Archive for DoingItInvestor

Simplicient Financial Controlling – 1 – Laying the Ground

Let us face it – finance is not easy. Whoever tells you that the commercial financial management is a steady progression job, where one gets well trained and well paid over a reasonable number of career years, is trying to lure you into something. The finance specialism requires almost a decade of training (if you count a faculty/college degree plus professional qualifications plus specializations). Plus an in-commensurable amount of overtime hours and periodical work pressures (quarterly P&L targets or year-end closings speak for themselves).
Yet, it remains a wonder to me how over-complicated most finance processes are. Take any routine activity – you would expect 90% of them to be stable and running smoothly. Yet, the more you dive, the more details and complications hide behind. Obviously, this pushes the amount of work further up. And with the increasing pressure resulting from new (or amended) regulations, from ever-shifting processes (shared services or not) and from the ever-green chase for a lower cost base, finance is becoming more complicated every day.
Yet, it should not be the case. There are shortcuts. There are tips and tricks in controlling. These shortcuts come from the most unexpected place. They do not involve compromises on the decision-making quality. And long story short, I would like to share some of them here, so that this knowledge does not get completely lost.
So stay tuned and visit doitinvest.com from time to time for more simplicient controlling tips and tricks.

How Will Terrorism Impact Investments in Europe?

If you have not heard about the March 2016 terrorist attacks in Brussels, you are probably not watching any news channels at all. But the chances are that you heard about the ISIS attacks in Belgium and the foiled plots to attack nuclear centrals in France or Europe.
What does this rise in terrorist attacks mean for the investments in Europe?
Well, first and beforehand, uncertainty and risk raises. Be it about real-estate investments in the European major cities (deemed to be one of the safest premium investments in the developed countries) or shares of the FMCG companies, there are obviously risks associated with purchasing shares of these companies: that is supply chains might be disrupted, key employees might be trapped or even harmed, or other countless factors might kick in. It means that overall the cost of doing business in Europe will increase: higher security costs money and slows down by travelling and communication, travel will be disrupted, insurance premiums will increase slowly but certainly. Read more

What is going on?

Looking at the status of the G20 economies, one might say nothing works. Keynesianism taken extreme has led to negative interest rates, moderate unemployment and no growth. Neo-liberalism generated uncontrolled banks, opinionated leadership and polarization of welfare. Trickle down economics do not work at all, especially if we look at the African or the Latam economics. Even the Chinese market-oriented communism is crumbling here and there. So now what?

Why the Housing Market in Anglo-Saxon Countries Will Further Boom

Recently I was reading an interesting article on The Economist about the UK housing market. Whilst I do not agree with 100% of it (after all, the real estate markets have gone through various historical cycles), it is a well-argumented read. It basically says that whilst subventions via free land for the constructors might help, the housing market still has a huge inertia and might continue to grow.
One interesting extra argument (from my side this time) – the quantitative easing has introduced to the US/UK markets a lot of liquidity, which is not yet absorbed. As the liquidity will hardly find its place in new investments, it might find a safe cushion in the real-estate investments. One more reason why this might continue to be a good long-term investment.

It Might Be Time To Consider Taking a Cheap Mini-Holiday

If you are like many Brits, you have been struggling for the last few years just to get by. Between the bottom falling out of the financial markets and eroding retirees’ hard-earned savings while making the jobs picture frighteningly dim for the rest of us, it hasn’t been a particularly pleasant time. Now that things are looking better, however, it just might be time to think about going on holiday and letting go of some of those worries that have plagued you for such a long time. While things are still not completely back to whatever you considered normal, at least many of you might be in a position to let off a little steam. The key word here is “little”. It might not yet be time to summer in the South of France, but if you are sensible about it, a mini holiday might not be too great a stretch. Read more

Why Do Systems (Tend To) Fail on Monday

You wake up an 06:30, after a full relaxing (but somehow late ending) Sunday. You rush into your car and start commuting. The traffic lights system is annoyingly slow, delaying your usually course to the office. Some traffic lights are broken. No way you could shop for a drink at your favorite coffee shop – the queues are way too long this early on the week start. You get to the office – then you circle around 10 more minutes as usually to find a parking place.
When you get (finally) in front of your desk, the usual ERP interface starts 10 seconds later. The OS seems also very slow – lots of software updates pop up and urge you to restart your computer, and the office WiFi connection is painfully slow. Everybody’s running around in meetings and even the urgent “to do’s” are postponed. And the list can go on for pages.
What really happens on Monday mornings with our emails, sales organisations, computers and organizations? Why is everything so slow?
The answer came to me several weeks ago, when I was reading a piece of news regarding Netflix: it said that during prime time, when the highest-watched new episodes of their TV shows are aired, Netflix accounts for almost 40% of the bandwidth (or internet traffic) in the US. Which causes huge slowdowns in the internet traffic, to such an extent that some mobile operators even sued the company for over-using the internet infrastructure.
And this of course explains why Monday mornings are causing most of the work or human-used systems to slow down: the traffic is huge, be it the need to buy coffee, the urgency of having some products delivered or the high adrenaline of the organizations trying to get massive tasks done. Systems are usually designed to cope with normal loads (in terms of users, requests or processing other types of resources or information). They are NOT designed to cope with double the traffic during peaks. Read more

“The Battle of Bretton Woods”, by Benn Steil – A Book Review

To be fair, the complete name of the book is “The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order”. This title kind of raises the expectations, doesn’t it?

Bretton Woods is, for most people outside of the economics field, just one of those expressions that specialists use to drive others away. It is the kind of expression mentioned when somebody needs to describe the redefinition of the economical order – or even more, the redesign of a financial system. Sounds like a big thing – and it actually is – Bretton Woods represented, in the aftermath of the 2nd world war, the place were the winning nations redesigned the monetary system and shaped what we have today in terms of financial flows globalization.

But don’t get me wrong – “The Battle of Bretton Woods” tells the story of the story, not of the technicalities behind. In retrospective, most historical decisions look usually logical and inevitable. The best history books, such as this one, do justice to the topic and show how intrigues and rivalries between the leading nations shaped the history at that moment. And boy, this was history – in this middle town of new Hampshire the dollar would become, after many strenuous battles, the currency of choice for international trade. This choice propelled US at the nexus of the modern economy, making it noit only the most powerful economy in the world, but also its guardian of choice. “The Battle of Bretton Woods”  how US became the biggest creditor nation, how the US banks started to do deals with other governments, why the international trade still takes place mostly in dollars – and so on. Many reasons just to read it, right? Read more