One of the longest running investing debates is about the pros & cons of investing in small stocks versus large stocks. Should you pay a premium for a stock with a large market capitalisation or should you go for cheap small-cap stocks?
Logic can be marshalled on both sides of the fence.The arguement in favour of investing in small caps is simple. A small business can grow quicker because of the small base & therefore , returns are higher. As businesses grow larger their growth rate could slow down.
A classic example is INFOSYS. The software biggie doubled its turnover & profits every year for the first eight years after listing in 1993.
in 2006-7 , it achieved Rs13,149 crore turnover & although its revenues rose by Rs 4121 crore, the growth rate was 45%- impressive but slower than in the past.
So growth prospects are in favour of small stocks. But the argument in favour of a big- stock focus also deserve to be heard.
A big business is less vulnerable to crisis like the loss of a big client. It has a proven track record & due to institutional interest, corporate governance is likely to be better.Institutional holding also lends support to the price of large-cap stocks- institutions don’t sell stocks in a hurry.
Pradeep Singh’s movement from the Indian Administrative Service to an NGO & thereafter to a corporate, demands more than just professional skills. A willingness to take up challenges & immense self-confidence are prerequisites. All changes have been quite synergistic & he must have drawn from his experience for the new assignment at hand.
At CARE, an experience in handling large projects & the advantage of networking would have benefited him. However , he got an ideal opportunity in the form of the offer from IL&FS, to synergise public & private efforts in developing infrastructure in India.
India is on a high growth path & more & more companies are trying to attract people with relevent skills despite them not being from the industry concerned, This is true for all emerging & fast growing sectors like retail, infrastructure, hospitality airlines etc.
1.Create Awareness: Unless yours is a major company with a large area of influence, creating awareness is going to be necessary.
The idea is to develop a talent pool of prospective employees in advance of actually needing them. Advance preparation will allow you a better opportunity to select from good talent.
2. Provide Opportunity & Expectation of Growth: Researchers agree that the best way to hire & keep top talent is to create a company culture where the best employee wants to work, a culture in which people are treated with respect & consideration at all times.
3. Selection Criteria: Choosing the right candidate is an important decision. While some people may have the right history, they have the wrong atitude. Some may have the right atitude but score poorly on a compatibility test. When hiring an individual who is new to the company, two criterias are paramount, atitude & motivation.
This breed , gets things done. This person understands his strengths & weaknesses are & is willing to still take action & see what happens. The entrepreneur has created a commitment to himself. A mindset that something less or some things that’s not him, a pledge that he can rather die attempting & be happy than to be briefly content with what he has & be miserable.
The best resolution to own an unbreakable mindset is to understand why you’re doing this for?.
The Law of Inertia:
The only two things that don’t lie – Price & Volume. They are simply the facts – we may never know why people are buying & selling, but if they are doing it, their actions are surely reflected in price, price is a real- time measurement of worth.
In a consolidation phase, we want to wait patiently for some sort of movement.
The Law of Inertia states that an object at rest or in motion tends to stay that way unless acted upon by some external forces.
Momentum traders believe that price will move in the path of least resistance & that path is defined by the trend in the price.
Charles Bernard is Global CEO of leading French software firm Dassault Systems, which specialises in 3D software. In India to showcase the latest version of his 3D design platform called CATIA for engineering companies, his eyes light up while discussing his firm’s latest innovations. He talks about how Dessault will help change the way people do business. “I want to create 3D experiences for people, not just businesses,” he says.
“Dassault wants to do for design tools what Apple has done to influence our daily life.” He was also gung ho about Dassault’s new Fashion Lab Software, which was a runaway hit at the Milan & New York Fashion Weeks. It helps designers make 3D designs & sketches. The furture of his company, he feels, lies in making 3D store navigation using an ipad, & getting companies to use 3D design to improve efficiency.