Kitex Garments

In the 80’s getting a new dress is an ordeal task. You go to the store and buy a piece of cloth for shirt and a matching cloth for pant. This piece of cloth is called as a fabric which is obtained by weaving a fibre like cotton. Then you take this fabric to a tailor who…

Scoring vs Learning

In a recent article, Economist pictured a lot of parents climbing over walls of an exam hall to help their kids to pass the 10th grade exam. Given below is an excerpt from the article which surprised me. An education system that favors elitism over basic schooling is in part to blame. The OECD found…

Accounting For Pensions

So far I wrote about accounting for debt, leases, taxes, and stock compensation. You can find them all here. Some companies pay its retired employees for services they provided in their working years. These payments are called as pensions, which is the topic of this post. In every pension plan, three entities are involved (1) company or employer who…

My Favorite Books On Investing

Charlie Munger, Vice-Chairman of Berkshire Hathaway, developed his latticework of mental models by reading three leading textbooks on each subject. We can use the same approach for getting better at long term investing in marketable securities. But instead of three, there are twelve books that every investor should read and reread. I have read these…

Accounting For Stock Compensation

So far I wrote about accounting for debt, leases and taxes. You can find them all here. Companies pay its employees using cash and stocks. All cash payments made to employees are shown as expenses in the income statement. But when it comes to stock compensation things are not that straightforward. Companies pay its employees using restricted stocks and stock options…

Google

Tom Monahan, a creativity consultant, who teaches a different kind of thinking called 180-degree-thinking. In this, he asks participants to come up with ideas that don’t work – an oven that can’t cook, a car that doesn’t move. What is the rational behind this? But the goal of such exercises is not necessarily to generate…

Amazon

During 1970s, a sixth grade student, was working on modeling a device for his science project. He called this device, an infinity cube, which creates an optical illusion of an endless tunnel. He modeled this device after one he had seen in the store. What is so special about this device? The one in the store…