Water Resources vs. Capital Asset Management
Over the last few years, I have met Mr. Liu (刘景胜) of the World Journal for several times. He indicated several times that he would like to write a report about my investment stories. I met him last time during a party at Serena’s home. He said about his intention again. I said ok to a short story. He just did a story about Steve Chen and his company, which appeared on the www.worldjournal.com on Tuesday, December 26, 2006.
For my own investment stories, I just have two stages. In the first stage, I recognized that the Internet infrastructure was just as the water infrastructure. So I mapped everything I could find about the Internet and related them to what I had already known about the water infrastructure: storage, pipeline, turbine/pumps (routers/switches), and so on. I did that for approximately eight years from around 1992 to 2000. That worked out very well. It turns out that the Internet infrastructure and the water infrastructure are indeed very similar.
The second stage is about the deeper understanding about the basic philosophy of the water system. The entire purposes of water systems are two-folded. One is flood-control. Another is drought-protection. The economic activities should be continued without worries about floods or droughts. If flood-controls and drought-protections are well managed, the economic expansions can continue without adverse impacts.
It is based on this understanding of waterworks’ contribution to the economy I have come up with my pursuit of the second stage of investment theme. The Internet infrastructure and the water infrastructure are completed. There operations and continual improvements will make the economy run smoothly.
Investment or capital market operation is another aspect of the economic activities. Just like water is needed where economic activities require. Capital is needed where economic expansions requires. So the lack of capital support or over supply of capital can cause similar impacts to the economy just as floods (oversupply of water) and droughts (lack of water supply) can cause economic slowdowns.
So all the soft tools used for water resources management can be applied to the capital market operations. With about a little over one-year out of the market, a new investment theme based on the basic philosophy of water resources management is applied to my new investment approach since 2001. The basic methodology is derived from flood-controls and drought-protections.
For my own investment stories, I just have two stages. In the first stage, I recognized that the Internet infrastructure was just as the water infrastructure. So I mapped everything I could find about the Internet and related them to what I had already known about the water infrastructure: storage, pipeline, turbine/pumps (routers/switches), and so on. I did that for approximately eight years from around 1992 to 2000. That worked out very well. It turns out that the Internet infrastructure and the water infrastructure are indeed very similar.
The second stage is about the deeper understanding about the basic philosophy of the water system. The entire purposes of water systems are two-folded. One is flood-control. Another is drought-protection. The economic activities should be continued without worries about floods or droughts. If flood-controls and drought-protections are well managed, the economic expansions can continue without adverse impacts.
It is based on this understanding of waterworks’ contribution to the economy I have come up with my pursuit of the second stage of investment theme. The Internet infrastructure and the water infrastructure are completed. There operations and continual improvements will make the economy run smoothly.
Investment or capital market operation is another aspect of the economic activities. Just like water is needed where economic activities require. Capital is needed where economic expansions requires. So the lack of capital support or over supply of capital can cause similar impacts to the economy just as floods (oversupply of water) and droughts (lack of water supply) can cause economic slowdowns.
So all the soft tools used for water resources management can be applied to the capital market operations. With about a little over one-year out of the market, a new investment theme based on the basic philosophy of water resources management is applied to my new investment approach since 2001. The basic methodology is derived from flood-controls and drought-protections.
posted by Unknown at 4:06 PM
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