How should new risk (COVID19) inform investment decisions?
Should our policies and processes be reviewed/ challenged or should we depend on them more than ever? This short article walks through a framework to support complex investment decisions, especially during turbulent times. It is possible to make excellent returns (on investment) in all quadrants, don’t be fooled into thinking that one quadrant is the best (or better). Each quadrant has unique characteristics; the flow is to go through each one in turn, starting top right. However, before that it is worth examining the axes. The horizontal axis (X) is “how a decision is made” The extremes of the X-axis extends are Thought(ful) and Pain(ful). A thought(ful) decision means a) you are making an investment decision based on your experience and gut instinct, there is deep analysis and the key is that you have time to consider the options and consequences. b) The purchase decision (demand) for products and service at this extreme is slow and considered. You have time and th...