Wednesday 24 December 2008

War on terror

Speech by Lt. Gen (Retd.) Arjun Ray at ISB on Dec 23, 2008.
Coutesy: Gourav Ray (ISB Co2009)

The Mumbai terror killings of 26/11 have provoked anger at the helplessness of the Indian state, and disgust with governance and politicians. 26/11 has not revealed any facts we did not know earlier. The scenario remains unchanged: political corruption, with 22 percent Members of Parliament having a criminal record; the complicity of bureaucrats; no accountability at any level: little or no sharing of information by intelligence agencies, unpreparedness during the Kargil intrusion; and delayed responses of the NSG (it happened at the time of the Kandahar hijacking). So what is new?

India has been afflicted by terrorism for over six decades, but this is the first time that the psyche of the rich and middle class have been brutally assaulted. More people died at the Chatrapati Shivaji Terminus, but the incident received far less TV coverage than operations at the Taj, Trident, and ‘Nariman House.’ What happened to our anger and consciousness during all these years? Why didn’t we speak up earlier? Why this class bias towards national security?

26/11 has demonstrated a systemic failure in dealing with terrorism. Despite India’s track-record of sixty-one years in dealing with insurgency, more than any other country in the world, the results so far have been dismal. Over 40,000 civilians, terrorists and security personnel have been killed in Jammu and Kashmir; 32 percent districts of India are under Naxal influence, and insurgency in the North East continues unabated. After Iraq, the largest numbers of terrorist deaths are in India. The guilty of the Mumbai blasts of 1993 are still being prosecuted fifteen years after the tragedy. Can the judiciary, an institution of state, and the law enforcement and investigative agencies, be given a clean chit? Is it fair to single out politicians for recurring failures? Shouldn’t we be questioning our conscience and institutions harder?

Thus far, history teaches us that we do not learn from history.

In my presentation, I shall suggest what India’s responses to terrorism should be. Before I do so, I wish to underscore two strategic realities that politicians, diplomats, soldiers and intelligentsia have overlooked. These realities are conceptual and provide the scaffolding for India’s response to terrorism in the future. There are no quick solutions and we are in for a long haul.

First, war is not a solution or even an option. India and Pakistan have been to war over Kashmir and insurgency has erupted four times and there has been no resolution. Since 1989 a proxy war is raging in the Kashmir Valley and there is no end in sight. The world’s sole superpower has everything that India has on its wish list: homeland security, highly coordinated intelligence services, a national doctrine to combat terrorism, well-equipped armed forces, and domestic anti-terrorism laws that undermine individual liberty. Despite all this, the US is losing its war against terror in Iraq and Afghanistan.

There are other reasons too. War will deepen the present global economic crisis. According to the Nobel Laureate, Stiglitz, the wars in Iraq and Afghanistan are costing about 3 trillion dollars to the US exchequer, that is nearly three times the GDP of India. Pakistan is a nuclear nation and war between two nuclear powers is unthinkable. Moreover, there is near symmetry between the land forces of the two countries. So, what is the guarantee we will win? I do not think that the Americans would allow a war simply because that would undermine America’s war against Taliban in Afghanistan. Terrorists want war as that would force Pakistani forces to switch to the Indian border, thus allowing the Taliban to occupy the northern part of Pakistan which is already under pressure. Strategically, this would de-stabilize Pakistan, and a de-stabilized Pakistan will be a greater threat to India than it already is.

The second reality is that terrorists are not fanatics or sociopaths. They are as normal as everyone else. Within all of us there is a thin permeable line between good and evil. Under a certain set of circumstances, each one of us is capable of committing unspeakable crimes against our friends and neighbor. That makes our task of identifying potential terrorists impossible and our responses uncertain. If terrorists were fanatics or abnormal persons, our job of eliminating them would have been easy. Terrorists have a world view which they believe is the only view. They are convinced of the righteousness of their cause, and will go to any length to achieve it. When India TV asked one of the terrorists in the Trident, why they were killing innocent persons, he replied, “We are dying every day.”

Whilst serving as a brigadier in the Kashmir Valley from 1993 to 1995, I was in charge of military and intelligence operations. We had about 300 terrorists in custody – terrorists of all hues – young, old, mercenaries, jehadis, and the home-grown variety. I had civil and military psychiatrists to examine them to answer one question — were they fanatics? The answer at the end of the tests was a clear “No.” My findings speak for themselves. See Figure 1 below:

Traits of a Fanatic

Present %

Absent %

Ambivalent

1.

Focused view on life

25

60

15

2.

Insensitivity

15

75

10

3.

Personalized view of the world

10

90

-

4.

Loss of critical judgment

10

90

-

5.

Inconsistency

05

80

15

6.

Certainty

20

80

-

7.

Over simplification

10

90

-

8.

Resistance to change

25

75

-


Figure 1: Traits of Fanaticism in Terrorists

It may interest you to know that, before bringing Eichmann to trial he was examined by six of Israel’s best psychologists and psychiatrists. They declared he was “more normal than the average person.”

Extensive scientific research and social experiments have been conducted notably by Stanley Milgram (Obedience to Authority) and Phillip Zimbardo (The Lucifer Effect). Zimbardo conducted the infamous Stanford Prison Experiment or SPE in 1973. Normal and healthy students from Stanford University were invited as volunteers to participate in a mock experiment. One group became prison guards whilst the other elected to be prisoners. Within the first five days the experiment had to be called off because the ‘prison guards’ started behaving sadistically and torturing the prison inmates. We may conclude that there is a “banality about evil,” namely; evil is done not by sociopaths and fanatics but rather by ordinary people. The power of the situation, blind obedience and moral disengagement seem to exert greater power over human behaviour than any other factors. The conduct of prison guards in concentration camps, and American male and female soldiers torturing Iraqi prisoners in Abu Ghraib, are well documented examples. There are many more.

There are two strategic challenges we must surmount in dealing with terrorism. If they are not adequately addressed, no amount of physical security and legislation can resolve terrorism. These challenges have generally been missed out in most national debates in TV and print media. I wish to place them before you.

The first challenge is the “clash of civilizations” theory that has radicalized Islam and given average Muslims a feeling of being victimized and under threat. Notions of a decadent West and an assimilative India have further added to their suspicions and fears.

Consequently, counter-terrorism is more a state of mind and less a state of activity. The mind is psychological, political, cultural and historical. Activity is about killing. The underlying causes of terrorism are rooted in our society, and we cannot be seem to be at war with our own people. Killing is, therefore, not a solution as it invariably leads to deeper alienation through brutalization and violation of human rights.

The answer lies in isolating terrorists and hard liners by denying them the oxygen they need to survive. The people are the oxygen. If we want to seriously defeat Islamic militancy, we have to win over 150 million Muslims in the country. Till that happens, terrorism will thrive.

The second challenge lies in how to involve citizens in fighting terrorism. Government and security forces alone cannot defeat terrorists because terrorism is not a law and order or military problem. Citizens are part of the System. If citizens fail, the System fails. An apathetic citizenry will only exacerbate the situation. We must ask ourselves the question: what can I as a citizen of this country do to stop this mindless violence?

The larger issue before society is the widespread alienation of minorities. When a section of society perceives that they have been wronged, or the government is weak and takes sides, mass alienation and ghettoization occurs. Muslims feel insecure and deprived at all levels and are incensed by the Muslim stereotype — they are pro-Pakistani, unpatriotic and sympathetic to terrorism. Muslim human development indicators are well below the national average, and it is not surprising that many perceive that they are second-class citizens. In such circumstances, people believe in what Albert Camus said: “It is better to die on your feet than to live on your knees.” The grand design to defeat Islamic militancy can succeed, provided terrorists and their fundamental ideologies are isolated, and Muslim communities join the mainstream.

For right and wrong reasons the Muslim community today is alienated, with trust having broken down between them and the others. Unless trust is restored by improving their human development indices, empowering women, providing job opportunities, and overcoming each other’s prejudices, alienation will continue. De-alienation is overdue.

History tells us that the rise and fall of great civilizations has not been only because of military and economic over-reach, but mainly because of the quality of education existing in a culture. The challenge to education in Islam has been that many Muslims believe that what is not contained in the Received Book is not worth knowing. Thus, the backwardness of Muslims in India is largely due to lack of education. Providing easy access to quality education and technology in schools is imperative. The modernization of 10,000 Urdu schools is overdue. Against an All India pass percentage of 23 percent, the pass percentage in Andhra Pradesh, for example, is zero percent! Moreover, there are about 30,000 madrassas where children are learning Urdu and Islam. You are well aware of the imbalanced curriculum content in these schools.

Religion and culture are an intrinsic part of one’s identity. So why cannot Muslim children be permitted to study Islam and Urdu in secular schools, thereby providing Muslims their identity – Islam and Urdu? I do not see any contradiction in religion and secularism. In fact, localism is a precondition for globalism. You cannot become a world citizen at the cost of losing your cultural identity, and religion lies at the heart of a nation’s culture.

The most effective way to fight Islamic radicalism is by empowering Islamic women. Women by nature abhor violence and conflict of all kinds, from domestic to war. Ultimately, they are the victims. Women who are literate and believe in peace will rear their children to think likewise, and persuade their children to shun the path of violence. I attribute the success of Operation Sadbhavna or Goodwill, in Ladakh, significantly to the support I received from Muslim women.

Today’s statistics are worrying. Against a national women’s work participation rate of 25.6 percent, Muslim women are at 14.1 percent. Their female literacy is as low as 49.9 percent. Special emphasis has to be laid in programmes providing micro-credit facilities to women (as in Bangladesh), employment opportunities, and health care.

The vast majority of Muslims are self-employed with few facilities for vocational skills and access to credits. There is evidence that public and private banks are discriminatory against Muslims. The average amount of loans disbursed to Muslims is two-thirds of the amount given to other minorities. According to the Sachar Committee, “Some banks use the practice of identifying ‘negative geographical zones’ on the basis of certain criteria where bank credit, and other facilities are not easily provided.” While they constitute 15 percent of the population, the number of Muslims in government jobs is as low as 3 to 6 percent. While job opportunities are again closely linked to education, there is a need for liberal policies to provide credit.

I have always maintained that in life it is not what you believe is right or wrong; rather, it is how others perceive it. Muslims do have several grievances – some real, some imaginary. There are historical wrongs that should be addressed through dialogue and remedial actions; even atonement if necessary. And the initiative must come from the majority, the elder brother in the community. At the same time, we must make it clear that, in a democracy like India, grievances must be settled through dialogue and ballot-boxes.

Second, the principal flaw seems to lie in the Indian education system, that has not changed for the past 150 years – top-down assimilation, rote-memorization, the tyranny of examinations, obsession on scoring 100 out of 100, with over-emphasis on educating the head (reason), and not the heart (emotions). To me, whole-education is the golden key. Whole-education should broaden our mind and set it free, enabling us to understand the others’ point of view, and to live together peacefully despite our diverse views.

Educating the head only has other serious drawbacks: the inability to walk the middle-path; the George Bush philosophy (and many Indians think like that) that killing terrorists is the only answer; and the inability to live together with diversity. I am of the firm belief that educating the head may produce brilliant scientists, but who are likely to use their brilliance for evil purposes. I wish to remind you that all extreme ideologies in the 20th century — Marxism, National Socialism, Fascism, revolutions, and religious fundamentalism, were produced by great philosophers and thinkers.

About 50 percent of the members of the Nazi Party comprised German intellectuals. They belonged to a nation that produced some of the world’s best philosophers, best scientists, best musicians, best doctors and best engineers. They were also responsible for exterminating six and a half million of their countrymen. Pol Pot was educated in Paris and he went home and eliminated one and a half million Cambodians simply because they were educated. What happened to reason?

Let us look at the CVs of the terrorist leaders today. From Osama bin Laden and his deputy Dr Al Zahawari, to the attackers of the World Trade Towers, to Taliban, to Lashkar-e-Toiba, to Jaish-e-Mohammad, to SIMI; they are all highly educated individuals. Look at Hindu right-wing fundamentalist leaders. They are post-graduates. What happened to reason – reason that was extreme and one-sided? My contention is that they received the wrong kind of education, an education that focused only on reason. The curriculum of our schools and colleges, therefore, needs immediate revision, to focus on whole-education (though not at the expense of academic performance). You may well say that I am completing my college education so what relevance does whole-education have for me?

I wish to remind you that the single greatest competency in the Knowledge Age is lifelong learning. This competency is enabled by the increasing obsolescence of knowledge, neuroplasticity of the human brain, and the scientific fact that we are products of our synaptic connections. Whole-education through lifelong learning can start at any age. We, the older lot, possibly need it more than our children. The time has already come for us to become our own teachers. Our personal learning plan should include:

Leadership studies

Meta-cognition

Sciences with contemporary liberal arts

Participation in outreach community programmes

Whole-education ensures:

a. We grow up as world citizens with a broad view of life.

b. There is balanced development of one’s cognitive, emotional and spiritual personality, with greater possibilities of growing up to be just and humane.

c. That good persons are not bystanders and stand accused of remaining silent and doing nothing about wrongs in society.

d. Citizens who respect authority but have the courage to oppose unjust systems, who hold themselves accountable for their actions, who will not allow the system to de-individuate their personal identity, and who will be equipped with the skills and sensitivities to live with diversity.

This brings me to the role and psyche of India’s middle class, intellectuals and intelligentsia. 700 years of Muslim and British role as well as a stratified society has affected the psyche of intellectuals and the Indian middle class. Despite having a superior culture and life-philosophy we got beaten. The psychological effects in the middle class till today are there to see:

Political apathy

Confused identity: Who am I — Brahmin? Tamilian? Indian? Citizen?

Absence of the social value of wanting to make a difference

Fence-sitters

Lack of accountability

Sense of inferiority. Everything Western is better

Loss of confidence

Voicelessness

There is a difference between intellectual and intelligentsia. Intellectuals are strong at academics, but they are not committed to social change. Like terrorists, they too have a fixed world view, are dogmatic and doctrinaire. They espouse a viewpoint and are prepared to defend it all costs in classrooms, in front of TV cameras, in newspaper columns, and at cocktail parties. They could be successful civil servants, professors, CEOs, think-tanks and ideologues.

A Russian derivative, intelligentsias are different — intellectuals in their own right, who are global citizens. They are change-agents and active citizens who are committed to social and political reform. They have the unique ability of not taking sides but bringing opposite sides together.

Intelligentsia comprises people who shape public opinion. I expect you to join the intelligentsia, because the fight against terrorism and all forms of political and religious violence starts with you. You are critical stakeholders in the security of the India and the well-being of its people. If you give up we will lose out to the forces of evil. The tragedy of life is not the evil deeds by the evil people, but the appalling silence of the good people.

What are my expectations from you, the intelligentsia?

Be informed about your own religion. Most people are unaware of the fundamental tenets of their religion; they are carried away by the power of rituals and interpretations given by clerics and the priests. In my experience, most religious fundamentalists know little about the richness of their religion. I would like you to promote the central doctrine of all religions, which is rightful living and reverence for all forms of life – from atoms to molecules to insects, to trees, to animals, to human beings.

As members of the intelligentsia, I expect you to secure the middle ground between the two extreme positions of hate and sanity. Let me give you give an example of the prevailing opposites:

1. First Radical View: Haflz Saeed, Founder of Lashkar-e-Toiba.

“There cannot be any peace while India remains intact. Cut them, cut them so much that they kneel before you and ask for mercy.”

2. Opposite Radical View: Babu Bajrangi on camera during Gujarat riots.

“We didn’t spare a single Muslim shop; we set everything on fire... I don’t care if am hanged… just give me two days before my hanging and I will go and have a field day in Juhapura where seven or eight lakhs of these people stay… I will finish them off… at least 25,000 to 50,000 should die.”

As citizens, committed to nation-building you must pledge to make a difference in the local community, especially the poor and marginalized. As long as people remain poor they will be exploited by terrorists. The middle class has distanced itself from the poor; and unless this social gap is closed quickly, alienation in society will continue.

In conclusion, I wish to re-iterate that war and armed responses are no solution for problems that are political, cultural and religious. The ultimate answer lies in winning over people and isolating the terrorists. Towards this strategic goal, citizens and the intelligentsia of the nation play a pivotal role. They have to become agents of change and secure the middle ground.

Success will depend on how tolerant you are. Tolerance is lacking, and if you do not give space to dissent, we will go into reverse gear, into a dangerous situation where there are only two options – coexistence or no-existence. Unless the middle ground is expanded there will never be peace. The only impediment before us is fear. The terrorist intends to strike fear in our minds and create a climate of collapse and deter us in capturing the middle ground. I say; do not be afraid. Because if you are; then terrorists will win.


Friday 12 December 2008

Finding your true North star - Prof. Kaipa

Got an opportunity to attend a session on 'Finding your true North Star' by Prof. Prasad Kaipa.

The 4 point, 8 question analysis:
Point 1: Happiness
  1. Am I happy doing the the job that I am doing now?
  2. What kind of happiness/joy do I bring to people around me?
Point 2: Skills and competencies
  1. Am I using my skills and competencies in the current job?
  2. Can I learn the skills and competencies required for the current job from the people around?
Point 3: Serve as a motto
  1. Do I feel that I am serving others by doing this job?
  2. Do I feel that other people serve me in my job?
Point 4: Needs
  1. Am I meeting my needs - financial, emotional, intellectual, relational, etc?
  2. Does your job meets someone else's need?
How to use this questionnaire:
Score the above 8 question on a scale of 1 to 10, with 10 being high and 1 being low and try to improve the scores on each questions. The objective should be two fold:
  • Improve the scores of each question. This would increase your performance.
  • Reduce the difference in sum of all Q1 and Q2. This would ensure balance in your role and others role for you.
When you have scored total of 80 points, you are operating from your true north star.

4 important things while working towards your true north star:
  1. Awareness: Be aware of the happenings around you. Else you will always operate in auto pilot mode.
  2. Attention: Pay attention to the feedback you receive from others. While giving feedback, talk about positive also. What you appreciates get appreciated and what you depreciates gets depreciated. This will also enhance your EQ
  3. Take action: Act on things that you have been procrastinating. We normally act on routine activities, but that is not sufficient. Activities with give you busy-ness but action would give business.
  4. Reflect: Do self introspection of your success and failures. Also force people around you to to introspect, you can do that through GPS - guilt, pride and shame.
Some more profound thoughts by Prof. Kaipa
  • IQ will make you efficient; EQ will make you effective.
  • Life is not about efficiency; it is about redundancy.
  • IQ will help you get a job; EQ will help u get a promotion.
  • We often have thoughts; but we do not think often. Converting thoughts to action will force you to think.
  • Journey of life is never straight, it is spiral.
Some more examples on points stated above:
  • Hoarding of information would attract people to me. Does this mean that I will score high in case of this ? No. People should come to you even otherwise, such as discuss problems, ask advice, etc.
  • Post a picture of what you want on a mirror.
  • Break the goals in small goals.
To conclude: True north is a state of mind. Try operating from your true north.

Wednesday 3 December 2008

Berkshire Hathway shareholder's meet, 2008

Prof. Sanjiv R. Das, the almighty in financial engineering shared this with the students. I found it really simple and useful. 3 things I liked is the funda on retirement, donation and outsourcing. The best line which I think many of us need today is, "Tough times do not last. Tough people do"

===================================================================
A summary by some gentleman who attended the BH shareholders' meet. Even if you are least bothered about investments, I insist, Pl read on.



I had the good fortune to attend the 2008- Berkshire Hathaway Shareholders meeting at Omaha, Nebraska a few weeks back. It was a wonderful experience listening to and learning from the Master Investor- Warren Buffett himself and all I can say is that he stands alone as the reigning deity of financial world's Mt Olympus!

The degree of humility and composure he exhibited, although he is the richest and most well respected human is stunning! I tried to take some notes and would like to share with you some of the best questions and answers which came across during the conversation between we mortals and God.

Having read about him, observed him and worshipped him for a few years now, I think it is reasonable to believe that this guy is exactly what he seems: a plain-speaking, tee totaling man of uncrackable integrity who works really, really hard and sticks to his investing and management principles through boom and bust which makes him a freak of nature since he is above normal human tendencies. He is like a comet streaking through the heavens every 75 years or so. The questions the shareholders threw at him for 7 continuous hours ranged from finances, life, religion, career, politics, sports and several other streams.
And he answered everything with a Zen like calm and confidence.
===================================================================

What does it take to become a successful investor? Brilliance or Smartness?

Neither, Success in investing doesn't correlate with I.Q. Once you have ordinary intelligence, what you need is the temperament to control the urges that gets other people into trouble in investing.

When do you deicide to invest in a firm?

The best thing that happens to us is when a great company gets into temporary trouble. We want to buy them when they're on the operating table. (Mr. Buffett bought Coke when it had its biggest fiasco after launching New Coke; he bought American Express when it went through a loss making phase in the early 60's)

What do you look for in people when they come to sell their firms to you?

I don't look for the usual credentials such as an MBA, a pedigree (Harvard, Wharton), or cash reserves or market cap of their firm. What I look for is just a passion in their eyes; I think that's the key. A person who is hungry will always do well. I prefer it when people evenafter selling stay on and work for the firm; they are people who can't wait to get off their bed to get to work. Passion is everything; there is no replacement for innate interest.

Mr. Buffett, you told us that Berkshire Hathaway has $ 45 Billion in cash. Why aren't you investing?

Up until a few years back I had more ideas than money. Now I have more money than ideas.

When do you plan to retire?

I love my job; I love it so much that I tap dance to work. Mrs. B, the founder of Nebraska Furniture Mark worked until she was 104, she died within 6 months of her retirement, that's a lesson to all my managers, don't retire! I personally am going to work 6-7 years after I die, probably that's what they mean when they say- "Thinking out of the Box"!!

Why do stock market crashes happen?

Because of human nature for greed and insecurity. The 1970s were unbelievable. The world wasn't going to end, but businesses were beinggiven away. Human nature has not changed. People will always behave in a manic-depressive way over time. They will offer great values to you."

What are the things that are taught wrong in Business school and the corporate world?

I like such open ended questions, I think Business schools should refrain from teaching their wards about profit making and profit making alone, it gives a sense of 1 dimensional outlook to the young students that loss is a curse. In reality, in the corporate world, failure and loss making are inevitable. The capital market without loss is like Christianity without hell. I think they should teach the student on how to buy a business, how to value a business? Not just on how to determine the price of a business. Because price is what you pay, value is what you get.

Do you still hate Technology stocks?

With Coke I can come up with a very rational figure for the cash it will generate in the future. But with the top 10 Internet companies,how much cash will they produce over the next 25 years? If you say you don't know, then you don't know what it is worth and you arespeculating, not investing. All I know is that I don't know, and if I don't know, I don't invest."

How to think about Investing?

The first investment primer was written by Aesop in 600 B.C. He said, 'A bird in the hand is worth two in the bush.' Aesop forgot to saywhen you get the two in the bush and what interest rates are; investing is simply figuring out your cash outlay (the bird in the hand) and comparing it to how many birds are in the bush and when you get them."

How do you feel after donating $ 40 Billion to the Bill and Melinda Gates foundation? You are a hero to us!

I feel nothing. I haven't sacrificed anything in life. I have had a good life. I donated after I turned 75. I think I admire those people who sacrifice their time, share their food and home, as the people to be emulated not me. Besides, what is money before a man's life?

What do you think are the pitfalls in donation?

I have never donated a dime to churches or other such organizations; I need to believe in something before I end up doing that. I have beenobserving the Bill & Melinda Gates foundation for years now and I am confident they will do a fantastic job of making use of the money.I am a big believer in Outsourcing, others believed in me as an Investor and gave their hard earned money to invest. I believe in Bill Gates, he is a better donor than me.

Why do you work from Omaha and not Wall Street, New York?

Wall Street is the only place where people alight from Rolls Royce to get advised by people who use the Public transportation system.

You seem to be so well read, tell us how it all started.

My father was a stock broker, so we had all these financial books in our library. He introduced me to those classics and I got into them. Iam lucky that my father was not a fan of Playboy! Reading is the best habit you can get. Well, you can learn from teachers too, and have mentors but there are so many constraints attached- they will talk fast, talk slow, they might talk like a pro or they might be terrible communicators. Books are a different animal altogether, I love reading! The beauty about reading and learning is that the more you learn the more you want to learn.

People who join Berkshire Hathaway seldom leave. How do you get along well with all your executives?

I try to get quality people. I always say - Hire someone in your organization who is better than you are. If you do that, you build a company of giants. If you get people worse than yourself, you build a company of dwarfs. And do not try to do everything yourself Delegate the jobs and look out of the window. The results will come. That's how you build institutions. It happens only when you empower others, believe in others. Iam an investor, Iam very secured at that, I have no clue how to make Coca-Cola or how to dole out credit cards (Mr. Buffett owns 8% of Coca-Cola and 13 % of American Express). I understand the wisdom of the aphorism that you cannot please all thepeople all the time. Of Course, you will always find qualities that you don't like in people around you, but if you observe carefully the love of the work unites you both. There is no point in being obsessive about a bad quality in a person, whom you otherwise respect.

I am a small time businessman from Dallas, Texas, what do I need to do to hit big time?

Be patient, Achieving your financial goals and dreams will not happen overnight. As much as we would all really love to accomplish our goals in a few years, this is an ongoing process. Defining your financial goals is not a one-time task; you need to keep adding new plans atdifferent stages in your life. We all admire the skills of Olympic ice skaters, pro golfers, and concert pianists. But do we remember that they didn't acquire their skills overnight? They had to practice hours on end for years to achieve their dreams. The key to success is to continue learning throughout your life with a voracious appetite.

I think it is marvelous that you have had a golden run with investing, how did you do that?

My rule is to be fearful when others are greedy, and be greedy when others are fearful. Besides, I call investing the greatest job in the world because you never have to swing. You stand at the plate; the pitcher throws you General Motors at 47! U.S. Steel at 39! And nobody calls a strike on you. There's no penalty except opportunity lost. All day you wait for the pitch you like; then when the fielders are asleep, you step up and hit it. Stay dispassionate and be patient.

You're dealing with a lot of silly people in the marketplace; it's like a great big casino and everyone else is boozing. If you can stick with drinking Coke, you should be OK. First the crowd is boozy on optimism and buying every new issue in sight. The next moment it is boozy on pessimism, buying gold bars and predicting another Great Depression, most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well.

Mr. Buffett you have seen so many crashes and recessions, your take on facing recessions and stock market crashes?

If past history was all there was to the game, the richest people would be librarians. Every scenario is different. But always remember, Tough times do not last. Tough people do.

What is the 1 biggest advice you would impart to a young investor like me?

Think for a moment that you are given a car and told this is the only car you would get for the rest of your life. Then you would make sure that you car is taken care of well, it is oiled and detailed every now and then. You would make sure that it never gets rusted, and you would garage it. Think of yourself as that car. You just get 1 body, 1 mind and 1 soul. Take care of it well. Invest in yourself that would be my advice.

You personally know many of the Financial executives who are engineers of the current turmoil in the financial world, surprisingly even after record losses, those executives receive astronomical salaries and bonuses and arrogantly declare that they deserve it, why dint you advice them from making such decisions and what's your view on their justification for their pay?

I like sharing my ideas but don't like imposing my ideas on anybody It doesn't make sense and is a waste of time. If somebody has decidedthat they know everything that is there to know, nobody can help them. The best way to learn and succeed is to know that we know nothing. There is an entire universe out there and still some of us think we can know everything In the world of investing a few people after making some money tend to imagine they are invincible and great.

This is the worst thing that could happen to any investor, because it surely means that the investor will end up taking unnecessary risks and end up losing everything – arrogance, ego and overconfidence are very lethal. Personally I don't feel too comfortable with too much extravagance, because I always think like an investor. My thought process doesn't see a lot of value in a fancy car or a designer suit.

Thinking like an investor always is very important to bring in a sense of disciplineand focus. Before reading balance sheets and investing you need to make sure your outlook and mindset is that of an investor.
Never let ego, arrogance and over-confidence control you - not just as an investor but also as a human being. You will never have internal peace if you are unable to look at everybody around you with love, compassion and understanding. Irrespective of who the person is, he or she can teach you something you don't know. I have learnt so much from people all around me and I wouldn't have been able to learn all thesewonderful things if I had not spoken to them with a smile. To quote Sir Isaac Newton- If I have seen farther than others, it is because I have stood on the shoulders of giants.