Comments on: The Risk / Happiness trade-off … http://7million7years.com/2009/01/20/draft-accounting-for-risk/ How to make 7 million in 7 years ... Sat, 11 Feb 2012 22:32:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Adrian http://7million7years.com/2009/01/20/draft-accounting-for-risk/comment-page-1/#comment-2195 Adrian Fri, 23 Jan 2009 05:23:55 +0000 http://7million7years.wordpress.com/?p=748#comment-2195 @ Diane - Or, you can just work out one scenario: what will it take to get to my Number/Date and reiterate on that, if the compound growth rate scare you too much ... kind of goes hand-in-hand with 'go by your gut' philosophy, which overly-analytical people tend not to be comfortable with. A shame, because they have a real 'edge' when it comes to analyzing the various options on the way to their Number. @ Diane – Or, you can just work out one scenario: what will it take to get to my Number/Date and reiterate on that, if the compound growth rate scare you too much … kind of goes hand-in-hand with ‘go by your gut’ philosophy, which overly-analytical people tend not to be comfortable with. A shame, because they have a real ‘edge’ when it comes to analyzing the various options on the way to their Number.

]]> By: Diane http://7million7years.com/2009/01/20/draft-accounting-for-risk/comment-page-1/#comment-2196 Diane Fri, 23 Jan 2009 03:23:31 +0000 http://7million7years.wordpress.com/?p=748#comment-2196 How 'bout this for a way to figure that out, Jeff? Outline all the various what-if scenarios of "what can happen IF" something occurs. You have to figure out what they all are (which can be quite extensive). Then run the costs on each other and start making comparisons. Simply put, but quite time intensive. It's however a bit easier to understand than running the R-squared computates, which again are just numbers that are based on ...WHAT? history? hmmmmmm... Just remember this from the MBA Toolkit. Truly great CEOs have historically gone against the numbers run by the financial experts - using some 'gut instinct' - and been right. However, no figures exist on how many wanna-bes tried that method and failed :) It only goes to show you that "running the numbers" only provides you with some information, not an answer. How ’bout this for a way to figure that out, Jeff?

Outline all the various what-if scenarios of “what can happen IF” something occurs. You have to figure out what they all are (which can be quite extensive).

Then run the costs on each other and start making comparisons. Simply put, but quite time intensive. It’s however a bit easier to understand than running the R-squared computates, which again are just numbers that are based on …WHAT? history? hmmmmmm…

Just remember this from the MBA Toolkit. Truly great CEOs have historically gone against the numbers run by the financial experts – using some ‘gut instinct’ – and been right. However, no figures exist on how many wanna-bes tried that method and failed :) It only goes to show you that “running the numbers” only provides you with some information, not an answer.

]]> By: Adrian http://7million7years.com/2009/01/20/draft-accounting-for-risk/comment-page-1/#comment-2197 Adrian Wed, 21 Jan 2009 02:12:48 +0000 http://7million7years.wordpress.com/?p=748#comment-2197 @ Jeff - You are actually helping all of our readers, perhaps more so than yourself ... we truly appreciate your contribution, and that of everybody else who questions/comments/contributes/criticizes. @ Jeff – You are actually helping all of our readers, perhaps more so than yourself … we truly appreciate your contribution, and that of everybody else who questions/comments/contributes/criticizes.

]]> By: Jeff http://7million7years.com/2009/01/20/draft-accounting-for-risk/comment-page-1/#comment-2198 Jeff Wed, 21 Jan 2009 01:40:41 +0000 http://7million7years.wordpress.com/?p=748#comment-2198 When I wrote this comment I was looking for a context-independent way of determining how leveraging amplifies the returns of any investment. Unfortunately, this post did not come close to answering my question, and probably confused even those readers who understand statistics. But that was your point... When I wrote this comment I was looking for a context-independent way of determining how leveraging amplifies the returns of any investment. Unfortunately, this post did not come close to answering my question, and probably confused even those readers who understand statistics. But that was your point…

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