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Stop diversifying

Aug 30th 2024. By Carlos G. There are two types of people in this world: 1) Those who attribute every catchy phrase to Mr. Albert Einstein, and 2) Those who live by the mantra: “Don’t put all the eggs in the same basket”. Wait, now that I think about it, maybe there is just one […]

On Terroir and Ranch Dogs

June 22 2024. By Carlos G. Compliant with what is expected from an overeducated financier like me, I have recently been attending wine tasting events. They have been extremely helpful, for I have learnt all about how to pronounce Syrah and how to distinguish tobacco from leather notes. But the most profound concept I rediscovered […]

Annual letter to shareholders – 2023

May 12th, 2023, Dear Shareholders, In the wake of the largest bank failures since the GFC of 2008, we have been reminded that risk management is still not well understood as a tool for value-creation. So, we’ll say it again, from a pure technical point of view: Value is increased by anything that augments future […]

World War Z and Risk Management

2/9/22 by Carlos G. In World War Z, why was Israel the only country ready for a (very improbable) Zombie invasion? Because they had a disciplined decision-making process. Even a far-fetched hypothesis such as a weird new virus had to be put up for fact-based debate, with a designated devil’s advocate and diverse participants. They […]

On humor and non-linear thinking

7/13/21 by Carlos G. I believe evolution gave us humor as a pleasurable hint to fight against linear thinking. So, what is humor and what does it teach? The essence of what makes us laugh is always an inoffensive and unexpected reaction towards what would otherwise have been a completely ordinary and predictable event: I […]