Wednesday, April 30, 2008

4 Days, 5 nites, and a New Tolerance Level – Part I of IV

So off I went on a short road trip in India covering 2 cities, 1 town, and a village last Thursday nite. The two cities were Bombay and Bangalore and the town and village were in my home state of AP. In hindsight I should have planned the trip a bit better but hey it turned to be another experience to remember. Highlights:

Bombay
-Hung out with a buddy of mine from undergrad. He works for Goldman and is on the ‘buy’ side so he’s got a lifestyle to be envious of. Chauffer driven in a a/c car everywhere he goes, maid at home who cooks whatever you need, an apartment on the sea-front, and a relaxed work schedule.
-I took a taxi ride the first day to go buy books for B school. The taxi driver was chatty and seemed to know a lot about global warming. Mind you this was an old school taxi with no air-conditioning. I managed to survive the morning and even found a textbook. I decided to be adventurous and walk around. (bad idea at noon).
-The Victoria Terminus in Bombay is a beautiful bldg from the British era. I went inside to check the busiest local train station in India. Oddly it reminded me of Budapest.
-I also walked along a row of Colonial bldgs which are law offices now. Right opposite the law institutions would be seated girls on the street with typewriters. They were there to help the common people type up legal documents as needed.
-I also walked into the main GPO (General Post Office) which was probably majestic in its day but was mostly run down now. They were trying to restore it to its previous state.
-I finally reached a point where I was exhausted to the point of irritation. I called my buddy and started yelling. He realized the situation and directed me to a restaurant where I waited for him. After yelling back at me he wondered how I had managed to get into Sloan with such a low IQ (‘cause I wandered out in the Sun in the teeth of summer in Bombay that too at noon). We would travel in his chauffer driven a/c car for the rest of my trip in Bombay.
-We met another undergrad buddy of ours who flew in from Delhi to meet us. The three of us had a great evening together reminiscing old times and discussing life in general. As has been customary of me since I got into B school I peppered them with questions about my career choices. Both of them have attended premier B schools in India and not surprisingly they had great and thoughtful inputs.
-The last day in Bombay we hung out in a mall (shopping and playing pool). My buddy seemed to derive extra pleasure in beating me 2-1 in pool.
-I also went running by the sea on my last evening in Bombay. Although it was close to 7 pm I was soaked in sweat within 10-15 minutes although I had not run much. Nevertheless, it felt good.
-One memorable thing about Bombay is how extreme the contrast is in terms of wealth everywhere. This is unique to Bombay. The first day there as I was in the Taxi I noticed a hoarding by a prominent bank in India on the back of a bus which promised a great return on investment on new financial instruments. As I looked away from the board I was looking at a row of slums on both sides.

Tuesday, April 22, 2008

Where am I? Seriously

Conversation I:
“We invest in small scale healthcare firms. The target is to invest $1 and convert it to $5 in 5 years”.
“Is it not too ambitious?” (that’s me)
“No not at all. Here this is possible”
“So who invests in you guys?”
“Philanthropic organizations from the US. There are a lot of them actually.”

Part of Conversation II:
“I am targeting to work at a PE shop in a couple of years, primarily in the renewable energy sector. I am going to work for the Boston Consulting Group in three months but meanwhile I am working at this VC firm now”

Well, this was last nite in Hyderabad while seated in Row 111 at the new cricket stadium where the first Indian Premiership League game was being played by the home team (they lost badly by the way). I was seated with a Harvard, three Stanford, one ISB grad(s) and an ex-Citicorp-Portugal COO. All of them were (or had worked) working for a VC firm based in Hyderabad. At one point it felt like I was on a forum or a bar in the US discussing future career options. The occasional chanting of the crowd, the partly built stadium, and the music were the only evidence that I was in India. It certainly made for an interesting evening. I got to know a lot about VC firms and micro-finance in healthcare and education as applicable to emerging economies.

The game itself was ok-I can’t relate to the excitement of the fans but it was entertaining. Rumor was that the 15 or so Caucasian cheerleaders, who got up periodically to dance on a small stage on the field, were current Washington Redskins cheerleaders. The crowd seemed to be into it. I paid $25 equivalent to sit where I sat and it was not a bad view. There is lots of optimism that this league will not only survive but generate loads of revenue. Remains to be seen.

Other tidbits from India (Hyderabad):
-The traffic seems to be ok so far. Of course I’ve avoided the rush hours. Much to my surprise I’ve been driving with relative ease here so far.
-I love the fact that I can get fresh fruit and fresh fruit juice at the drop of a coin and for a relatively cheap price.
-Bought two books so far and they seem to be good-one’s on derivatives trading and the other is my Amartya Sen at Harvard.
-I’ve been able to go running on 2 of the 3 days I’ve been here so far. Disappointing part is that I seem to tire after only 2 miles. I need to address this soon. I have a 5K coming up on May 10 in Philly.
-I like the serious/plain/matter-of-fact tone of the CNBC India anchors. None of that Kramer and Kudlow crap from CNBC in the US.
-Summer seems to be hot but I’ve managed to avoid spending time in the heat.
-The wifi card seems to work fine here. It’s a bit slow for uploading/downloading large files but otherwise web-browsing is relatively fast.

Same Shite Different Continent!

So I’ve been following the food ‘crisis’ situation in different parts of the world for the past few weeks. You know trying to spot the fundamentals from an economic point of view. Anyway, with this still fresh on my mind I began my vacation in India. I landed in India (Bombay-sorry I refuse to call it the new name) on Sunday. And what do we have here?! I picked up a newspaper and a commodities trading magazine and voila:

-Inflation in India is at 7%
-Central and State Govts. are in trouble
-the Indian equivalent of CPI is 220 (yikes!) after being in 200s the past year as well
-rice prices have increased 60% in the last few years
-cooking oil prices have doubled in the last year
-Govt. has banned futures trading of rice, wheat, and corn
-Govt. is considering banning forwards trading of grains (despite no evidence that these have caused the food crisis)
-local politicians are blaming each other for keeping the poor out of this boom.

More evidence of inflation: I went to a local market in Hyderabad to buy fresh fruit. A single apple costs Rs. 15 (40 cents) a single orange Rs. 8 (20 cents), and a pomegranate Rs. 10 (25 cents). What’s the problem you ask? Well, these used to be 50% cheaper not more than 3 years ago.

Contrast this with what I saw on CNBC India (which I have to say is miles better than the shite CNBC we get in the US) and learnt from a conversation with a fellow Sloan admit who lives in Hyderabad:

-2 Indian businessmen entered the top 10 World’s Wealthiest list this past week
-There are now 3 software services Indian firms that boast of $2 Billion revenue
-Average compensation for IBankers with 4+ yrs exp in India: $250 K minus bonus
-90% of Harvard Business School Class of 1997 who went to undergrad in India are now back in the US and are now running 30+ Hedge Funds out of India
-The spanking new airport in Hyderabad (apparently the largest in Asia) cost a staggering $1.5 Billion
-The cost of a new elevated mono-rail being built in Hyderabad: $1 Billion
-Real state increases at the rate 200% every 2 years (ouch!).
-Hyderabad is apparently the Micro-Finance capital of the World (A bold statement yes, but this guy who works for one in Hyderabad made it)

The contrast is unmistakable. Safe to say the distribution of wealth goal has gone awry in a bad way. The boom seems to definitely have established a strong middle class in India that is not afraid to spend. But the poor (notably the farmers and those with little education or means to secure decent paying wages) have been left behind. Disturbing yes, and more disturbing in that the Govt in India is holding this together by controlling the prices of many essentials including Gas (petrol in this part of the world). I read someplace that the Govt is sacrificing ~3% GDP by subsidizing Oil. I have to say, from the outside to me, this does not bode well for the future. The government has to figure out a way to get the poor involved in this boom even if it means the rich have to sacrifice a bit of their bonanza. This we know is easier said than done. But I see no other way a chaotic situation in the next 5-8 years can be avoided if this continues.

More about my India trip in the next couple of days. I’ve been invited to a game in Hyderabad for this new Cricket league that started in India (Top 20). The game’s tonite, although I have not followed cricket in a while, I am interested in going to see for myself if this business idea will sustain for long.

later

Thursday, April 3, 2008

Tidbits

-My neighbor on hearing me say this evening that I will be attending Sloan said, "Good. Atleast you will meet some nice people. Not like these a**holes from Wharton!". I go "Why do you say that?". And she goes, "C'mon I live in this building. Enuf said!". Ouch! My bldg has a lot of Wharton kids.

-Went to see "21" yesterday. Cheesy. Kevin Spacey is done. Plot (as expected) is not too great. Kate Bosworth is ovaaahrated. Btm line: borderline entertaining.

-Should I feel more guilty? Last week I found out that I will be getting a 10% bonus in June. I gotto handle the part where I break the news to my boss very delicately. May 5 is the day.

-Finished my taxes. Filed them online.

-Been listening to a lot of DJ Shadow these days. And I gotto say I like it. Him and Thievery Corp, them dudes are allrite.

-March Madness is ending this weekend (Monday actually). I absolutely had a great time on Good Friday. Woke up. Worked out. Ate brunch at home. Went to Urban Saloon (highly recommend this bar in Philly) at 3. Started drinking w/a couple of buds. Watched a great slate of 1st rd games. Then went to Fox and Hound with another group and Devoured nachos, wings, and slammed a few brewskies down. mmmm...productive day!

-Am 5th is my March madness pool at work ($500 booty). Chances of winning=not great. Am 2nd in a small Sloan pool that some of the admits are running. For bragging rights only. However on the side I bet a few brewskies on individual games and happy to note my future classmates already owe me >5 beers!

-I need to post my "Women of the World" post soon.

-About 10 gazillion books that I've bought in the last year or so and have not read any. Maybe I get to finish a few on this long transatlantic flight.

-I think I have a new strategy for playing Russian Roulette at the Casinos. Need to test this out in Atlantic City one of these days. I feel with a $10 minimum table, if I get to play 30 continuous rounds I can make a profit. Let's see what I can do.

later kids

Tuesday, April 1, 2008

Onto BeanTown!

One of my buddies thinks that I have a 'connection' with Boston. Not sure what that means but I am headed back to Boston again! With Wharton denying me admission last week, my decision or the lack of need for one, is made for me.

I will be attending MIT Sloan this Fall!

I dont think it's hit me yet that (a) I will be in school again, (b) I will be living in Boston, (c) I will be attending MIT Sloan, (d) I will be living on a student's budget, and (e) I will be leaving my current workplace and Philadelphia.

anyway, onto filling in paperwork (FAFSA forms, tax returns, loan applications), apartment hunting, and planning the move. I was thinking all along to get a studio apt in Boston but one of the Sloan kids that I met at admit weekend emailed me to see if wanted him as a roommate. hmmm? Still thinking about it. Plus he wants to stay in Beacon Hill while I prefer the bohemian Central Square area. well, I will know more about this in May.

So it has taken me about one FULL year from the time I decided to get an MBA to my decision on which school to attend. Relieved! Excited!