Tuesday, February 20, 2007

The Cow Theory of Business & Finance

Got to this link via Rajesh Jain

Mark Gilbert writes on Bloomberg: If Hedge Funds Kept Cows, Your Milk Would Go Sour. He builds on the famous cow theory on political systems. In communism, for example, you have two cows, your commune seizes them and charges you for milk. In a democracy, you have two cows, the cows outvote you 2-1 to ban all meat and dairy products, and you go bankrupt and starve to death.

Similarly, the cow theory can be applied to business & finance. Read his take on Buyouts, derivatives, currency markets, bond markets here. Enjoy. Just one example quoted down below.

Google Inc.
You have no cows. You slap advertisements on everyone else's cows. The milk floods in. You use the proceeds to reinvent the cow.

Investing Gyan
Reviews, Tips, Calculators with an Indian perspective.
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