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 identification of selected adverbs and having it as a second condition to the indicator words will lead to better investment selections the even greater returns on your investments.

It is important not to neglect your English and Grammar and strive for proficiency as they too can help you make better investment decisions. So next time you are doing your due diligence, try to incorporate this new word metric. And maybe it will help you increase your winners and ROIs by identifying your key Adverbs.