Monday, January 14, 2008

Bollywood's Sexiest Scenes



10. Rekha and Akshay Kumar in Khiladiyon Ka Khiladi

While Akshay had both the lissome Raveena Tandon -- and fights with wrestling star The Undertaker -- to look forward to in this enjoyable ego-trip film, things really got hot with Madame Re as the duo mudwrestled with extreme abandon. Whoa.
***

9. Shilpa Shetty and Shah Rukh Khan in Baazigar

Neither star was as big -- or were half as attractive -- as they are today, but that Aye Mere Humsafar song set temperatures rising with Shetty draped over Khan, cleavage almost constantly on display.

***

8. Akshay Kumar and Mamta Kulkarni in Sabse Bada Khiladi

A forgettable actress who gained notoriety by posing topless for a magazine cover, Kulkarni never shied away from the heat. In this film she was particularly well complimented by the always-amorous Akshay.

****

7. Hrithik Roshan and Aishwarya Rai in Dhoom:2

It was a liplock that, despite the controversy it kicked up, was pretty tame. Yet Sanjay Gadhvi's rain-framed kiss was memorable for a million reasons -- including scandalous rumours about Ash, then engaged to now husband Abhishek Bachchan.


***

6. Rishi Kapoor and Dimple Kapadia in Saagar

Arguably a film best known for Dimple briefly showing off her assets, she and longtime on-screen lover Rishi had quite a bit of fun with a few raunchy scenes.

***

5. Tanushree Dutta and Emraan Hashmi in Aashiq Banaya Aapne

The film -- and the actress -- might have been completely forgettable, but this duo pushed the limits of censorship with a body-baring song that showed Bollywood was growing up to sex at its most realistic.

***

4. Anil Kapoor and Sridevi in Mr India

Sridevi was at her absolute sexiest as Shekhar Kapur sensually shot the Kaante nahin kat te song in the superhero film, a song where Sri virtually makes love to the camera. Incredible stuff.


***

3. . Vinod Khanna and Madhuri Dixit in Dayavan

Dixit was barely 20 when this film came out in 1988, and while it was many years before her bosom-heaving dhak-dhak days, the actress was sizzling in intimate scenes with Khanna, 18 years her senior.

***

2. . Mallika Sherawat and Emraan Hashmi in Murder

Bollywood's hottest siren and the liplock-addicted lad fogged up the camera lens with their on-screen antics in this film, set to Kunal Ganjawalla's distinctively sung Bheege Hont Tere.

***

1. Anil Kapoor and Dimple Kapadia in Jaanbaaz

Well, these two were certainly not looking for a needle in that haystack! Anil and Dimple got it on with extreme, primal passion in a scene that remains a Bollywood inspiration. Wow.

Sunday, January 13, 2008

Job interview plus bollywood heroines







celina, sameera reddy, shamita, pamela, tanushree,
***

malaika arora
***

amrita rao
***






Ujjwala Raut, Tanushree Dutta, Sania Mirza, Gisele Bundchen, Sameera Reddy
**********
job in Google



I've been meaning to write up some tips on interviewing at

Google for a good long time now. I keep putting it off, though,

because it's going to make you mad. Probably. For some

statistical definition of "you", it's very likely to upset you.

Why? Because... well, here, I wrote a little ditty about it:



Hey man, I don't know that stuffStevey's talking abooooooutIf my

boss thinks it's importantI'm gonna get fiiiiiiiiiiredOooh yeah

baaaby baaaay-beeeeee....
I didn't realize this was such a typical reaction back when I

first started writing about interviewing, way back at other

companies. Boy-o-howdy did I find out in a hurry.

See, it goes like this:

Me: blah blah blah, I like asking question X in interviews, blah

blah blah...

You: Question X? Oh man, I haven't heard about X since college!

I've never needed it for my job! He asks that in interviews? But

that means someone out there thinks it's important to know, and,

and... I don't know it! If they detect my ignorance, not only

will I be summarily fired for incompetence without so much as a

thank-you, I will also be unemployable by people who ask

question X! If people listen to Stevey, that will be everyone! I

will become homeless and destitute! For not knowing something

I've never needed before! This is horrible! I would attack X

itself, except that I do not want to pick up a book and figure

enough out about it to discredit it. Clearly I must yell a lot

about how stupid Stevey is so that nobody will listen to him!

Me: So in conclusion, blah blah... huh? Did you say "fired"?

"Destitute?" What are you talking about?

You: Aaaaaaauuuggh!!! *stab* *stab* *stab*

Me: That's it. I'm never talking about interviewing again.

It doesn't matter what X is, either. It's arbitrary. I could

say: "I really enjoy asking the candidate (their name) in

interviews", and people would still freak out, on account of

insecurity about either interviewing in general or their

knowledge of their own name, hopefully the former.

But THEN, time passes, and interview candidates come and go, and

we always wind up saying: "Gosh, we sure wish that obviously

smart person had prepared a little better for his or her

interviews. Is there any way we can help future candidates out

with some tips?"

And then nobody actually does anything, because we're all afraid

of getting stabbed violently by People Who Don't Know X.

I considered giving out a set of tips in which I actually use

variable names like X, rather than real subjects, but decided

that in the resultant vacuum, everyone would get upset.

Otherwise that approach seemed pretty good, as long as I

published under a pseudonym.

In the end, people really need the tips, regardless of how many

feelings get hurt along the way. So rather than skirt around the

issues, I'm going to give you a few mandatory substitutions for

X along with a fair amount of general interview-prep

information.

Caveats and Disclaimers

This blog is not endorsed by Google. Google doesn't know I'm

publishing these tips. It's just between you and me, OK? Don't

tell them I prepped you. Just go kick ass on your interviews and

we'll be square.

I'm only talking about general software engineering positions,

and interviews for those positions.

These tips are actually generic; there's nothing specific to

Google vs. any other software company. I could have been writing

these tips about my first software job 20 years ago. That

implies that these tips are also timeless, at least for the span

of our careers.

These tips obviously won't get you a job on their own. My hope

is that by following them you will perform your very best during

the interviews.

Oh, and um, why Google?

Oho! Why Google, you ask? Well let's just have that dialog right

up front, shall we?

You: Should I work at Google? Is it all they say it is, and

more? Will I be serenely happy there? Should I apply

immediately?

Me: Yes.

You: To which ques... wait, what do you mean by "Yes?" I didn't

even say who I am!

Me: Dude, the answer is Yes. (You may be a woman, but I'm still

calling you Dude.)

You: But... but... I am paralyzed by inertia! And I feel a

certain comfort level at my current company, or at least I have

become relatively inured to the discomfort. I know people here

and nobody at Google! I would have to learn Google's build

system and technology and stuff! I have no credibility, no

reputation there – I would have to start over virtually from

scratch! I waited too long, there's no upside! I'm afraaaaaaid!

Me: DUDE. The answer is Yes already, OK? It's an invariant.

Everyone else who came to Google was in the exact same position

as you are, modulo a handful of famous people with beards that

put Gandalf's to shame, but they're a very tiny minority.

Everyone who applied had the same reasons for not applying as

you do. And everyone here says: "GOSH, I SURE AM HAPPY I CAME

HERE!" So just apply already. But prep first.

You: But what if I get a mistrial? I might be smart and

qualified, but for some random reason I may do poorly in the

interviews and not get an offer! That would be a huge blow to my

ego! I would rather pass up the opportunity altogether than have

a chance of failure!

Me: Yeah, that's at least partly true. Heck, I kinda didn't make

it in on my first attempt, but I begged like a street dog until

they gave me a second round of interviews. I caught them in a

weak moment. And the second time around, I prepared, and did

much better.

The thing is, Google has a well-known false negative rate, which

means we sometimes turn away qualified people, because that's

considered better than sometimes hiring unqualified people. This

is actually an industry-wide thing, but the dial gets turned

differently at different companies. At Google the false-negative

rate is pretty high. I don't know what it is, but I do know a

lot of smart, qualified people who've not made it through our

interviews. It's a ummer.

But the really important takeaway is this: if you don't get an

offer, you may still be qualified to work here. So it needn't be

a blow to your ego at all!

As far as anyone I know can tell, false negatives are completely

random, and are unrelated to your skills or qualifications. They

can happen from a variety of factors, including but not limited

to:


you're having an off day
one or more of your interviewers is having an off day
there were communication issues invisible to you and/or one or

more of the interviewers
you got unlucky and got an Interview Anti-Loop
Oh no, not the Interview Anti-Loop!

Yes, I'm afraid you have to worry about this.

What is it, you ask? Well, back when I was at Amazon, we did

(and they undoubtedly still do) a LOT of soul-searching about

this exact problem. We eventually concluded that every single

employee E at Amazon has at least one "Interview Anti-Loop": a

set of other employees S who would not hire E. The root cause is

important for you to understand when you're going into

interviews, so I'll tell you a little about what I've found over

the years.

First, you can't tell interviewers what's important. Not at any

company. Not unless they're specifically asking you for advice.

You have a very narrow window of perhaps one year after an

engineer graduates from college to inculcate them in the art of

interviewing, after which the window closes and they believe

they are a "good interviewer" and they don't need to change

their questions, their question styles, their interviewing

style, or their feedback style, ever again.

It's a problem. But I've had my hand bitten enough times that I

just don't try anymore.

Second problem: every "experienced" interviewer has a set of pet

subjects and possibly specific questions that he or she feels is

an accurate gauge of a candidate's abilities. The question sets

for any two interviewers can be widely different and even

entirely non-overlapping.

A classic example found everywhere is: Interviewer A always asks

about C++ trivia, filesystems, network protocols and discrete

math. Interviewer B always asks about Java trivia, design

patterns, unit testing, web frameworks, and software project

management. For any given candidate with both A and B on the

interview loop, A and B are likely to give very different votes.

A and B would probably not even hire each other, given a chance,

but they both happened to go through interviewer C, who asked

them both about data structures, unix utilities, and processes

versus threads, and A and B both happened to squeak by.

That's almost always what happens when you get an offer from a

tech company. You just happened to squeak by. Because of the

inherently flawed nature of the interviewing process, it's

highly likely that someone on the loop will be unimpressed with

you, even if you are Alan Turing. Especially if you're Alan

Turing, in fact, since it means you obviously don't know C++.

The bottom line is, if you go to an interview at any software

company, you should plan for the contingency that you might get

genuinely unlucky, and wind up with one or more people from your

Interview Anti-Loop on your interview loop. If this happens, you

will struggle, then be told that you were not a fit at this

time, and then you will feel bad. Just as long as you don't feel

meta-bad, everything is OK. You should feel good that you feel

bad after this happens, because hey, it means you're human.

And then you should wait 6-12 months and re-apply. That's pretty

much the best solution we (or anyone else I know of) could come

up with for the false-negative problem. We wipe the slate clean

and start over again. There are lots of people here who got in

on their second or third attempt, and they're kicking butt.

You can too.

OK, I feel better about potentially not getting hired

Good! So let's get on to those tips, then.

If you've been following along very closely, you'll have

realized that I'm interviewer D. Meaning that my personal set of

pet questions and topics is just my own, and it's no better or

worse than anyone else's. So I can't tell you what it is, no

matter how much I'd like to, because I'll offend interviewers A

through X who have slightly different working sets.

Instead, I want to prep you for some general topics that I

believe are shared by the majority of tech interviewers at

Google-like companies. Roughly speaking, this means the company

builds a lot of their own software and does a lot of distributed

computing. There are other tech-company footprints, the opposite

end of the spectrum being companies that outsource everything to

consultants and try to use as much third-party software as

possible. My tips will be useful only to the extent that the

company resembles Google.

So you might as well make it Google, eh?

First, let's talk about non-technical prep.

The Warm-Up

Nobody goes into a boxing match cold. Lesson: you should bring

your boxing gloves to the interview. No, wait, sorry, I mean:

warm up beforehand!

How do you warm up? Basically there is short-term and long-term

warming up, and you should do both.

Long-term warming up means: study and practice for a week or two

before the interview. You want your mind to be in the general

"mode" of problem solving on whiteboards. If you can do it on a

whiteboard, every other medium (laptop, shared network document,

whatever) is a cakewalk. So plan for the whiteboard.

Short-term warming up means: get lots of rest the night before,

and then do intense, fast-paced warm-ups the morning of the

interview.

The two best long-term warm-ups I know of are:

1) Study a data-structures and algorithms book. Why? Because it

is the most likely to help you beef up on problem

identification. Many interviewers are happy when you understand

the broad class of question they're asking without explanation.

For instance, if they ask you about coloring U.S. states in

different colors, you get major bonus points if you recognize it

as a graph-coloring problem, even if you don't actually remember

exactly how graph-coloring works.

And if you do remember how it works, then you can probably whip

through the answer pretty quickly. So your best bet,

interview-prep wise, is to practice the art of recognizing that

certain problem classes are best solved with certain algorithms

and data structures.

My absolute favorite for this kind of interview preparation is

Steven Skiena's The Algorithm Design Manual. More than any other

book it helped me understand just how astonishingly commonplace

(and important) graph problems are – they should be part of

every working programmer's toolkit. The book also covers basic

data structures and sorting algorithms, which is a nice bonus.

But the gold mine is the second half of the book, which is a

sort of encyclopedia of 1-pagers on zillions of useful problems

and various ways to solve them, without too much detail. Almost

every 1-pager has a simple picture, making it easy to remember.

This is a great way to learn how to identify hundreds of problem

types.

Other interviewers I know recommend Introduction to Algorithms.

It's a true classic and an invaluable resource, but it will

probably take you more than 2 weeks to get through it. But if

you want to come into your interviews prepped, then consider

deferring your application until you've made your way through

that book.

2) Have a friend interview you. The friend should ask you a

random interview question, and you should go write it on the

board. You should keep going until it is complete, no matter how

tired or lazy you feel. Do this as much as you can possibly

tolerate.

I didn't do these two types of preparation before my first

Google interview, and I was absolutely shocked at how bad at

whiteboard coding I had become since I had last interviewed

seven years prior. It's hard! And I also had forgotten a bunch

of algorithms and data structures that I used to know, or at

least had heard of.

Going through these exercises for a week prepped me mightily for

my second round of Google interviews, and I did way, way better.

It made all the difference.

As for short-term preparation, all you can really do is make

sure you are as alert and warmed up as possible. Don't go in

cold. Solve a few problems and read through your study books.

Drink some coffee: it actually helps you think faster, believe

it or not. Make sure you spend at least an hour practicing

immediately before you walk into the interview. Treat it like a

sports game or a music recital, or heck, an exam: if you go in

warmed up you'll give your best performance.

Mental Prep

So! You're a hotshot programmer with a long list of

accomplishments. Time to forget about all that and focus on

interview survival.

You should go in humble, open-minded, and focused.

If you come across as arrogant, then people will question

whether they want to work with you. The best way to appear

arrogant is to question the validity of the interviewer's

question – it really ticks them off, as I pointed out earlier

on. Remember how I said you can't tell an interviewer how to

interview? Well, that's especially true if you're a candidate.

So don't ask: "gosh, are algorithms really all that important?

do you ever need to do that kind of thing in real life? I've

never had to do that kind of stuff." You'll just get rejected,

so don't say that kind of thing. Treat every question as

legitimate, even if you are frustrated that you don't know the

answer.

Feel free to ask for help or hints if you're stuck. Some

interviewers take points off for that, but occasionally it will

get you past some hurdle and give you a good performance on what

would have otherwise been a horrible stony half-hour silence.

Don't say "choo choo choo" when you're "thinking".

Don't try to change the subject and answer a different question.

Don't try to divert the interviewer from asking you a question

by telling war stories. Don't try to bluff your interviewer. You

should focus on each problem they're giving you and make your

best effort to answer it fully.

Some interviewers will not ask you to write code, but they will

expect you to start writing code on the whiteboard at some point

during your answer. They will give you hints but won't

necessarily come right out and say: "I want you to write some

code on the board now." If in doubt, you should ask them if they

would like to see code.

Interviewers have vastly different expectations about code. I

personally don't care about syntax (unless you write something

that could obviously never work in any programming language, at

which point I will dive in and verify that you are not, in fact,

a circus clown and that it was an honest mistake). But some

interviewers are really picky about syntax, and some will even

silently mark you down for missing a semicolon or a curly brace,

without telling you. I think of these interviewers as – well,

it's a technical term that rhymes with "bass soles", but they

think of themselves as brilliant technical evaluators, and

there's no way to tell them otherwise.

So ask. Ask if they care about syntax, and if they do, try to

get it right. Look over your code carefully from different

angles and distances. Pretend it's someone else's code and

you're tasked with finding bugs in it. You'd be amazed at what

you can miss when you're standing 2 feet from a whiteboard with

an interviewer staring at your shoulder blades.

It's OK (and highly encouraged) to ask a few clarifying

questions, and occasionally verify with the interviewer that

you're on the track they want you to be on. Some interviewers

will mark you down if you just jump up and start coding, even if

you get the code right. They'll say you didn't think carefully

first, and you're one of those "let's not do any design" type

cowboys. So even if you think you know the answer to the

problem, ask some questions and talk about the approach you'll

take a little before diving in.

On the flip side, don't take too long before actually solving

the problem, or some interviewers will give you a delay-of-game

penalty. Try to move (and write) quickly, since often

interviewers want to get through more than one question during

the interview, and if you solve the first one too slowly then

they'll be out of time. They'll mark you down because they

couldn't get a full picture of your skills. The benefit of the

doubt is rarely given in interviewing.

One last non-technical tip: bring your own whiteboard dry-erase

markers. They sell pencil-thin ones at office supply stores,

whereas most companies (including Google) tend to stock the fat

kind. The thin ones turn your whiteboard from a 480i

standard-definition tube into a 58-inch 1080p HD plasma screen.

You need all the help you can get, and free whiteboard space is

a real blessing.

You should also practice whiteboard space-management skills,

such as not starting on the right and coding down into the

lower-right corner in Teeny Unreadable Font. Your interviewer

will not be impressed. Amusingly, although it always irks me

when people do this, I did it during my interviews, too. Just be

aware of it!

Oh, and don't let the marker dry out while you're standing there

waving it. I'm tellin' ya: you want minimal distractions during

the interview, and that one is surprisingly common.

OK, that should be good for non-tech tips. On to X, for some

value of X! Don't stab me!

Tech Prep Tips

The best tip is: go get a computer science degree. The more

computer science you have, the better. You don't have to have a

CS degree, but it helps. It doesn't have to be an advanced

degree, but that helps too.

However, you're probably thinking of applying to Google a little

sooner than 2 to 8 years from now, so here are some shorter-term

tips for you.

Algorithm Complexity: you need to know Big-O. It's a must. If

you struggle with basic big-O complexity analysis, then you are

almost guaranteed not to get hired. It's, like, one chapter in

the beginning of one theory of computation book, so just go read

it. You can do it.

Sorting: know how to sort. Don't do bubble-sort. You should know

the details of at least one n*log(n) sorting algorithm,

preferably two (say, quicksort and merge sort). Merge sort can

be highly useful in situations where quicksort is impractical,

so take a look at it.

For God's sake, don't try sorting a linked list during the

interview.

Hashtables: hashtables are arguably the single most important

data structure known to mankind. You absolutely have to know how

they work. Again, it's like one chapter in one data structures

book, so just go read about them. You should be able to

implement one using only arrays in your favorite language, in

about the space of one interview.

Trees: you should know about trees. I'm tellin' ya: this is

basic stuff, and it's embarrassing to bring it up, but some of

you out there don't know basic tree construction, traversal and

manipulation algorithms. You should be familiar with binary

trees, n-ary trees, and trie-trees at the very very least. Trees

are probably the best source of practice problems for your

long-term warmup exercises.

You should be familiar with at least one flavor of balanced

binary tree, whether it's a red/black tree, a splay tree or an

AVL tree. You should actually know how it's implemented.

You should know about tree traversal algorithms: BFS and DFS,

and know the difference between inorder, postorder and preorder.

You might not use trees much day-to-day, but if so, it's because

you're avoiding tree problems. You won't need to do that anymore

once you know how they work. Study up!

Graphs

Graphs are, like, really really important. More than you think.

Even if you already think they're important, it's probably more

than you think.

There are three basic ways to represent a graph in memory

(objects and pointers, matrix, and adjacency list), and you

should familiarize yourself with each representation and its

pros and cons.

You should know the basic graph traversal algorithms:

breadth-first search and depth-first search. You should know

their computational complexity, their tradeoffs, and how to

implement them in real code.

You should try to study up on fancier algorithms, such as

Djikstra and A*, if you get a chance. They're really great for

just about anything, from game programming to distributed

computing to you name it. You should know them.

Whenever someone gives you a problem, think graphs. They are the

most fundamental and flexible way of representing any kind of a

relationship, so it's about a 50-50 shot that any interesting

design problem has a graph involved in it. Make absolutely sure

you can't think of a way to solve it using graphs before moving

on to other solution types. This tip is important!

Other data structures

You should study up on as many other data structures and

algorithms as you can fit in that big noggin of yours. You

should especially know about the most famous classes of

NP-complete problems, such as traveling salesman and the

knapsack problem, and be able to recognize them when an

interviewer asks you them in disguise.

You should find out what NP-complete means.

Basically, hit that data structures book hard, and try to retain

as much of it as you can, and you can't go wrong.

Math

Some interviewers ask basic discrete math questions. This is

more prevalent at Google than at other places I've been, and I

consider it a Good Thing, even though I'm not particularly good

at discrete math. We're surrounded by counting problems,

probability problems, and other Discrete Math 101 situations,

and those innumerate among us blithely hack around them without

knowing what we're doing.

Don't get mad if the interviewer asks math questions. Do your

best. Your best will be a heck of a lot better if you spend some

time before the interview refreshing your memory on (or teaching

yourself) the essentials of combinatorics and probability. You

should be familiar with n-choose-k problems and their ilk – the

more the better.

I know, I know, you're short on time. But this tip can really

help make the difference between a "we're not sure" and a "let's

hire her". And it's actually not all that bad – discrete math

doesn't use much of the high-school math you studied and forgot.

It starts back with elementary-school math and builds up from

there, so you can probably pick up what you need for interviews

in a couple of days of intense study.

Sadly, I don't have a good recommendation for a Discrete Math

book, so if you do, please mention it in the comments. Thanks.

Operating Systems

This is just a plug, from me, for you to know about processes,

threads and concurrency issues. A lot of interviewers ask about

that stuff, and it's pretty fundamental, so you should know it.

Know about locks and mutexes and semaphores and monitors and how

they work. Know about deadlock and livelock and how to avoid

them. Know what resources a processes needs, and a thread needs,

and how context switching works, and how it's initiated by the

operating system and underlying hardware. Know a little about

scheduling. The world is rapidly moving towards multi-core, and

you'll be a dinosaur in a real hurry if you don't understand the

fundamentals of "modern" (which is to say, "kinda broken")

concurrency constructs.

The best, most practical book I've ever personally read on the

subject is Doug Lea's Concurrent Programming in Java. It got me

the most bang per page. There are obviously lots of other books

on concurrency. I'd avoid the academic ones and focus on the

practical stuff, since it's most likely to get asked in

interviews.

Coding

You should know at least one programming language really well,

and it should preferably be C++ or Java. C# is OK too, since

it's pretty similar to Java. You will be expected to write some

code in at least some of your interviews. You will be expected

to know a fair amount of detail about your favorite programming

language.

Other Stuff

Because of the rules I outlined above, it's still possible that

you'll get Interviewer A, and none of the stuff you've studied

from these tips will be directly useful (except being warmed

up.) If so, just do your best. Worst case, you can always come

back in 6-12 months, right? Might seem like a long time, but I

assure you it will go by in a flash.

The stuff I've covered is actually mostly red-flags: stuff that

really worries people if you don't know it. The discrete math is

potentially optional, but somewhat risky if you don't know the

first thing about it. Everything else I've mentioned you should

know cold, and then you'll at least be prepped for the baseline

interview level. It could be a lot harder than that, depending

on the interviewer, or it could be easy.

It just depends on how lucky you are. Are you feeling lucky?

Then give it a try!

Send me your resume

I'll probably batch up any resume submissions people send me and

submit them weekly. In the meantime, study up! You have a lot of

warming up to do. Real-world work makes you rusty.

I hope this was helpful. Let the flames begin, etc. Yawn.

Saturday, January 12, 2008

Warren Buffett's mantra to mint money!

Warren Buffett's mantra to mint money!
A frugal billionaire

He bought his first share at age 11.

He bought a small farm at age 14 with savings from delivering newspapers.

He does not have a cellphone, has no computer on his desk, drives his own car and does not have security guard with him.

He is the world's richest man, the living legend, Warren Buffett!

One of the most successful investors the world has ever seen, Warren Buffett is today the richest man on the planet, according to Forbes magazine's annual list of billionaires.

Chairman of the Berkshire Hathaway, Buffett's wealth jumped by $10 billion jump to hit $62 billion during 2007. Buffett has beat friend -- and Microsoft boss -- Bill Gates' 13-year reign as the richest man. Buffett's journey to become the world's richest is truly inspirational.

A staunch follower of value investing, he started with an initial fund of $105,000 in 1956, the rest is history. Over the next five decades, Buffett's wealth rose to $62 billion.

But he is not the one to flaunt his riches, simple and down-to earth, Buffett continues to live in the same house in Omaha that he bought in 1958 for $31,500. He says that he has everything he needs in that house. His house does not have a wall or a fence.

Know more about the making of 'Warren Buffett' and his mantra for minting money.
The early years

As a young boy, Buffett, the son of a stockbroker always yearned to make more money. He started making pocket money by delivering newspapers.

When he was just eleven years old, Buffett bought his first stock. He purchases 6 shares of Cities Service preferred stock: 3 shares for himself, 3 for his sister, Doris, at $38 per share. The stock fell to $27 but went up to $40. Warren and Doris sold their stock for a small margin. Immediately after that, the stock zoomed to $200 per share, much to his disappointment. That's when he learnt a very important lesson in life: Patience pays!

A self-made billionaire, Buffett has a great memory and was always good at mathematics and business.

At the age of 14, with the money he had saved from part-time businesses and delivering newspapers, he bought a Nebraska farmland, which he later leased to a farmer.

After his graduation from the University of Nebraska, he pursued further studies at the Columbia Graduate Business School under Benjamin Graham. He started his career with Graham where he learned a lot about stock investment.

After Graham retired, Buffettt started a company in his native place Omaha funded by family and friends. It turned out to e a great success. Later, he set his eyes on buying stocks in Berkshire Hathaway.

Soon, Warren Buffettt has a majority holding in the company. He set out to revive the company which was hit by high manufacturing costs. He helped Hathaway buy out two Nebraska insurance companies. This was the turning point in Berkshire Hathaway. Since then there has been no looking back� His friendship with lawyer and investor Charlie Munger further turned around his fortunes as well as the company's. Munger joined Warren at Berkshire Hathaway as its vice-chairman.

Under their leadership the company became well-established. Today with 2,17,000 employees, the company boast of revenues to the tune of $118.245 billion and net income of US$13.213 billion.

Berkshire Hathaway, headquartered in Omaha, Nebraska, U.S., manages a number of subsidiary companies. Berkshire Hathaway's core business is insurance, including property and casualty insurance, reinsurance and specialty nonstandard insurance.

Buffett had once told a friend that he will be a millionaire by the time he turns thirty. In 1983, Berkshire shares is at $775 per share, by the end of the year it rises to $1,31 and Buffettt's personal net worth zoomed to $620 million. He makes it to the Forbes richest list for the first time.

The guru's words of wisdom

Warren Buffett's letters to shareholders are a treasure trove of information and packed with good strategies and loads of wise words. The letters give an insight into his thoughts, hopes and aspirations.

According to him, there are many rules to win the game. The first rule is not to lose. The second rule is not to forget the first rule.

Mistakes? An investor needs to do very few things right as long as he or she avoids big mistakes.

Want high value? Focus on return on equity, not earnings per share. Calculate "owner earnings" to get a true reflection of value.

How to choose the right companies to invest? In the 2007 letter, he says Charlie and I look for companies that have a) a business we understand; b) favorable long-term economics; c) able and trustworthy management; and d) a sensible price tag.

We like to buy the whole business or, if management is our partner, at least 80 per cent. When control-type purchases of quality aren't available, though, we are also happy to simply buy small portions of great businesses by way of stock market purchases. It's better to have a part interest in the Hope Diamond than to own all of a rhinestone.

What makes a great biz? Look for companies with high profit margins. A truly great business must have an enduring 'moat' that protects excellent returns on invested capital. The dynamics of capitalism guarantee that competitors will repeatedly assault any business 'castle' that is earning high returns. When to say Yes and No? The ability to say 'no' is a tremendous advantage for an investor.

Want great results? Always invest for the long term. It is not necessary to do extraordinary things to get extraordinary results.

Flashy degrees? No, we need good brains! Buffett doesn't believe in flashy degree and titles: He says, Susan came to Borsheims (jewellery shop) 25 years ago as a $4-an-hour saleswoman. Though she lacked a managerial background, I did not hesitate to make her CEO in 1994. She's smart, she loves the business, and she loves her associates. That beats having an MBA degree any time. Charlie and I are not big fans of resumes. Instead, we focus on brains, passion and integrity, he says.

Great managers? One of our great managers is Cathy Baron Tamraz, who has significantly increased Business Wire's earnings since we purchased it early in 2006. She is an owner's dream. It is positively dangerous to stand between Cathy and a business prospect. Cathy, it should be noted, began her career as a cab driver.

In Berkshire's 1977 annual report, Buffettt described the central principles of his investment strategy: "We select our marketable equity securities in much the way we would evaluate a business for acquisition in its entirety. We want the business to be one (a) that we can understand; (b) with favorable long-term prospects; (c) operated by honest and competent people; and (d) available at a very attractive price."

The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price. Buy companies with strong histories of profitability and with a dominant business franchise.

Weigh the pros and cons: Be fearful when others are greedy and greedy only when others are fearful. It is optimism that is the enemy of the rational buyer.

A success mantra? Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.


The generous Buffett

Buffett is also a great philanthropist. In 2006, he announced a plan to donate his fortune to charity, with 83 per cent of it for Bill & Melinda Gates Foundation.

Buffettt announced a new charity plan in 1981 and asked each shareholder to designate charities which would receive $2 for each Berkshire share the stockholder owned.

This was in response to a common practice on wall street where the CEO chose charitable organisations which will receive the company's hand-outs. The plan was a huge success and over the years the amount was increased for each share. Eventually, the berkshire shareholders were giving millions of dollars away each year - all to their own causes.

In June 2006, Warren Buffettt gave about 10 million Berkshire Hathaway Class B shares worth approximately $30.7 billion to the Bill & Melinda Gates Foundation.

Buffett also announced plans to contribute additional Berkshire stock valued at approximately $6.7 billion to the Susan Thompson Buffettt Foundation and to other foundations headed by his three children.

The bulk of the estate of his wife, valued at $2.6 billion, went to Buffett foundation after her demise in 2004.
Buffett doesn't feel guilty for being so rich. "The way I see it is that my money represents an enormous number of claim checks on society. There's nothing material I want very much. And I'm going to give virtually all cheques to charity when my wife and I die."


The World as Buffett sees it

Warren Buffett's words leave lasting impressions...

"Berkshire is my painting, so it should look the way I want it to when it's done."

Warren Buffett sounds an alarm in his letter to shareholders: The party is over. It's a certainty that insurance-industry profit margins, including ours, will fall significantly in 2008. Prices are down, and exposures inexorably rise. Even if the US has its third consecutive catastrophe-light year, industry profit margins will probably shrink by four percentage points or so. If the winds roar or the earth trembles, results could be far worse. So be prepared for lower insurance earnings during the next few years.

His children will not inherit a significant proportion of his wealth. Buffettt says, "I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing".

A public-opinion poll is no substitute for thought.

I always knew I was going to be rich. I don't think I ever doubted it for a minute.

I am quite serious when I say that I do not believe there are, on the whole earth besides, so many intensified bores as in these United States. No man can form an adequate idea of the real meaning of the word, without coming here.

I buy expensive suits. They just look cheap on me.

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.

If a business does well, the stock eventually follows.

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
Live life the Buffett style!

Warren Buffett is one of the world's most frugal billionaires:

He never travels by private jet, although he owns the world's largest private jet company.

His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis.

Unlike most people of his stature, he doesn't not enjoying partying He loves to make popcorn and enjoy his sare time watching television.

Warren Buffett does not carry a cell phone, nor has a computer on his desk.

His advice to the card savvy youngsters: Stay away from credit cards and invest in yourself.
A peek into Buffett's personal life

On his 76th birthday, Buffett married his longtime companion, Astrid Menks.

Interestingly, it was first wife, Susan Buffett, who arranged for the two to meet before she left Omaha to pursue her singing career.

But they remained close firneds and holiday cards to friends were signed -- Warren, Susie and Astrid -- according to Roger Lowenstein's book, Buffett: The Making of an American Capitalist.

Buffett has three children - Susie, Howard, and Peter - out his first marriage with Susan Thompson in 1952 . But the marriage did not last long.

Though the couple began living separately in 1977, they remained married until her death in July 2004.

His daughter Susie does charitable work through the Susan A. Buffett Foundation and is a national board member of Girls, Inc.

Buffett loves to play the card game bridge. He he spends 12 hours a week playing bridge. He often plays with Bill Gates and Paul Allen.

Buffett's favourite place to eat is Gorat's Steak House in Omaha, where he likes to relish the T-bone steak, a double order of hash browns, and Cherry Coke.

According to US News and World Report, he drinks about five Cherry Cokes a day.

He used to drive a 2001 Lincoln Town Car which he auctioned to raise money for Girls Inc. He currently drives a Cadillac DTS.

Thursday, January 10, 2008

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