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Showing posts from March, 2018

Math of Words

I am passionate about investing and love what I do. I also, like math and logic, and use them both to help me make my investment decisions. Numbers never lie, but words can be spun into tall tales. For that, I had never focused on improving my proficiency in written English and Grammar. I took notice of certain words that made up a Company’s business model explanation. I continued to notice the same or synonymic words repeating. I decided to try and use these words as a quantifying metric to calculate risk and give indications on financial forecasts. I gave values to the words and thus turned words in to numbers to create a quantifiable equation. Examples of indicator words for profitable companies are: Essential, Necessary, Required, Compulsory, Crucial, Must, Vital & Mandatory. I have begun to monitor certain additional descriptive adverbs. Examples of these indicator words are: Critically, Really, Extremely, Absolutely & Positively. I believe that identificati...

Feed the Minnows!

Every early stage investor dreams of investing in the next Big Fish, like the next Apple, Google or Amazon. The question is where do you find the next Big Fish? Capital is the necessity food a Company needs in order for it to grow. If there are no sources of capital in a market for certain companies, then those companies will not be able to grow and most will simply die. “Every big fish started off as a minnow.” Feed the minnows! The more minnows that survive, the more that can grow to become small fish. Then the more of those can survive and can grow to become medium sized. We first need to populate the pool with medium sized Companies before we expect to find Big Fish. To answer my earlier question of ‘where do you find the next Big Fish? The answer is simply, grow it!