When Risk is a Competitive Advantage

Happy Columbus Day

Emerging Market investments are not as new as some might think! Christopher Columbus was convincing investors to allocate capital to emerging markets way back in the 18th century. He spent seven years and approached four different monarchs in an attempt to raise $10,000 and garner support for his search of the emerging markets across the Atlantic. After a benchmarking study of the investment opportunity, Queen Isabella of Spain agreed to a partnership with Columbus and then borrowed the capital required to support their venture. Columbus's contract with the Spanish Monarchy stated, ..."since you expose yourself to such danger to serve us, you should be rewarded for it with: 10% of the profits; 5% gold; and reimbursement of all expenses in advance." Despite the fact that his first venture earned the partnership no profits, two more ventures were funded and Columbus was ultimately proven to be a very valuable and celebrated business partner.

Innovation and Philosophy

http://www.project-syndicate.org/commentary/montenegro1

Leaders & Managers

http://www.project-syndicate.org/commentary/nye56