Tue May 29/ 2007 – 5:10 pm MST
Earlier we were discussing risks of cashflow. The argument is that they are mostly symptomatic of other problems, and the real risk arises from not modeling and managing cash behaviour. This leads of course, to – how exactly do we do this?
When we first started our operation , there weren’t that many transactions, and an […]
Thu May 24/ 2007 – 10:49 am MST
Risks of cashflow are partly an illusion. Agreed – the definition of insolvency is the inability to meet obligations when they are due, and so cashflow … BUT
What is Cash
What is cash? Fundamentally, cash or money is a measuring tool. Apples and shoes are difficult things to compare. When I want to replace my shoes, […]
Mon May 7/ 2007 – 12:28 am MST
Independent businesses are complex. Since all decisions are made by one person, or a very small circle, there are few of the organizational separations familiar to large firms. A large firm can identify certain operations – collections of assets, people, products, and opportunities – as belonging to a business unit. It is then possible to […]
Fri May 4/ 2007 – 10:19 pm MST
I confess, last post I slid a little quickly over “You quantify the risks”. ‘Fraid I had to, because it is a significant subject in itself. Entrepreneurs rely on their instinct and experience to appraise risk - but this is qualitative, and sometimes a number estimate can be very helpful.
The financial markets cheat a bit […]
Wed May 2/ 2007 – 1:27 pm MST
Specific risk, as we saw before, is the risks of a specific investment. Our review of how this is handled in capital markets, where the focus of analysis is the specific risk of a particular equity for instance is worth revisiting.
The specific risk of an equity is driven by the observed volatility of the stock […]
