Innovation: Low cost lamp

This is a variation of torch explained in previous post. Electronic circuitry is the same! Packaging is different and LED heads are filed to spread the light.

As compared to the torch, it uses plastic body specifically manufactured for this purpose. It makes you nostalgic, if you used similar shaped lamp powered by kerosine, in your childhood!

I got a sample for Rs.40 in Belgaum, Karnataka, during my recent visit to my native place.

Do you really need Eveready HomeLite (Sorry! Nu LITE) which is mainly created to boost sales of their batteries? Of course, you can't compare the illuminations of both but I feel, it is definitely not worth paying Rs.350/- for Eveready Nu LITE.

Innovation: Low cost torch

This is the most popular torch used by farmers in villages these days.

It involves elementary electronic circuit with one battery, one resistor, two LED lights and one switch, all put together in multi-purpose plastic box. It is assembled at shops/homes (home industries???).

It is light weight, small in size (slightly bigger than a match box) and hence carried in pockets.

Cost: Rs.20

Battery life: 50 hrs with very good constant brightness, followed by another 24 hrs with low brightness. I have verifed this myself by experimenting with one torch by keeping it on continuously until it dims down fully. I don't know the battery life for torch with incandescent bulb, but I guess it should be around 10hrs.

Myth: There is rumour that the battery can be recharged through solar energy. And hence, I have heard, people keep it in sun light to recharge! This myth is used as marketing strategy. The fact is the battery life is very high as compared to conventional torches with incandescent bulbs.

Note: Battery cost is Rs.10. It can be replaced once it is drained out.

Mindmap of Talk by Chetan Bhaghat

Click here for the transcript of the talk.

I was so much impressed by the talk that I created a mind map for easy and quick reference. I used FreeMind software (free) to create this.

Innovation: Agriculture: Placement of floor model water pump

There are two different types of sump pumps.
- A submersible sump pump can be placed below the water line.
- A floor model sump pump, on the other hand, sits at floor level.
Both water pumps work in the same manner, but submersible sump pumps handle larger quantities of water and can be fully submerged without any danger of electrical shortages.

In villages farmers use floor model for pumping water from open wells. I have noticed farmers facing an issue with this (Probably, its not issue at all for them because they have accepted and live with it). The pump should be closer to water level so that it can pump better. As water level decreases (towards summer season) and increases (in rainy season), the water pump needs to be shifted. It is done every year 3-4 times (or more depending on depth of well). It is quite laborious.

I found a solution for this problem, in a farm near Attur in Tamilnadu.

The solution is shown in the snaps above. The solution consists of mechanical structure. The pump is placed on a steel base hanged with steel rope. The pump level is adjusted by changing the length of rope using jack.

Theology, Philosophy, Osho's way

Entry from LiveJournal blog - 22 Sep 2008

Theology starts with belief, Philosophy starts with doubt
Theology involves believing something without questioning, Philosophy involves thinking.

All religions are based on theology. Example: Christianity believes Jesus resurrecting after death. Is it possible?. There is no person contempory to Jesus noted in history.

Osho's way is neither based on theology nor philosophy. It involves "search"/ "enquiry". Its a methodology for way of life.

Investing in stocks: My fundamental question got addressed!!!

Entry from LiveJournal blog - 25 Aug 2008

Click here for my question in an earlier post.

After chat with my friends Pramod and Reddy(mrpr, M Ravi Prakash Reddy), I got some clarifications.

- Reddy: In short term it is gambling!!! Its your choice to gamble or not, to make money or lose money.

- P/E of 10 means of 10 years of operation of business gives back returns in terms of EPS. If some other company wants to buy it, it would be expected to pay so much per share to acquire the company.

- Reddy: Our aim of seminars is clear [Note: We three did one seminar on fundamentals of investing in stocks on 31st May 2008, in Konark hotel, Bangalore]: We want to educate people taking them from "unknown to known". We can't change the mindset of people (say day trading) through our seminars. For changing mindset, workshops like Landmark Forum, courses from Bharat Chandra are required.

- If people are doing trading frequently just for capital gains without knowing how stock investing works, its their mistake. Its their responsibility to be aware of what they are doing, know the risks involved etc.

- Short term investors (day traders/speculators) do not really bother about company performance. They simply want to ride on the news (spilt, getting big contract,dividend announcements) that can give them short term profits.

- Long term investors: Think like business men. Share value of 100 with P/E of 10 means EPS of Rs.10 for ten years gives back my money. After that whatever I earn is profit. I would not bother like "EPS is not what I get as share holder, only part of it is what I get, may be its just 1-5% of share price" "Share value is simply jacked up by making P/E as significant among crowd of investor community etc - People are made to believe something is right value to buy, hold or sell"
Infosys bought Axon (UK) in all in cash deal for $750million = 2 times revenues in 2007 (operating margin = 15%) ==> This means expecting a 7.5% returns on the investment. By their value addition they would increase operating margin to required levels. Infosys operating margin is 30%.

Idea Cellular bought Spice at Rs.77 per Spice share.

Did you sell this stock after it tripled?

Sintex is a household name in India today. From selling water tanks to becoming the biggest plastics manufacturer in India, the company has taken off in a big way. Its sales have multiplied almost 14 times over the past ten years. Profits have done even better in multiplying around 28 times. And someone who had invested in the stock in December 1999 has already multiplied his money 36 times!

Now whether Sintex is a worthy investment now is not a matter of discussion here. What we are trying to point is that the right kind of small companies can help you generate tremendous wealth.

But only if you have patience! And stick with good quality stocks across market cycles.

You can learn this from an investor in Sintex in December 1999, who sold the stock after it tripled in December 2003. Since then, the stock has multiplied another 12 times!

So you may ask - should I never sell a stock, always expecting it to multiply several times?

Well, if the company continues to do well, the idea of selling it should not even enter you mind. As the legendary Warren Buffett says - "If the homework is done right while purchasing a stock, the time to sell it is never."

But then, one must also never be greedy. With a stock whose valuations move way above its true business value, it is always good to book profits.

Source: http://www.equitymaster.com/5MinWrapup/detail.asp?date=12/17/2009&story=2