What’s new in January…

Earlier in Jan, I was in Amsterdam for the weekend, with a friend who goes to B-school at Wharton. It was fun hanging out with her after what seemed like an eternity since we last did this - while we were still neighbors in Boston. I must recommend the Anne Frank house -- its very surreal and poignant.

I just returned from a fantastic trip to Gothenburg, Sweden, where I visited my dear friends from Boston, and I got to hold their brand spanking new baby, spit-up and all. It was awesome to see them flourish and care for a newborn without breaking stride. We took a day trip to Vargarda in the beautiful snow-covered countryside, to see old friends who also live in Sweden. Watching their kids go downhill with their sleds was way fun. Its a blessing having friends with whom one can slip into a comfortable space – no matter how many months and years have passed since you last met them.

In the meanwhile, I have a few weekend Eurotrips planned until mid-April when I am officially done with graduation requirements. After this I plan on taking a two week trip each month for three months to S. America, China/Hongkong/Singapore, and N. Africa/Turkey/Lebanon.

Besides this, I am psyched that the Lev Fin team at Nomura has been awarded two major mandates by KKR and Permira. Things are looking up for PE. I am looking forward to joining Nomura in the fall. My 2^nd year project with Warburg Pincus is going swimmingly and my extra-curricular education is going great guns. I'm currently reading "The Essential Buffet" which is a great introduction not just to Buffet himself, but a synthesis of the collective wisdom of Benjamin Graham, Charlie Munger and Philip Fisher.

"Cityboy" by Geraint Anderson currently serves the equivalent role of the "National Enquirer" or "Daily Mirror". I have to admit the book is a very very exaggerated take on bankers and is less ably written than either "Liar's Poker" or "Monkey Business". It's more a take on how the author adapted to the banking lifestyle – than a comment on how bankers behave, especially in this day and age.

"'Who is Cityboy? He's every brash, suited, FT-carrying idiot who ever pushed past you on the tube. He's the egotistical buffoon who loudly brags about how much cash he's made on the market at otherwise pleasant dinner parties. He's the greedy, ruthless wanker whose actions are helping turn this world into the shit-hole it's rapidly becoming. For one period in my life, he was me.' In this no-holds-barred, warts-and-all account of life in London's financial heartland, Cityboy breaks the Square Mile's code of silence in his own inimitable style, revealing explosive secrets, tricks of the trade and the corrupt, murky underbelly at the heart of life in the City. Drawing on his experience as a young analyst in a major investment bank, the six-figure bonuses, monstrous egos, and the everyday culture of verbal and substance abuse that fuels the world's money markets is brutally exposed as Cityboy describes his ascent up the hierarchy of this intensely competitive and morally dubious industry, and how it almost cost him his sanity."

Uhhhh …. Spare us the invective! But nevertheless it's a trove of funny anecdotes and British-isms (good Lord! These Brits have slang for every word that exists in the English dictionary including the word 'is'). Here is a link to the blog http://www.cityboy.biz/

On the music front, I'm suddenly into The Cure again with "Just Like Heaven" and have managed to nail-down the guitar chords to my all-time favorite song "Supersonic" by Oasis, amongst others.

Kilimanjaro, Serengeti and onwards

Apologies for the tardiness in postings from the great beyond. Life has been a bit busier than usual, although I took just one Advanced Finance elective this Fall trimester in addition to a block week on Corporate Turnarounds. The courses had both highs and lows, but all in all I like the block week format – one week, one elective, done! In the meanwhile, I interviewed with Morgan Stanley and had an invite to speak with Credit Suisse, but they way things were going, I decided to sign with Nomura. Additionally, a fellow LBS'er and I will be doing our 2^nd year project with PE firm Warburg Pincus.

On the life front, I spent a few rejuvenating days in Boston for Thanksgiving, met up with old friends, walked my two favorite dogs, had roast duck instead of turkey for T'day dinner and went to a Celtics game. I'm almost through every past season of the Simpsons. On the books front, I'm reading Guns, Germs and Steel (which I should have read eons ago) – it's a fantastic treatise on why history evolved in the way it has. Most people point to the Renaissance and subsequent colonialization as being the root-causes for the way the world has turned out today, development-wise. They flippantly ascribe the ascendancy of the west to a suite of reasons that are easy to rationalize. But the truth is more complex than this.

Tomorrow, I leave for Tanzania with eight other LBS'ers – we're climbing Kilimanjaro – a 7-day semi-ordeal along the Machame Trail and then going on Safari in the Serengeti for a few days. Then onwards to Mumbai for me, where I'll see the extended fam. I will blog more about the climb on return. In the meanwhile, here is what's on my reading list (courtesy of James Montier). I doubt I'll get through all the books on the list by July.

Investment 101 -The classics

‘Security Analysis’ by Ben Graham and David Dodd (The sixth edition)

Chapter 12 of ‘The General Theory of Employment, Interest and Money’ by John Maynard Keynes

‘Theory of Investment Value’ by John Burr Williams

‘Manias, Panics and Crashes’ by Charles Kindelbeger

‘Reminiscences of a Stock Operator’ by Edwin Lefevre

Investment 201

‘Fooling some of the People, All of the Time’ by David Einhorn

‘The Fundamental Index’ by Rob Arnott et al

‘The Investor's Dilemma’ by Louis Lowenstein

‘Financial Shenanigans’ by Howard Schilit

‘Creative Cash Flow Reporting’ by Charles Mulford and Eugene Comiskey

Modern wonders

‘The Little Book That Beats the Market’ by Joel Greenblatt

‘The Little Book of Value Investing’ by Chris Browne

‘Fooled by Randomness’ by Nassim Taleb

‘Contrarian Investment Strategies’ by David Dreman

‘Speculative Contagion’ by Frank Martin

Psychological

‘Robots Rebellion’ by Keith Stanovich

‘Strangers to Ourselves’ by Tim Wilson

How We Know What Isn't So’ by Tom Gilovich

‘The Psychology of Intelligence Analysis’ by Richard Heuer Jnr

‘Predictably Irrational’ by Dan Ariely

‘Mistakes Were Made, But Not by Me’ by Carol Travis and Elliot Aronson

‘Mindset’ by Carol Dweck

Hidden gems

‘Halo Effect’ by Phil Rosenzweig

‘Mindless Eating’ by Brian Wansink

‘The Inefficient Stock Market’ by Robert Haugen

‘The Margin of Safety’ by Seth Klarman

‘Your Money and Your Brain’ by Jason Zweig

‘Better: A Surgeon’s Notes on Performance’ by Atul Gawande

‘Why Smart Executives Fail’ by Sydney Finkelstein

How to feel like a Morlock among other things….

Hi y'all! I've been living under a rock – and daily, the dramatic and vivacious gets squeezed out of me, as I turn into an investment banking simulacrum. Its not as bad as I make it out to be – its just a different ballgame, and different rules apply, and it promises to be interesting, and worthwhile as things evolve. Here is a list of projects I've been working on:

• LBOs - German tech/services company; a French industrials company; an automotive services company
  
• A Nordic telecom restructuring
  
• A UK tech acquisition and,
  
• A UK gaming/betting financing situation
  

Not much to report on other things, for good reason! I sometimes do not even have time to go to the bathroom at work, let alone read anything interesting, including say the WSJ or the FT which in itself is strange. I did get a positive mid-term review, which perked me up. Fingers crossed for a full-time offer.

Then again, I was leaving work at 8 PM on Friday, when my staffer told me that I was over the weekend on a middle-eastern telecom situation and a covenant reset scenario. So between working and conference calls at 10 AM on a Sunday, I moved flats – an act which returned me to civilization, at long last. The new flat has a crescent fountain below, which is kinda nice – I have a thing for water/water-bodies. I also bought some bamboo plants which immediately fixed the chi in the flat. And, I like having a gym/pool/sauna within the complex.

The other bit of interesting news is that I may be in Geneva for my second internship – working with a non-profit affiliated with the WHO (the UN org, not the band) on patent pooling and sourcing strategies for low-cost drugs for HIV, tuberculosis and malaria, for deployment in third-world countries through orgs like the Red Cross.

I promise to be more interesting and fun the next time I blog – until then enjoy the comedic stylings of Omid Djalili.

On being quoted in BusinessWeek….

I was quoted in BusinessWeek. Its sort of a rite of passage, methinks! Long ago, I used to read the B-school blogs and articles on BusinessWeek which got me interested in the B-school concept. Funny, that life should come full-circle this way!

Here is the link to the article. Summer Reading List: The B-School Edition: Looking for a little light reading to while away the hours? These books might be just the ticket, by Francesca Di Meglio

……Business lessons can continue long after the classroom doors are closed for the summer. That's why BusinessWeek asked professors and students at top business schools to share the five books they'd put at the top of their personal summer reading lists. Titles ranged from the classic novel to contemporary nonfiction, but when read together create an encyclopedia of leadership, just the thing to productively while away a summer as the financial crisis continues. A rundown of the most popular picks follows. For the complete list, visit "Summer 2009 Books: MBA Reading List" on the Getting In blog……….

It is 12:01 AM and I just returned home from the bank. I have to admit that even though taking the customary black Mercedes or BMW back home after late nights on the job sounds sexy, often the Jubilee Line is much faster than London traffic. This city never sleeps and its streets are not the grid that MannyHanny is - so it takes way longer driving through the London maze than the quick zip up to the Upper East/West side from mid-town or Wall Street.

IBD has been everything they promised and then some – the 14-15 hour days, the modeling, the powerpoint jockeying (although much less jockeying than I was used to in consulting), and the intern 15 (a la the freshman 15 – I need to get to the gym on the 7^th floor). I'm working in Lev Fin, rumors of whose death, as it turns out, were highly exaggerated. I finished a week of training and Deal Maven exercises, while preparing a pitch for a Private Equity firm trying to acquire a French company. And I discovered debt! Equity i.e. stock occupies a much more outsize space in the public psyche than it warrants, thanks to IPOs of yore – so much so that debt, and the beauty of its intricacies are lost in the white noise. Simply said, debt, especially high yield, mezz and leveraged debt is fantastic! And sitting on a call with a PE sponsor makes one feel small, so small. Its beautiful watching how this gargantuan belching pump called Lev Fin, sucks in debt at one end and spits out equity at the other end with a gurgling chuga-chuga-chuga! And covenants – ah covenants, so Biblical and evocative of Aaronic burnt-offerings of heifers and turtle-doves – covenants are so dynamic, and with so many moving parts. The entire picture is an exercise in pointillism, you focus on the details, but then you have to step back to enjoy the whole picture. I could go on and on!

My favorite (and arguably the most famous) pointillist painting)

Seurat's "Sunday on La Grande Jatte". See the original at the Art Institute of Chicago

A micro-blogpost:first day on my IBD internship

I'm super-psyched about Day 1 which was mainly orientation. Amazing how the ADD does not kick in when one in NOT attending 3 hour B-school lectures!

I've been assigned to the Corporate and Acquisition Finance Team within Global Finance. Translation – a little bit of Restructuring, a dollop of Acquisition Finance and a whole load of Leveraged Finance, and I likely get to dabble in all three over the summer. I love the entrepreneurial spirit in the company and am very bullish on it. Another reason why I'm psyched - based on information that is already public, this year's biggest European purchase by a private equity firm, was handled by Nomura. Troubled Candover agreed to sell energy research firm Wood Mackenzie to rival Charterhouse for an enterprise value of 553 million pounds ($905 million).

Off to bed now, its an early start and a late finish tomorrow.

My new digs. 25 Bank Street,

the Old Lehman Building in Canary Wharf