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Showing posts with the label Risk

The all-new BMW M4 CSL

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 The all-new BMW M4 CSL: The Legend is Reborn To celebrate their 50th anniversary, BMW  GmbH presented their fans with a special edition car based on the high-performance  models. The new BMW M4 CSL combines old-school racing passion with the latest innovative technology to yield a beast of a car. Competition, Sport, Lightweight. In case you haven't figured out, that's what the CSL stands for. The car posses the next-level power and intelligent lightweight design, model-specific chassis upgrade on the two-seater configuration. The M4 CSL share similar performance specs with the BMW M4 GT3, the M4 CSL clocked the fastest Nurburgring's Nordschleife circuit lap times for a series produced BMW car. The beast boast 3.7 seconds from 0 - 100 km/h, and 10.7 seconds sprint from 0 - 200 km/h! BMW plan to produce a limited 1000 units of the lightweight beast, only weighing 1625 kg, giving it a power-to-weight ratio of 4.01kg/kW. Impressive. Significant amount of weight have been she...
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Specialise

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I am tempted to say this is a follow up Blog from the  Diworsification  Blog. Perhaps it is closely related. We are often tempted to do everything at once, whilst possible, it can yield below par results. I think I read from one of Nassim Taleb's books that the reason why Professors have average salaries is because they are generalist, they do not specialise. Conversely, neurosurgeons rake the dough, few can do what they do. I have an opinion on this argument; generalisation is good, it allows you to have a conversation with anyone about anything, the limitation of course is that you know little about anything. On the other hand, whilst specialisation is good, it can actually narrow your thinking. If I know more, a lot more about Chemistry, I may end up not knowing about Messi's departure from FC Barcelona to PSG; this is not necessarily a big deal but it does present me as an ignorant and oblivious  person. I digress.  Warren Buffett and Bitcoin Warren Buffett ...
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Location: Pretoria, South Africa
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Don't confuse Volatility with Risk. A Risk Management Lesson

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  The securities markets offer endless possibilities to create wealth. I use securities instead of stock because there are many tradable  securities in the market, not just stocks , although stocks is what people are familiar with. There's a confusion between risk and volatility, and if your're confused, you're not the only one. I first came to a clear definition of risk and volatility in Michael Covel's book Trend Following Risk = possibility of a loss Volatility = Rate of change, in markets' context, price All investments carry risk ; that is, there's a possibility that you may lose your invested capital. Therefore, it is important to understand this before you venture into investing. Various asset classes have varying volatility; cryptocurrency is currently the most volatile assets classes whereas bonds have the least volatility. High volatility doesn't necessarily imply high risk; if the average volatility of a Rand is 20 cents, although it's 20% o...
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Location: Pretoria, South Africa
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