Many of the senior financial books will describe a triangle between liquidity, risk and return. It is an additional to risk and return approach well known from our lives and experience. In this short article I would like to describe following square:
Trust - Liquidity - Risk - Return
I observe in Asia.
Adding trust to the equation is about description who I have information from, how I can be sure the information is correct and how many people before can confirm me the promised equation.
Many times was proven, than decrease by one unit of the trust can increase amount on invested money by x-times. This is due to familiarity of the approach from investor, trust he has and can confirm from 3rd sides. Trust is also build due to marketing, presentation of the company or the achievements of the management. And Asia is a great example of it.
Asia is not anymore a poor part of the world, where only few rich people have enormous cash to invest. For such a countries u need a good relationships. Asia is much more about developed financial models, top advisors u need to pay certain amount of cash to prepare your company for investor. It is due to less certain market in comparison to Europe. There are still many small companies running around with big investment ideas, fake companies and directors stealing money from small investors. Fresh married people will put their deposit to a great investment with hope of big returns. And than money will be gone.
No comments:
Post a Comment