Price is what you pay, value is what you get : Warren Buffet

Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. Warren Buffet is a CEO and revenue of Berkshire Hathaway is $223 billion USD.

Every quarter and year Berkshire Hathaway releases / publishes their annual report to public. Here is a list of all of its annual reports. Buffets talks about its thought about its investing in all of its annual reports , these are some consolidated ones.

  • At Berkshire, we much prefer owning a non-controlling but substantial portion of awonderful company to owning 100% of a so-so business; It’s better to have a partial interest in the Hope diamond than to own all of a rhinestone (an imitation diamond, used in cheap jewellery and to decorate clothes.).
  • Our flexibility in capital allocation – our willingness to invest large sums passively in non-controlled businesses – gives us a significant advantage over companies that limit themselves to acquisitions they can operate.
  • Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers.
  • Keeps things simple and dont swing on fences , when promised on quick profits respond with quick no.
  • If you don’t feel comfortable making a rough estimate of the asset’s future earnings, just forget it and move on.
  • Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important.
  • A “flash crash” or some other extreme market fluctuation can’t hurt an investor any more than an erratic and mouthy neighbor can hurt my farm investment.
  • When Charlie and I buy stocks – which we think of as small portions of businesses – our analysis is very similar to that which we use in buying entire businesses. We first have to decide whether we can sensibly estimate an earnings range for five years out, or more. If the answer is yes, we will buy the stock (or business) if it sells at a reasonable price in relation to the bottom boundary of our estimate.
  • The goal of the non-professional should not be to pick winners – neither he nor his “helpers” can do that – but should rather be to own a cross-section of businesses that in aggregate are bound to do well.
  • I can’t remember what I paid for that first copy of The Intelligent Investor. Whatever the cost, it would underscore the truth of Ben’s adage: Price is what you pay, value is what you get. Of all the investments I ever made, buying Ben’s book was the best (except for my purchase of two marriage licenses).

Image source : cnbc

Keep Investing , Follow your own instincts before buying stocks / MF’s 😀

Jack Ma : If I want to write a book then it will be Alibaba’s 1001 mistakes.

Ma is is a Chinese business magnate, philanthropist, internet and technology entrepreneur, who is the founder and executive chairman of Alibaba Group, a conglomerate of Internet-based businesses . His Net worth is $41.5 billion USD.

Jack Ma talks about Trade, Globalisation and Automation killing our jobs at World Economic Forum January 2018 at Davos.

  • In this era of technology, next World War will be against disease,poverty and pollution.
  • If you are ,

20-30 years old you should follow a good boss  

 30-40 do something about yourself 

 40-50 years old Jack suggest do things that you are good it

50-60 spend time in next generations.

  • Alibaba has 49% workforce are women.
  • Alibaba value first Customers , second employees and then Shareholders.
  • Nobody can stop globalisation if trade stops war starts.
  • My grandfather works 16 hrs a day and he says he is very busy , we work 8hrs a day still we are busy. Our children / grandchildren will work only 3 days 4 hrs a day a week.
  • You should spend better money than Government and other people.
  • Phillanthropy is about action , involvement not only about giving money. Philanthropy idea should be burried into Business Model.
  • If you want to be successful learn from other people’s mistakes. Dont listen to Success story. If I want to write a book that will be “Alibaba 1001 mistakes”.
  • Artificial intelligence will not kill our jobs. Computer will always be wise than Humans .
  • Leaders are always optimistic about future , then never complain and its about responsibility.
  • Alibaba is fighting everyday very hard to compete with others . Facebook, Google and Amazon , Alibaba are luckiest companies of this century.
  • On Singles day in China , Alibaba made $25 billion USD in 1 day . 270,000 transaction /sec. and 100 millions package a day that happen due to computing power.


Image source: cnbc

Mark Cuban looks for these 10 traits before investing in an entrepreneur

Mark Cuban is Billionaire , Tech mogul and outspoken owner of Dallas Mavericks . He is Shark in Shark Tank (Shark tank is reality show where aspiring entrepreneurs from around the world pitch their business models to a panel of investors and persuade them to invest money in their idea.) . His Net Worth is $3.3 billion.

Before he invest in in an entrepreneur’s Business / Idea or Product he looks for ,

  1. What is the roadmap or vision is clear of your Business ?
  2. You are wantrepreneur or entrepreneur ?
  3. Are you willing to sacrifice and work 24 * 7 to make sure your competitor will not kick your ass ?
  4. He is not in favor of Subscription services or Business model .
  5. Looks for a company rather than product for a investment.
  6. Have you overvalued your Business or Idea that is born in Valley looks only for higher valuation doesnt want make a deal ?
  7. Neural networks , Aritifical intelligence and Machine learning are some of key areas to invest Cuban thinks in upcoming period.
  8. Mark wants enterpreneur to work hard rather than inveting , he does not want only inventor who keeps on inventing products / ideas over period of time and looses his focus
  9. You should be clear with your Business economics (Revenue , EBIDTA , Profit / loss ) many times what happens is enterpreneurs are not good with numbers .
  10. Enterpreneur must be quick decision maker and answer the question the single reason why should he invest in your idea ?

These traits Mark Cuban looks for in an enterpreneur.

Cheers !

Image source : cnbc

How to get a deal from a Shark – Part II

How to get a deal from a Shark – Part II

To be Continued from Part I , If you havent went through PartI here is link. Now lets see these 2 Sharks Daymond John and Lori Greiner how to get a deal from these Sharks. Here are some of my findings ,

3. Daymond John : AKA Fashion guru . Founder, President, and CEO of FUBU . He is fashion guy likes to invest in Clothing and various forms varieties of Mens , womens apparels also in retail products . He has very few investments in software / app etc.

Offers :
He typically offers x amount of $ for 33% minimum , he hardly goes down below 33% equity / stake. If DJ makes an offer first and that you are eager to hear or hearing other Shark’s offer then usually withdraws his offer . He is very flexible in partnering with other Sharks . He has partnership / deal of HSN .

Successful deals on Shark Tank :

  • Bubba’s Q
  • Mission Belt

4. Lori Greiner : AKA Queen of QVC. She is a Inventor, entrepreneur, television personality, author, investor. She holds over 100 U.S patents.  Lori sticks to equity what she offers , because she is know for lightning speed in retail products .   She has very good relationship with some of largest retailers in U.S (Walmart , Target , Bed Bath and Beyond etc.) . She belives is her own strategy to bringing into retailer . Her majority of investment are in mass product which are appeal to larger cosumer rather than small target audience. She has very few investments in Bakery products / cookies / healthy products / software / mobile apps. etc.


She takes atleast 15% equity depends of product / Business idea. If your product is not yet make it to retail her first step will be get into retail.

Successful deals on Shark Tank :

  •  Scrub daddy
  • Drop stop

All of these findings / analysis are based on my views might vary from person to person.

Image source :

To be continued …..



How to get a deal from a Shark – Part I

How to get a deal from a Shark – Part I

Shark Tank is an American reality television series that premiered on August 9, 2009, on ABC. The show is a franchise of the international format Dragons’ Den, which originated in Japan in 2001. Shark Tank shows aspiring entrepreneur-contestants as they make business presentations to a panel of “shark” investors, who then choose whether to invest. Each Shark (Investor ) is from different background and loads of experiences from various Industry . Here are the names and businessness of Sharks from Shark Tank. In Part I will cover for these Sharks,

1. Kevin O’Leary : O’Leary Funds , O’Leary Ventures , Softkey and StorageNow Holdings
2. Barbara Corcoran : Founder of The Corcoran Group, Barbara Corcoran Inc. and Forefront Venture Partners

While pitching to Shark here are some key rules you must follow to get a deal ,
1. You should be clear with your numbers (Revenue, EBITDA)
2. Your business must have minimum debt
3. You should own maximum % of your business (more than 80%)

Now lets see the which Shark will be suitable for your Business / Idea ,

1. Kevin O’Leary : He is shrewd venture capitalist and has brilliant Business Accumen. Kevin’s favorite question to you are  
– What is your customer acquistion cost
– Have you valuated your Business correctly ?
– Is there anything propritory or IP or having patent on your Business idea / Product

He only wants his money back thats it he will invest irrespetive of his own liking or passion in your product / Business or idea . His deals are usually of royalty based he doesnot want you equity / stake in your business like,
If you are asking for $250,000 in 20% stake means you are valuating business at $1.25 million : Deals he would make

a. If it’s retail / Bakery items / Beverages / Fitness products,
For every item sold $2 untill he recouped his $250,000 and drop $1 in perpetuity

b. Mobile app / Software
He wil, give $250,000 as loan at 18% interest rate , doesnot want any equity.

c. Likes to liecense a product .

d. Sue over intellictual property or patent (Utility or Design) that you have.

Successful deals on Shark Tank

  • Plated
  • Wicked good cup cakes
  • Lovepop

2. Barbara Corcoran: Barbara is one of my favorite Sharkats 🙂 , because she knows how to judge people quikly  and whether can he / she do the Business with her ? . Her majortiy of deals are Baking products or Food items / Cuisines etc. She has vast experience in taking an idea and making it into big business , also know how to Brand ,  Design a product . 


Barbara sticks to what she offers , she wants atleast 20 % of Business (According to avg. taken from deals she made ).  She must feel passionate about your product or like a test if its a food item / cuisines.

Successful Deals Best deals on Shark Tank

  • Ryans Barkary
  • Tom + Cheese
  • Cousins Main Lobsters.

In next Part will see for next Sharks .

Image source : Wikipedia

Image source :

To be Continued …..



What are the steps involved in Machine Learning ?

Easy ways to start and to know about Machine Learning ,

Let see example below to visualize how above steps in action ,
Suppose we want to determine difference between Wine and Beer. How do we differensiate in terms of Color or Alcohol percentage ? . We need to have a data from different glassess of Beer and Wine .

Prepare a data in table format or graph in terms of color , % of Alcohol and Beer or Wine. Need to a choose a model as there different models created by Data scientists for Text, Speech , Images , colors and sequences. Then it comes a Traning which is most important part of ML. By Choosing a model we are able to differensiate between Beer and wine rather than depends of human judgement.

For training we have equation
y (output) = m (slope) * x (input) + b (Y-intercept)
weights = [m1,1 m1,2]
biases = [b1,1 b1,2]
Model is nothing but random values of matrix [W,b]
Training data -> Model [W,b] -> Prediction -> Test &Update W,b = Repetitive process

Actual steps of ML
1. Gathering Data
2. Preparing that Data
3. Choosing a Model
4. Training
5. Evolution
6. Hyperparameter Tuning
7. Prediction

Appplications of Machine learning 

1.Detecting cancer,
2. Self driving cards
3. Detecting escalators in need of repair
4. Diabetic Retinopathy

Market size
It will rech $8.81 Billion by 2022 as per reports published by MarketsandMarkets

Want to get your hands dirty in ML use this API ,
TesorFlow is an open source software library for Machine Intelligence. Here is to play around API.


Image source: webtrends



Mark cuban talks about his Investment Philosophy , Start-ups going public and Automation

Mark cuban talks about his Investment Philosophy , Start-ups going public and Automation at Upfront Ventures conference . Mark Cuban is a Billionaire , one of the Shark at Shark tank  , tech mogul & outspoken owner of Dallas Mavericks. His Net Worth is $3.3 billion .

Why companies goes public because they feared there culture will change, affraid of becoming public comapny CEO.20 years back 9000 companies were public companies , now only 4000. During dot-com hit companies has to depend on analyst but now information is so easily available companies just find VC’s or investor for funds. The best way to eliminate competition is buy them we saw AppDyanmics acquired by Cisco , Twitch by Amazon.

My investments in San Francisco has dropped to 90%, the cost to startup is so low as of now. Money will find the brain power easily. Its not about the location , its about the smart people.

What I finds making deal in Shark Tank  is , if enterpreneur is working 24 * 7 for his Business as someother part of world someone is also competing hard. I like to invest in future business which are on AI , Machine learning and Deep learning.

90% of my reading is now about Deep learning , neural networks , AI world.

Automation will definately play major role in future , it will replace what we do most of things manually today.

Netflix and Amazon are two best start-ups followed up by Google & Facebook.Netflix and Amazon these 2 of my major share holdings.

We are working on applicaiton (App that will make replies to a tweet private ) that controlling whose gonna troll on twitter. Trollers troll beacause they want to get noticed.

Image source : Business Insider.



Jack Ma talks about globalization , trade and ease of doing business in China

Jack Ma (Ma Yun , Age 53) is Chinese business magnate, philanthropist, internet and technology entrepreneur, who is the founder and executive chairman of Alibaba Group.  His Net Worth is $37.9 billion .  Jack Ma talks about globalization , trade and ease of doing business in China at Fortune Global Forum in Guangzhou (China) ,2017.

Alibaba is going to invest $15 billion in technology . This investment will help us to make lab like Bell lab and will empower other people, traditionally tech company will use investment to empower themselves.

AI will not be threat to humanity , I am optimistic about future.

China has seen tremendous growth in recent years due to stability of political system. In next 10 years China will have 500 million middle class people. China has 150 million people holding qualified degree which is half of population in U.S. China is country still talks about globalization , open door policy & encouraging enterpreneaurship.

When trade stops , war starts. Every country must benefit from globalization.

Amazon is an ecommerce company but Alibaba is not ecommerce company. Alibaba enable other people to do ecommerce.

No internet company can survive after 5 years if it they cannot reinvent themselves like Yahoo and Netscape. Alibaba has transform themselves 80 times in last 18 years.

In next 20 years , Alibaba’s GMV (Gross merchandise volume) will reach to be one of top 5 economies in world.

To do business in China is as difficult as doing it other countries. 3 rules to do business in countries ,
1. Respect culture,market and consumers
2. Should have strong leadership, leaders have to make customers happy not boss happy.
3. Have patience

Image source : cnbc





What Business Leaders thinks about Machine or Automation replacing our jobs ?

Half of U.S. jobs will potentially be replaced by robots and automated technology in the next 10 to 20 years, according to a 2013 study by Oxford University.A lot of Business leaders expressed their thoughts on Automating job that we do today. Let’s see their views on this.

Bill Gates (Billionaire and co-founder of the Microsoft Corporation) : In an interview with Fourtune Bill Gates anticipates that robots will replace number of workers over next 20 years. By taxing the robots it will slow down the pace of automation. Automation will lead to more job losses in warehouse operations ,truck driving and manifacturing but overall impact will lead to increase in employment.

Jack Ma : Predicts next 30 years will be really painful if we not invest wisely in terms of technology and innovation. He told at CNBC interview ‘In next 30 years , people will work only 4 hours a day probably 4 days a week’. People will travel more , as of now we in lifetime visits 30 places but that number will go as high as 300.

Elon musk (He is the founder, CEO, and CTO of SpaceX; a co-founder,Series A investor, CEO, and product architect of Tesla Inc.; co-chairman of OpenAI; and founder and CEO of Neuralink. Musk is also a co-founder and former chairman of SolarCity, co-founder of Zip2, and founder of : In an interview with CNBC , he said “I think that there’s a pretty good chance we end up with a universal basic income, or something like that, due to automation,” . Universal basic income its concept where all citizens will receive small regular stipend to cover basic housing and food needs etc.

Warren Buffet (CEO and chairman of Berkshire Hathaway) : ‘IF ONE PERSON COULD PUSH A BUTTON AND TURN OUT EVERYTHING WE TURN OUT NOW, IS THAT GOOD FOR THE WORLD OR BAD FOR THE WORLD?’. He explains example of farms about 80% people working on farm will reduce to 2-3%. With fewer people needed to work on farms, more are able to pursue other skills and vocations. Buffet says he is optimistic about future and will lead to more innovation in terms of technology.

Image source : Techcrunch



You should buy Bitcoin or Beware of it ?

Should you Buy Bitcoins or not , lets find out. This are the quick thoughts from Cryptocurrency experts and on BloombergQuint session Bitcoin: Buy Or Beware.

1. 1800 bitcoins generated everyday approx.
2. Million machines were deployed on bitcoin network currently own by single or multiple people & located at various parts of the world.
3. China has majority share in Bitcoin mining.
4. Value of Gold globally is about $8 trillion and that of Bitcoin is $274 billion . If we see for next 20 or 10 years dont know if exists the Bitcoin or might it will reach trillion dollar .
5. More number of participation on Bitcoin network will increase value of Bitcoin.
6. Cryptocurrency biggest technological shift since Internet evolution.
7. Expect 5 tp 10x return over next 6-18 months.
8. Invest what you can afford to loose.

There are around 40 Bitcoin exchanges globally , here is full list of it.

Bitcoin as of today worth :

1 Bitcoin : $16,532.70

Bitcoin market capitalization  : $275 billion

Image source: techcrunch

Here is full video of BloombergQuint session on Bitcoin : Buy or Beware ,



5 Books you must read this Holiday Season

5 Books you must start reading this Holiday Season . These are some of the best books recognized by Wall street journal and New york times.

1. Hit Refresh : The Quest to Rediscover Microsoft’s Soul and Imagine a Better Future for Everyone By Satya Nadella
Description : Book by Microsoft CEO , Satya Nadella. One of the best reads so far. He talks about how he changed Microsoft culture and foster Microsoft business to Cloud , also he talks about how Microsoft is using Artificial Intelligence , Quantum Computing & Mixed reality.
Rating : 4.5/5

2. Alibaba: The House that Jack Ma Built By Duncan Clark
Description : This about Jack Ma, how he convinced 18 people from his apartment in China about Internet & end up starting Alibaba Group.
Rating : 3.5/5

3. Business Adventures By John Brooks
Description : Books tells about 12 classic tales from world of Wall Street.
Rating : 4/5

4. Shark Tank Jump Start Your Business: How to Launch and Grow a Business from Concept to Cash
Description : This books is of the contribution of U.S reality investor show Shark Tank Shark’s which tells about
bits and piecess about how to execute your idea into reality.
Rating : 4.5/5

5. Onward: How Starbucks Fought For Its Life without Losing Its Soul
Description : Book by Starbuck’s former executive chairman and CEO. Tells about when he returned as CEO how he transformed culture and way to look at Starbucks.
Rating : 4.5/5

image source : Signature reads

Keep Reading ,


How actually the Bitcoin transaction works ?

Bitcoin as of today ,

1 Bitcoin equals 9,27,302.96 INR /  14,373.00 USD

  • Bitcoin is decentralized digital cryptocurrency.
  • Its invented by Satoshi Nakamoto & released in 2009.
  • It works on the Blockchain (Blockchain is nothing but ledger which records and maintains transactions).
  • Bitcoin uses peer-to-peer technology to operate with no central authority or banks.
  • Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part.
  • Bitcoin allows exciting uses that could not be covered by any previous payment system.

For more information about Bitcoin click here.

Now lets see below infographic that shows how Bitcoin transaction works ?


Alibaba group Chirman and CEO gives advice to young people

Jack ma (Ma Yun, Age 53 ) is founder and executive chairman of Alibaba Group. His Net worth is 40.1 billion USD , one of richest men in China and Asia.

Jack Ma advice’s to young people at one of talk shows in S. Korea ,

  • If i was 25 years old now , I will go back to China see the market there & visit to U.S think about it again back to China.
  • Use of IT / Data technology will make the different in every Businesses.
  • If everybody agrees then wait for it is it there an opportunity , if everybody against it there will be definately an opportunity.
  • Any mistake is wonderful revenue at young age.
  • Difference between smart people such as Bill gates, Warren Buffet, Jack Welch and us is they optmistic about future. They try to solve problem of othere.
  • Opportunity lies where people complained.

One of the student asked Jack Ma about what young people should do before 30 years ,,

  • Before 20 years old : Be a good student.
  • Before 30 years : Follow somebody , go to small company you will learn . Normally in big companies its good learn processing, you will be a part of big machine.
  • In 30-40 years old : Are you working for yourself ?
  • 40-50 years old : Do the things you are good at , dont try to jump into new area . You might be successful but rate of dieing is high.
  • 50-60 years old : Work for young people.Rely and invest on them.

Image soruce: CNBC

Peace ,



What Industry leaders think about investments in Gold Vs. Stocks (Equity) ?

Business leaders such as Microsoft co-founder, Billionaire Bill Gates and Legendary investor Warren Buffet talks about Investment in Gold Vs. Equity at CNBC Squawk Box.

Bill Gates : Gold investment is tough investment , because its so psychological & less innovation.

Warren Buffet : A productive asset will outperform a non-productive asset like gold over time. I gurantee that
farmland or equities will outperform gold over 100 years. If you take all of the gold in world about 165,000 metric ton (approx.) & all put together in cube which comes 67 feet a side. Cube is 7 trillion USD , all of the stocks in U.S market comes around 20 trillion USD.Business will change over time but looking at cube of gold will remains same , its easy to differensiate.

Now lets see Gold Index vs. Stock Index this year till date ,

Period S&P BSE SENSEX Gold 24Carat / 10g
1st Jan 2017 26,595 28,833
24th Nov 2017 33,679 31,647

So summarize Stocks or equity outperforms Gold over investment.



What principles does Buffet uses while picking up a Stock ?

Warren Buffet (Age 87) is a legendary investor ,Chairman and CEO of Berkshire Hathaway. His net worth is 77.9 billion USD. 

Some of tenets of Buffet while picking a stock,

1. Doesn’t believe in IPO

2. Business should be easy to understand and has long history.

3. It should have great leadership team.

4. Look for long term return on investments rather than earning quick money.

5. Check financial statements look for PAT (Profit after taxes), EBITDA (Earnings before interest, taxes, depreciation, and amortization), market value etc. , study the business on your own.

6. How much money does it own offshore or in Cash money ?

7. What is its market capitalization ?

8. Look for if it has Higher margins , return on equity

9. He does not look for stock he calls it a business (% of Business)

In 1965 , Eugene Fama of University of Chicago published PhD desertion “The Behavior of Stock Market Prices”. Prediction about the future stock prices are pointless because the market is too efficient , in this market as info becomes available a great many smart people aggressively apply that info in a way that causes prices to adjust instantaneously”.

There will lot of other factors comes in consideration while picking any of the stock , these are some of key principles of Warren Buffet.