During 2000 the Stock Exchange has been a continuation of ups and downs, only partially due to political events. Before US presidential elections the market had showed clear signs of disenchantment after the big intoxication of first six-month period. The Stock Exchange 2000 has been characterized by enormous flows of capital on the communications frontier, superstructural sector par excellence. The recent experience shows that the investments in superstructure can ensure good returns, getting carried away by enthusiasm, but also burn savings, with the blind indifference of a roulette.
Would you dream to accuse a croupier because he pocketed your precious savings? No, because if you go to a casino, you know the risk. Instead we think outrageous that the financial consultant, who inspired us with so confidence, made us put our savings in a sort of molecular disintegrator. Yes, the little saver can see burned his few millions lire in a few days, and a little hoard also can totally vanish, or to be reduced to the point to not have strength enough to go up again, even if Stock Exchange should get over.
When you subscribe an investment nobody gives you the security that you will not lose your capital. You are proposed to choose among different levels of risk, and never they speak about loosing the capital. You rely on the experience of the financial consultant, who “assures” that, on the middle period, the ups and downs of Stock Exchange will compensate each other, with a slight prevalence of up: i.e., if you gamble the roulette steadily and without upsetting, you can win and maybe to live on unearned income.
Do you feel struck by a great injustice? It means that you thought the Stock Exchange was like an insurance, or a beneficient institution intended for kindly to watch over your old age. But it is quite another thing, and never it claimed to be such a charitable institution, and now you have learned it the hard way.
The good lessons, always charges a lot. But at least let us take good advantage of them.
The superstructural segments (as telecommunications) can go on with positive trends, if supported by reliable structural development, with enough wide horizons. And, how we already analyzed on this pages from different point of view, currently it is not so. Imagine to raise a big TV aerial based were one days, perhaps, there will be your new hause. It is quite so: your hause falls in ruin, the roof breaks and leaks and the walls fall to pieces, every now and than it is flooded. But they have convinced you that your interest is to stay and watch television and to put your savings in the pocket of the TV makers.
Soon you'll have nothing to warm yourselves, but it doesn’t matter. You have your cell-phone, at least you can complain about the cold with your friends and acquantances!
But bad marks are not jet finished. Tell the truth: you have a firm. Come on, confess. You hardly have got together a little enterprise, maybe an individual firm or a little company, that furnishes services or started a little industrial production. But you have not invested your savings in your firm, aha no! You have invested them in Stock Exchange, i.e. in other firms, and not in your own one!
But, pay attention, if the Stock Exchange goes bad, market too goes bad, and probably all your earning ways are down: you have a turnover-fall and, at the same time, Stock Exchange with gaiety is burning your savings, that you astutely had invested elsewhere, thinking to prepare a life vest. You see the fire burning in TV, of corse, as if it was not burn your things. But it is burning your things, and maybe you'll must close your firm, because you preferred to give your money to somebody else, unknown, hoping he could make you rich, instead of believing in yourselves and in your enterprise!
At this point, all is very much more clear. Perhaps we are entrepreneurs, but we hadn't still drawn all the implications and consequences of this fact. Perhaps we have become entrepreneurs without having a vocation, and maybe leaded by vicissitudes, not really with an aware choice (only who have big capitals can afford real choises). Obviously, if most of us would have born in a family of long entrepreneurial tradition, it would be a different situation: fathers, grandfathers and uncles would have lavished their invaluable advices, maybe a little backward, but very effective.
Instead my generation must invent itself as a new entrepreneurial class, having as a background only dreams of social justice, that we keep expecting to find in the most strange and unforeseen places. OK, did we we realize it now? Nobody watchs over us and paternally thinks to our future. And, finally, do you think possible that exist an ethics of the cuddles, out of the number of the loved people? OK: it is not forbidden to cuddle or to be cuddled, but nobody can be forced by law, neither by a State law nor a moral law. Everyone has to choose for his better, with his/her little or big experience. With his/her culture and ethics (for example it is not ethic to earn an income making people believe that they will be cuddled and protected, if than it isn't true).
But, over what is ethic or we would like, the responsibility of each one remains to choose for own safety and for the one of own family and descendants. On this subject, I feel to give a good advice to who is or feel himself an entrepreneur. If you are not available to see your savings burned when the Stock Exchange goes down, make as follows.
1. Check well your entrepreneural initiative and, if you don't thrust in it, or you think it never will be your mission, close it or sell it (an enterprise without convinction end vocation is of no use to humanity and for market).
2. If the test confirms that it is your mission, then fully trust in it, and invest in it all your savings! Buy that equipments that you delayed up to now, engage the people and the consultants you need, develop your activities, products or services!
3. Only when the development needs of your firm will be satisfied, if your firm does very well, and some yelds remain to you, then carefully look for firms that are worth to get your trust and money. Maybe look for venture capital societies, where you can’t loose and new ideas can really benefit of your investment.
If many people will follow the above advice, market and economics, globally, will get better. Many more firms will bloom, and so the inexorable process of concentration and the free market trend to monopolize will slow down, if it will not be reversed.
The above generally. Moreover, if you want my personal indication, give space and priority to structural enterprises. Aim high, and compare your jobs and inclinations with the only great really open horizon: space.
[AA – TDF 1/2001 – 28/01/2001]