Character flaw

After performing very badly in an interview yesterday I realized that I have a major character flaw which I need to work on.

It can be succinctly described as “arrogance”.

It sabotaged my interview on two levels.

I was asked three very simple questions. So simple that I smiled and was quite dismissive of them. I refused to take the question and by extension the interviewer seriously. I did not pause to think why he would ask such a question i.e., what is the answer he is looking for. Worse still, I knew the interviewer to be smart, able and someone I could learn a lot from. None of this went through my head and I blurted out wrong answers after wrong answers without giving them *any* serious thought. I did not consider how my answers will separate me from the other people he has interviewed for the job. All of it was just plain sad.

After spending nearly 2 years learning about investments and reading dozens of books, I had come to believe that the MBA is a stupid degree and probably I know a significant bit more than a garden variety MBA student. Being dismissive of an entire degree and curriculum is height of arrogance. I was asked one business question in the interview. It was to explain the profitability of a certain industry. Even though I knew it to be true, I never had seriously thought about why this is the case. This industry is not patent protected, has no moat, no brand recognition and is not protected by regulations either. Still it has enjoyed great margins for centuries. I completely failed in answering this question. I am sure that an MBA student will have no trouble in coming to the right answer. A structured way of learning things has its benefits. You don’t end up with gaping holes in your knowledge.

This is particularly bad because I have actively tried to be more humble for a few years now and I thought that it was working. I guess my baser instincts have not been completely overridden. It has ended up costing me the chance to work with someone I deeply admire.

I want to list here the things that might help me fix this issue, at least for interviews.

  • Don’t blurt out what comes to your mind immediately. Take time to think the question through. Why was this question asked? What does the interviewer gain by it ?
  • Look for a solution in a systematic way. You might be well served by thinking out loud. Separate the important variables of the question and weed out the useless information. Ask for additional information if you need to. Do this even for simplistic questions.
  • Once you have an answer, check if it makes sense by testing it on trivial cases you can think of.

Family funds

I have invested Sfr 3,400 on behalf of a family member in my account. I am hoping the experience will help me decide if I want to do this professionally or not. The investment was made at the end of May 2013.

UPDATE: I took 0.2M INR and paid him 0.25M INR today. This is a 25% return in 14 months. I am now back to managing *exclusively* my own money.

Monthly update: June 2013

I am concentrating a lot on work. So, I did not get to do much research.

Gold collapsed and the interest rates rose during the month. The equity market also saw a lot of volatility following the comments from FED that they will ease out of “quantitative easing” soon. The change in the tone of the financial press and the market commentators was immediate. They went from “follow the trend” to why the equities will fall hard and there will be a correction. I was also of the opinion that a correction will happen and probably this was the last straw. But I was proven wrong.

After reacting strongly for a few days the market stabilised and has started its upward trend. Thankfully, I got out of HP at a very small loss. The opportunity cost for this position has been quite large in my opinion.

I added Bouygues, Tesco, E.On, Orange, MT, Santader, and Euro during the month. My net cash position went down a bit to around 52% of the portfolio. Which means that I put the HP money to good use (hopefully) and some.

Cash report June 2013

The sales/purchase figure is high because I purchased €5000 and it got added up in purchases and sales.