Archive for August 2007
Diversity to Blame?
The word “diversity”, “diversified” or “diversification” seems always carry a positive connotation. You often hear people saying that they love New York because of its cultural diversity. My B-School professor told me that diversification reduces the risk of an investment portfolio. Jim Cramer even has a section on his “Mad Money Show” called “are you diversified”. But yesterday when I opened up the Journal, the last story in the “What’s News” column reads:
This year’s SAT scores are down, though the College Board says the decline reflect the diversity and number of students taking the test.
A Lesson of Market Risk for The Chinese Government
Back in May when the news came out that the Chinese State Investment Co. had agreed to invest $3Bn in Blackstone Group, I wasn’t all that surprised as most of the people were here. If we exam the behavior of the Chinese government, it’s not that hard to find out that when they have an issue on their hand they often go through a long period of behind-the-door study and hit the market with a bold movement. Instead, I was totally impressed by Mr. Antony Leung’s ability to delivery results for his new employer just five months into his new job as Blackstone Asia’s Chairman after three and a half years of hiatus.
