Profound Equity

by | May 6, 2007 | Archives

Profound equity can reap huge profits.

“Equity”. Interesting word that.

As investors, the word “equity” evokes ideas of company shares or value left over after liabilities. Yet equity can mean much more.

Profound Equity Description

Equity is described in the thesaurus as, “even handedness”, “fairness”, “impartiality”, “justice” and “fair play”.

Yet the concept surrounding the word goes even deeper. Cornell Law School ‘s website defines equity in this way: “In law, the term equity refers to a particular set of remedies and associated procedures. These equitable doctrines and procedures are distinguished from ‘legal’ ones. Equitable relief is generally available only when a legal remedy is insufficient or inadequate in some way. This could be when a claim involves a particular piece of real estate, or if specific performance is the relief requested by the plaintiff.”

In other words equity goes beyond man’s law to support unalienable rights that were observed by America ‘s founding fathers in the Declaration of Independence.

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights.”

Equity is the honest distribution of the rights endowed to mankind by its Creator.

Profound Equity Reality

In other words, equity is being universally reasonable.

Now technology is making a shift that could profoundly affect equity and change the entire world…for the better.

Investors and business people will not want to miss this change because one of the big trends ahead will be the “ability to escape the tyranny of reason”.

I have been reading the book, “The Long Tail” by Chris Anderson, editor of Wired. This book tells why the Future of Business is Selling Less of More.

The book tells how broadband is replacing broadcast as humanity’s main form of communication. This in turn is altering the dynamics of business through the drastic reduction of the cost of retail space.

What profound business implications! (These are ones that Merri and I have been cashing in on for years.)

This also has a more subtle social impact that could alter existence far beyond business.

This thought played on my mind as I read in the Long Tail: “We define our age by our celebrities and mass-market products-they are the connective tissue of our common experience. I came of age in the peak of the mass-culture era-the seventies and eighties. The average teenager had access to half a dozen TV channels and virtually everyone watched a few or more of the same handful of TV shows. There were three or four rock radio stations in town that really dictated what music people listened to.”

Then the author wrote how today’s teenagers have a computer, fully stocked iPod and virtual friends and contacts all over the world. The teenagers today do not distinguish between mainstream hits and underground niches. They watch only a couple of hours of TV and do peer to peer file sharing with friends globally. They study foreign languages so they can enjoy information from other countries. The main difference kids have now over kids in the 60s, 70s and 80s is choice and unlimited connectivity.

In other words, the internet creates more of a borderless world. Lots of young people now have friends based on common interests rather than common locale. “Coolness” extends way past community lines.

In the 60s-70s-80s and back, broadcast allowed big business and big government to define what was reasonable. This allowed special interests in every nation to control a local definition of reasonable.

This goes on today. Almost every country has its own culture definition of reasonable. There is a concept of reasonable occupations, reasonable lifestyles, reasonable religions and reasonable diets. Reasonable way to raise a family, etc. The list goes on.

The internet allows our youth today to learn from “others beyond broadcast” what is reasonable.

The movie “Wag the Dog” with Dustin Hoffman and Robert DeNiro was a parody with historical overtones truer than many care to admit. This caricature examines the blurred lines between politics and the media. The story lampooned the amazing power of broadcast.

No more. “The Long Tail” points out that in music: “the top fifty best sellers were all recorded in the seventies and eighties. None have been recorded in the past five years.

The ratings of top TV shows have been falling for decades and the number one show today would not have made the top ten in 1970.”

Where does this take us and business, investing and the economy? That I do not yet know. I’m still at the pondering stage. The impact though will be profound.

Any ideas?

What we can see is mass media, spin, hidden agendas and commercialization and politicalization of reasonableness are on the wane. Great global understanding, wider boundaries, authenticity, truth and broader horizons are on the rise. This is good.

Until next message, may your day be reasonable.


P.S. Learn about upcoming business and investing trends in the years ahead. Join us May 25 – 27, 2007 at International Business and Investing Made EZ in North Carolina. Thomas Fischer joins me to update global economics there. See International Investments and International Business Course, West Jefferson, North Carolina, May 25-26-27, 2007