Saturday, 7 June 2008

Arbitrage Themed Business (3)

Within minutes both stocks jumped to $ 30. Those who got in first made a self-financing, risk free profit of about $ 9 per share. However, a common strategy with the knowledge, it became very difficult to pull-off between the competing orders.

"Conventional Wisdom" offers nothing useful, which pushes the idea that any business model requires "too much" risk. No law of man or nature forces to carry a risk of a bankruptcy of ambitions. From my experience, entrepreneurs have a greater likelihood of devastating failure only if they can not do their homework, or any research, without planning, implementation or impeccable.

Brainstorm. I had read that Google requires its R & D to reach at least 100 new ideas each week, and perhaps they finish with 5-10 good. But good may ultimately take on a whole series of revenue. Creativity in the counting.

Finding ways to carry out its business with monetary risks as low as possible, without compromising the performance. Become more creative, just over its competitors, and you'll probably end up more successful than the rest.

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