Markets
the next big thing
By Gavin Dolley & 247WallSt.com
OF MILITARY SECRETS & SPIES
W
e live in an opportunistic
world. Ask any student who
has ever had half a chance
of getting a two-week extension on
any project deadline. We all know that
99% of them would have taken the gap
to hand in late. Some may even try for
more time.
It is this opportunism, when we look at
it in a more positive manner, that gives
rise to arbitrage or, in simpler terms, the
ability to fill a gap to your own benefit.
If Nigeria sells whiskey at $50/litre, and
Cameroon at $40/litre, someone will buy
it in Cameroon, trek across the border
and sell it at a profit. People are great in
scoring that way.
Much of success in business
depends on the ability to spot
arbitrage moments: To see gaps
where others miss it, and to come up
with cost-effective ways of servicing
that gap for profit. If you are a keen
investor, you should really be on the
look-out for dual arbitrage moments;
firstly, to spot those companies or
products that are really good at finding
gaps in their own industries. Secondly,
to find gaps in the way investors miss
valuing the stock of these kinds of
companies and buying in early.
The management guru, ]\