Summary of article “What have we learned here”

Here is the link to the article https://www.collaborativefund.com/blog/what-have-we-learned-here/

In this article, few things are shared which we learnt during this pandemic

First thing is about business which have low margins. As lockdown was imposed and businesses were shut down, many businesses which were operating on thin margins faced bankruptcy.

Second point which is discussed here is about lowest-paid workers which consists of food delivery, truck drivers, farmers, grocery store clerks etc. these people got less respect but are most important during this pandemic situation.

Size of business collapse and magnitude of stimulus are important stories. As the economy is facing huge unemployment government is supporting it by providing stimulus.

A calamity is a good time for investment strategy to prove itself. Words like ‘recession proof’ will now not be used as people have seen that this kind of pandemic doesn’t leave anyone i.e. the affect is seen on everyone.

If someone does forecasting and people have stake in it then they want certainty too.

Whatever happens to economy people will take it by saying that it was obvious. If GDP falls then people will say it was obvious because there was high unemployment. If a vaccine is discovered then people will say it was obvious we can’t live with this whole life. One or the other day the vaccine was to be discovered.

Leverage is danger. The cost of leverage is not only interest but also your ability to have good cash flows in future when debt matures or interest payment is due.

When people suffer from something unexpected, their views changes i.e. they adopt views which they used to refuse earlier.

Things can go beyond imagination and adaption can be bigger than considered. Take lockdown for example. Two months ago it was hard to digest that businesses needs to be closed.

The most important learning is no one can predict future. Things can change in the way you never imagined.