Risk, Intelligence and Business
An interestin disucssion going on at Hasseb’s blog. Here is my take on it…
Intelligence is not as much related with taking risks as we think it does. “Higher the risk, higher the return” is one of the fundamentals of finance. However, that fundamental says nothing about intelligence. Point being that, one might be stupid and therefore he might take a risk just because of the fact that he has no idea what he is getting into. This person has a chance of failure but stupidity does not always mean failure so he can be successful too (remember Forrest Gump).
Coming to the intelligent person, now when this person would take a risk, he would assess the risk. He would know how much risk is involved, what are the losses he might have to bear and also, what would be the profits if his risk pays off.
Now with all of this knowledge, why would he not take the risk? That is a behavioral question; people are risk averse or risk takers. Even a stupid (or less intelligent) risk averse person would not try out something new, or enter into a risky venture.
What we call jugari over here is actually innovation. I prefer the latter word over the former because jugar has a negative connotation attached to it, in fact munir’s reply also takes jugar as a wrong practice. The word sounds like you are cheating. What an innovator does it that he finds a new way of solving an old problem, thereby finding new avenues and turning them into profit.
Elaborating on jugari, one of the reasons for it to have a negative meaning associated with it might be because in general we (Pakistanis) try to find shortcuts. In doing so, the quality or the substance is lost. So jugar seems to have two meanings now; one, innovation, two, shortcuts. Shortcuts of course don’t deliver. So a business man using shortcuts to get his product across might not be so successful in the long run bcause he is not just bypassing important aspects, he is completely ignoring them. However, an innovator is not doing that and therefore, has higher chance of sucess.
Like Hasseb asked at the end of his post; what is your opinion?
Tagged Again
Apparently I have been tagged at more than one blog. In a way the previous tagging took me to this one. Was tagged by Rabia this time around.
1. Last movie you saw in a theater?
Transformers, it was the 3rd time I was watching that movie and it was the theater where I actually loved the action sequences. Otherwise, it was an okay movie.
2. What book are you reading?
Just finished Heart of Darkness by Joseph Conard, amazing book and Rabia you must read it.
Other than that, right now I am reading The Lord of the Rings - The Return of the King by J.R.R. Tolkien. Again, loving it and this is the best of the three books series. Maybe because there are a lot of battles etc. in this one.
3. Favorite board game?
Okayyy this one requires some contemplation… Monopoly is a lot of fun, even if you lose (which I shouldn’t but hell I did)
4. Favorite magazine?
Can’t even remember the last time I actually read a magazine. I mean okay, there is the occasional skimming through when there is nothing better to do but been ages since I have actually read one. I think I will go with Reader’s Digest here.
5. Favorite smells?
Never actually thought about it but love the smell of BBQ. Don’t know the names to any of the chic perfumes I like so can’t really say anything about that, but damn the right chic with the right scent does bad things to me.
6. Favorite sounds?
Thunder, heavy rain, heavy rain and thunder together (i.e. thunder storm), a guitar solo, the roar of an engine (of course the engine should not belong to a Mehran or a cd70), my laptop’s keys.
7. Worst feeling in the world?
There is one, but I can’t quite put my finger on it or explain it for that matter.
8. What is the first thing you think of when you wake up?
“Dammit Taimoor, you know you shouldn’t have [insert random activity] last night.”
When I had to go to FAST, that sentence was usually followed by, “Ah well, there is the hour sleep I can catch on the point.” Ironically, days I really really really needed that hour sleep, I would miss the point.
Point - The bus which used to take us to our university.
9. Favorite fast food place?
Subway
10. Future child’s name?
I think I would be busy cursing myself for not using a condom.
11. Finish this statement. “If I had lot of money I’d….?
…spend it. (Anyone who knows my spending habits knows what I am saying … In fact, now everyone should know what I am saying)
12. Do you sleep with a stuffed animal?
Errr… no!
13. Storms - cool or scary?
Fucking amazing!
14. Favorite drink?
Have only had vodka, I don’ think I am in a position to chose my favorite drink yet. Seriously though, I think I will go with Pina Colada but only because I have to answer this question.
15. Finish this statement, “If I had the time I would….”?
…travel the world, go on expeditions, participate in a triathlon, oh and extreme sports like bungee jumping, jumping of planes and doing random shit before pulling the cord on the chute and stuff like that.
16. Do you eat the stems on broccoli?
I don’t think I have ever had broccoli, I will need to check with mum if she ever tricked me into having it.
17. If you could dye your hair any color, what would be your choice?
My hair color is perfectly fine, thank you.
18. Name all the different cities/towns you’ve lived in?
Okay, starting from 1987 - Gujranwalla, Quetta, Skurdu, Okara, Nowshera, Pano Aqil and Karachi. Yes, in that order.
19. Favorite sports to watch?
Used to watch cricket but it sucks ass now and honestly quite a waste of time. Tennis and Basketball, again used to watch them eons ago.
20. One nice thing about the person who sent this to you?
Love the way she (Rabia) writes and I really wish I had more of fiction written by her to read. Other than that, honestly, she is sort of mysterious which is sort of cool. However, I find her to be a person who is not judgmental, is open to other’s ideas, beliefs (or lack of them) and thoughts. What most of us do is that we gauge a person on only a few predetermined attributes and then label them accordingly. Something about Rabia says that she doesn’t label people that way.
21. What’s under your bed?
Books, an old computer, lots of random papers, a couple of boxes with random junk, a small box with around 5 old cellphones.
22. Would you like to be born as yourself again?
Hell yeah!
23. Morning person, or night owl?
Hands down night owl.
24. Over easy, or sunny side up?
Sunny side up.
25. Favorite place to relax?
The beach, that place me and my friends always thought is Cape Montz but is not. However, it completely serves the purpose.
26. Favorite pie?
None
Whom to tag, whom to tag?
Tagged
Tagged by Roomiat
Pick up the nearest book (of at least 123 pages)
The Lord of the Rings - The Return of the King by J.R.R. Tolkien
Open the book to page 123.
Find the fifth sentence.
..
Post the next three sentences
The leading company rode off as swiftly as they could, for it was still deep dark, whatever change Widfara might forebode. Merry was riding behind Dernhelm, clutching with the left hand while with the other he tried to loosen his sword in its sheath. He felt now bitterly the truth of the old king’s words: in such a battle what would you do, Meriadoc? ‘Just this,’ he thought: ‘encumber a rider, and hope at best to stay in my seat and not be pounded to death by galloping hoofs!”
Tag five people.
Sammy Wiseguy
Mobzilla
Ayaz Ahmed
Lubz
Rabia
