There is an interesting parallel between IndusInd Bank's current situation and Axis Bank's 2018 episode—both involve:
A regulator-triggered disruption (Axis: NPA divergence, IndusInd: derivative accounting issues).
CEO's tenure cut short or not extended (Shikha Sharma denied extension; Sumant Kathpalia exiting before term completion as on 29th april 2025).
A committee of executives managing operations temporarily.
Let’s break this down:
“The best business at the wrong price is a bad investment.” - Warren Buffett
The 1970s "Nifty Fifty" episode is one of the most important and misunderstood lessons in market history, and Howard Marks often refers to it to illustrate the dangers of overpaying, regardless of business quality.
In the rhythms of history and markets, there’s a fascinating Greek term that captures the essence of dramatic turnarounds: enantiodromia. Coined by the philosopher Heraclitus and popularized by Carl Jung, enantiodromia means that anything that reaches an extreme will eventually turn into its opposite. In simple terms, when a system goes too far in one direction, it corrects by swinging back the other way. And nowhere is this psychological and philosophical concept more relevant today than in the Indian tea industry.
Tulip Mania is one of the most famous speculative bubbles in history. It took place in the Dutch Republic (now the Netherlands) in the early 17th century, reaching its peak in 1636-1637 before crashing dramatically.
Both Railway Mania and the Dot-Com Bubble were driven by revolutionary technologies that changed the world. However, they also saw massive speculation, unrealistic valuations, and an eventual crash. Let's break them down across multiple parameters:
| Parameter | Railway Mania (1840s) | Dot-Com Bubble (1999-2000) |
|---|---|---|
| Main Tech Revolution | Railways, steam locomotives, and faster transportation networks. | The Internet, digital connectivity, and online businesses. |
| Core Value Proposition | Faster movement of goods and people, reducing travel time by 90%. | Instant access to information, digital commerce, and global connectivity. |
| Actual Impact | Railways reshaped economies and made industrialization much faster. | The Internet changed communication, shopping, finance, and business forever. |
1. Always go against tide. Buy when others are selling and sell when others are buying. 2. If you believe in the growth prospects o...
