Commitment versus Cutting Your Losses

Commitment versus Cutting Your Losses

When is the best time to handle loss? Beforehand? Investors put a stop-loss in place. Policy makers put ceiling and floor limits on future activity. Engineers design pressure values. People choose an engagement period and sign pre-nuptial agreements, before they get married. Insurance companies design cover contracts & premiums, after first assessing probability of claimContinue Reading Commitment versus Cutting Your Losses

Options versus Actions

Options versus Actions

The World is obsessed with actions. Stakeholders want them. Accountants value them. Politicians couldn’t survive without them. In Physics, potential energy matters as much as kinetic energy. Employers hire potential, recognising that strength comes not just from proven action, but from having versatility under uncertain conditions. Astute buyers bypass one deal, knowing others will follow.Continue Reading Options versus Actions