influenced the study of history and vice versa. It liberally refers to the Bible. When I first read the book, it was, on the face of it, quite interesting. It confirmed my deep seated thought the bible’s descriptions are factual and rely significantly on archaeological finds to buttress its claims. And in case, I was reading it from the perspective of military history, strategy and military tactics. Here is a website which describes what I mean. But after this lecture, I went back to reread it and found there is less of corroboration than I originally thought. More woolly and light on evidence I am afraid.

For example, Professor Williamson clearly said, there is simply NO evidence about Abraham that we have found up till now. None. Zilch, Nada, Zero. But look at this page from the Bible Archaeology website. Read it to see there are suppositions, assumptions and propositions about Abraham. Evidence, none. He also said the prevailing view of Israel being populated by external invasions and migrations is not that accurate. It grew more organically rather than from invasion. He clearly said that while he isn't a professor of archaeology, he is a professor of Hebrew and has joined in archaeological digs in the Holy Land before.

Another example he quoted was that of Joshua. No evidence there were any walls or any town that supported those walls. He is supposed to have brought it down and there is supposed to be a war. No town, no walls, no fight, no archaeological evidence whatsoever. Not even of Joshua himself. Jericho was a tiny settlement of 2-3 houses then. Btw, do you know that Joshua is the patron saint of Spies? (amusing!). Here is a good link on this Joshua debate. 

He showed some amazing photographs, but I simply couldn't take any good ones photos of my own with my little iPhone. One stone that he showed had Amharic writing about the existence of David engraved on it. This was found first, and then 2 additional fragments were found later on. Interestingly enough, the placement of the fragments against the main stone can change the point about David. I did not get hold of the details of the stone unfortunately so cannot report with some more facts on this.

History, historically speaking, is written for and about kings, generals and priests. Archaeology doesnt usually support the myths we have made up on them. Once we extend history, as is being done now, to the ordinary citizen, life becomes even more difficult for the people who are trying to establish facts to fit in what we see in the Bible. For example, he talked about pig bones were found in so many places and talked about the links with Jewish Dietary Laws and mentions in the Bible. Which brings into question the validity of the history of restrictions on pork eating. 

So his point was simple, do not look at the bible as a history book. Look on it as a book of faith, a book of myths and stories, a book which is full of parables. It was written by people who collect memories and then mix it up with rumours, myths, politics, and so on and so forth. All religious books are like this, without exception. Leave archaeology alone.

Here’s another example of archaeologists themselves encouraging thoughts like this. I quote:

The remains of a small house that can be dated back to the time of Jesus have been found in the past days during excavation works in progress in Nazareth, guided by a team of Israeli archaeologists. According to the scientists, this is the first house from that era ever uncovered. The find was announced by professor Yardenna Alexandre, who leads the project on behalf of the Israel Antiquities Authority. She said that the remains have been dated back, with a small margin of error, to around 2000 years ago. "The discovery is of the utmost importance since it reveals for the very first time a house from the Jewish village of Nazareth. It sheds light on common life (in Palestine) in that era", underlines Alexandre in a press meeting. "The building that we found is small and modest and it is most likely typical of the dwellings in Nazareth in that period," the archaeologist added, suggesting that "Jesus and his childhood friends may have known this house". Alexandre pointed out that according to the little written evidence available, including the Gospel, Nazareth at the time was a small Jewish village, which seems to be confirmed by the recent find. "Until now" she specified, "a number of tombs from the time of Jesus were found in Nazareth, however no settlement remains had been discovered that were attributed to this period"

See what I mean? suppositions and assumptions. Jesus may have known this house. This kind of thinking is dangerous.

While coming out of the lecture, I noticed these three columns. The one on the right is an ancient Egyptian Stone Pillar of more than 3000 years old. Then you have a silvery lighting tower and finally an information white tower. One is a religious book, the other two are functional or factual. Mixing does not make sense, does it?

While exiting the British Museum, guess who I bumped into? One of the Kings (well, Prince Charles in this case) for whom history is written.