The IPO of the company I admire most.
SKS Microfinance IPO Attracts Strong Demand
Why you should be interested in the SKS IPO
I wish capital keeps on flowing for SKS Microfinance and the company is able to maintain balance between its priorities i.e. providing loan first and thinking of profit later. It’s difficult for any public company to maintain such a balance. Hope SKS is able sustain it.
Saturday, August 14, 2010
Sunday, May 30, 2010
Sunday, April 4, 2010
Fair Tax Treatment
The following New York Times editorial reported Hedge Fund pay in 2009.
Hedge Funds Make Hay
Shouldn't this be a top priority for law makers? We have gone through the worst recession since great depression due to financial crisis, but an important issue has not been taken care by law makers yet.
"The tax disparity results from an outdated rule that lets a money manager in a private partnership treat a chunk of his fees as if they were long-term capital gains, taxed at a special low rate of 15 percent. Fees for managing someone else’s money should be taxed as ordinary income, like wages and salary, at rates as high as 35 percent."
"President Obama has included a provision to end that special treatment in his most recent budget. For three years running, the House has passed a bill to close the loophole. In the Senate both Democrats and Republicans have resisted, all for fear of losing lucrative campaign donations."
Hedge Funds Make Hay
Shouldn't this be a top priority for law makers? We have gone through the worst recession since great depression due to financial crisis, but an important issue has not been taken care by law makers yet.
"The tax disparity results from an outdated rule that lets a money manager in a private partnership treat a chunk of his fees as if they were long-term capital gains, taxed at a special low rate of 15 percent. Fees for managing someone else’s money should be taxed as ordinary income, like wages and salary, at rates as high as 35 percent."
"President Obama has included a provision to end that special treatment in his most recent budget. For three years running, the House has passed a bill to close the loophole. In the Senate both Democrats and Republicans have resisted, all for fear of losing lucrative campaign donations."
Sunday, December 20, 2009
The Henry Ford of Heart Surgery
An excellent article on Heart Surgery.
The Henry Ford of Heart Surgery
Dr. Shetty at Narayana Hrudayalaya Hospital in India is able to drive the cost of heart surgery down to just $2,000 on average. In the US, the same procedure cost between $20,000 and $100,000 depending on complexity. By economies of scale, Dr. Shetty managed to drive cost down without compromising on the quality of procedure. He has 1,000 beds hospitals compared to 160-beds (on average) in the US. His Cardiac surgeons performed more than double cardiac surgeries than cardiac surgeons has performed in the US.
The more surgeries performed by doctors, the more experience they gain and better they are. Also with more number of patients, surgeons can specialize in a particular area. The mortality number also supports that quality has been better at Dr. Shetty's hospitals, and even better when adjusted for patient conditions.
Profit at Dr. Shetty's hospital was 7.7% after tax compared to on average profit after tax in the US, which has been 6.9%. As mentioned in the article, Dr' Shetty is planning to take number of total beds from 3,000 to 30,000 and will continue to reduce cost by bypassing medical equipment sellers and directly purchasing from suppliers.
The Henry Ford of Heart Surgery
Dr. Shetty at Narayana Hrudayalaya Hospital in India is able to drive the cost of heart surgery down to just $2,000 on average. In the US, the same procedure cost between $20,000 and $100,000 depending on complexity. By economies of scale, Dr. Shetty managed to drive cost down without compromising on the quality of procedure. He has 1,000 beds hospitals compared to 160-beds (on average) in the US. His Cardiac surgeons performed more than double cardiac surgeries than cardiac surgeons has performed in the US.
The more surgeries performed by doctors, the more experience they gain and better they are. Also with more number of patients, surgeons can specialize in a particular area. The mortality number also supports that quality has been better at Dr. Shetty's hospitals, and even better when adjusted for patient conditions.
Profit at Dr. Shetty's hospital was 7.7% after tax compared to on average profit after tax in the US, which has been 6.9%. As mentioned in the article, Dr' Shetty is planning to take number of total beds from 3,000 to 30,000 and will continue to reduce cost by bypassing medical equipment sellers and directly purchasing from suppliers.
Sunday, September 20, 2009
Tariffs on Chinese tires
What a bad idea! Obama's decision of imposing tariffs on Chinese tires doesn't make any sense at all. Nice article on Economist on it.
Economic vandalism
"A protectionist move that is bad politics, bad economics, bad diplomacy and hurts America. Did we miss anything?"
Economic vandalism
"A protectionist move that is bad politics, bad economics, bad diplomacy and hurts America. Did we miss anything?"
Saturday, August 22, 2009
Healthcare Reform Bill
Obama’s healthcare reform bill which doesn’t provide any clear picture continues to drag his approval rating down (only 49% - down from 60% in April). He was able to avoid mistake of Clinton administration by not imposing his predetermined plan and let Congress comeup with the plan, but that has resulted in five different healthcare bills. These different plans have created so much mess which no one understands.
Very good analysis in today’s FT “The prosaic professor” and an interesting opinion “Pull the Plug on ObamaCare” in WSJ.
Very good analysis in today’s FT “The prosaic professor” and an interesting opinion “Pull the Plug on ObamaCare” in WSJ.
Friday, August 21, 2009
Healthcare Reform
A very nice article in Financial Times on the recent healthcare reform.
Cost control not coverage is the key to health reform
I agree that the president’s objective is off the mark. Rather than focusing on cost cutting, the president’s focus is on making bill revenue neutral. This may provide increase healthcare coverage but definitely not going to reduce cost, which is the root cause of problem.
Cost control not coverage is the key to health reform
I agree that the president’s objective is off the mark. Rather than focusing on cost cutting, the president’s focus is on making bill revenue neutral. This may provide increase healthcare coverage but definitely not going to reduce cost, which is the root cause of problem.
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