How investing in the right faults can help you master the tactical business victory.
Chaos theory is a phenomenon whereby 1) an event sets chaos in motion, i.e. a butterfly flaps its wings in Ecuador setting off a hurricane in Jamaica or 2) a system exhausts itself and defaults to chaos, i.e. an automobile tire that wears enough that eventually a pebble causes the tire to blow.
Chaos theory says 'chaos and order' are bedfellows, constantly searching for the other. When one exists, the other is not far away. As a non-linear approach the chaos theory applies well to business and economics. The Rothschild family built an empire on their mantra "buy when there is blood in the streets". However, for small investors chaos can also equal death to their investments. They may not have the ability to 'weather the storm' financially and losses pile up. An example being: the recent collapse of the world economic system, whereby millions of small players became sacrificial lambs to larger interest groups.
Thankfully chaos economics is not much of a mystery. In fact, if we are listening, corporations in distress, or business investments, often advertise their faults; also true of individuals. By identifying this trait for individuals or corporations to advertise their faults we can prepare ourselves for the outcome most likely -chaos.
Recently in Canada, a business, a very large business, Bombardier exposed itself by advertising for help (advertising their faults). Bombardier is requesting a billion-dollar bailout from the Canadian government. What they are really saying is they suck at business. Their products are irrelevant to their markets. Their tire is flat. Unfortunately, citizens doubt that the Canadian government will use common sense. Most likely, our government will bail out this business. Any small investor would cut their losses, accept the fact that this is a poor business and walk away. The Canadian government for some reason believes this to be a 'blood in the streets moment' and time for them to invest.
This example clearly indicates poor business and how to advertise ones’ faults. Often time good businesses are unheard of- they don't explicitly advertise in hopes of convincing people to invest with them and perhaps those are the ones we should be looking for as investors. I like Richard Branson’s spirit, his positive brand of self-promotion. Branson, who advertises that he is dyslexic, doesn't like lawyers and writes deals on napkins. Reading the opposite, in fact he is saying, he's a good business person, astute, great at legal contracts and likes life and business in a simple fashion.
I guess then, what I should say in conclusion is, growing up in a small Saskatchewan town, I am certainly not an expert in business theory, investment advice, or economics. Enjoy your day!