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Management is efficiency in climbing the ladder of success;leadership determines whether the ladder is leaning against

the right wall. Stephen R Covey

National Headlines

Undeterred by violent protests against its project, POSCO hopes to begin work on its

12 million steel capacity project in Orissa by April next year.

Foreign funds may soon flood Bond market as the current limit on foreignparticipation will move away as the market develops, says Sebi Chief.

Canara Bank has gone on an aggressive restructuring exercise prunning both its

asset and deposit portfolios as it plans to check its cost of deposits and improve its

yields on advances.

Unitech is learnt to have closed the countrys largest single land deal by buying a

1,750 acre plot in Vizag from APIIC( Andhra Pradesh Infrastructure & Industrial

Corporation) for Rs. 3,328 crores.

Bharti Airtel clocked a 73% increase in its second quarter net profit at Rs.1,617 cr .The companys EBITDA has grown by 59% to Rs. 2,709.7 cr.

International Headlines US federal reserve likely to cut interest rates, with soaring oil prices and sinking housing

market

Petrochina surged past ExxonMobil to become world's first company to worth more than

$1 trillion following its IPO

Chrysler to axe 12000 jobs ahead of slow growing rate of demand for vehicles

Google enters into mobile industry hoping to bring internet access to masses.

Three biggest banks in US, Bank of America, Citigroup And JPMorgan Chase Agree To

Set Up $75-Billion Fund To Stabilize Credit Markets

IMF has cautioned India the curbing capital too much could undermine confidence in

country's very brilliant economy with congregates beyond itself

VISA hopes raising $10 billion in what would be the second largest initial public offering

of stock in US history

US banks including Citigroup, Morgan Stanley, Merill Lynch is booking losses in subprime

mortgage related assets

16th NOV 2007

Volume 1, Issue 6

..Tracking the Economy

Great companies in the way they work, start with great leaders . Steve Ballmer

Issue Attractions

NationalHeadlines

1

InternationalHeadline

1

CorporateInterview

2

Quiz 2

Guest Editorial 3

Student Editorial 3

Pearls of Wisdom 4

15 days Movements

CHAANAKYACHAANAKYACHAANAKYACHAANAKYAWealth Incorporation - A CCIM Finance Club Initiative Presents

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Excerpts of Warren Buffets Interview Contdfrom last

Quiz

Wall street people learn nothing and forget everything . Benjamin Graham

1. Who was the two CEOs to lose their job recently due to the sub prime reason?

2. Andrew Cuomo, New York Attorney General sued First American Corp, the largest US Title Insurer for allegedlyinflating home values under pressure from ______________.

3. After signing an agreement with Renault, Indias second largest motorcycle maker Bajaj Auto has picked up 14.5% stain________.

4. A weather based crop insurance scheme (WBCIS) is being launched in various states through Agriculture CICICI Lombard General Insurance and ____________.

5. The first Scrip to be banned from Nifty Futures Trading is

(Answers will be published in the next issue)

Answers to the previous issue 1. Sony 2. Reebok 3. NYSE 4. FIDO 5. Priyanka Gandhi

You often talk about the importance of investing only with people you like, trust and admi

However, you've bought companies only days after you became aware of them. How do y

evaluate the owners and managers of a company before investing?

After mentioning that hes actually bought companies after only brief telephone conversations, Mr. Buff

admitted that every now and then you miss, but added that its better than the odds of marriage. He we

on to say that sometimes you size up people better with more time, but he didnt sound like he needed mu

time to recognize the type of character he looks for.

The key question for him when evaluating the management of a potential acquisition target is do they love t

money or the business. His concern is that he monetizes the owner/managers wealth and that may cause t

latter, if he doesnt truly love the business, not to work as hard after hes sold out to Berkshire. He said

looks for the obvious cases of owners who truly love their businesses and added that hes mostly be

successful (has had a good batting average) in identifying them.

For those owners, their businesses are their lifes work, which Mr. Buffett compared to a painting: You spe

all your life painting this painting. You can sell it to us and see it hanging in a place of honor in a museum.

you can sell it to an LBO operator and see it hanging in a porn shop. I once bought a jewelry business ov

the phone. I could tell that the current owner was the right type of person. The owners great grandfather hstarted the company and I could tell that the owner really loved the business.

Mr. Buffett said that he can usually "size someone up in less than a day". The most import question he poses

buying a business and looking at management is, do they love the business? He phrased it in this way:

you spend your whole life painting a picture would you rather have that painting on exhibit at the Metropolit

Museum of Art, or would you rather earn 5% more on the sale of the painting and have it hanging in a po

shop? He has had a great batting average in picking companies and people. But he says that we cant t

with everyone and once in a while we make a mistake.

On his fears about US dollar weakness:

The dollar is not overvalued on a purchasing power basis. Macroeconomics is not our usual game, however

some economic facts are screaming at us, we jump on them. We don't usually do junk bonds, however if y

cast your eye about, you can always find deals. I don't feel like doing macro bets as much with other people

money as my own. We work with big currencies-- eight of them. I don't have a view about which will mo

most against the dollar. My view is that the dollar will weaken. Countries support their own currency-- Jap

wanted to keep their currency down which kept the US currency up. I don't know if China or HK will decou

their currency from the US. I like to have earnings in other currencies because they convert into more dolla

however I keep most of our cash in dollars. Contd. To next issue)

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Did you Know?

$26.8 billion (Rs. lakh crores) was inward remittances fIndians working overin 2006-2007, up f$2.1 billion in 1990-91

STERLITE INDUSTRIES

BSE-500900 , NSE STER

CMP- Rs.991.65

TARGET PRICE- Rs.1209

DLF,

BSE-532868 , NSE DLF

CMP-Rs.927.9TARGET PRICE- Rs.990

PARADYNE INFOTECH

BSE-532672, NSE PARADY

CMP- Rs.267.3

TARGET PRICE- Rs.352

BHEL,

BSE-500103, NSE BHEL

CMP- Rs.2724

TARGET PRICE- Rs.3117

(CMP Current Market Pr

Stock Ratnas

I would like to tell people that all of our products and business will go through three phases. Theresvision, patience, and execution Steve Ballmer

The entire financial sector of India was looking at October 30 th as to what will come out of

the RBIs kitty i.e. its monetary policy. The market affected by slowing demand in the

housing, automobile and electronics expected to maintain the status quo or else give them

respite by a rate cut, but the RBI had something else in mind. The Governor responded by

a 50 basis point increase in CRR. The banks which expected a rate cut have already

reduced rates across its portfolio of loans but they will now be forced the do the reverse.

The RBI says that it did it to contain inflation, reduces effect of a expected rate cut by fed

and Chinese inflation. In return it has offered is offering corporate with hedging options

and introducing new instruments for managing inflows.

In all this what can be said is that the people who will be affected is the persons who were

waiting for a rate cut to buy a house or a car. The corporate results of Q2 which showed

strong upward rise might be affected by a dip in demand which the corporates had

managed to avoid in this quarter. So this might dampen the corporate results. The

question is if the Fed decreases the rate was the decision right? Well that has to be seen in

the coming days.

Was the timing right ?By Gopal Pai M

Did you Know?

An ATM was set upMcMurdo Station Antarctica in 1997. It installed using satecommunications.

The original name of Bof America was BanItaly.

Over 100,000:

num be r o f domillionaires in India.

Four Ways To Create Savings Contd .. from lastBy Mathew A Thomas

Savings Creator #1: Pay Yourself First, Savings Creator #2: Your Future in a Peanut Can

Savings Creator #3: Spend Your Way to Wealth

Many people fail to save because they simply dont want to stop spending. Fine. Keep

spending. In fact, Just change what you spend your money on:

Instead of buying a bottle of ketchup, buy Heinz stock. Instead of buying a gallon of gas, buystock in Reliance gas. Instead of a six-pack of soda, buy shares of Coca-Cola. That new brand

of clothes? Try stock in Arvind Mills instead.

So go ahead and spend your money. But instead of buying things that later will have no value

(like an empty ketchup bottle or a vacation), or virtually no value (like costume jewelry,

clothing, or furniture), make sure the things you buy will retain and even grow in value.

Remember: Life is a series of choices. Im not telling you to stop spending money, merely to

choose how you spend it

Savings Creator #4: The Right Way to Use Supermarket Coupons

If youre like most people, you clip coupons. And you redeem them at your local

supermarket. And if youre like most people, youre doing it wrong.Think about it: The coupon in your pocket says SAVE ONE DOLLAR.

Maybe you dont get my point. Say youre headed to the grocery store to buy $50 worth of

food and household goods. You have $50 in your pocket, along with a dollar off coupon that

you can redeem against an item you need to buy. When you leave the store, you will have

either: fifty dollars worth of items, and one dollar in your pocket or $51 worth of stuff, and no

money left because you spent it all!

Although the former is how youre supposed to handle coupons, the latter is more likely how

you are handling them. If youre smart, youll spend $49 and SAVE ONE DOLLAR by placing it

into your peanut can before you even leave for the store! (See Savings Creator #1.)

Did you Know?

In 1976, 14 bamerged to form a bcred i t card ca Mastercharge. Thisl a t e r r enamed Mastercard.

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How to prepare for Pipal Research?

1) Preliminary screening done by the Pipateam based on resume and academics

2) Three rounds of interview-comprises

2 tech interview

3rd Being HR which tours the stability ofcandidate

Suggestion

Choose company profile based on area ofinterest.

Pearls Of Wisdom

Suresh K

Company: Pipal research

Designation: Research trainee

Profile: Business Analyst

Engages in company specific analysis asrequested by the client ,collecting information from

various sources and analyse it to generate the report

Please mail your valuable feedbacks, reviews at chaanakya.ccim@gmail.com

Buzz Word

Corner the act of securing enough controlling interest or

ownership within a single security so that manipulation of price

can occur.

Froth Market conditions preceding an actual market bubblewhere asset prices become detached from their underlying

intrinsic values as demand for those assets drives their prices to

unsustainable levels. Market froth marks the beginning of

unsustainable rates of asset price inflation.

Grinder A slang term for a person who works in the

investment industry and makes small amounts of money at a

time on small investments, over and over again.

Book Quotes:

If you want your organization to make quantumleaps in progress, you should establish focuseteams toward well-defined goals, and cultivatethe spirit in these teams to the max! (Book: ThQuantum Leap Strategy)

When confronted with a problem: don't g

paranoid, but analyze the gist of it, and tackle

systematically. Problems are the forebears

change, and change is inevitable, remembe

(Book: Zap the Gaps)

Recognise these People:

(Answer will be published in the next issue)

a. Budapest Bank b. China Mobile

c. Bank of New York d. NABARD e. Reuters

f. I gate g. Centurion Bank

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Contributions made by :

Usha V MurthyBhavana KatarukaAnshu AwasthiSimi ThomasLohit GEricAnand NeerajAjay Dhuvri

Gopal Pai M

Ritesh VermaDiwakar Grover (1st yr)Manish Sinha (1st yr)Mathew A Thomas