Quantcast
Channel: The Investor's Advocate
Viewing all articles
Browse latest Browse all 25

The Investor's Advocate: Causality Modality

$
0
0


Using the Principles of Causality to Increase Your Portfolio's Value


Have you ever heard of "Causality Investing"? If not, you might want to familiarize yourself with this investing style by reading "The Chain Game" (http://www.howtoinvestblog.net/2017/07/the-chain-game.html), by Anthony Rhodes, the owner of wealth management firm The Planning Perspective (www.theplanningperspective.com), and pioneer of this discipline, on his How To Invest blog (www.howtoinvestblog.net).

"I settled on the term causality, because it best describes the sequences of the system." he opened. "All investing relies on causes and effects to some degree, but this style delves a bit deeper than the customary profit or loss dynamics which are inherent within traditional investing." he added. "I suppose it could be viewed as a form of investing calculus, but titles with mathematics in their names are often considered intimidating to your average reader, so causality will have to suffice."

The technique involves the association between corporations and the unseen links (economic and otherwise) which contributes to their bottom line.

"The post begins with an introduction to what I call alpha links (links which directly associate a single event to a particular company), but the technique could expand to beta (two companies), gamma (three companies), or delta (four or more companies) links, as well." he explained. " The exciting aspect of this discipline is that after using it for a while, your mind's eye begins to visualize this entire system of networks whenever the seed event occurs." he added. "With practice, you'll start to envision the inter-connectivity of all types of goods and services, which should ultimately make you a better investor." he closed.

(Copyrighted material. Do not reproduce without permission.)

 


Viewing all articles
Browse latest Browse all 25

Trending Articles