M-417 MAJOR LAB (FUNCTIONAL AREA II)

FINANCE

By
PRACHI JAIN
College Roll No. 91
University Roll No. 22MIIXX697

Submitted to
DR. SANDEEP VYAS
(Associate Professor)

In partial fulfillment of the requirement for

The award of the degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)

Under the guidance of

Dr. Poornima Mathur (Assistant professor)

Session 2022-2024
International School Of Informatics and Management
TABLE OF CONTENT

S. No. Chapter title Page no.

1. Field Based Assignment……………………………………………………….1-12

2. Hands-on-practices………………….………………….….…...……………..13 -17

3. Book Review ……………………………………..….….………………….…18-22

4. Bibliography……………………………………………………………………..23
Question 1- Conduct a study of a broking firm engaged in derivatives trading.
Analyse the trading of derivative instruments in these firms. Also study trading
strategies adopted by these firms.

Answer

Over the past decade, there has been a significant increase in international trade and business,
thanks to globalization and liberalization. This has led to a higher demand for international money
and financial instruments on a global scale. However, with the rise in exchange rates, interest rates,
and stock prices in various financial markets, the corporate world now faces greater financial risks.
Adverse changes in macroeconomic factors have even posed a threat to the survival of businesses.
To manage these risks, it is crucial to develop new financial instruments known as derivatives in the
Indian financial markets. These instruments aim to provide commitments to future prices, offering
protection against unfavorable price movements and reducing financial risks. Financial derivatives
have gained immense popularity and are widely used in the world of finance today. This growth has
been so remarkable that it is often referred to as the derivatives revolution. In India, the derivatives
market has emerged and grown relatively recently. Since its establishment in June 2000, the
derivatives market has experienced exponential growth in terms of trading volume and the number
of contracts traded.

The market turnover has increased from Rs.2365 Cr. in 2000-2001 to Rs. 26444804.86 Cr. in 2013-
14. Within just twelve years, derivatives trading in India has surpassed the cash segment in terms of
turnover and the number of traded contracts. This study covers the history, concept, definition,
types, features, regulation, market, trends, growth, future prospects, and challenges of derivatives in
India, as well as the status of the Indian derivatives market compared to the global derivative
market. Derivatives have been linked to several significant corporate events that have disrupted the
global financial markets in recent decades. Critics argue that derivatives have played a crucial role
in the near failures or bankruptcies of Barings Bank in 1995, Long-term Capital Management in
1998, Enron in 2001, Lehman Brothers, and American International Group (AIG) in 2008. Warren
Buffet has even described derivatives as economic time bombs and referred to them as financial
weapons of mass destruction (Berkshire Hathaway Inc (2002)). However, when managed
"properly," derivatives can offer substantial economic advantages. These financial instruments
assist economic entities in enhancing their management of market and credit risks. They also

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promote financial innovation and market growth, thereby increasing market resilience to shocks.
The primary challenge for policymakers is to ensure that derivatives transactions are conducted
appropriately and supervised prudently. This involves establishing regulations and guidelines aimed
at preventing excessive risk-taking by market participants without impeding financial innovation. It
also requires enhancing the quantity and quality of data to improve the understanding of derivatives
markets. This chapter presents an overview of derivatives, focusing on three main aspects of these
securities: instruments, markets, and participants. It commences with a brief overview of key
concepts, such as what derivatives are, their purpose, and who utilizes these instruments. It also
explores the factors contributing to the rapid expansion of the markets in recent decades. Section 3
will delve into the primary types of derivative contracts, while Section 4 will examine how specific
derivative contracts are structured based on various underlying asset classes. Section 5 will discuss
the two main types of markets: exchange-traded and over-the-counter, emphasizing the key
distinctions between these markets.

On January 26 1949, the Central Government passed the Forward Contracts (Regulation) Act, 1952
(FCRA) and established the Forward Market Commission (FMC) in 1953. Under the FCRA,
futures trading were allowed in select agricultural commodities and their products under the
auspices of Associations recognized by GOI. As a result, futures’ trading was revived after a lapse of
three and a half decade towards the close of 20th century. (K G Karmakar, 2014) In the process of
economic liberalization and deregulation in Indian agriculture sector, futures trading in agricultural
commodities were reintroduced in 2003. Thisis governed by the National Commodity Derivatives
Exchange of India (NCDEX). The benefits of futures markets in terms of their ability to predict
future spot price aiding better risk management and price discovery were the main reasons for
initiating such reforms by the government. The role of commodity futures in providing its crucial
role of price discovery and risk management to its stakeholders. (Dr. Teena Shivnani, Vrinda
Goel,2014) Coming to the types of derivatives, a futures exchange or futures market isa fifinancial
exchange where people can trade standardized futures contracts; that is, a contract to buy specific
quantities of a commodity or fifinancial instrument at a specified price with delivery set at a
specified time in the future. The primary objective of futures market is to provide a facility for
hedging against market risk. The L.C. Gupta committee on Indian derivative markets clearly
supported the introduction of exchange-traded futures to aid risk management strategies.(Anjali
Prashad) One of the most common type of derivatives are Interest rate derivatives, which are the
most traded derivative instrument in the international derivative market. But this product is not

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popular in Indian derivative market. In 1999, the Over the Counter (OTC) interest rate derivative
products were introduced and successful in terms of volumes. The Indian fifinancial market
introduced exchange traded interest rate derivatives in the year 2003, 2009 and 2014. These
products were failure twice. It was again introduced in market in year2014. (Pradiptarathi Panda, M.
Thiripalraju, 2015) Commodity Derivatives are another class of derivative that are traded in Indian
Derivative market. Indian commodity derivatives markets are on their growth trajectory, but are
simultaneously under a continuous scanner for its supposed role in triggering prices in the spot
markets. For e.g. Market researches indicate that introduction of futures trading in turmeric has not
led to any extra returns to the traders of the spot markets in case of the popular Indian spice
Turmeric. (Bidisha Sarkar Datta, Indranil Sarker, 2015) Derivatives Trading in India Now-a-days in
the worldwide scenario fifinancial market has undergone massive changes due to amazing
development of derivatives which play a remarkable place in implementing various fifinancial
policies. The emergence of derivatives market is an ingenious achievement of fifinancial trade with
an intend of providing a proficient explanation to the problem of risk that is surrounded in the
price impulsiveness of the underlying asset.

Derivatives market is reasonably a latest occurrence In India since its commencement in June 2000;
it has exhibited exceptional improvement both in terms of volume and number of traded contracts.
It isfound out that in recent times derivatives trading in India has surpassed cash segment in terms
of turnover and number of traded contracts. India'sassignation with derivatives began in 2000 when
both the NSE and the BSE commenced trading in equity derivatives .In June 2000, index futures
became the first type of derivate instruments to be launched in the Indian markets, followed by
index options in June 2001, options in individual stocks in July 2001, and futures in single stock
derivatives in November 2001. Since then, equity derivatives have come a long way. New products,
an expanding list of eligible investors, rising volumes, and the best risk management framework for
exchange- traded derivatives have been the hallmark of the journey of equity derivatives in India so
far.Rules and Regulatory Framework A. Introduction of Derivative Contracts on Volatility Index In
continuance to the SEBI circular dated January 15, 2008 concerning the introduction of the
volatility index, the capital market regulator, vide its circular dated April 27, 2010, resolute to allow
stock exchanges to introduce derivatives contracts on volatility index. The introduction of
derivatives contracts on volatility index is subject to the circumstance that the underlying volatility
index has a track record of at least one year. B. Introduction of Index Options with Tenure Up To
Five Years Further to SEBI's circular dated January 11, 2008, as regards the introduction of index

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options with tenure up to Revised Exposure Margin for Exchange-Traded Equity Derivatives In a
modification to SEBI's circular onexposure margin, the SEBI decided (vide its circular dated July 7,
2010) that the exposure margin for exchange-traded equity derivatives shall be the higher of 5
percent or 1.5 times the standard deviation (of daily logarithmicreturns of the stock price).

D. Physical Settlement of Stock Derivatives In persistence to SEBI's circular dated June 20, 2001
and November 02, 2001 concerning the settlement of stock options and stock futures contracts,
respectively, the SEBI— based on the recommendations of the Derivatives Market Review
Committee and in discussion with stockexchanges—decided to make available flexibility to the
stock exchanges tooffer:

a) Cash settlement (settlement by payment of differences) for both stock options and stock futures;
or

b) Physical settlement (settlement by delivery of underlying stock) for both stock options and stock
futures. Cashsettlement for stock options and physical settlement for stock futures; or

E. Options on USD-INR spot rate The SEBI, vide its circular dated July 30, 2010, has endorsed for
the beginning of options on USD-INR spot rate on the currency derivatives segment of the stock
exchanges. Premium styled European call and put options can be introduced on the USD-INR spot
rate. The contract would be settled in cashin Indian rupees, and the final settlement price would be
the RBI ReferenceRate on the date of expiry of the contracts. Self clearing member in the currency
derivatives (Circular date : May 13, 2011) With regard to the newlycreated category of self clearing
member in the currency derivatives segment of a stock exchange (communicated vide notification
no. LADNRO/ GN/2011- 12/01/11486 dated April 6, 2011), has the SEBI clarified that such self
clearing member shall have a minimum net worth of 5 crore. Liquidity enhancement schemes for
illiquid securities in equity derivatives segment (Circular date : June 02, 2011) In discussion with
the BSE, the MCX-SX, the NSE, and the USE, the SEBI has decided to permit stock exchanges to
introduce one or more liquidity enhancement schemes (LES) to augment the liquidity of illiquid
securities in their equity derivativessegments. The regulatory framework in India is based on the L.C.
Gupta Committee Report, and the J.R. Varma Committee Report. The L.C. Gupta Committee
Report provides a perspective on division of regulatory responsibility bet ween the exchange and
the SEBI. It recommends that SEBI's role should be restricted to approving rules, bye laws and
regulationsof a derivatives exchange as also to approving the proposed derivatives contracts before
commencement of their trading. It emphasises the supervisory and advisory role of SEBI with a

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view to permitting desirable flexibility, maximizing regulatory effectiveness and minimizing
regulatory cost. Regulatory requirements for authorization of derivatives brokers/dealers include
relating to capital adequacy, net worth, certificationrequirement and initial registration with SEBI. It
also suggests establishment of a separate clearing corporation, maximum exposure limits, mark to
market margins, margin collection from clients and segregation of clients' funds, regulation of sales
practice and accounting and disclosure requirements for derivatives trading. The J.R. Varma
committee suggests a methodology for risk containment measures for index- based futures and
options, stock options and single stock futures. The risk containment measures include calculation
of margins, position limits, exposure limits and reporting and disclosure.

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Question 2- Analyse the facts of any one recent case in which a company has
acquired a competitive start up. Analysis has to be done in terms of, objectives,
valuation mechanism, financing method used, capital restructuring, expected
outcome and actual post- merger outcome.

Answer

Vodafone Case study describes the situation when Idea Cellular and Vodafone after the entrance
of JIO. So, here is the Vodafone case study which describes the position of Vodafone and Idea
Cellular before and post-merger, reasons for the merger, how did merger take place and critical
analyses of the merger.

About Vodafone

Vodafone company came from the UK based Vodafone Group plc. It is a multinational service
provider of telecommunications in 22 different countries as of 20th November 2020. And, in India
Vodafone has its headquarter in Mumbai, Maharashtra. Vodafone is the third largest
telecommunication provider in the country.

At the beginning of the year, 1992 Vodafone started its company in India
from Bombay(now Mumbai). After the entry of JIO in the year 2016.
Afterwards, our Vodafone case study begins, Vodafone and Idea
announced their merger in March 2017. And as of 31st August 2018, it is
known as Vodafone Idea Limited.

Vodafone Idea Merger Case Study

Vodafone case study explains the reason and the situation of the merger of Vodafone and Idea. This
merger was first announced in March 2017. Afterwards, in July 2018, the department of
telecommunication gave the approval for the merger. Finally, on 31st Aug 2018, the merger was
completed and it is announced as Vodafone Idea Limited.

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 And this merger was the largest telecom merger in India. As per this
merger, Vodafone holds a 45.2% stake, Aditya Birla Group holds 26%
and the remaining stakes were held public. So, to understand the
Vodafone case study, let’s understand the reasons for the Vodafone
Idea merger case study.

Reasons For Vodafone Idea Merger

So, while understanding the Vodafone case study lets us understand the reason for the Vodafone
Idea merger.

1. The main reason for the Vodafone-Idea merger is to Handel the rising dominance of Reliance
Jio in the Telecom industry. As Jio announced to provide free services in the first 6 months. As
a result, it started to capture the maximum part of the market.
2. Secondly, the free services from the Jio started the price war between the companies in the
telecom sector( as it in an oligopoly market structure).
3. As a result in case of a price war merger brings confidence in companies with synergy
benefits.
4. At last, the combined entity of Vodafone and Idea was expected to hold a strong position in
the industry. Such as in some circles it became the largest cellular service provider and in some
circle, it was the second-largest after Bharti Airtel. So, a joined company can focus on being the
service provider in pan India.
So, these were the reasons in Vodafone case study for the merger of Vodafone and Idea.

Vodafone Idea Integration

According to the past in the telecom industry, major telephone operators believes the merger is a
strong tool to be in the lead position. As Airtel acquires the Telenor, it acquires the scope and
business from other small telecommunication companies like Augere Wireless, Videcon, Tikona(4G
Spectrum) etc.

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Also, Reliance Communication (R Com) merged with Aircel and acquire MTC. Plus the Tata
Telecom also started the process of merging with R Com. As a result in a period of seven months
telephone operators numbers went down to seven from twelve.

Challenges

However, the announcement of the merger creates a negative image in the public, when the
Vodafone and Idea merger was announced the Idea prices started to drop. And the share price of
Idea declines from Rs. 97.70 on 20th March 2017 to Rs. 81.81 on 6th Sep 2017.

But the merger was important it gave support to the two companies, which were struggling to
survive in the industry. Combined resources will help to compete with only the two biggest
brands(Jio and Airtel).

So, these were the challenges of Vodafone and Idea merger in case of Vodafone case study.

Critical Analysis Of Vodafone Case

The merger of Vodafone and Idea in Vodafone case study gave higher stakes to the Idea promoters
as compared to Vodafone. So, in long run, both companies can gain access to equal shares in the
future.

Here are the few takeaways from the Vodafone Idea merger in Vodafone case study:

1. The very first thing was the acquisition of 4.9 per cent shares of Vodafone by Aditya Birla.
This would amount to a total of Rs. 3874 crore wherein each share is worth Rs. 108. This
would be helpful in increasing the shareholding capacity of Idea to 26 per cent.
2. While in the case of Vodafone case study, Vodafone holds 45.1 per cent of the shares in the
merger, Idea would be allowed to buy another 9.6 per cent but at a cost of Rs. 130 per
share in the period spread over the next four years. However, if Idea is unable to come up
equal to the shareholding percentage of Vodafone, it can go forward and buy the number of
shares required further but at the price prevailing in the market.
3. And, the chairperson of the newly formed enterprise would be Kumar Mangalam Birla.
On the other hand, Vodafone had appointed the Chief financial officer. As, after that new
CEO was named under both the companies.

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 4. Lastly, the promotors of both entities have the right to nominate three members for the
board. Also, there are 12 members out of which 6 are independent on the board in the
Vodafone case study of Vodafone and Idea merger.

Idea Positioning Before Merger

In Vodafone case study of Vodafone and Idea merger, now lets understand the Idea Cellular Limited
is an Aditya Birla Group company. Founded in 1995, the company was incorporated as Birla
Communications Limited and had a license of GSM-based services in Gujarat and Maharashtra
Circle. In the following years, the organization started to expand its business with Tata Group, Birla
and AT&T group of the US in joint venture form.

In August 2015, Idea announced the rollout of its 4G services. It was now competing with Airtel and
Vodafone – in a non-monopolistic market. The company relaunched its “What an Idea” campaign
taking 4G to the rural areas and empowering people through the usage of 4G services.

But in the year 2016 sudden announcement from Mukesh Ambani about Reliance Jio disrupted the
Indian telecom sector. Below pie chart shows the market share of different telecom players before
the entry of Jio.

As the Indian market is very sensitive towards price and Jio used it to make most of the profits. So,
Jio started to make its all services free for the first six months. Afterwards, they made the services of
voice calls, data extremely cheap. As a result, JIO captured a significant share of the telecom
industry. Here is the pie chart of the post-Jio market share of various telecom players.

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Vodafone Idea Merger

This transaction required various approvals from government authorities including SEBI, dept. of
Telecom and Reserve Bank of India among others. The Department of Telecommunications (DoT)
has given the green signal for the merger of Vodafone India and Idea in our Vodafone case study, the
largest Merger and Acquisition agreement in the sector, which has displaced Bharti Airtel from top
position after over 15 years. The approval conditions, which were given over a year after the
agreement, were announced in March 2017 which included an advance payment of Rs 7,268 crore.

Idea Contributon

Promoters Aditya Birla Group infused Rs 3,250 crore in Idea Cellular, which separately raised Rs
3,000 crore ahead of a planned merger with Vodafone India. Following the equity infusion by Idea’s
promoters, their stake in India’s third-largest telecom operator rose to 47.2% from 42.4% now. Idea
contributed its assets which included standalone towers with 15,400 tenancies and a stake in Indus
towers Ltd of 11.5%.

The entry of Reliance Jio Infocomm Ltd in

September 2016, with free services for
almost seven months and cheap tariffs, had
eroded margins and impacted the revenue of
rivals. The contribution of Vodafone will be
Vodafone India along with standalone
towers with 15,400 tenancies without
including an 11.5% stake in Indus Towers.

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According to the agreement between Idea and Vodafone.

Vodafone will contribute more amount of net debt, about Rs 2,480 crore than Idea at the completion
of the merger. Post-termination of both companies, the combined entity will be a joint venture
between Vodafone and Idea in the Vodafone case study. Which will account for the under the equity
method, controlled by both Aditya Birla Group and Vodafone.

Idea promoters hold the rights to acquire a 9.5% additional stake from Vodafone under the agreed
deal to equalize shareholdings over time as per the following proposition

Vodafone: 45.1% – 9.5% = 35.6%

Idea: 26% + 9.5% = 35.6%

Impact Of Merger On Telecom Industry

There are also several other implications that this merger of Vodafone case study will bring forth on
the telecom industry.

1. Firstly, there can be initiatives based on the renewal of price discipline for the disruptive entry by
Jio has caused some serious misbalance

2. Secondly, the poor financial health of the telecom sector can be observed. And through such
mergers, there will be an infusion of health and life. Since India is the fastest-growing market in
terms of subscriber base.

3. Through the merger, Vodafone and Idea will overcome their debts and a large sum of credit will
be infused into the system

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4. The deal has also saved both the telecom companies from selling off their business. As was
being planned by them initially and this would directly impact the quality of services being provided
by different players in the industry

The merger in the Vodafone case study will surely boost the pace of the telecom sector. It has also
been found that the savings, synergies and also the spectrum will have a substantial impact on the
escalating growth.

There will be a saving of over 60 per cent of the cost of the operation and this will aid in
improving the quality and performance of the service through investments from the saved money.

Enhancement in network infrastructure will be observed while the operational efficiencies have a
chance to reach excellence. Moreover, the revenue market share is expected to rise for all the
locations and the spectrum of the entity would exceed the initial caps.

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 HANDS
ON
PRACTICE ON ANY ONE SOFTWARE

13
INTRODUCTION:

Company type Subsidiary

Industry Personal finance, software

Founded 2006; 18 years ago

Founder Aaron Patzer

Defunct March 23, 2024

Fate Merged with Credit Karma

Headquarters Mountain View, California,

United States

Area served United States, Canada

Products Web application, mobile application

Number of 35; before acquired by Intuit in 2009[1]

employees

Parent Intuit

Website mint.intuit.com

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Mint, also known as Intuit Mint (styled in its logo as intuit mint with dotted 't' characters in "intuit"
and undotted 'i' characters) and formerly known as Mint.com, was a personal financial management
website and mobile app for the US and Canada produced by Intuit, Inc. (which also produces
TurboTax, QuickBooks, and Credit Karma).

Mint.com was originally created by Aaron Patzer and provided account aggregation through a deal
with Yodlee, but switched to using Intuit's own system for connecting to accounts after it was
purchased by Intuit in 2009.[3] It was later renamed from "Mint.com" to just "Mint". Mint's primary
service allows users to track bank, credit card, investment, and loan balances and transactions
through a single user interface, as well as create budgets and set financial goals.

In 2010, Mint.com said it could connect with more than 16,000 US and Canadian financial
institutions, and to support more than 17 million individual financial accounts. In 2016, Mint.com
reported to have over 20 million users,

Intuit announced Mint would be shutting down on December 31, 2023, and prompted its users to
move to its Credit Karma product.[8] This was later changed to March 23, 2024.

Once your accounts are connected, Mint will provide an overview of your finances and suggest a
customizable budget tailored to your needs.
Use the app to analyze your budget and spending habits, view upcoming bills, set alerts and create
financial goals.

Mint and Your Budget

Mint is a free budgeting app that lets you connect all of your financial accounts in one digital space
so you get a high-level overview of your financial health. The app also allows users to track spending
and savings and set and monitor budget goals.

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With Mint, users can sync bank accounts, money management accounts, retirement and investment
accounts, credit cards and other financial accounts. You also can track all of your monthly bills
through Mint and receive reminders so you can easily pay your bills on time.

After connecting your financial accounts, Mint tracks your transactions and categorizes them to
simplify tracking. Users can stick with the default categories provided by Mint or create personalized
categories to fit their needs.

For added customization, you can add tags and reorganize transactions as necessary to better track
your spending. If you’re like most users, many transactions don’t necessarily fall into one specific
category. With Mint, you have the ability to separate a single transaction into multiple categories,
including any fees charged.

Mint is designed for individual users, and there’s no option for joint Mint accounts. However, two
people with joint financial accounts can each create their own Mint account and sync the same
accounts to view the same information.

Mint Security

Security is of the utmost priority for Mint and its parent company, Intuit. Mint closely guards user
information through the latest security measures, including strong encryption, multifactor
authentication and other security protocols. You can also safeguard your Mint account by adding a
four-digit security code to your mobile device.

Users can control app access from their online accounts. If your mobile device is ever lost or stolen,
you can log into Mint’s website and turn off mobile access or delete your data from the app remotely.

Mint Pricing

Mint is free to use, but an enhanced version of the app, called Mint Premium, is available exclusively
on iOS devices and carries a monthly cost of $4.99. Mint Premium lacks most of the advertisements
included in the free version of the app and adds advanced analytics, an option to export your data,

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and access to Billshark, a service that can cancel unwanted subscriptions on your behalf. Mint
Premium also lets you compare your spending habits to other Mint users and play two exclusive
games that teach saving and spending tips.

Other App Tools

Mint is not an investing app, but it allows you to view and track your investments. Having access to
your investments in a budgeting app lets you get a complete snapshot of your finances in one spot.
You can add all of your investment accounts, including 401(k), brokerage accounts, IRAs and more.
The investment tracking tool allows you to compare your investment portfolio to market benchmarks
and even track investment fees so you can see if there are any unnecessary charges."

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 BOOK REVIEW
ON
“ALICE SCHROEDER (2009),
THE SNOWBALL: WARREN BUFFETT AND
THE BUSINESS OF LIFE ”

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BOOK TITLE:
The Snowball: Warren buffet and the business of life

AUTHORS:
Alice Schroeder

PUBLISHER:
A&C Black, 2009 ISBN 1408807327, 9781408807323

Pages:
976

Price
₹1,253.72

ABOUT THE AUTHOR:

Alice Schroeder (born December 14, 1956) is an American executive, financial journalist, and author
who was Berkshire Hathaway's leading sell-side insurance analyst at Morgan Stanley and later
became Warren Buffett's appointed biographer. Schroeder remains a widely-regarded insurance
expert, having most recently served as a Non-Executive Director on the Board of Prudential
PLC.mIn the first week of October 2008, she published The Snowball: Warren Buffett and the
Business of Life, a New York Times bestseller. As a project manager for the US Financial
Accounting Standards Board, she oversaw the release of SFAS No. 113, a critical change in US
reinsurance accounting regulations. Since 2008, Schroeder has worked as a columnist for Bloom-
berg News.

In 2003, Schroeder has reported that an investment writer approached her to jointly write a book
about Warren Buffett and corporate governance. Schroeder felt this was not the right book and
discussed another idea with Buffett, who offered to cooperate with her if she wrote a more
comprehensive book.] In June 2003, Schroeder, then a managing director at Morgan Stanley, began
traveling to Omaha to research and write Buffett's official biography, The Snowball. Schroeder spent
approximately 2,000 hours with Buffett and interviewed 250 other people. Schroeder reportedly
received a $7 million book contract for publishing The Snowball.

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The Snowball was published September 29, 2008, and debuted at #1 on The New York Times, The
Wall Street Journal and Publishers Weekly lists of hardcover nonfiction best-sellers and remained on
the bestseller list for more than three months.[citation needed] After the book's publication, Buffett
reportedly stopped speaking to Schroeder. He canceled the yearly dinner Schroeder hosted in Omaha
at which she interviewed him before nearly two hundred people. The New York Times reviewer
Janet Maslin called it one of her ten favorite books of 2008. Time and People also named The
Snowball one of the ten best books of the year.

BOOK REVIEW:

Here is THE book recounting the life and times of one of the most respected men in the world,
Warren Buffett. The legendary Omaha investor has never written a memoir, but now he has allowed
one writer, Alice Schroeder, unprecedented access to explore directly with him and with those
closest to him his work, opinions, struggles, triumphs, follies, and wisdom. The result is the
personally revealing and complete biography of the man known everywhere as “The Oracle of
Omaha.”

Although the media track him constantly, Buffett himself has never told his full life story. His reality
is private, especially by celebrity standards. Indeed, while the homespun persona that the public sees
is true as far as it goes, it goes only so far. Warren Buffett is an array of paradoxes. He set out to
prove that nice guys can finish first. Over the years he treated his investors as partners, acted as their
steward, and championed honesty as an investor, CEO, board member, essayist, and speaker. At the
same time he became the world’s richest man, all from the modest Omaha headquarters of his
company Berkshire Hathaway. None of this fits the term “simple.”

When Alice Schroeder met Warren Buffett she was an insurance industry analyst and a gifted writer
known for her keen perception and business acumen. Her writings on finance impressed him, and as
she came to know him she realized that while much had been written on the subject of his investing
style, no one had moved beyond that to explore his larger philosophy, which is bound up in a
complex personality and the details of his life. Out of this came his decision to cooperate with her on
the book about himself that he would never write.

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Never before has Buffett spent countless hours responding to a writer’s questions, talking, giving
complete access to his wife, children, friends, and business associates—opening his files, recalling
his childhood. It was an act of courage, as The Snowball makes immensely clear. Being human, his
own life, like most lives, has been a mix of strengths and frailties. Yet notable though his wealth may
be, Buffett’s legacy will not be his ranking on the scorecard of wealth; it will be his principles and
ideas that have enriched people’s lives. This book tells you why Warren Buffett is the most
fascinating American success story of our time.

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 CONCLUSION

Warren Buffett’s investment philosophy, as detailed in “The Snowball,” offers more than just a
blueprint for stock market success; it provides a universal road-map for building enduring wealth.
For real estate investors, these principles—Compound Interest, Intrinsic Value, Margin of Safety,
Long-Term Perspective, and Quality Over Quantity—serve as guiding pillars that can navigate the
complexities and opportunities inherent in the property market.

By applying these principles, investors can make more informed, disciplined decisions, mitigating
risks while maximizing returns. In a field as multifaceted as real estate, where variables are
numerous and market conditions can change rapidly, having a set of enduring principles to guide
your investment strategy can be invaluable. As Buffett’s own journey illustrates, the path to
significant wealth is not a sprint but a marathon—a snowball effect where smart, calculated moves
compound over time into a mountain of wealth.

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 BIBLIOGRAPHY

 https://www.adventuresincre.com/snowball-warren-buffett/
 https://mint.intuit.com/
 https://economictimes.indiatimes.com/techs

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