Losses > Gains

While reading upon an article in The Aleph Blog, made by famous investor David Merkel, I learnt a lot about the psychology of the investors. In Merkel’s article Risk Tolerance – The Ability to Deal with Loss, he addresses that while investing, investors are more likely to change their investing behavior or activities after a loss rather than a gain: ” People feel losses much more acutely than gains, and are far more likely to change their behavior after losses. Can’t tell you how many times I have had people say to me, ‘I’m never buying stock again,’ after 2000-2 and 2008-9.” I very much agree with this statement when putting myself into the perspective of an investor. Like the famous quote “you learn from your mistakes”, what Merkel is implying here is only losses in investment help one better prepare oneself with a plan for the future.

Whole Foods: Healthier the Better?

As people over the world grow conscious of the benefits of healthy diets, the organic food market expanded. One of the most dominant sellers in this  market is Whole Foods, which is a  supermarket chain for natural and organic goods in North America. Although Whole Foods will encounter a high level of competition, I agree with Shannon Bell‘s opinions and believe Whole Foods will benefit from the increasing development of the organic food market. This is why:

As the article mentioned, Whole Foods has been executing its expansion plan. This is a smart move because its value proposition and reputation are already firmly established, Whole Foods will therefore stand out among the competitors while increasing its availability to the public. To sum up, I trust the rising recognition of healthier eating will serve as a ladder for Whole Foods.

Article: http://www.washingtonpost.com/news/business/wp/2014/11/05/the-growing-popularity-of-organics-is-both-good-and-bad-news-for-whole-foods/

Chipotle, the New Fast Food Joint

Chipotle is the up-and-coming fast food joint in many countries now. Unlike other fast food chains, Chipotle aims to provide non traditional fast food and because of this unique aspect, it has been booming in the market. The Mexican grill chain’s sales have been multiplying; as a matter of fact, every quarter of Chipotle’s 2014 sales have topped the 2013 sales. The menu of Chipotle consists of 5 main items: burritos, fajitas, tacos, quesadillas and salads; each of them attracts countless customers.

I believe Chipotle’s huge success is strongly related to its correct value proposition. Chipotle’s value proposition might be something like this ” to the fast food customers, Chipotle is a fast food chain that provides an unique variety of exotic Mexican food”. None of the other fast food joints have such rare products and value proposition; if you think about it, most of the most famous fast food restaurants (eg. McDonalds, KFC and Burger King) sells the stereotypical fast food – burgers and fries. Finally, I came up with the conclusion that Chipotle will continue to thrive in the future because it provided people a new definition of fast food.

http://www.businessweek.com/articles/2014-10-21/chipotle-is-wrapping-up-a-big-year-dot-will-2015-be-less-stellar

Mines & The Angered [River] People

The Tsilhqot’in (River People) are a group of First Nation Aboriginals with the population of over 3000 people in . Among many of the Tsilhqot’in culture, hunting and fishing  has been the most important to them. Many years has passed by and the Tsilhqot’in people built a tribal park to preserve their culture and environment; however Taseko Mines Ltd.’s constructed a mine site at Fish Lake, which is right next to and inside the tribal park territory. Undoubtedly, the Tsilhqot’in were furious because this means a threat to their preserved environment, especially when two Taseko’s mine sites were determined as a danger to fish habitat.

Fish Lake, where Tsilhqot’in people reside and Taseko’s new mine site lies

A similar incident happened in Iskut, British Columbia, where a group of Tahltan First Nation elders refused to allow Imperial Metals, a company guilty of Canada’s largest mining waste spill, to access the company’s mine site called Red Chris. The Aboriginal leaders protested for the obvious reason, the environment. They were afraid the habitat they lived in for years will be endangered by the redundant mine waste.

Mining companies should set standard tests to minimize the chances of waste spills. This will not only avoid further conflicts so that the company can operate regularly but also provide a bettered environment.

http://www.vice.com/read/first-nations-are-blockading-an-imperial-metals-mine-and-the-rcmp-may-intervene-932

http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html

http://www.thecanadianencyclopedia.ca/en/article/chilcotin-tsilhqotin/

 

 

Adidas is too “European”

Nike and Adidas are two leading sports brand in the world, however Adidas is significantly losing in the U.S market. Nike controls most of the U.S market while Under Armour has been growing significantly. One of the main reasons Adidas is not the top dog in U.S is the false image of Adidas being too “European” for the American customers.

“I don’t think U.S. teenagers are thinking of Adidas when they want to buy basketball shoes.” said Cédric Rossi, an analyst in Paris. This statement is presumably correct because Adidas has been focusing on producing for soccer, a sport that is relatively new in the U.S. One of the main reasons Nike is so successful is its evenly focuses on different sports. Also, many people wear basketball shoes casually because they are aesthetically fashionable. In conclusion, Adidas should focus more on producing and developing products for other sports.

Adidas and soccer