"Guru" - Some thoughts...

Saw the movie "Guru" again (movie on Dhirubai Ambani, India's legendary industrialist), and loved it even more.

I think the Ambani family - right from Dhirubai to Mukesh and Anil - have four basic pillars of strategy

- Expand / straddle extended part of the value chain : Conventionally, most business houses aim at only part of the value chain, while the Ambanis aim at capturing extended part of the value chain through forward and backward integration. With this, they are not only able to garner higher sustainable profits, but also are able to dominate competition. eg Telecom - voice/ data/ ILD/ web stores/ media (?), Textile to petroleum

- Manage Environment : Adhere to "the letter of the law", and not necessarily "the spirit of the law". Find opportunity to gain advantages by looking / managing various loopholes.

- Be the lowest cost producer : Kill cost everywhere and anywhere (brilliantly) - ranging from cost of setting up to cost of operations to cost of capital

- Scale : Scale everything to the highest level possible and gain tremendous advantages - of scale/ scope/ entry barriers.

Brilliant strategies, even more brilliant execution.

Books, Books, Books...

These days, I am spending a lot of time reading investment classics...See my list of books at http://www.amazon.com/Investors-Pride/lm/R20OGWTHS1I8VJ/ref=cm_lm_byauthor_title_full/104-0952844-4855139

Do let me know in case you have any opinion on these or any other must read books...