Ankit's Financial Blog

Accenture is considered a power house by many investors. I was reading a magzine last year and one of the most influential mutual fund manager described Accenture as consulting and outsourcing power house who thought that accenture's share at $41 was a bargain. Now after an year, its share are struggling at $34. Last year was difficult and most of the companies saw correction. But what about the future. Can accenture grow and deliver superior result to boost its share price? I really doubt it. Accenture has grown really rapidly in India. I myself saw that growth. In Dec 2002, I went to Accenture India office for an interview for the position of software engineer. The office was still under construction in Bangalore and only staff they had was HR. I was among the first 30 people who joined Accenture Bangalore in Jan 2003. By the end of Feb 2003 Accenture had more than 3,000 employees and by the end of 2003 the number was probably more than 10,000. In Jan, 2003 there was no project a...

This Friday, Fed lent the money to Bear Stern to avoid Bear from falling down disorderly. Was this a right move? Should Fed bail out financial institutions which willingly made subprime mortgage loans and invented complex financial instruments to fool the investors? They knew in advance that these were bad loans, people won't be able to pay them back. And, to fool the investors and avoid the risk, they created CDO and sold it to pension funds, municipalities and other naive investors. Now think about the people who invested their life's earning into securities. Municipality workers who will lose their jobs because of these CDOs. Shouldn't financial institutions be held responsible for this? I don't know what you think, but in my opinion this certainly is a bad move by Fed. Why? Because this tells investors that financial institutions instead of getting punished for such actions, get bailed out. There is no punishment for cheating investors. As an investor I will not t...