Your idea of success is completely wrong

There is this idea that success is 100% correct decision making. For some people, they understand this to be 90% or even 80% correct decision making. This idea is completely wrong. A success rate of 56%, implying 44% incorrect decisions, is a great result. Here’s why. Let’s simplify things. Assume that you are the chief executive of a company…

Chelsea Football Club Innovates Financially

I just found out that Chelsea Football Club is applying ideas from financial leasing to their football player lending programme. I was shocked. The analysis is quite interesting. To me at least. The movie Moneyball, based on the book by the same name, showcased the use of financial ideas in sports, in this particular case baseball. There…

Your stop loss orders aren’t guaranteed to protect you

Speaking of trading, I want to talk about certain trading misconceptions. I recently talked about the liquidity trap that some investors were getting themselves into when investing in illiquid stocks. The issue is not an investment issue but a trading issue that can greatly affect the overall IRR. In discussions about this trading trap some…

Buying bitcoins is going long bitcoin deflation

Buying bitcoins as an investment means going long bitcoin deflation. That’s it. Let me explain. Bitcoin is a cryptocurrency, a digital currency made hard to forge using cryptography, and also a payment platform such as those used by Visa, ATMs and if you’ve done wire transfers, the Swift system. The bitcoin technology platform is not…

The UAE’s banking paradox

In this section I look at the UAE banking system and come to some startling conclusions. It seems that banks are grabbing market share in a market with deteriorating margins and increased risks. Last week I took a look at Union National Bank’s Q2 financial results. The focus was to look beyond the headline numbers and try…

Your guide to handling ethical management issues

You have spent a lot of time honing your business ethics, governance and compliance skills, but time and again you find yourself in difficult situations and realise nobody taught you what to do. If I just described you, then this article is for you. Most of what is taught is with regards to how to…

Jawbone lessons

Jawbone, best known for fitness wearable technology, went into liquidation last month in part because of too much funding, according to CNBC. I believe that this is a good case study for some of the companies in the GCC that receive easy funding. Too often, certain investments are deemed strategic and then there is a blind mandate…