Personal Financier

RSS Feed Homepage

Articles: 1, 2, 3, 4, 5, 6, 7

Long Term Investing Isn?t Always a Smart Move
2008-01-04 11:34:00
I am truly confused. I?ve been able to save some money recently and I?ve stopped to think on how and where I should invest it. One of the rules of thumb of investments is to invest for the long term. If your investment period is long enough stocks will eventually yield the highest possible return compared to all other options.While this rule of thumb has proved itself in the past the future is a whole other matter. Furthermore, as an investor I?m constantly asking myself are price levels justified? Are stocks priced correctly?We only need to take a look at a poor investor who decided to invest some of his savings in the Nasdaq Index somewhere in early 2000 when the Nasdaq hovered over 5,000 points. This investor has yet to see his original capital investment. Not to mention losing 8 years of alternative return on investment. Another, even better, example is having invested in Japan?s Nikkei Index somewhere in the 1990?s in levels of almost 40,000 points only to find that today, afte...
More About: Smart , Investing , Move , Long , Term

How to Make the Most of an Out of Office Vacation
2008-01-03 16:29:00
I?ve recently returned from a 5 day vacation out of office. Many of us are familiar with that stinging and painful sensation when you?re mobile phone rings with your boss calling right in the middle of an afternoon nap on the beach.The primary purpose of taking vacations is to have fun and unwind. Reducing the built up stress is crucial for a healthy professional life. Many times business and office needs require our attention, even on vacation. It has been shown that mixing business and pleasure while on vacation greatly decreases the vacation?s effectiveness in reducing stress. How do we make the most of such a vacation then?As many things in life having a great out of office vacation is about planning and setting the ground. Here are my suggestions and tips on how to make the most of such a vacation:#1 Time your vacations to your office lowsIt is much easier to enjoy a vacation when everyone else is also out of office. True, most of the times tourist destinations will be packed f...
More About: Office , Vacation , Career , Make

The Financials of 2008 ? What Will We Talk About?
2008-01-02 15:47:00
I am not a big fan of forecasts and trend predictions. The papers are filled with year end summations and forecasts. Through my readings I have noticed some financial concepts are being constantly repeated. I believe these will be the main building blocks of the financial discussion in 2008 .InflationIt?s everywhere. Prices have been slowly yet surely increasing since 2007 started. The increase in oil prices was the most noticeable but other commodities were not late to follow. Industrial metal prices such as: aluminium and steel and basic food prices such as: wheat, corn, soy and other vegetable oils have all sky rocketed. The price increase of basic and raw materials will surely lead to further price increase in consumption goods and foods such as milk, pasta, bread and meat as feeding animals is much more expansive. An increase in transportation prices and in furnished goods is also probable due to the increase in raw material prices. The real estate market in the United States mi...
More About: Economics , Talk

The January Effect ? Will This January Generate Abnormal Returns As Well?
2008-01-01 15:29:00
The January effect is one of a series of known ?market failures?. We assume the stock market to be efficient with regards to publicly available information. However, in some instances one is able to generate abnormal return using a publicly known phenomenon. The January effect is one such phenomenon.Some studies have shown stocks generate abnormal returns in January when compared to other months of the year. These studies have also shown that:1. The first days of January are mostly responsible for this effect.2. Companies with lower market values generate greater abnormal returns.This phenomenon can also be phrased as following: The majority of abnormal returns generated by companies with lower market value are happens in January.The most common explanations are:1. Tax considerations ? After realizing loss for tax purposes in December investor hurry and buy back the stocks sold.2. This phenomenon is more common is lower market cap companies as each transaction has more effect.Januar...
More About: Investing , Effect , Normal , Abnormal

Doing It Yourself Doesn't Always Pay - A Short Lesson Learned Yet Again
2007-12-31 15:19:00
2007 is ending. Luckily the people at personnel informed me that due to a technical error I was deducted two days-off I am now entitled to use. I took the opportunity in both hands and decided to get some long over due repairs at home. As we all know on off the basic rules of frugal living is getting things done on your own. That is what I set out to do.I've never been a huge fan of frugal living myself. I find it a bit spartan and so I try to find my own balance between over-spending and extreme frugality. However, when a painter asked for 150$ for repainting a wall that was a bit stained with moisture I set out to "do it myself".Quickly enough I faced the bitter truth. I drove to buy some paint and a roller and corner brush which cost around 40$. I hurried back and started peeling the existing paint from the wall which discovered areas of crumbling plaster. Again I hurried and bought some plaster, base paint and sand paper of course to find out I've invested over 80$ in material...
More About: Lesson , Short , Learned

On vacation
2007-12-27 11:04:00
Happy holidays everyone.I'll be taking a short vacation untill new year's eve.Regards,Dorian
More About: Vacation

Uncertainty and Risk differentiated ? Is a Tactical Surprise Preferable to
2007-12-24 22:08:00
Risk management is a relatively new and evolving field. Risk management usually refers to the process of identifying, measuring, controlling, and minimizing uncertainties which may directly or indirectly affect a desired outcome of a system. A great challenge indeed.Any process or procedure we can think of holds many uncertainties. Risk management tries to identify these uncertainties, assign probabilities and possible harm to each and every one and acts to minimize those risks.One of the most counter intuitive questions in risk management basics is: What is the difference between risk and uncertainty? There are actually many differences; some are of the utmost importance to every organization and every manager.When every possible option and outcome is known a decision is said to be taken under certainty. Many academic models assume certainty due to their basic function of explaining and prediction. These are also the standards most models are judged by. The recent retreat from cert...
More About: Risk Management , Risk , Diff , Cert

Investment Basics Carnival #3
2007-12-22 18:58:00
Welcome to the 3rd edition of Investment Basics Carnival . We had 32 submission out of which 16 are posted.1. Blaine presents Frugality, America's worst nightmare posted at BlainePower.com2. ChristianPF presents Would Peter Lynch invest in Crocs? posted at Money in the Bible Christian Personal Finance Blog 3. Larry Russell presents The Fund Authority Score - A Better Mutual Fund and ETF Rating System posted at THE SKILLED INVESTOR Blog 4. Silicon Valley Blogger presents Latest Net Worth / Portfolio Numbers: Unexpected Increase Of +15% for 2007 posted at The Digerati Life 5. Sagar presents Top 50 Real Estate Marketing Bloggers posted at International Listings Blog6. Jason Elder presents Understanding How to Get a Loan After Bankruptcy posted at A Bankruptcy Lawyer's Blog7. Homo economicus presents Personal Diversification: Multiple Streams of Income posted at Homo economicus8. Valulicious presents Is Ben Graham Turning in His Grave?: Growth as the New Value posted at Valulicious9. B...

10 Tips on How to Make the Most of Time Spent In Traffic ? How to Make More
2007-12-21 16:28:00
My forth post on how to make more time will focus on one of my most hated time consumers: Traffic . One of the painstaking problems of our modern lives is commuting. Getting stuck in traffic is a complete waste of time. On average Americans spend almost 40 hours a year in traffic. These numbers are much higher for people working in bigger cities. Just half an hour wasted on traffic back and forth, each day, quickly accumulates to 5 precious hours a week.I personally literally hate traffic. I get frustrated simply by thinking of all the other things I could have been doing instead. I have tried everything to make the best use of time spent in traffic. Here are my tips:1. Avoid it ? An obvious start. Get up early, get back home earlier or later. Avoiding traffic altogether is the best possible remedy. You?re obviously not reading this to be told to avoid traffic but if you take the time to think of it and try and change your daily routine you just might be able to save that time.I used...
More About: Tips , Time , Make

Dollar Reserves Might Change Future Investment Trends
2007-12-20 16:47:00
Foreign governments with tremendously high dollar reserves seem to be on the hunt for investments. As the dollar weakens and reserves erode governments find investing in American corporations more and more attractive.Investment banks seem to be in the spotlight these days after taking painful blows due to the subprime crisis. Apparently stock prices have become attractive enough especially for China and OPEC countries which have significant amounts of dollar reserves and are more the happy to answer the banks' cries for liquidity.The Chinese government has just announced, through it's investment corp (CIC), a $5 billion investment in Morgan Stanley after the latter announced a $9.4 billion write-down on subprime linked investments. This investment follows a 3 billion dollar investment in the private equity firm Blackshire group for just under 10% ownership.Abu-Dhabi recently purchased a $7.5 billion stake in City Group with what appears to be a change of strategy for the largest o...
More About: Economics , Trends , Future , Change

10 Tips on How to Avoid Overspending In Supermarkets
2007-12-19 19:43:00
We are all educated consumers and we all have shopping lists we follow. However, we always find ourselves grabbing those 3-5 extra unplanned products. According to marketing experts some 75% of our decisions are actually made in the store itself. We, as consumers usually buy 30% more then we?ve planned on.Supermarkets are well aware of those numbers. How do we avoid overspending then?1. Your list should be as detailed as possible ? Assume the following products are on my list: Bread, Coffee, Cereals etc. Which brand should I buy? And how much? We get our answers looking to the shelves. When shopping have a detailed list which includes brand names and quantities. Only shop for price per quantity.2. Know the floor plan of the store ? Supermarkets are well organized to keep you trapped in for a long time. Dairy and meat products will always be located on corners and far away from the entrance. Popular products will be well scattered through out the store. Know where to get what you nee...
More About: Tips , Avoid

In Search of the Perfect Meeting by Tom Krattenmaker
2007-12-18 21:30:00
I've recently added Harvard Business School Working Knowledge to my recommended readings. It is a very valuable resource for business leaders everywhere.As some of you know I've been posting a series on how to make more time by examining the biggest time consumers in our lives. I believe meetings answer that criteria and I've posted my thoughts on the matter a couple of days ago.Yesterday I ran into an article by Tom Krattenmaker for HBS which has some excellent advice on the how to make every meeting pay off by weighing the value and cost, avoiding meetings altogether, discouraging politics and more. If you were interested in my post I believe you'll find this article at least as interesting.Related Posts:1. 8 Tips for Efficient, Time Saving Use of Cellular Phones - How to Make More Time Post #22. 15 Tips for Saving Time on Emails - How to Make More Time Post #13. How to Make More Time - A Series of Posts on the Biggest Time Consumers and the Efficient Ways to Deal with Them4. ...
More About: Search , Perfect , Meeting

Risk Management ? Pure Risk and Speculative Risk Explained
2007-12-17 21:49:00
Risk management is a relatively new and evolving field. Risk management usually refers to the process of identifying, measuring, controlling, and minimizing uncertainties which may directly or indirectly affect a desired outcome of a system. A great challenge indeed.Any process or procedure we can think of holds many uncertainties. Risk management tries to identify these uncertainties, assign probabilities and possible harm to each and every one and acts to minimize those risks.Two of the most basic terms used by risk managers are pure risks and speculative risks. All risks are historically associated to one of the two families. Understanding the motivation and reason behind this differentiation is key to taking your first steps in risk management.Every risk is at its base a known series of possible outcomes with possible benefits or harms. Each possibility has a known probability of realization (otherwise it is not a risk but an uncertainty and is dealt with differently).Pure risks...
More About: Management , Risk Management , Risk

6 Tips on How to Conduct Efficient Meetings ? How to Make More Time Post #3
2007-12-15 21:55:00
How many times have you found yourself staring blankly at the wall during another pointless meeting which seems to last for hours? I often find myself baffled at how senior management seems to be clueless when it comes to conducting efficient meetings.Conducting efficient meetings might seem easy to achieve but is rather challenging. Many people aspire to express themselves and be heard and a meeting is just the place. A delicate balance needs to be achieved between avoiding the waste of time and avoiding insulting or hurting fellow workers.The best way to conduct efficient meetings is setting the right ground. By setting the right ground the meeting can be channeled to where we want it.Here are my recommendations on setting the right ground for efficient meetings:1. A meeting should have a clear goal ? If you?ve decided to allocate your co-worker?s precious time resource to a meeting be sure to have a clear and understandable goal. An example can be deciding on the next marketing c...
More About: Tips , Time , Post , Make , Meetings

Sleeping That Extra Half Hour Should Be Costly ? Battling Traffic Jams With
2007-12-14 18:53:00
I was slowly making my way through traffic today when various thoughts occurred to me. This has been an especially tough week with traffic jams lasting forever.I?m curios as to the economic nature of traffic jams. Surely given the proper incentives traffic jams can be eased considerably. I myself consider standing in traffic jams a complete waste of precious time. This waste of a valuable resource is a strong enough incentive for me to leave home early and return late. This does not seem to be the case for everyone. It seems some people don?t really mind their wasted time.I believe people often lack the understanding of economic value as utility and attribute it to money only. Their time is not as precious. An interesting experiment would be to try and translate that loss to a common and measurable quantifier: Money.The waste caused by traffic jams is enormous and encapsulates time, environmental damage, stress, noise, car wear and more. Clearly reducing traffic jams is an economic ...
More About: Economics , Sleeping , Traffic , Jams , Extra

Cheap Marketing Tricks Supermarkets Employ: Avoid Overspending By Being Awa
2007-12-12 18:56:00
We are all educated consumers and we all have shopping lists we follow. However, we always find ourselves grabbing those 3-5 extra unplanned products.The richness and variety found in supermarkets is irresistible. As human beings we are faced with many attractive and seductive products aiming at our most basic needs. That, however, is not the whole story. Supermarkets employ a variety of marketing tricks to emphasizes that richness and tickle our buying bones.According to marketing experts some 75% of our decisions are actually made in the store itself. Consumers usually buy 30% more then they?ve planned on.What are the basic marketing tricks used by Supermarkets? These can be roughly divided into two categories: Location and attractiveness.Supermarket layout is carefully planned to fit sale forecasts, profitability and more per store space. Usually more popular products will be sold at the store?s perimeter in corners thus making us travel the length and width of the store. Dairy p...
More About: Marketing , Tricks , Cheap , Avoid

8 Tips for Efficient, Time Saving Use of Cellular Phones - How to Make More
2007-12-10 21:39:00
This is a second post in a serious of posts on how to make more time. Be sure to take a look at the others. I'd love to hear ideas and suggestions from your experience.Lately I?ve noticed a very interesting thing. Many people call me at various hours of the day, always accompanied by the noise of traffic. They are always very keen to hear about my weekend or what I did last night. It didn?t take long for me to understand I?ve become a means to pass time in traffic.Needless to say this is very costly in terms of time and even money. An inefficient allocation of resources such as traffic jams creates more inefficiency. One example is spending other people?s time on meaningless calls (which are not always unwanted, but this is beside the point).Cellular phones present many potential benefits. Unfortunately, cell phones have become a pandemic of waste of both time and money. By making proper and efficient use of the possible benefits of cell phones you?re bound to save both money and t...
More About: Phones , Tips , Time , Make

Creating Organizational Commitment among Employees through Behavioral Chang
2007-12-08 18:42:00
Employee behavior, as any human behavior, derives from attitudes toward various subjects or objects. These attitudes are in turn a result of beliefs held by the employee. In order to understand how to create or change employee attitudes we must understand how an attitude is created and what affects it.The two main attitudes in organizational behavior are work satisfaction and organizational commitment. These two basic attitudes are of extreme importance to both organizations and managers. From a manager?s point of view the employee?s attitude towards organizational commitment is more important as it directly affects employee productivity.A person?s beliefs and values create an attitude toward a subject or object which is basically a positive or negative approach towards it. Attitudes in turn affect behavior. For example, if a person believes that ?work is no fun ? work is a responsibility? then his attitude towards organizational commitment would be positive. In turn, in his behavio...
More About: Employees , Creating , Commitment , Chang , Organ

Buying a Stock? Keep In Mind Someone Else Is Selling ?
2007-12-06 22:33:00
However intuitive it may be I can never shake that thought out of my mind when buying stocks or other financial assets. What does the seller know that I don?t? Or the buyer in case I?m selling. Why is he selling this stock? What?s wrong with it?People often attribute asymmetrical information to the other side of a deal. Buying a used car or house is a good example. The seller obviously holds information you don?t. How?s the car running, how are the neighbors etc. Oddly enough people usually don?t think about asymmetrical information when buying stocks. Usually we are more occupied with our thoughts of a promising return on investment.Evidently, if you?re a household investor chances are you?re doing business with someone more experienced and more knowledgeable than you. As a household investor your resources for stock information and analysis are sparse and common. We all know what good are analyst recommendations or promising newspaper coverage.You really should start assuming asym...
More About: Selling , Investing , Stock , Mind

The 10-Step Formula for Building Wealth - By Jeffrey Strain for TheStreet.c
2007-12-05 17:48:00
Jeffrey strain has some great personal finance articles on Thestreet.com. I've added his author page to my recommended readings.In "The 10-Step Formula for Building Wealth " Jeffery discusses age old advice as borrow, buy used, never pay retail price, forget brand names and more from a refreshing point of view.Quality articles are hard to find. So far I've been impressed with this author's writing.Other articles I've found interesting are:1. How to Prioritize Debt2. How to Save During the Holidays3. Why Multitasking Wastes Time and Money4. 10 Financial Steps You Can't Afford to Put Off5. Five Mistakes That Hurt Your Credit Score
More About: Strain

Investment Basics Carnival #2
2007-12-05 16:23:00
The second edition of the investment basics carnival recieved 30 posts. Here are the better ones:1. Jose DeJesus MD presents Your Money - The Flight To Quality posted at Physician Entrepreneur- In the midst of hightened volatility in stock prices, there has been a flight to what are viewed as safer investments.2. Doug Boggs presents The Dollar vs. the Euro? posted at Boggs Development Group, LLC- Interesting discussion of a possible merge of Dollar and Euro3. The Career Counselor presents Seven Strategies to Stop Living Paycheck to Paycheck posted at ask the CareerCounselor- Simple, basic and effective.4. Leon Gettler presents Keeping up with the Joneses: bubbles and herding behavior posted at Sox First- Interesting analysis of herding behavior5. The Dividend Guy presents Quality Investing Quotes from Some Big Name Investors posted at The Dividend Guy Blog- Speaks for itself6. Logan Flatt, CFA presents It's Future Cash Flows, Stupid! posted at PowerWealth.com- Valuation Basics7. rb...
More About: Economics , Carnival , Investment , Psychology

15 Tips for Saving Time on Emails - How to Make More Time Post #1
2007-12-03 19:57:00
As promised this is the first post in the series of "How to make more time". It turned out quite long but I think it's worth reading. We are virtually flooded by emails both in and out of our office. Emails can be very time consuming when not dealt with properly. The main problems with email arise from its benefits. Email is very easy to operate, immediate, time efficient and free. As a result emails have become the preferred method of communication in business and private life.However, waste in emails is abundant. This is of course the case with any resource which is readily available and costs nothing. This doesn?t mean you can?t change that for both yourself and your organization. The advantages of emails significantly outweigh the disadvantages but with an extra effort emails can be really harnessed to empower your time management.Here are some tips and advice which can help you become more efficient and save you precious time on emails.1. Make a habit of reading emails early i...
More About: Tips , Time , Post

How to Make More Time - A Series of Posts on the Biggest Time Consumers and
2007-12-02 19:33:00
In December I plan to publish a series of 8-10 posts on how to make more time. I consider myself a very efficient person. In my professional life I?ve taken the time to observe daily routines and behaviors in order to make more free time for myself (writing can be very time consuming...).I intend to share my findings and some additional research on how to make more time by efficiently managing:1. Emails2. Cellular Phones3. Meetings4. Traffic5. Planning6. Management7. Time management (yup, Meta time management)8. InformationI would love to hear your ideas on how to make more time. Guest authors are more than welcomed.
More About: Series , Make , Posts , Consumers

Setting Goals for My Blog
2007-12-01 20:41:00
I?ve been writing online for three months now. I?ve experimented with writing at content sites such as: Helium, Associated Content and Constant content and also in maintaining my own blog here at Personal Financier.I?ve made the most money in Constant Content and Helium?s Marketplace but I get the most out of blogging. There?s something else about writing a personal blog and having a readership.As many self development and management sites teach us I?ve decided to post my goals for this blog for the 3 months to come. Here they are:1. Unique visitors: 120 unique visitors a day (currently at 25).2. Page views per visitor: 3 Page views per visitor (currently at 1.25).3. Feed subscribers: 70 subscribers (currently at 16).4. Article posts each month: 20 (18.5).I?d like to take this opportunity to thank my readers and encourage all to mail any suggestions, requests, comments or thought to me at: dorian.wales@gmail.com
More About: Blog , Goals

Understanding Important Hidden Psychological Aspects of Rent vs. Buy Compar
2007-11-30 11:29:00
This article, a third in a series, is about the softer side of rent vs. buy. These comparisons have become very popular and can easily be made using one of the many online calculators available. However, the psychological aspects of this comparison have yet to receive their deserved attention. (I still recommend reading this post about how to properly compare rent vs. buy financially as many calculators don’t make the correct comparison).As you may remember a correct comparison of rent vs. buy should be made for the same property in the same time frame where the two options are:1. Buy the property today and repay it through out the period.2. Rent the property today and buy it at the end of the period.The problem with the rent vs. buy comparison is, as always, the human factor. In order to compare rent vs. buy correctly some assumptions need to be made which are not at all easy to meet up with in real life.These assumptions are:1. We’re talking about the same property to either r...
More About: Psychological , Aspects , Hidden , Understanding

Why Taking on a Mortgage Is Leveraging: Understanding the Potential Risks a
2007-11-28 20:11:00
Buying a property with a combination of equity and mortgage is actually leveraging your own equity. Leverage is essentially the use of borrowed funds to complete a transaction. Leveraged transactions hold significant potential benefits and, more importantly, significant potential risks. It is important to understand why leverage is the source of these risks and benefits.In order to simplify matters let?s look at the following example: 1. John has 1,000$ he wants to invest in ABC Inc. (ABC).2. We?ll assume two scenarios:a. One where ABC goes up by 10 and John gains 100$.b. One where ABC goes down by 10% and John loses 100$.Investing his 1,000$ John has either gained or lost 100$.Reading a blog post about leveraging John has decided to loan an additional 1,000$ at 5% from GoodWill-NoSoul Bank (GWNS). John now has 2,000$ to invest but he also has a loan to repay with interest. Let?s examine the results of the two possible scenarios:1. ABC goes up by 10%: John now gains 200$, repays 1,0...
More About: Home , Mortgage , Understanding , Taking , Mort

Rent vs. Buy: Some Assumptions May Have a Significant Impact on Your Decisi
2007-11-27 18:46:00
Rent vs. buy comparisons are very common and have been already discussed in length. However, the impact of several common assumptions on costs and opportunities has yet to be fully uncovered and explained. I?ve recently compared the two alternatives and have decided to share my experience.We all know that in rent vs. buy the alternative cost of each option should be compared. When deciding to rent the primary cost is the rent itself. When buying a property the primary cost is the interest paid on the mortgage.However, there are no less significant costs and opportunities to consider. We usually refer to these as alternative costs or opportunity costs. When considering these costs and opportunities we usually make assumptions and let the internet calculator do its thing. You must be aware your assumptions greatly affect the end result. One must use sensitivity analysis in order to examine the impact of these assumptions on the comparison as a whole.When considering buying a property ...
More About: Compare , Rent , Assumptions , Some

Personal Finance Blogsphere Update
2007-11-26 21:54:00
Carnival of Personal Finance #128 is up with some good posts. I was especially fond of the following:1. Why passive investing beats active investing - This post by everything finance blog discusses one of the basic mistakes of both novice and veteran investors. I myself have written quite a bit about this point.2. A healthy diet doesn't have to be expansive - This post by our family village refutes one of the basic myths about health foods. Indeed buying healthy food is expensive per product but it reduces the many expenses of unhealthy foods from candy and salty treats to health care.3. Lessons from the dot-com bubble - This post by the investors journal has some everlasting market truths. Which lessons will we learn next is an interesting follow-up question.The photo was taken by djinas
More About: Personal Finance , Investment , Update

10 Things You Probably Didn?t Know about Chinese Business Culture
2007-11-26 11:04:00
The recent awakening of the sleeping Chinese dragon has drawn many foreign corporations to China. These foreign corporations are lead by foreign executives who are ignorant of the more colourful Chinese business culture.The Chinese government has taken considerable action to acquaint the foreign businessman with Chinese business culture. However, there is still some unexplored territory left.I read many stories of business meetings gone astray due to what appeared to be insignificant gestures. A senior executive was astound to see his efforts to stop by an important meeting on his busy schedule was actually taken as an insult. Another company handed out watches as gift to Chinese executives who where surprised by the reaction. Obviously these are more curiosities to be aware of then actual business but the lighter side of business is nothing to be trifled with.This article is about the less known aspects of Chinese business culture and environment. I do not presume to be some sort o...
More About: Business , Culture , Things , Sine

Economies of Blogging ? Content and Blog Consolidation Due To Economies of
2007-11-23 11:25:00
In economics the term economy of scope is used to describe a competitive advantage of one company as a result of efficiencies associated with marketing and distribution. Economies of scope usually result in:1. Reaching more people with each dollar spent2. Family branding and product bundling3. Further efficiency due to synergy between productsIn my opinion the world of blogging and content is a very good case study for economies of scope. If we take a close look at blogging and content we find a very unattractive market, so to speak. The threat of entrants is very high as everyone may start a new content site or blog with ease. Customer bargaining power is extremely high as amounts of free and alternative content is abundant and of course so is the threat of substitutes as a result.Nevertheless, out of hundreds of thousands of sites we see a few selected blogs or content sites emerge in every niche. How do they succeed where all others fail? The answer is two fold. Na...
More About: Strategy , Blogging , Blog , Content , Helium