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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar....

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar. Choose the Right Ingredients A Modak is only as good as the ingredients that go into it. Fresh coconut, good-quality jaggery, properly prepared rice flour and the right flavours all contribute to the final result. Our investments and financial products are the ingredients of our financial plan. Equities, mutual funds, fixed income, gold and other investments each have a specific role to play. The objective is not to pick whatever appears most exciting at the moment, but to select suitable, good-quality investments that match our financial goals, time horizon and ability to take risks. Health and life insurance are equally important ingredients. Adequate coverage helps protect savings, the family, and their financial goals and dreams. Good ingredients provide the foundation. But ingredients alone are not enough. Get the Recipe Right You may have the finest ingredients in the kitchen, but if the proportions are wrong, the Modak may still not turn out well. The same applies to investing. Asset allocation is the recipe of a financial plan. Too much of one ingredient can spoil a Modak. Similarly, excessive concentration in one asset or too much money in low-return products can spoil a portfolio. Balance is key. A thoughtfully constructed portfolio brings different investments together in the right proportions. To keep asset allocation very simple - short-term goals can be planned through bank fixed deposits, recurring deposits and debt mutual funds. For long-term goals, one can consider hybrid mutual funds, equity mutual funds or direct stocks. Trust the Process Once the Modak is shaped and placed for steaming, constantly checking whether it is ready will not make it cook faster. Investors often make the same mistake. We keep checking markets, reacting to every correction, chasing recent performers or changing strategies because of short-term noise. Good investing requires patience and discipline. Invest regularly, review periodically and allow your financial plan enough time to work. Compounding is powerful precisely because it rewards those who remain invested for long periods. Sometimes, the best thing an investor can do is simply avoid unnecessary interference. Enjoy What You Have Created Finally comes the most important part - eating the Modak! The purpose of investing is not merely to accumulate the largest possible number on a statement. Wealth should eventually help us fulfil our goals, support our families, create financial security and enjoy life with greater peace of mind. A good Modak needs the right ingredients, the right recipe and trust in the process. A good investment journey needs exactly the same. This Ganesh Utsav, may Bappa bless us with the wisdom to make good financial choices, the patience to stay disciplined, and the prosperity to enjoy the fruits of our efforts. Ganpati Bappa Morya! (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Growing Risks Of Cyber Warfare

Sep 22, 2024
3 min read

Updated: Oct 21, 2024

In a shocking series of events, multiple coordinated explosions have rocked Lebanon and parts of Syria, killing dozens of people and injuring thousands. The blasts occurred after explosive devices, hidden inside pagers and other radio communication devices, were detonated. The targeted individuals were primarily members of Hezbollah, with the explosions taking place in densely populated areas, resulting in widespread injuries to civilians, including children.

The devices, mainly pagers, walkie-talkies, and radios, had been in the possession of Hezbollah operatives, who had acquired them months prior, under the assumption they were secure. However, Hezbollah has accused Israel’s intelligence agency, Shin Bet, of tampering with the devices during transit.

According to security experts, Israel’s elite secret cyber warfare unit was behind the attack. This unit, known for its global cyber operations, is also linked to the creation of the STUXnet malware, which was responsible for the failure of Iran’s nuclear power plant. The pagers were rigged with explosive materials in place of a battery, and a relay switch was installed, allowing the explosions to be triggered remotely in a synchronized manner. The result was devastating injuries to the eyes, face, hands, and legs of those carrying the devices.

The incident occurred in Hezbollah-stronghold areas, including the Dahieh suburb of Beirut, southern Lebanon, and parts of the Beqaa Valley, with some explosions also reported across the border in Syria. The blasts overwhelmed hospitals, as hundreds of victims sought medical help for injuries ranging from severe burns to shattered limbs. The intensity of the explosions, far beyond that of ordinary battery malfunctions, indicates a highly sophisticated sabotage operation.

These explosions have not only deepened the crisis in Lebanon but have also raised critical questions about supply chain security, intelligence tactics, and the legality of using booby-trapped electronics in conflict zones.


What Are Pagers, and Why Are They Still Preferred?

Despite being old-school tele communication technology, pagers or beepers are still used in many countries, particularly in critical sectors and organizations. Pagers primarily facilitate one-way communication, pager uses higher frequencies than car radios i.e. 400 MHz band frequency. It also used a very basic type of VHF spectrum. These devices operate in restricted areas to transfer messages, alerts, and information. These devices are considered more secure and harder to trace or track compared to mobile phones, as they only receive messages, similar to a car radio that receives signals without revealing the listener’s identity or location. Additionally, pagers lack features like Bluetooth or GPS, making them more difficult to hack or compromise.

Among their many advantages, pagers are known for their long battery life and durability, making them ideal for continuous use in specific industries. There are an estimated two million active pager users worldwide. Hezbollah began using pagers after Israel successfully assassinated a high-ranking Hezbollah target by hacking his cellphone and precisely targeting him with a missile. Since then, many Hezbollah members have switched to more primitive communication devices, like pagers, to avoid being tracked via the internet.


Are Mobile Phones and Smartphones Similarly Vulnerable?

American and European security agencies suggest that, theoretically, it is possible to alter mobile phones and other smart devices to turn them into explosive devices. However, practically, it is more difficult due to the advanced security systems in modern smartphones. A hacked smartphone may exhibit various signs, such as abnormal temperature changes, slower system performance, unexpected reboots, odd sounds during calls, hung applications, or irrelevant messages and pop-ups, all of which could indicate tampering. These security systems make it more challenging to modify smartphones in the same manner as simpler devices like pagers.


New Security Challenges

The Hezbollah pager explosion serves as a wake-up call for sectors involving critical infrastructure and aviation. In an era where smartphones are network-connected and can be charged wirelessly, the possibility of tampering with batteries or embedding explosives, like HMX, PETN and other type of plastic explosives pose significant risks. During flights, even a minor explosion could result in catastrophic consequences. On the ground, the threat extends to damaging nearby aircraft, equipment, and infrastructure. Airport security may soon impose stricter regulations, potentially banning pagers, walkie-talkies, and radios, much like power banks, which are now restricted on flights. In the future, mobile phones may only be allowed in switched-off modes, placed in lithium-safe bags during flights. Suspicious devices could be handled separately in Faraday-sheet bags to block any network or signal connections.

This incident highlights the growing risks of cyber warfare and the dangers posed by everyday communication devices being exploited for sabotage. It is an alarming call for a nation’s security as the treat of such critical infrastructure being handled by terrorist organisations can compromise the use of day-to-day electronics for malicious activities. As technology advances, so must the protocols for ensuring public safety, particularly in high-risk environments where even the smallest vulnerability could lead to devastating consequences.

(The writer is an eminent cyber and explosives forensic expert. Views personal.)

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