Wednesday, January 1, 2020

Book Review: Mind Master

Chess is a game of Indian origin. Folklore has it that in the 16th Century, Emperor Akbar played chess on gigantic chessboard “floors” and real men walking on it as pawns and pieces. Yet, there is almost no documented history of the game in India since then. 

Until now, that is. 

As I write this, a different type of history is being made. A wave  of chess enthusiasm has swept the country since the last few years. Today, if you place one Indian Grandmaster (GM) on each square of Akbar’s chessboard, you would fill all the squares on the board and still be left with a GM or two to spare! The number of International Masters (IM) – a title junior to a GM, awarded by the World Chess Federation (FIDE) - that India boasts of now runs into three digits. History is being made, everyday.

But it has not always been so. When Anand started out his career in the mid-1980s, attaining an IM Title was what most Indian chess players aspired for. All that changed one day, when a 13-year old boy suddenly burst onto the national chess scene and swept away the honours.


In Mind Master, India’s first GM “Vishy” (a misnomer given to him by the Europeans, for Viswanathan is his father’s name) Anand looks back at more than a quarter century of career playing chess at a professional level. Dubbed the “lightening kid” in his younger years for exceptional speed, Anand went on to win the World Chess Championship several times, not to mention many other awards and accolades along the way. The book gives the reader a close peek into the thinking, strategizing and planning that went into several of his crucial matches. What were the challenges that Anand faced? How did he overcome them? What were the mistakes he made, and the lessons learnt?  Anand speaks out his mind to you, narrates his story. Though chess is an individual game, Anand’s book also brings out vividly the importance of how having a close knit team of coaches and assistants working in unison towards a common goal can make a difference to the final result of the game. 

The book is not exactly a chronological account of Anand’s personal or professional life. Rather, the chapters are divided subject wise, such as one on the art of remembering, another one on preparing for tournaments psychologically, one on the role of talent, hard work, luck & aptitude and so on. Within each of these chapters, Anand shuffles back and forth, narrating his experiences, sharing  his insights and drawing lessons from his long years in the game. There is the inevitable touch of humour here and there, and often the politics that goes hand in hand with the game. Each chapter ends with a chess position – and a summary paragraph carrying the central message that the chapter contains. I find this design beautiful.

In recent years, chess has undergone a dramatic change, with computers (“chess engines”) marauding the game in a big way, busting the myth of human superiority over machines. Anand has been on both sides of this fence, having started out the old fashioned way in the 1990s and transitioning successfully into the computer age, still winning tournaments in the 2010s. The chapter on making this change from the pre-computers era to the post is the one I liked the most.

The later part of the book is dedicated mainly to his World Championship matches (i.e. finals), such as the one against Kramnik (2008), Topalov (2010), Gelfand (2012) and Carlsen (2013). Anand takes a deep dive into each of these matches and narrates the story that did not appear in the press – the challenges, the hard work, the politics, the preparation and the execution. What the world saw is only the final result. But as Anand says at one of the places “chess players do a lot more than sit motionless, staring at moving pieces on a board”. In this book, you get to see what that lot more is.

Clearly, the book is meant for an informed audience. You need to have at least a basic introduction to the game, to make sense of what is written in the book. Words such as variation, pairings, notation, blitz, compensation or fianchetto are straight out of the chess jargon, and a dictionary will help little to a reader if he has never been introduced to the game before. The uninitiated may be forgiven for failing to understand what a sharp Dragon or a dry Catalan is, let alone why playing 1.d4 instead of 1.e4 in a crucial match against Kramnik deserves an entire chapter of its own.

For chess playing generation of today aspiring to be the Anands of tomorrow, the book is an investment worth their time.

Finally, here is a link to the game that Anand says is one of the best games he has ever played. Enjoy!

Aronian Vs. Anand, Wijk aan Zee, 2013


(P.S.: You can read my earlier take on why Viswanathan Anand is the greatest sportsman India has ever produced. Click here)

Sunday, February 25, 2018

Book Review: Free Capital


“Free Capital” by Guy Thomas is a collection of biographical sketches of twelve individual investors who have made a living exclusively out of investing in the stock markets. The individuals have varying academic backgrounds and previous job profiles – usually unrelated to investing or fund management, and at some stage in their life have given up regular day jobs opting instead to focus exclusively on investing to make a living. All of them have exceptional track records and have built a fortune from modest beginnings.

The term “Free Capital” here refers to the corpus of savings the individuals have started with, essentially what is left over out of regular income such as salary after meeting day to day living expenses. Many of the individuals have chosen to remain anonymous in the book, with the author using dummy names instead.

Individuals who gave up day jobs to become full time investors

All of the investors have taken a different path to success. There are some who make broad macro calls such as on cyclical industries or commodity prices. Others use a bottom up approach, studying company fundamentals to exploit gaps between price and value. Some are day traders, investing for periods from just a few minutes to a few hours, while there are others who take upto 25 percent stakes in their target companies and put pressure on the managements to change course and create value. To each, his own. The book amply demonstrates that when it comes to investing, there is no One Way that is the Right Way to success. You have to choose what suits your style and temperament, and evolve over a period of time.

Despite these differences in investing styles, it is interesting to see some common patterns emerge from the profiles of these investors. There are similarities in personality traits and even personal backgrounds in many – though not all – cases.

This is not a typical investment book, though there surely are many nuggets of investing wisdom. The book does not seek to teach how to invest, or provide a roadmap for making successful investments.  The book narrates the personal stories of profiled individuals, as brought out from their own detailed interviews and the author’s external research on them. Free Capital is a small book that you can easily finish off in a few sittings.

If you are looking for an inspiration in your investing journey, this book will do the job.

Sunday, January 28, 2018

The Everything Store: Jeff Bezos and the Age of Amazon


Every company claims it is customer centric, but have you ever seen a CEO keep an empty chair at management meetings to represent the customer?

Welcome to Amazon, and the cult of Jeff Bezos. 

“The Everything Store: Jeff Bezos and the Age of Amazon” by Brad Stone is an extremely well researched, almost biographical account of Amazon.com, and its founder Jeff Bezos. Aided by dozens of interviews (including some with Bezos himself) with former and current employees, suppliers, competitors, friends and relatives, family members, teachers and almost anyone who came in contact with him, the author has built an in-depth profile of Amazon and its legendary founder Jeff Bezos. The author traces the journey of Amazon right from the birth of the idea in the mid-1990s and takes the reader, often in excruciating detail till where it stood when the book was published in 2013.

The origin
It was 1994 and those were early days of the Internet. But Bezos was quick to see its potential. The idea of Amazon was simple – an internet company that served as an intermediary between customers and manufacturers, and sold every type of product all over the world. Throwing away his lucrative Wall Street job, Bezos swooped down on the opportunity and set up Amazon.com. Starting out first with selling books, Amazon soon spread itself to other categories. And the rest – as they say – is history.

The book gives a deep insight into Amazon and its founder Jeff Bezos

Bezos is Amazon. Amazon is Bezos.
Bezos’ overwhelming personality is stamped all over Amazon. The story develops as a compendium of countless narratives from people who had close encounters with Bezos and brings out vividly his extraordinary personality and management style. Exceptional intelligence, competitive spirit, a volcanic temper, ruthless combative approach, an almost limitless capacity to put in hard effort and an outlandish ambition (Bezos is also “working to lower the cost of space flight to build a future where we humans can explore the solar system firsthand and in person”, by the way) - this is what defines Bezos. The book portrays him as an extremely difficult micromanager to work for, setting very high standards that others struggle to meet. Bezos’ personality style has ensured a ‘confrontationist’ culture at Amazon. Bezos abhors social cohesion – the natural impulse to seek consensus.  Yet, the author says, former Amazon employees often consider their days at Amazon the most productive time of their career. “Colleagues were smart, work culture was challenging and there were constant opportunities for learning” says one of them.

Customer First
How did Amazon manage to grow at such a breakneck speed? How did Amazon succeed where others didn’t? Bezos realized that e-Commerce had the potential to understand its customers in a way brick & mortar merchants can never do. “We are genuinely customer centric, genuinely long term oriented and genuinely like to invent”, Bezos is quoted in the book as saying, building Amazon on the edifice of a few clearly defined and religiously followed founding principles – customer obsession, frugality, bias for action, ownership, a high bar for talent and innovation. Among this, extreme customer centricity comes out repeatedly as the single most defining character that distinguishes Amazon from others.  “There are two kinds of retailers – those who work to figure out how to charge more, and those who try to figure out how to charge less. We are in the second category. Period.”

Tech, not Retail
Bezos visualizes Amazon as a technology company, not a retailer. A key element of Amazon’s success has been Bezos’ constant focus on innovation. Negative reviews, referral fees, platform services, the Amazon Marketplace – Amazon claims many a firsts to its credit, though it was not the only or even the first online bookstore to start operations. Complex algorithms studying customer behavior, calculating cheapest & fastest shipping routes, crawling the web to keep a tab on competitor prices – all have played a crucial role in Amazon’s success. Yet, Bezos struggled to present Amazon as a technology company pioneering e-Commerce until much later when businesses like the Cloud and Kindle came along. With Cloud, Bezos dreamt of ‘a student in a dorm room having at his disposal the same infrastructure as the largest companies in the world’. And true to it, it facilitated the creation of thousands of internet startups, pulling out the tech sector from a post dot.com depression in the early 2000s.

A must read
As I write this review in early 2018, Jeff Bezos has already surpassed the likes of Bill Gates and Warren Buffet to become the richest man in the world. And while the others may well be past their prime, the Amazon story has only just begun.