Whats up? How are you? So, whats news? :-)

Disclaimer: At the risk of being accused of "running away" from running, this post might appear to be a deviation from "Running".. It might appear so...But then what is life without "Reverse psychology"? Or "Reverse engineering" for that matter? ;-)


So, whats up? Wassup? Sup? How you been? How are you? :)

That last one, I tell you! That smiley, it is one of the most used, overused and abused expressions I have ever known.
But then, what does one expect when one asks "Hey! How are you?"
People would say they're fine no matter what they're going through. Atleast, most people would be.
I have had very few friends who have frankly admitted to me that they're not fine.
No, I am not claiming that I have very good friends who are very frank with me. I guess this would be the case with only people very close to you. You wouldn't tell them exactly how are you as soon as they ask you that innocuous expression of courtesy, "How are you?".
And to be fair to people who ask such questions, what can they do! Asking is better than not asking at all!

And that smiley! SMSese and computerese have so affected us, that we use this combination of keystrokes to pretend a smile. And why shouldn't one? Not only is it easier to hide one's true emotions behind an SMS or a chat message, it is less burdensome when one feels the need to pretend smiles.
What I mean is this: When you're talking to a person face-to-face, pretending is not all that easy. You can't easily hide your thoughts and emotions. You cant hurl abuses at them much as you feel like doing so.
On the other hand, that smiley, as you type it you can recall the choicest of abuses, or make the most intense frowns, depending on what kind of a person you are.

Now, I really don't know why I was and have been thinking about this recently; but we can rest this for a while.
Or, may be I do...

At the risk of being accused of indulging in obscurantism (now, I have to atleast tell you what this means- Obscurantism is deliberate evasion of clarity) - At the risk of being accused of indulging in obscurantism, I will now indulge in weaving Finance "fundas" into what's really on my mind...
As you will see, I have tried to keep it as basic and simple as possible. It is not the ability to understand Alpha and Beta, but it is the analogy I use for the investment that will leave you consufed (confused)! But then, remember, this blog is mine, and I had promised to mix fact, fiction and fantasy together....So, here it goes....

For the benefit of those who don't have even a nodding acquaintance with the Alpha and Beta of Investments and Finance (not that I have more than a nodding or nodding off acquaintance!), Beta is the risk associated with an investment when the investor is passive (merely invests, doesn't take an active role in the business/investment) and Alpha is the risk associated with an investment when the investor takes on an active role in ensuring higher returns from the investments.

Now, one of the sources of Alpha is what one might call activism. This means using financial resources to create, or obtain control over, real assets and to use that control to change the payout obtained on the financial investment. A venture capitalist who transforms an inventor, a garage and an idea into a fully fledged, profitable and professionally managed corporation creates alpha. Otherwise, Alpha is in general very hard to generate. since most ways of doing so depend on the investment manager possessing unique abilities – to pick stocks, identify weaknesses in management and remedy them, or undertake financial innovation. Such abilities are rare. How then can untalented investment managers justify their pay? Unfortunately, all too often it is by creating fake alpha – appearing to create excess returns but in fact taking on hidden tail risks, which produce a steady positive return most of the time as compensation for a rare, very negative, return.

Now you will see why I take sides.
Not only is alpha hard to generate, quite a few so called alpha generators are fakers.

Phew! Now that we are done with understanding Alpha and Beta, please let me elaborate on my theory...

That Alpha and Beta, and investments, can be extended to the ideas of Hope and events in Life in general.
For example, each one of us would want certain things to happen or certain events to occur.
We can either actively work towards making those things happen or just sit back and Hope that things happen.
Please don't get me wrong! I am not making the case for people to resign themselves to Fate and Destiny.

There are always situations one comes across in Life, when despite wanting to do something about some things, one cannot. I am not making the case for excuses. But, there are barriers to doing what one would want to do. Not all barriers are visible or perceivable.

Let me further explain this with an example, just so that it is clear that I am not making the case for people sitting back and let Fate take over.
Consider for example a situation where one of your friends is in trouble. And offering to help, while being courteous, is nothing much. In these situations, you can only hope that your friend gets what he or she wants, or gets out of trouble in this example. This, in my opinion is a classic example of a Beta investment in Hope. You are an investor nevertheless, because you took a position on the occurence of an event. You speculated that the outcome will eventually be favourable. You invested your Hope in it.
Of course, if you are a deeply religious person, a "believer", may be you would even "pray".
With all due respect to Believers, this business of praying in in my opinion is not exactly a "pure" investment. It is a derivative investment, a sub-ordinate form of investment if you will, because you are expecting that this person called "God" will generate the alpha necessary for the favourable outcome.

I honestly believe that in all situations that we can, we should be alpha investors, especially if we are speculating about ourselves. We will be better off only if we try to be better off ourselves. Yes, some help and hope from friends never does one harm, but I wouldn't use Hope or Luck for myself.
I have known a Beta investor myself. He hopes for the good of his friends and others around him. He does not do anything for others really. But, believe me, he is a very rich investor. He has a huge amount of Hope for others. That, he calls his wealth.
As long as investing in matters concerning himself, he is an alpha investor. He does everything possible to generate desirable and favourable outcomes for himself.
And in situations where he can help do the same for others, he does everything possible for them.

But, in situations where he cant do much more than expect a desirable and favourable outcome, he assumes the role of a Beta investor.
He pledges his share of "Luck" or "Hope" in the name of his friends when they need it.
He says something as seemingly silly as "You can have my share of Luck for today".

But, believe me, it works! I have had a lot to learn from him, and I have known it to work when I have done the same....Hope....

Now that we have exhausted Alpha and Beta by metaphorising Investments with Hope, let me bring/take you back to the title of this post...

"Wassup" is not all that superficial as it seems after all....When you cant do much more than ask, asking is what you will do..Exactly the way you hope when you can't do much more than that...
But, in all other situations when you can, be an Alpha investor....In style! ;-)


For now, I will leave you with a song that The Namesake was incidentally and coincidentally listening to the other day on the train...This was just one of the times he was thinking of doing some Beta investment....Hoping that all the violence and fear in the name of religion, land and region end...He wouldn't know then that there would certainly be other avenues for investment....But then, such is life!


Sticks & Stones

Words & Music by Trés

I can see * The possibilities * Destiny * Is not written in the stars * How can we * Avoid responsibility * When who we'll be * Comes from who and what we are * The time has come * There's no place left to run * Time to choose * Will we win or loose

Sticks and stones will break * What is it gonna take * Don't you dream of something more * What are we fighting for

Don't let the hate * Take control of your fate * We have to bend * Or the violence will never end * We can win * It's not giving in * Who cares who's right * When all we do is fight * How many lives * How many children have to die * Because we teach * An eye for an eye

Sticks and stones will break * What is it gonna take * Don't you dream of something more * What are we fighting for * What are we fighting for * What are we fighting for

I can see * The possibilities * Destiny * Is not written in the stars * How can we * Avoid responsibility * When who we'll be * Comes from who and what we are * How many lives * How many children have to die * Because we teach * An eye for an eye

Sticks and stones will break * What is it gonna take * Don't you dream of something more * What are we fighting for * What are we fighting for