Now I have always been passionate about two things - History and Value Investing.
So I just made up this true story to broker a confluence of the two.
Tancred Hauteville the Norman King of Sicily during the Third Crusade is gonna teach you the Five forces of the Market. As he was the illegitimate son of his father he immediately had his step-mother imprisoned so that she won't be a nuisance.
Unfortunately his step-mother happened to be the sister of Richard The Lionheart the King of England and the Duke of Anjou, who was enroute to Acre for the third Crusade. Richard stopped at Sicily, made him release Joan and also her dowry.
- Thus sayeth Tancred, "Watch out for the purchasing power of your suppliers. If the PERSON WHO GAVE YOUR FATHER A HANDSOME DOWRY IS STRONGER than you, then you will be bullied and taken for a ride."
On reaching Cyprus, the crusaders were joined by Phillip Augustus of France as well as Frederick Barbarossa of the Holy Roman Emperor with an even larger army than Richard’s entire forces. - Thus sayeth Tancred, "Watch out for new entrants in the market. Always keep an eye to the North, you never know when those bastards ENTER YOUR PLAYING FIELD UNSAID." Tancred thought he was the one who hated Richard the most but he was sorely mistaken. Phillip II hated Richard even more as Richard controlled vast swathes of French lands but was technically Phillip’s vassal. But Richard had the gall to call himself King, the same rank as Phillip. Frederick too was not gaga about Richard as he had supported Henry of the House of Welf against him. On top of that the ruler of Cyprus, Issac Komnenos too was not happy about Richard. Phillip complained of dysentery and went back to France. Promptly thereafter Frederick died creating a panic amongst the soldiers that maybe Richard was the one who poisoned Frederick.
- Thus sayeth Tancred, "Watch out for the competition amongst your rivals. Richard was a mighty bastard and all the other bastards hated him, despised him. I knew this RIVALRY was not good for the Crusade."
Then the Pope in Rome gave the ultimate shocker. Only the person who takes Jerusalem will be promised a place in heaven. Others will get olive oil blessed by the Pope and made from olives grown in Sicily. - Thus sayeth Tancred, "Watch out for the purchasing power of your customers. If the PERSON WHO BUYS OLIVES FROM YOU IS STRONGER, then he will dictate to whom he shall give the most olive oil. And also to whom he shall give it."
Now Tancred was done with it. This entire crusade bullshit. Saladin the sultan of Egypt and Syria was too strong, the walls of Jerusalem too thick and no co-operation between the existing players who were already fighting for Jerusalem and on top of it the Pope had reduced the prize. So you decide to go back to Sicily.But then your aunt Constance wife of aforementioned Frederick decides to seize your throne and place her son as the King of Sicily instead.
- Thus sayeth Tancred, 'Watch out for people or products who may replace you or your product.”
Do not be like Tancred. Study the five forces of the market before doing any investing!
Austin Chakkunny
Student (Batch T-26)