Thursday, August 10, 2006

Freakonomics of Lovology

I was discussing with Khemka what write on my new post. Since he is reading freakonomics these days his suggestion varied from weird to outrageous.
'Write about something which is not obvious but is obviously obvious"

'Write about god without talking about god'

Anyways I got the gist of his suggestions. Here's my freokonomical analysis of why all smart girls seem to go around with rather bad choices. What I mean by bad choices in politically correct manner is that generally these guys are outright losers. At the outset I must add there are always few exception to any observation. Please assume, whoever you are, you are an exception.

The theory is rather simple. Essentially if you look at from the perspective of a girl, "which guy to go around ?" is a pure investment decision. Really, its like which stock to buy (retail investor) or which company to acquire(private equity player). In our case analogy of a private equity player is closer, because private equity player takes majority stakes in the company and also gains management role in running of the company after investment. All intelligent investment decision has a very essential rule: always invest in deals which are under valued, no point in going for shares of companies with high valuation. So you see guys which are successful in conventional sense, are good looking and have mental balance are straight away striked off. A Company which is showing growing profits each year, is operating in a lucrative market domain and has good management systems would do well for itself. But its share price is bound to be on a higher side and its rather unlikely that its going to rise any higher. A smart investor looks for sick companies with some potential. A smart girl looks for losers with some potential. A smart investor regularly monitors the performance of the company for some time before investing. If the investor is huge, obviously the company management visits the potential investor regularly and makes presentation on its performance. A smart girl talks (usually on the phone) with the prospective boy friend for hours before committing. After investment this regular monitoring continues and is added with active role in making key decisions for the company.

Well, you might say that same rules should hold true for guys too. And all smart guys should go around with rather bad choices. That doesn't seems to happening. You see there is a fundamental difference in investor mentality. Girls look for long term investments, on the other hand guys tend to prefer short term investments. The perfect investment for a guy would be analogous to day trading. You invest in the evening and are through with returns by next morning. When Warner Buffet few days back said that the market is designed to transfer money from active to patient, he was answering a more deep rooted question of why females enjoy supremacy in the relationship market.
Post a Comment

Follow by Email