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17-06-2015, 03:15 PM
(This post was last modified: 17-06-2015, 03:25 PM by specuvestor.)
He missed the most important part that Buffett and manger IMHO nailed it: incentive structure
Without incentive structure (including corruption and illegal means) like pure communist regime,animal spirit also useless.
Most bubbles happen when the risk/reward is so skewed with the incentive structure, perceived or otherwise, that herd instinct takes over and nobody ask whether it makes sense or not, until the music stops
Without incentive structure (including corruption and illegal means) like pure communist regime,animal spirit also useless.
Most bubbles happen when the risk/reward is so skewed with the incentive structure, perceived or otherwise, that herd instinct takes over and nobody ask whether it makes sense or not, until the music stops
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
Think Asset-Business-Structure (ABS)