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Avinash Kaushik

Chief Strategy Officer, BOD, Croud | Best-selling Author, Analytics.

Avinash Kaushik is the Chief Strategy Officer at Croud, a global digital marketing agency. He is recognized as an expert in web analytics and is the author of the highly regarded blog "Occam's Razor," where he shares insights on digital marketing and analytics strategies. His work has significantly influenced how businesses understand and utilize data for marketing purposes.

In addition to his role at Croud, Avinash has authored a bestselling book that delves deeper into web analytics concepts, providing valuable guidance for marketers looking to enhance their data-driven decision-making processes. His expertise extends beyond just analytics; he is also known for his thought leadership in the broader digital marketing space, making him a prominent figure in the industry.12

Highlights

Sep 9 · linkedin

❤️ ❤️ ❤️

Sep 6 · linkedin

Best thing I've read all year: "...in our society the classic three ways of making a fortune still apply: inherit it, marry it, or steal it. But for an ordinary citizen who wants to become rich through working at a salaried job, finance is by an enormous margin the most likely path. And yet, the thing they’re doing in finance is useless."

Intrigued?

"What modern finance does, for the most part, is gamble. It speculates on the movements of prices and makes bets on their direction.

Here’s a way to think about it: you live in a community that is entirely self-sufficient but produces one cash crop a year, consisting of a hundred crates of mangoes. In advance of the harvest, because it’s helpful for you to get the money now and not later, you sell the future ownership of the mango crop to a broker, for a dollar a crate.

The broker immediately sells the rights to the crop to a dealer who’s heard a rumour that thanks to bad weather mangoes are going to be scarce and therefore extra valuable, so he pays $1.10 a crate.

A speculator on international commodity markets hears about the rumour and buys the future crop from him for $1.20. A specialist ‘momentum trader’, who picks up trends in markets and bets on their continuation (yes, they do exist), comes in and buys the mangoes for $1.30.

A specialist contrarian trader (they exist too) picks up on the trend in prices, concludes that it’s unsustainable and short-sells the mangoes for $1.20. Other market participants pick up on the short-selling and bid the prices back down to $1.10 and then to $1.

A further speculator hears that the weather this growing season is now predicted to be very favourable for mangoes, so the crop will be particularly abundant, and further shorts the price to 90 cents, at which point the original broker re-enters the market and buys back the mangoes, which causes their price to return to $1. At which point the mangoes are harvested and shipped off the island and sold on the retail market, where an actual customer buys the mangoes, say for $1.10 a crate.

Notice that the final transaction is the only one in which a real exchange takes place. You grew the mangoes and the customer bought them. Everything else was finance – speculation on the movement of prices. In between the time when they were your mangoes and the time when they became the customer’s mangoes, there were nine transactions. All of them amounted to a zero-sum activity. Some people made money and some lost it, and all of that cancelled out. No value was created in the process.

That’s finance. The total value of all the economic activity in the world is estimated at $105 trillion. That’s the mangoes. The value of the financial derivatives which arise from this activity – that’s the subsequent trading – is $667 trillion. And in terms of the things it produces, that business is useless."

In the London Review of Books, a belief-altering article by John Lanchester: "For Every Winner a Loser." https://t.ly/R5BAf

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Avinash Kaushik
Avinash Kaushik, photo 1
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Location

London, England, United Kingdom