Edward Gubelin and John Koivula are considered god fathers of inclusion studies + their views should be an inspiring note (s) for newcomers in the field of inclusions studies.
Edward Gubelin / John Koivula writes:
From the tiny grains of beach sand the pebbles under out feet…to the glittering gemstones found decorating museums worldwide…..they all have something in common. They have a story to tell. The story of earth formation.
Through the microscopes this story unfolds as the kaleidoscopic world of gemstone inclusions comes to life. Solid crystal inclusions, glowing under polarized light, blink and change color as their host is turned in the field of view. Trapped in voids of crystallization called negative crystals, gas bubbles, propelled by thermally generated convection currents, shrink, swell, and even disappear as they dance about in small volumes of liquid, millions or even billions of years old. These solid and fluid inclusions, together with such additional internal features as twinning, cleavage, fracture, zoned growth and strain, like the components of a complex puzzle, help inclusionists to piece together a gemstone’s life history.
The study of gemstone inclusions is a fascinating and highly educational tangent in the field of gemology. A great deal of information on the paragenetic birth of a host gem can be learned from a single microscopic inclusion. Often times, to a trained eye, an internal inclusion pattern will yield valuable information on the physical and chemical environment of the host at the time of its growth. This will lead in turn to a greater knowledge of that particular type of gemstone deposit, and other localities at which the host has been found. Information on gemstone environments gleaned from the study of inclusions may lead eventually to the discovery of new gem deposits.
In many cases, inclusions in certain gemstones from particular localities are characteristic for that gemstone and locality. Natural and synthetic stones can often be identified by their characteristic inclusions. Many possess inclusions common only to them. If these inclusions are recognized the gem can be identified and often times, if natural, even the locality may be determined.
Mineral formational sequences at a particular locality may also be learned from a study of the inclusions found in the gems from that locality. Thank to research work on crystal and fluid inclusions, one can for instance exactly identify the inner and outer generational paragenesis of quartz from alpine clefts, of emeralds of hydrothermal origin from Colombia, and of metamorphic rubies from Mogok in Burma.
Since the advent of synthetic materials in the gemstone market, inclusions have been playing a major role in the field of gemstone identification. This role is becoming increasingly important as new and better synthetics, simulants and treatments are discovered, commercially developed and placed on the market. However, in spite of their importance, many gemologists still consider inclusions as undesirable flaws, and do not recognize the true beauty of mineral inclusions or the important information they provide.
In the world of gemology, thousands of dollars may hand in the balance where the identity of an inclusion pattern as to natural or synthetic—or even as to its source—is the only deciding factor. A knowledge of inclusions is vital in the jewelry industry today.
The gemologists of the future will be greatly dependant on a very strong knowledge of inclusions. As the synthetic materials become more sophisticated, and the laboratories find that they can duplicate nature very closely, the microscope will become the gemologist’s first line of defence, and a sound working knowledge of the various types of inclusions in gems will be of utmost importance.
Saturday, June 23, 2007
Will Diamdel Become A Mini-Enron?
Chaim Even-Zohar writes about a potential Enron-type situations at Diamdel + behind the scene actors at De Beers + Mark Colao + revision of policy decisions at De Beers + other viewpoints @ http://www.idexonline.com/portal_FullEditorial.asp
Everything Is Miscellaneous
(via Emergic) Rajesh Jain writes:
Cory Doctorow wrote in a review of the book:
David Weinberger's "Everything is Miscellaneous" is the kind of book that binds together innumerable miscellaneous threads and makes something new, coherent, and incontrovertible out of them. Weinberger's thesis is this: historically, we've divided the world into categories, topics, and hierarchies because physical objects need to be in one place or another, they can't be in all the places they might belong. Computers and the Internet turn this on its head: because a computer can "put things" in as many categories as they need to be in, because individuals can classify knowledge, tasks, and objects idiosyncratically, the hierarchy is revealed for what it always was, a convenient expedient masquerading as the True Shape of the Universe.
It's a powerful idea: from org charts to science, from music to retail theory, from government to education, every field of human endeavor is tinged with hierarchy, and every hierarchy is under assault from the Internet. One impact of this change is that it reveals the biases lurking underneath the editorial carvery of our systems. From the Dewey Decimal system's laughable clunkers (mentalist bunkum gets its own category, but Islam has to share a decimal with a couple competing "Eastern" faiths) to the Britannica's paring away at "old" biographies to make way for the new, Weinberger makes a compelling case for a new kind of knowledge that more faithfully represents the messy, glorious hairball of the real world. ... Weinberger's conversational style, excellent examples, and extensive legwork (the places he visits and people he interviews can best be described as wonderfully miscellaneous) give this the hallmarks of an instant classic. And unlike many business/tech books, whose simple thesis could be stated in a single New Yorker article, but which are nevertheless expanded to book-length for commercial reasons, every chapter in Everything is Miscellaneous brings new insight to the subject. This is a hell of a book.
Here is an excerpt from the book's prologue:
-The alternative universe exists. Every day, more of our life is lived there. It’s called the digital world.
-Instead of atoms that take up room, it’s made of bits.
-Instead of making us walk long aisles, in the digital world everything is only a few clicks away.
-Instead of having to be the same way for all people, it can instantly rearrange itself for each person and each person’s current task.
-Instead of being limited by space and operational simplicity in the number of items it can stock, the digital world can include every item and variation the buyers at Staples could possibly want.
-Instead of items being placed in one area of the store, or occasionally in two, they can be classified in every different category in which users might conceivably expect to find them.
-Instead of living in the neat, ordered shelves we find in the Prototype Labs, items can be jumbled digitally and sorted out only when and how a user wants to look for them.
Those differences are significant. But they’re just the starting point. For something much larger is at stake than how we lay out our stores. The physical limitations that silently guide the organization of an office supply store also guide how we organize our businesses, our government, our schools. They have guided—and limited—how we organize knowledge itself.
From management structures to encyclopedias, to the courses of study we put our children through, to the way we decide what’s worth believing, we have organized our ideas with principles designed for use in a world limited by the laws of physics.
Suppose that now, for the first time in history, we are able to arrange our concepts without the silent limitations of the physical. How might our ideas, organizations, and knowledge itself change? ... As we invent new principles of organization that make sense in a world of knowledge freed from physical constraints, information doesn’t just want to be free. It wants to be miscellaneous.
I liked it.
Cory Doctorow wrote in a review of the book:
David Weinberger's "Everything is Miscellaneous" is the kind of book that binds together innumerable miscellaneous threads and makes something new, coherent, and incontrovertible out of them. Weinberger's thesis is this: historically, we've divided the world into categories, topics, and hierarchies because physical objects need to be in one place or another, they can't be in all the places they might belong. Computers and the Internet turn this on its head: because a computer can "put things" in as many categories as they need to be in, because individuals can classify knowledge, tasks, and objects idiosyncratically, the hierarchy is revealed for what it always was, a convenient expedient masquerading as the True Shape of the Universe.
It's a powerful idea: from org charts to science, from music to retail theory, from government to education, every field of human endeavor is tinged with hierarchy, and every hierarchy is under assault from the Internet. One impact of this change is that it reveals the biases lurking underneath the editorial carvery of our systems. From the Dewey Decimal system's laughable clunkers (mentalist bunkum gets its own category, but Islam has to share a decimal with a couple competing "Eastern" faiths) to the Britannica's paring away at "old" biographies to make way for the new, Weinberger makes a compelling case for a new kind of knowledge that more faithfully represents the messy, glorious hairball of the real world. ... Weinberger's conversational style, excellent examples, and extensive legwork (the places he visits and people he interviews can best be described as wonderfully miscellaneous) give this the hallmarks of an instant classic. And unlike many business/tech books, whose simple thesis could be stated in a single New Yorker article, but which are nevertheless expanded to book-length for commercial reasons, every chapter in Everything is Miscellaneous brings new insight to the subject. This is a hell of a book.
Here is an excerpt from the book's prologue:
-The alternative universe exists. Every day, more of our life is lived there. It’s called the digital world.
-Instead of atoms that take up room, it’s made of bits.
-Instead of making us walk long aisles, in the digital world everything is only a few clicks away.
-Instead of having to be the same way for all people, it can instantly rearrange itself for each person and each person’s current task.
-Instead of being limited by space and operational simplicity in the number of items it can stock, the digital world can include every item and variation the buyers at Staples could possibly want.
-Instead of items being placed in one area of the store, or occasionally in two, they can be classified in every different category in which users might conceivably expect to find them.
-Instead of living in the neat, ordered shelves we find in the Prototype Labs, items can be jumbled digitally and sorted out only when and how a user wants to look for them.
Those differences are significant. But they’re just the starting point. For something much larger is at stake than how we lay out our stores. The physical limitations that silently guide the organization of an office supply store also guide how we organize our businesses, our government, our schools. They have guided—and limited—how we organize knowledge itself.
From management structures to encyclopedias, to the courses of study we put our children through, to the way we decide what’s worth believing, we have organized our ideas with principles designed for use in a world limited by the laws of physics.
Suppose that now, for the first time in history, we are able to arrange our concepts without the silent limitations of the physical. How might our ideas, organizations, and knowledge itself change? ... As we invent new principles of organization that make sense in a world of knowledge freed from physical constraints, information doesn’t just want to be free. It wants to be miscellaneous.
I liked it.
Microscopic Art Fetches Millions
An inspiring story. I wish someone could do the same with gemstone inclusions.
Todd Jatras writes :
ABC News has a great video interview with British micro-artist Willard Wigan, who uses a high-powered microscope and claims he has to slow his heart down in order to work between beats, creating the world's smallest sculptures. Wigan uses tiny homemade tools and paints with “a hair plucked from a fly’s back.” Check out works of his such the eye-of-a-needle Wizard of Oz scene (pictured left), dolls the size of a human blood cell and Charlie Chaplin balanced on a human eyelash. Wigan turned to micro art as a young child humiliated at school because of learning disabilities and says that he still can’t read or write. A major collection of his work recently sold for $20 million.
More info @ http://blog.wired.com/underwire/2007/06/microscopic-art.html
Todd Jatras writes :
ABC News has a great video interview with British micro-artist Willard Wigan, who uses a high-powered microscope and claims he has to slow his heart down in order to work between beats, creating the world's smallest sculptures. Wigan uses tiny homemade tools and paints with “a hair plucked from a fly’s back.” Check out works of his such the eye-of-a-needle Wizard of Oz scene (pictured left), dolls the size of a human blood cell and Charlie Chaplin balanced on a human eyelash. Wigan turned to micro art as a young child humiliated at school because of learning disabilities and says that he still can’t read or write. A major collection of his work recently sold for $20 million.
More info @ http://blog.wired.com/underwire/2007/06/microscopic-art.html
Friday, June 22, 2007
Opal Star Triplet
Star opals also exist and are similar to the cat’s eye opals. This is not true asterism, but instead results from fault planes within the opal. Two kinds of stars are seen—three-rayed stars and six-pointed stars. The material is used in the making of triplets and comes from Idaho (USA).
U.S. Tax Officials: Biting Without Teeth...
Chaim Even-Zohar writes about diamond industry specific anti-money laundering and anti-terrorism financing legislation (AML/CFT) + the practical difficulties in the implementation + U.S government's lack of skills, manpower, expertise and the tools to audit the diamond and jewelry industry + other viewpoints @ http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27001
The Spot Method
For normal use with the refractometer, the stone being tested should have a well-polished flat facet. In 1948, Lester Brown developed a technique which enables the gemologist to make refractive index readings on cabochons or stones with extremely small facets, which up until that time was not possible. The technique is known as the spot method or distant vision technique and works as follows:
- Remove the eyepiece and use white light.
- Put a very small drop of liquid onto the center of the hemisphere. Very gently place the stone onto the drop and then examine the scale.
- If the drop outline covers more than two or three scale divisions it is too large and the reading will not be accurate. The size of the spot should be reduced by picking up the stone, wiping the liquid off the stone, and putting it back down on the remaining amount of liquid still on the hemisphere.
- When the spot is no longer than three scale divisions, the head should be moved up and down the scale. The spot will go from dark to light as you move your head down the scale. The point should be found where the spot appears exactly half light and half dark. This is where the reading is made.
- Sometimes the spot changes so quickly from dark to light that the half position can not be seen. If it is dark at 1.58 and light at 1.60, the refractive index can be estimated at about 1.59.
The readings obtained using the spot method may be unclear and hazy. This may be due to the stone being poorly polished. In order to insure that the reading will be as sharp and clear as possible, it is good idea to examine the stone carefully to find the smoothest and best polished area. Then, that area should be put in contact with the hemisphere instead of a dull or scratched area. This will make a big difference in the accuracy of the initial reading. The first thing to do is to remove some liquid to sharpen the division. If the reading is still unclear then a rough estimate must be made, keeping in mind that it will only be accurate to plus or minus a few scale divisions.
- Remove the eyepiece and use white light.
- Put a very small drop of liquid onto the center of the hemisphere. Very gently place the stone onto the drop and then examine the scale.
- If the drop outline covers more than two or three scale divisions it is too large and the reading will not be accurate. The size of the spot should be reduced by picking up the stone, wiping the liquid off the stone, and putting it back down on the remaining amount of liquid still on the hemisphere.
- When the spot is no longer than three scale divisions, the head should be moved up and down the scale. The spot will go from dark to light as you move your head down the scale. The point should be found where the spot appears exactly half light and half dark. This is where the reading is made.
- Sometimes the spot changes so quickly from dark to light that the half position can not be seen. If it is dark at 1.58 and light at 1.60, the refractive index can be estimated at about 1.59.
The readings obtained using the spot method may be unclear and hazy. This may be due to the stone being poorly polished. In order to insure that the reading will be as sharp and clear as possible, it is good idea to examine the stone carefully to find the smoothest and best polished area. Then, that area should be put in contact with the hemisphere instead of a dull or scratched area. This will make a big difference in the accuracy of the initial reading. The first thing to do is to remove some liquid to sharpen the division. If the reading is still unclear then a rough estimate must be made, keeping in mind that it will only be accurate to plus or minus a few scale divisions.
Everything Is Miscellaneous
This concept may work wonders in the gem and jewelry industry if executed appropriately.
(via Emergic) Rajesh Jain writes:
I have followed David Weinberger's blog for a long time. So, it was natural to want to read his new book “Everything is Miscellaneous: The Power of the New Digital Disorder.” David's two previous books include “The Cluetrain Manifesto” (as co-author) and “Small Pieces Loosely Joined.”
From the book's inside flap:
Human beings are information omnivores: we are constantly collecting, labeling, and organizing data. But today, the shift from the physical to the digital is mixing, burning, and ripping our lives apart. In the past, everything had its one place--the physical world demanded it--but now everything has its places: multiple categories, multiple shelves. Simply put, everything is suddenly miscellaneous.
In Everything Is Miscellaneous, David Weinberger charts the new principles of digital order that are remaking business, education, politics, science, and culture. In his rollicking tour of the rise of the miscellaneous, he examines why the Dewey decimal system is stretched to the breaking point, how Rand McNally decides what information not to include in a physical map (and why Google Earth is winning that battle), how Staples stores emulate online shopping to increase sales, why your children’s teachers will stop having them memorize facts, and how the shift to digital music stands as the model for the future in virtually every industry. Finally, he shows how by "going miscellaneous," anyone can reap rewards from the deluge of information in modern work and life.
From A to Z, Everything Is Miscellaneous will completely reshape the way you think--and what you know--about the world.
This is what David wrote in an essay on Amazon:
As businesses go miscellaneous, information gets chopped into smaller and smaller pieces. But it also escapes its leash--adding to a pile that can be sorted and arranged by anyone with a Web browser and a Net connection. In fact, information exhibits bird-like "flocking behavior," joining with other information that adds value to it, creating swarms that help customers and, ultimately, the businesses from which the information initially escaped.
For example, Wize.com is a customer review site founded in 2005 by entrepreneur Doug Baker. The site provides reviews for everything from computers and MP3 players to coffee makers and baby strollers. But why do we need another place for reviews? If you’re using the Web to research what digital camera to buy for your father-in-law, you probably feel there are far too many sites out there already. By the time you have scrolled through one store’s customer reviews for each candidate camera and then cross-referenced the positive and the negative with the expert reviews at each of your bookmarked consumer magazines, you have to start the process again just to remember what people said. Wize in fact aims at exactly that problem. It pulls together reviews from many outside sources and aggregates them into three piles: user reviews, expert reviews (with links to the online publications), and the general "buzz." (For shoppers looking for a quick read on a product, Wize assigns an overall ranking.) When Wize reports that 97 percent of users love the Nikon D200 camera, it includes links to the online stores where the user reviews are posted, so customers are driven back to the businesses to spend their money.
Wize...[makes] money by selling advertising, but their value is in the way their sites aggregate the miscellaneous--letting lots of independent sources flock together, all in one place. We’re seeing the same trend in industry after industry, including music, travel, and the news media. Information gets released into the wild (sometimes against a company’s will), where it joins up with other information, and the act of aggregating adds value. Companies lose some control, but they gain market presence and smarter customers. The companies that are succeeding in the new digital skies are the ones that allow their customers to add their own information and the aggregators to mix it up, because whether or not information wants to be free, it sure wants to flock.
(via Emergic) Rajesh Jain writes:
I have followed David Weinberger's blog for a long time. So, it was natural to want to read his new book “Everything is Miscellaneous: The Power of the New Digital Disorder.” David's two previous books include “The Cluetrain Manifesto” (as co-author) and “Small Pieces Loosely Joined.”
From the book's inside flap:
Human beings are information omnivores: we are constantly collecting, labeling, and organizing data. But today, the shift from the physical to the digital is mixing, burning, and ripping our lives apart. In the past, everything had its one place--the physical world demanded it--but now everything has its places: multiple categories, multiple shelves. Simply put, everything is suddenly miscellaneous.
In Everything Is Miscellaneous, David Weinberger charts the new principles of digital order that are remaking business, education, politics, science, and culture. In his rollicking tour of the rise of the miscellaneous, he examines why the Dewey decimal system is stretched to the breaking point, how Rand McNally decides what information not to include in a physical map (and why Google Earth is winning that battle), how Staples stores emulate online shopping to increase sales, why your children’s teachers will stop having them memorize facts, and how the shift to digital music stands as the model for the future in virtually every industry. Finally, he shows how by "going miscellaneous," anyone can reap rewards from the deluge of information in modern work and life.
From A to Z, Everything Is Miscellaneous will completely reshape the way you think--and what you know--about the world.
This is what David wrote in an essay on Amazon:
As businesses go miscellaneous, information gets chopped into smaller and smaller pieces. But it also escapes its leash--adding to a pile that can be sorted and arranged by anyone with a Web browser and a Net connection. In fact, information exhibits bird-like "flocking behavior," joining with other information that adds value to it, creating swarms that help customers and, ultimately, the businesses from which the information initially escaped.
For example, Wize.com is a customer review site founded in 2005 by entrepreneur Doug Baker. The site provides reviews for everything from computers and MP3 players to coffee makers and baby strollers. But why do we need another place for reviews? If you’re using the Web to research what digital camera to buy for your father-in-law, you probably feel there are far too many sites out there already. By the time you have scrolled through one store’s customer reviews for each candidate camera and then cross-referenced the positive and the negative with the expert reviews at each of your bookmarked consumer magazines, you have to start the process again just to remember what people said. Wize in fact aims at exactly that problem. It pulls together reviews from many outside sources and aggregates them into three piles: user reviews, expert reviews (with links to the online publications), and the general "buzz." (For shoppers looking for a quick read on a product, Wize assigns an overall ranking.) When Wize reports that 97 percent of users love the Nikon D200 camera, it includes links to the online stores where the user reviews are posted, so customers are driven back to the businesses to spend their money.
Wize...[makes] money by selling advertising, but their value is in the way their sites aggregate the miscellaneous--letting lots of independent sources flock together, all in one place. We’re seeing the same trend in industry after industry, including music, travel, and the news media. Information gets released into the wild (sometimes against a company’s will), where it joins up with other information, and the act of aggregating adds value. Companies lose some control, but they gain market presence and smarter customers. The companies that are succeeding in the new digital skies are the ones that allow their customers to add their own information and the aggregators to mix it up, because whether or not information wants to be free, it sure wants to flock.
Thursday, June 21, 2007
Opal Cat’s Eye Triplet
Cat’s eye opals are not chatoyant in the ordinary sense of the word. Instead the eye is simply a single streak of color across the stone due to parallel fault planes within the opal. The material is normally made into triplets as the quartz dome magnifies the effect.
The New Friends Of De Beers
Chaim Even-Zohar writes about the perception of De Beer's Chairman/Managing Director by the local establishment press + the chain of events + the new concept of State Diamond Trader + the new way of doing business + other viewpoints @ http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27042
US$10m For A Rock In A Bay
I have known David Glickman for nearly two decades, and he is a unique + one-of-a-kind gem dealer in Bangkok, Thailand. He has a good sense of humor; I would call him the Woody Allen of the gem and jewelry business. I wish him all the best of luck finding a buyer for his island.
(via AP) Nation writes:
If you have ever wanted to own a piece of San Francisco Bay, now is your chance. Red Rock, the only privately owned island in the bay, is up for sale. But it is well beyond most pocketbooks.
David Glickman, a Bangkok-based gems dealer and attorney, wants US$10 million (Bt346 million) for the 5.8-acre, uninhabited island in the shadow of the Richmond-San Rafael Bridge.
"It's time to sell. I'm not going to live much longer. I'm almost 78. My wife is Thai, highly educated, and I'd like to leave her in good finances," Glickman said.
Red Rock Island, which gets its name from the reddish-brown color of its soil, was privately purchased in the 1920s. After a few owners, Glickman, then practicing law in San Francisco, bought it sight unseen in 1964 for $49,500.
It is located about 13 kilometers north of San Francisco's famed Fisherman's Wharf at a point where the San Francisco, Marin and Contra Costa counties converge.
"At the time, I thought I'd sell it. The island has a good spot for a marina, and it's in the bay, so the marina would be useful," he said. "But each time I thought I was going to sell it, something happened to make it worth more money."
Settled for good in Thailand, Glickman has so far refused to drop the asking price or consider donating it for conservation purposes.
More info @ http://www.nationmultimedia.com/2007/06/20/headlines/headlines_30037353.php
(via AP) Nation writes:
If you have ever wanted to own a piece of San Francisco Bay, now is your chance. Red Rock, the only privately owned island in the bay, is up for sale. But it is well beyond most pocketbooks.
David Glickman, a Bangkok-based gems dealer and attorney, wants US$10 million (Bt346 million) for the 5.8-acre, uninhabited island in the shadow of the Richmond-San Rafael Bridge.
"It's time to sell. I'm not going to live much longer. I'm almost 78. My wife is Thai, highly educated, and I'd like to leave her in good finances," Glickman said.
Red Rock Island, which gets its name from the reddish-brown color of its soil, was privately purchased in the 1920s. After a few owners, Glickman, then practicing law in San Francisco, bought it sight unseen in 1964 for $49,500.
It is located about 13 kilometers north of San Francisco's famed Fisherman's Wharf at a point where the San Francisco, Marin and Contra Costa counties converge.
"At the time, I thought I'd sell it. The island has a good spot for a marina, and it's in the bay, so the marina would be useful," he said. "But each time I thought I was going to sell it, something happened to make it worth more money."
Settled for good in Thailand, Glickman has so far refused to drop the asking price or consider donating it for conservation purposes.
More info @ http://www.nationmultimedia.com/2007/06/20/headlines/headlines_30037353.php
The Dhandho Investor
I liked the book.
(via Emergic) Rajesh Jain writes:
I attended a talk by Mohnish Pabrai a few years ago in Mumbai. He spoke about his philosophy of investing, which has been heavily influenced by Warren Buffet. But there were also some unique perspectives that he had. Now, Mohnish has written a book that every investor and entrepreneur must read: “The Dhandho Investor.” The subtitle “The Low-Risk Value Method to High Returns” could as easily have been “Heads I win, Tails I don't lose much.”
From the book's inside flap:
All investors are told that if you want to earn high rates of returns, you must take on greater risk. Of course, the groundbreaking value investing strategies of Benjamin Graham, Warren Buffett, and Charlie Munger have shown that it is indeed possible to keep risk to a minimum while still making a reasonable profit. The Dhandho method takes their successful approach to investing one step further and shows how you can actually maximize rewards while minimizing risk.
Dhandho (pronounced dhun-doe), literally translated, means "endeavors that create wealth." In The Dhandho Investor, Mohnish Pabrai demonstrates how the powerful Dhandho capital allocation framework of India's business-savvy Patels can be successfully applied and replicated by individual value investors in the stock market. The Patels, a small ethnic group from India, first began arriving in the United States in the 1970s as refugees with little education or capital.
Today, they own over $40 billion in motel assets in the United States, pay over $725 million a year in taxes, and employ nearly a million people. How did this small, impoverished group come out of nowhere and end up accumulating such vast resources? The answer lies in their low-risk, high-return approach to business: Dhandho. This book will show you how to use that same technique to generate high returns in the stock market.
Pabrai's hedge funds, Pabrai Investment Funds, have outperformed all of the major indices and over 99% of other managed funds. $100,000 invested with Pabrai in 1999 was worth over $659,000 by 2006—an annualized return of over 28% after all fees and expenses. In this book, Pabrai distills the methods of Buffett, Graham, and Munger into a user-friendly approach applicable to individual investors. Combining their legendary investing wisdom with the business acumen of the Patels, Pabrai lays out the Dhandho framework in an easy-to-use format that will help any investor significantly improve on their results and soundly beat the markets—as well as most professionals.
BloggingStocks writes in a review:
The key concept to glean from this book is the difference between uncertainty and risk. According to Pabrai, most investors don't understand the difference. Risk means the chance of a loss of capital. Uncertainty is the range of different outcomes. So a stock may have high uncertainty but may not be risky, if no one knows what will happen but the worst case scenario would not results in a huge loss. According to Pabrai, these investments provide the greatest opportunities for investors.
The Dhandho Investor is pretty lean for an investment book --183 pages with fairly large type. Consequently, it's short on specifics. You won't really learn about how to analyze stocks. But that's fine. There are hundreds of books for that. But Monish Pabrai has presented a compelling way of looking at investing and decision-making in general, and reading this book will likely benefit any investor.
Here is an outline of Mohnish Pabrai's Dhandho Framework which he discusses in detail in the book:
- Invest in Existing Businesses
- Invest in Simple Businesses
- Invest in Distressed Businesses in Distressed Industries
- Invest in Businesses with Durable Models
- Few Bets, Big Bets, Infrequent Bets
- Fixate on Arbitrage
- Margin of Safety - Always
- Invest in Low-Risk, High-Uncertainty Businesses
- Invest in the Copycats rather than the Innovators
(via Emergic) Rajesh Jain writes:
I attended a talk by Mohnish Pabrai a few years ago in Mumbai. He spoke about his philosophy of investing, which has been heavily influenced by Warren Buffet. But there were also some unique perspectives that he had. Now, Mohnish has written a book that every investor and entrepreneur must read: “The Dhandho Investor.” The subtitle “The Low-Risk Value Method to High Returns” could as easily have been “Heads I win, Tails I don't lose much.”
From the book's inside flap:
All investors are told that if you want to earn high rates of returns, you must take on greater risk. Of course, the groundbreaking value investing strategies of Benjamin Graham, Warren Buffett, and Charlie Munger have shown that it is indeed possible to keep risk to a minimum while still making a reasonable profit. The Dhandho method takes their successful approach to investing one step further and shows how you can actually maximize rewards while minimizing risk.
Dhandho (pronounced dhun-doe), literally translated, means "endeavors that create wealth." In The Dhandho Investor, Mohnish Pabrai demonstrates how the powerful Dhandho capital allocation framework of India's business-savvy Patels can be successfully applied and replicated by individual value investors in the stock market. The Patels, a small ethnic group from India, first began arriving in the United States in the 1970s as refugees with little education or capital.
Today, they own over $40 billion in motel assets in the United States, pay over $725 million a year in taxes, and employ nearly a million people. How did this small, impoverished group come out of nowhere and end up accumulating such vast resources? The answer lies in their low-risk, high-return approach to business: Dhandho. This book will show you how to use that same technique to generate high returns in the stock market.
Pabrai's hedge funds, Pabrai Investment Funds, have outperformed all of the major indices and over 99% of other managed funds. $100,000 invested with Pabrai in 1999 was worth over $659,000 by 2006—an annualized return of over 28% after all fees and expenses. In this book, Pabrai distills the methods of Buffett, Graham, and Munger into a user-friendly approach applicable to individual investors. Combining their legendary investing wisdom with the business acumen of the Patels, Pabrai lays out the Dhandho framework in an easy-to-use format that will help any investor significantly improve on their results and soundly beat the markets—as well as most professionals.
BloggingStocks writes in a review:
The key concept to glean from this book is the difference between uncertainty and risk. According to Pabrai, most investors don't understand the difference. Risk means the chance of a loss of capital. Uncertainty is the range of different outcomes. So a stock may have high uncertainty but may not be risky, if no one knows what will happen but the worst case scenario would not results in a huge loss. According to Pabrai, these investments provide the greatest opportunities for investors.
The Dhandho Investor is pretty lean for an investment book --183 pages with fairly large type. Consequently, it's short on specifics. You won't really learn about how to analyze stocks. But that's fine. There are hundreds of books for that. But Monish Pabrai has presented a compelling way of looking at investing and decision-making in general, and reading this book will likely benefit any investor.
Here is an outline of Mohnish Pabrai's Dhandho Framework which he discusses in detail in the book:
- Invest in Existing Businesses
- Invest in Simple Businesses
- Invest in Distressed Businesses in Distressed Industries
- Invest in Businesses with Durable Models
- Few Bets, Big Bets, Infrequent Bets
- Fixate on Arbitrage
- Margin of Safety - Always
- Invest in Low-Risk, High-Uncertainty Businesses
- Invest in the Copycats rather than the Innovators
Tips For Online Privacy
(via Livemint) Reuters writes:
Here are 10 ways to keep personal information secure when online:
Favour common sense over technological solutions. Keep personal documents safe, preferably in a locked drawer. Shred bank statements, credit card slips and bills before throwing them away.
If it’s too good to be true, it is. Never open spam messages. Delete emails offering cash, free gifts or stock tips. Millions of spam messages are sent every day in an attempt to defraud computer users.
Basic prevention helps. Protect your computer against identity theft. Install security software to combat viruses, spyware and spam and keep it updated.
Know enough about your firewall, the barrier between the public Internet and a personal computer, to know when it is working and when it isn’t. Don’t worry about the geeky complexity of it all, just know it’s operating.
Beware of phishing, where criminals trick people into revealing personal or financial details, often by sending emails purporting to be from a bank. Never casually reply to requests for your personal financial details.
Keep your private email addresses secure. Consider using different email accounts for shopping, banking, friends and work. There are many free account providers.
Do not use the same password for different sites. Choose passwords with a mix of letters, numbers and symbols. Don’t use obvious passwords, such as your first name or “123456” and don’t write them down. To make it easier to remember, choose a basic root word and then rotate numbers.
Make online payments safely. Never enter a card number unless there is a padlock in the Web browser’s frame, rather than the Web page. The Web address should begin with https—the extra “s” stands for “secure”. Consider reserving one credit card for Web use or signing up for a separate online payment service such as PayPal.
Secure your wireless network at home and be wary when using public access points. Encrypt the connection to scramble communications over the network. Turn off the wireless network when you’re not using it.
Treat your laptop like cash—never leave it in a locked car or turn your back while using it in a public place. The same holds true for your cellphone: Lock your phone (and any passwords you keep on it) when not using it.
More info @ http://www.livemint.com/2007/06/20002638/Tips-for-online-privacy.html
Here are 10 ways to keep personal information secure when online:
Favour common sense over technological solutions. Keep personal documents safe, preferably in a locked drawer. Shred bank statements, credit card slips and bills before throwing them away.
If it’s too good to be true, it is. Never open spam messages. Delete emails offering cash, free gifts or stock tips. Millions of spam messages are sent every day in an attempt to defraud computer users.
Basic prevention helps. Protect your computer against identity theft. Install security software to combat viruses, spyware and spam and keep it updated.
Know enough about your firewall, the barrier between the public Internet and a personal computer, to know when it is working and when it isn’t. Don’t worry about the geeky complexity of it all, just know it’s operating.
Beware of phishing, where criminals trick people into revealing personal or financial details, often by sending emails purporting to be from a bank. Never casually reply to requests for your personal financial details.
Keep your private email addresses secure. Consider using different email accounts for shopping, banking, friends and work. There are many free account providers.
Do not use the same password for different sites. Choose passwords with a mix of letters, numbers and symbols. Don’t use obvious passwords, such as your first name or “123456” and don’t write them down. To make it easier to remember, choose a basic root word and then rotate numbers.
Make online payments safely. Never enter a card number unless there is a padlock in the Web browser’s frame, rather than the Web page. The Web address should begin with https—the extra “s” stands for “secure”. Consider reserving one credit card for Web use or signing up for a separate online payment service such as PayPal.
Secure your wireless network at home and be wary when using public access points. Encrypt the connection to scramble communications over the network. Turn off the wireless network when you’re not using it.
Treat your laptop like cash—never leave it in a locked car or turn your back while using it in a public place. The same holds true for your cellphone: Lock your phone (and any passwords you keep on it) when not using it.
More info @ http://www.livemint.com/2007/06/20002638/Tips-for-online-privacy.html
Wednesday, June 20, 2007
Patch Adams
Memorable quote (s) from the movie:
Hunter Patch Adams (Robin Williams): All of life is a coming home. Salesmen, secretaries, coal miners, beekeepers, sword swallowers, all of us. All the restless hearts of the world, all trying to find a way home. It's hard to describe what I felt like then. Picture yourself walking for days in the driving snow; you don't even know you're walking in circles. The heaviness of your legs in the drifts, your shouts disappearing into the wind. How small you can feel, and how far away home can be. Home. The dictionary defines it as both a place of origin and a goal or destination. And the storm? The storm was all in my mind. Or as the poet Dante put it: In the middle of the journey of my life, I found myself in a dark wood, for I had lost the right path. Eventually I would find the right path, but in the most unlikely place.
Hunter Patch Adams (Robin Williams): All of life is a coming home. Salesmen, secretaries, coal miners, beekeepers, sword swallowers, all of us. All the restless hearts of the world, all trying to find a way home. It's hard to describe what I felt like then. Picture yourself walking for days in the driving snow; you don't even know you're walking in circles. The heaviness of your legs in the drifts, your shouts disappearing into the wind. How small you can feel, and how far away home can be. Home. The dictionary defines it as both a place of origin and a goal or destination. And the storm? The storm was all in my mind. Or as the poet Dante put it: In the middle of the journey of my life, I found myself in a dark wood, for I had lost the right path. Eventually I would find the right path, but in the most unlikely place.
Andean Opals
Blue and greenish blue opals from Peru have been on the market for more than three decades, but today there are also pink opals available that look like angel-skin corals.
Sunset Quartz
Here is an interesting story from Brazil. A vein of milky white quartz with yellow orange areas is marketed as sunset quartz.
Diamonds Homecoming In Botswana
Chaim Even-Zohar writes about The Republic of Botswana + its Diamond Independence Day, some 35 years after diamonds were discovered in the country + its new status as the largest diamond producer of the world by 2009 + the largest distributor of rough diamonds @ http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27083
Entrepreneurial Spirit
Another interesting perspective from a business pro.
(via Business Standard) Sriniketh Chakravarthi writes:
What they don't teach you at Business School.
It was many summers ago that I walked out of the campus of a well-known business school wearing the label of confidence that results from poring over numerous case studies, taking umpteen quizzes on management tools and techniques, sitting through myriad presentations on the latest management ideas, and living off the ration of instant noodles and chai customary at most B-schools.
In retrospect, my stint at B-school taught me several things, most important of which was the ability to develop a systematic approach to analysis and problem-solving. The B-school milieu also helped me develop skills to manage time, stress and the tyranny of percentile competition.
While B-schools do a great job of imparting hard technical skills, the emphasis on areas such as people management and everyday execution doesn’t seem to be adequate. However, the one key area where B-schools need to get their act together is around nurturing and developing a mindset oriented towards risk, entrepreneurship and creativity.
One indelible B-school memory that underscores the templatised mindset it creates in most students concerns campus placements. The whole ritual borders on mass hysteria. With students unwilling to walk on anything but the beaten path, choices get determined by a systematic caste system of grades and placement-day rankings that show scant regard for individual choices.
Why does this happen? One reason is that the competitive and unidirectional environment in B-schools offers little room for serious thought on making individual choices along various vectors such as the level of responsibility, goals and aspirations, social and family needs and so on.
Nor is there any emphasis on developing value systems around personal success, social role and integrity. Further, the enormity of focus in B-schools on the conventional rules of the game is entirely devoid of specific incentives for risk-taking and creativity.
Contrast that with the reality of the business environment, where big success is far more correlated to the ability to take entrepreneurial risks, even within the context of large organisations.
For instance, the recent successes of both entrepreneurs and managers in emerging businesses such as retail, telecom, BPO and media can be attributed to their ability to take early risks. Successful organisations want entrepreneurial leaders who are able to lead from the front and create value amidst uncertainty. In the context of risk-taking, learning to manage failure is also very important.
Indeed, B-schools produce very good analysts, number-crunchers and consultants. However, their transformation into entrepreneurial managers is tantamount to Darwinian evolution on the corporate planet, contingent on the right environment and, of course, the hunger to survive!
Sriniketh Chakravarthi graduated from IIM, Calcutta, in 1996
More info @ http://www.business-standard.com/common/storypage.php?autono=288100&leftnm=6&subLeft=0&chkFlg=
(via Business Standard) Sriniketh Chakravarthi writes:
What they don't teach you at Business School.
It was many summers ago that I walked out of the campus of a well-known business school wearing the label of confidence that results from poring over numerous case studies, taking umpteen quizzes on management tools and techniques, sitting through myriad presentations on the latest management ideas, and living off the ration of instant noodles and chai customary at most B-schools.
In retrospect, my stint at B-school taught me several things, most important of which was the ability to develop a systematic approach to analysis and problem-solving. The B-school milieu also helped me develop skills to manage time, stress and the tyranny of percentile competition.
While B-schools do a great job of imparting hard technical skills, the emphasis on areas such as people management and everyday execution doesn’t seem to be adequate. However, the one key area where B-schools need to get their act together is around nurturing and developing a mindset oriented towards risk, entrepreneurship and creativity.
One indelible B-school memory that underscores the templatised mindset it creates in most students concerns campus placements. The whole ritual borders on mass hysteria. With students unwilling to walk on anything but the beaten path, choices get determined by a systematic caste system of grades and placement-day rankings that show scant regard for individual choices.
Why does this happen? One reason is that the competitive and unidirectional environment in B-schools offers little room for serious thought on making individual choices along various vectors such as the level of responsibility, goals and aspirations, social and family needs and so on.
Nor is there any emphasis on developing value systems around personal success, social role and integrity. Further, the enormity of focus in B-schools on the conventional rules of the game is entirely devoid of specific incentives for risk-taking and creativity.
Contrast that with the reality of the business environment, where big success is far more correlated to the ability to take entrepreneurial risks, even within the context of large organisations.
For instance, the recent successes of both entrepreneurs and managers in emerging businesses such as retail, telecom, BPO and media can be attributed to their ability to take early risks. Successful organisations want entrepreneurial leaders who are able to lead from the front and create value amidst uncertainty. In the context of risk-taking, learning to manage failure is also very important.
Indeed, B-schools produce very good analysts, number-crunchers and consultants. However, their transformation into entrepreneurial managers is tantamount to Darwinian evolution on the corporate planet, contingent on the right environment and, of course, the hunger to survive!
Sriniketh Chakravarthi graduated from IIM, Calcutta, in 1996
More info @ http://www.business-standard.com/common/storypage.php?autono=288100&leftnm=6&subLeft=0&chkFlg=
MMTC To Set Up Jewellery SEZ
(via PTI) Economic Times writes:
Country's (India) largest gold importer MMTC Ltd has decided to join the SEZ bandwagon by setting up a gems and jewellery park in joint venture with a private player in the tax-free enclave. The company, which is under the Commerce Ministry, has started the hunt for a partner and initiated the process of a feasibility study.
"The location for the park is being finalised and it could come up at one of the sites in Orissa, West Bengal, Karnataka, Haryana or Delhi," a high level source told media.
For conducting the feasibility study, the company is in advanced stage of hiring a consultant who will establish the economic and technical viability of the project. For its gems and jewellery SEZ the company would require at least 10 hectares of land as per the Commerce Ministry guidelines.
As India's premier trader for precious metal, MMTC handles more than 100 tonnes of gold and 500 tonnes of silver. Its precious metals business contributes significantly to the total turnover of over three billion dollars. It also imports platinum, rough diamonds and coloured stones. The company is also planning to float another joint venture for its retail business. MMTC retail activities include franchise outlets, its own showrooms, selling medallions, jewellery and silver under Sanchi brand name.
It plans to launch Sanchi silverware in the export market as well, company sources said.
More info @ http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Fashion__CosmeticsJewellery/MMTC_to_set_up_jewellery_SEZ/articleshow/2125768.cms
Country's (India) largest gold importer MMTC Ltd has decided to join the SEZ bandwagon by setting up a gems and jewellery park in joint venture with a private player in the tax-free enclave. The company, which is under the Commerce Ministry, has started the hunt for a partner and initiated the process of a feasibility study.
"The location for the park is being finalised and it could come up at one of the sites in Orissa, West Bengal, Karnataka, Haryana or Delhi," a high level source told media.
For conducting the feasibility study, the company is in advanced stage of hiring a consultant who will establish the economic and technical viability of the project. For its gems and jewellery SEZ the company would require at least 10 hectares of land as per the Commerce Ministry guidelines.
As India's premier trader for precious metal, MMTC handles more than 100 tonnes of gold and 500 tonnes of silver. Its precious metals business contributes significantly to the total turnover of over three billion dollars. It also imports platinum, rough diamonds and coloured stones. The company is also planning to float another joint venture for its retail business. MMTC retail activities include franchise outlets, its own showrooms, selling medallions, jewellery and silver under Sanchi brand name.
It plans to launch Sanchi silverware in the export market as well, company sources said.
More info @ http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Fashion__CosmeticsJewellery/MMTC_to_set_up_jewellery_SEZ/articleshow/2125768.cms
Imitation Jewellery Continues To Shine Bright
(via Economic Times) Tapash Talukdar writes:
Lalabhai looks happy earning more than Rs 300-400 per day by making imitation jewellery. He, who has been making gold jewellery a year back, has joined an imitation jewellery unit. Thanks to the surging demand of imitation jewellery in the country and few overseas customers.
Like him, a large section of workers working at gold and silver jewellery units, have shifted their focus towards imitation jewellery. The fancy items have not only facilitated better wages for the workers, but also invited more family members into the growing business. Most of the 300-odd units of imitation jewellery, based at Ranchodnagar in Rajkot have found new business opportunities to display their creativity in making various kinds of products like necklace, bangles, chains, bracelets and other regular items. The daily wages for a worker has gone up significantly and has been decided on the basis of the day’s output. On an average, a worker earns Rs 10,000-20,000 per month against their regular income of around Rs 5,000.
Nearly 5,000 workers, including family members, are involved in making fancy items for their regular customers in Maharashtra, Uttar Pradesh, Rajasthan, Madhya Pradesh, Andhra Pradesh and other northern parts of India. More than 40 per cent of the total workforce comprises of women and the number is growing. The workers have been coming from various parts of the country, especially from West Bengal and Uttar Pradesh.
Narendra Mehta of Mahavir Jewellers said: “The product goes through five to six stages of manufacturing which is bound to give employment to as many units”.
More info @ http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Fashion__CosmeticsJewellery/Imitation_jewellery_continues_to_shine_bright/articleshow/2107511.cms
Lalabhai looks happy earning more than Rs 300-400 per day by making imitation jewellery. He, who has been making gold jewellery a year back, has joined an imitation jewellery unit. Thanks to the surging demand of imitation jewellery in the country and few overseas customers.
Like him, a large section of workers working at gold and silver jewellery units, have shifted their focus towards imitation jewellery. The fancy items have not only facilitated better wages for the workers, but also invited more family members into the growing business. Most of the 300-odd units of imitation jewellery, based at Ranchodnagar in Rajkot have found new business opportunities to display their creativity in making various kinds of products like necklace, bangles, chains, bracelets and other regular items. The daily wages for a worker has gone up significantly and has been decided on the basis of the day’s output. On an average, a worker earns Rs 10,000-20,000 per month against their regular income of around Rs 5,000.
Nearly 5,000 workers, including family members, are involved in making fancy items for their regular customers in Maharashtra, Uttar Pradesh, Rajasthan, Madhya Pradesh, Andhra Pradesh and other northern parts of India. More than 40 per cent of the total workforce comprises of women and the number is growing. The workers have been coming from various parts of the country, especially from West Bengal and Uttar Pradesh.
Narendra Mehta of Mahavir Jewellers said: “The product goes through five to six stages of manufacturing which is bound to give employment to as many units”.
More info @ http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Fashion__CosmeticsJewellery/Imitation_jewellery_continues_to_shine_bright/articleshow/2107511.cms
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