If Arunachalam is remade in the 21st century, it will go like this.
Arunachalam has to spend 30 crores in 30 days to earn 3000 crores.
So he picks the 100 worst shares and buys call options. Buys put options on 100 top shares
He expects his money to be wiped out in one day
The worst shares start performing and the good ones start dropping.
Suddenly Arunachalam's portfolio is worth more than the Original 3000 crores.
He takes the money, marries Vedavalli and walks off into the sunset.
Vishwanath, Kaliaperumal, Pratap and Kurian jump off a cliff.
Or
Arunachalam invests 30 crores in a disruptive startup, which is revolutionizing intra city canine mobility by disrupting their ambulation for 1% stake.
The startup burns thru the cash on customer acquisition cost, Arunachalam's value becomes 0, he walks away with 3000 crore.
As people pointed out, Arunachalam buys 36 variety of Crypto coins & 47 NFTs for 30 crore
At the end of 30 days, either the value becomes zero and he walks away with Vedavalli and 3000 crores
Or he sells the entire lot for more than 3000 crores, walks away with Vedavalli anyway
Finally, some smooth talking RM with a sales target, wrongly advises Arunachalam and makes him take massive leveraged positions in useless stocks.
Not only does he lose 30 crore, he also loses the 3000 crore to square them off
Now penniless, Arunachalam goes back to sell beeda
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Why does the govt of India still believe in running by decree and regulation of industry? Why don't they incentivize instead?
Instead of dictating auto companies to make 6 airbags mandatory, why doesn't the govt reduce taxes or give credits for manufacturers who build safe cars?
It's not as if incentivization doesn't work. When Karunanidhi wanted Tamil film industry to have Tamil titles, he did not pass a decree.
He said all movies with Tamil titles will get Entertainment tax waivers.
Till GST, no Tamil movie had other language name post that.
But somehow the Govt has to take a cue from the British Raj to run the country.
Put rules left right and center. Pass hundred decrees and regulations. Tax the hell out of industries. Drive up prices, make common people suffer.
Remember my thread about LHB coaches the other day and how they are safer?
Today there was distressing news about a Train accident In WB that took 5 lives
This tragedy happened because that train was running coaches designed in 1955, which in an accident, climb over one another
Most of the loss of life happens not because of the actual derailment, but because of coaches smashing into one another.
The LHB ones are telescopic in design and in a derailment, they don't overturn or climb over one another.
As a result there is no tragic loss of life.
We had this coaches since 2003. But because the previous govt decided that the cost of Indian lives was not worth the cost of the new Coach, they didn't do anything.
As a result, 50% of the trains still run on these relics, which deserve to be in a museum, not tracks.
Unpopular Opinion: No matter what you do in India, you can never uproot the traditional distribution networks in India, especially in FMCG. Any company which overlooks them and favours Udaan, Jiomart etc etc, is shooting themselves in the foot
No single company can cover the entire length and breadth of this country. TN alone has more than 1 Lakh retailers, of different sizes and values. You can homogenize all of them.
Traditional distribution does two very important things 1. Bulk Breaking 2. Giving Credit
And they can do that because of the area they serve. They know the credit worthiness of a retail outlet. They have familial or historical ties with them. Not only do they know how to give credit, but also how to get the money back.