Part 1 of this article identified general biases in decision-making and Part 2 set forth biases that can affect investors’ perceptions of market and investment dynamics. This Part 3 of the article will discuss biases that can be found in the process of investment selection and valuation. Investment Selection ● Market Point of View Bias. […]
Part 1 of this article identified some general types of bias that can have a significant impact on decision-making. This Part 2 of the article will look more specifically at how biases can affect decision-making in the area of investments. Market and Investment Dynamic Biases While some investment decisions are made on impulse, most investments […]
A very colorful component of the Chinese language is what are known as “chengyu” (成語) which are four character maxims that pithily express philosophical, moral and practical insights. There are thousands of these maxims that can be applied to all types of situations. One well known chengyu is “jing di zhi wa” (井底之蛙) which literally […]
Our frame of mind has an extremely important impact on our ability to walk the long and difficult road of running a business and face the many challenges it invariably brings at every step of the way. While there are many potential sources of mental strength and resilience, the Japanese concept of kansha is a […]
Rhythm and momentum are important components of business success and failure. Starting from the comments of the famous Japanese swordsman Musashi Miyamoto on rhythm, this article explores the dynamic of direction in business and sets forth practical steps that companies can take to strengthen and maintain business momentum. Musashi Miyamoto and the Concept of Rhythm […]
When valuing corporations there is a tendency to heavily weight present performance on the ground that the past is decreasingly applicable and the future is increasingly uncertain. Yet as demonstrated by the Lindy Effect there is a good argument that longevity should be taken into consideration as an important value component. A 50 Year Swordsmanship […]
As with anything in life, it is easy for the capital raising process to devolve into an inescapable labyrinth of our own perceptions about the strength of our business model, investors and markets, regardless of whether or not those perceptions match reality. At all times on the capital raising path, we must be on guard […]
You have spent a lot of time and resources on a project that has not generated expected results. Should you cut your losses and abandon the project or ramp up the commitment until it works? While there are different ways to evaluate whether an initiative should be stopped or continued, the most important thing is […]
Innovation is one of the most powerful ways for businesses to create shareholder value. While many companies do not view themselves as innovative and do not pursue innovation-driven value creation strategies, there are different innovation models and every company can adopt an innovation approach that best fits its business model, corporate DNA and operating environment. […]