1 00:00:00,090 --> 00:00:03,569 Thank you very much. I'm I'm really honoured and I am very touched. 2 00:00:03,570 --> 00:00:08,010 Probably you for sure over evaluate me. 3 00:00:09,150 --> 00:00:13,960 Uh, but it means that my guys from PR, they really did a good job. 4 00:00:16,020 --> 00:00:29,150 Uh, you know what? Uh, actually, when I landed in Oxford, uh, like, 2 hours ago, I realise. 5 00:00:30,450 --> 00:00:37,889 Something something amazing. Actually, it was almost 20 years ago, I don't remember. 6 00:00:37,890 --> 00:00:42,600 It was 1992 and 1993. 7 00:00:44,070 --> 00:00:53,820 I came to Oxford at the time for the language training. 8 00:00:55,370 --> 00:00:58,400 At that time, I didn't speak any word in English. 9 00:01:00,140 --> 00:01:11,180 When I graduated to Technical University in 1987 under the Communists at the time. 10 00:01:11,870 --> 00:01:21,859 So we didn't learn English. Actually, I was very fluent in Russian, but after the transformation at the beginning, 11 00:01:21,860 --> 00:01:31,580 it seemed not to be very helpful and useful, although right now actually I'm enjoying them being fluent in Russian. 12 00:01:32,210 --> 00:01:36,170 But that time I came here. Hmm. 13 00:01:37,480 --> 00:01:43,660 Just a poor guy from the not very wealthy family. 14 00:01:44,680 --> 00:01:47,710 So everybody under the communist time and. 15 00:01:50,670 --> 00:01:57,600 I really can't realise. I even can't dream of the time that 20 years later. 16 00:01:58,690 --> 00:02:09,940 I'll be here opening the polished modern study at the Oxford University and giving a speech in English and. 17 00:02:11,720 --> 00:02:22,130 Actually, this is a very great day for me, but also from Poland, because this is the best proof that something happened to Poland at the time. 18 00:02:22,970 --> 00:02:31,070 So I believe that last 25 years after the run table in Poland, after the transformation were pursued, 19 00:02:31,070 --> 00:02:36,710 the best time in Poland for the last couple of hundred years, and being here, 20 00:02:38,120 --> 00:02:43,760 speaking to you, opening this Polish modern studies, the best proof for that. 21 00:02:44,510 --> 00:02:50,650 So. Actually, I am very proud of Paul and what we did since then, 22 00:02:51,850 --> 00:02:57,160 because right now I strongly believe that we are absolutely on the same page 23 00:02:57,670 --> 00:03:04,149 as the rest of Western Europe and actually we are speaking the same voice. 24 00:03:04,150 --> 00:03:11,050 For example, in the Ukraine case, we help them right now to deed to do their job. 25 00:03:12,680 --> 00:03:21,770 So this is a very short introduction, but it's a really special moment. 26 00:03:21,890 --> 00:03:29,990 But not only for me, I think also for other Polish people being here when we start thinking from this perspective. 27 00:03:31,370 --> 00:03:38,960 So few words about my person will said already that just to clarify the. 28 00:03:39,680 --> 00:03:44,720 Yeah. So the fact is that I published three books. 29 00:03:46,550 --> 00:03:50,930 They are also available in English on Amazon are not very expensive. 30 00:03:50,940 --> 00:03:55,340 I end by filling $29. As far as I remember, all of them. 31 00:03:57,980 --> 00:04:04,010 The last one. Business nature to be published in. 32 00:04:05,430 --> 00:04:14,360 January, as far as I know, and my speech be actually very much about this. 33 00:04:15,090 --> 00:04:20,670 What they wrote in in this book and thinking. 34 00:04:22,500 --> 00:04:31,650 How could the person who is very much from the exile world could say to. 35 00:04:33,350 --> 00:04:40,050 To people, to audience who are very much money is from the word world. 36 00:04:41,090 --> 00:04:47,250 How could they? Presents something interesting here on the economics. 37 00:04:48,260 --> 00:04:52,010 Topic. Actually, surprisingly, I found it very easy. 38 00:04:54,030 --> 00:05:02,630 Why so? Because. If we start. 39 00:05:03,990 --> 00:05:07,740 Thinking about the recent economic Nobel Prize. 40 00:05:08,340 --> 00:05:14,740 There were three guys awarded this year. Urban farmer Robert Shiller. 41 00:05:15,100 --> 00:05:18,790 Peter House. What is a special about them? Obviously. 42 00:05:18,940 --> 00:05:22,330 Every year giving a Nobel Prize is a very special moment. 43 00:05:23,410 --> 00:05:27,370 But this year, especially in economics, was really special. 44 00:05:27,880 --> 00:05:43,960 Why so? Because once again, fame was awarded for his story, which proves that every time the value of every asset in the market. 45 00:05:45,280 --> 00:05:49,150 Is properly evaluated by this market. So every price. 46 00:05:50,140 --> 00:05:58,810 Is the right one and he prove it, which means that the prize which we could see at the market, 47 00:05:59,080 --> 00:06:06,910 already reflected the every information, every trends on the market, everything. 48 00:06:07,480 --> 00:06:11,980 And after all the prices, as we could see, actually. 49 00:06:11,990 --> 00:06:23,080 Robert Shiller and Peter Hanson, they were awarded at the same year for proving that most of the time the price means is absolutely wrong. 50 00:06:24,970 --> 00:06:37,690 And actually, Peter Shiller sometimes is a cult as a king and the father of behaviour economics, which means that most of our decision, 51 00:06:38,080 --> 00:06:48,760 investment decision that we do is done by emotion, is by our intuition, and most of the time we are wrong. 52 00:06:49,060 --> 00:07:01,090 And actually, Peter Hansen did the statistic model which prove it and at the same time those two guys were awarded from economics. 53 00:07:01,720 --> 00:07:05,410 How did it happen? That sounds ridiculous. 54 00:07:06,760 --> 00:07:12,220 And actually, not really because. 55 00:07:15,240 --> 00:07:23,040 Professor Fein proved that, although the price really reflected to the information and trends. 56 00:07:23,580 --> 00:07:34,080 But the problem is that we can't interpret them, and that's why we can't predict the future trend of this price. 57 00:07:34,320 --> 00:07:38,430 And then why do most of our decisions are wrong? 58 00:07:39,900 --> 00:07:45,240 And now is very close to this two other guys, which means. 59 00:07:45,800 --> 00:07:56,650 Which is the slight. Which means they're the. There is some link between the rational decision and irrational decision. 60 00:07:56,980 --> 00:08:02,560 In all our. Investment process, investment decision. 61 00:08:05,420 --> 00:08:12,920 Searching. How? It's possible and how it could happen at the time. 62 00:08:13,430 --> 00:08:24,560 We have to go back 20 years ago, 20 years earlier, actually, that was the time when I started learning English in 1992. 63 00:08:24,770 --> 00:08:33,020 The Harvard professor, Daniel Goleman, published a very famous book that I strongly recommend it to to read. 64 00:08:33,020 --> 00:08:38,300 And maybe some of you have heard about this emotional intelligence. 65 00:08:39,280 --> 00:08:43,330 And Professor Goldman find out that the. 66 00:08:44,530 --> 00:08:52,959 It's not true that actually we have just one type of intelligence, IQ intelligence, 67 00:08:52,960 --> 00:09:02,380 very well known, which is intelligence describing our talents of analytic way of thinking. 68 00:09:02,890 --> 00:09:06,190 But actually, there is art. 69 00:09:07,150 --> 00:09:12,580 Intelligence support intelligence musician intelligence that so many of them. 70 00:09:13,750 --> 00:09:22,930 And actually, the most important out of the IQ is IQ intelligence, which is emotional intelligence. 71 00:09:23,680 --> 00:09:27,160 Emotional intelligence is. 72 00:09:28,480 --> 00:09:34,330 Located in the human brain in the small part of the brain, 73 00:09:34,630 --> 00:09:45,730 which is called amygdala and which is linked by this serious pipe of nerve with trance like which works like an interface. 74 00:09:46,240 --> 00:09:49,270 And what he noticed that the. 75 00:09:51,420 --> 00:09:57,750 People were this interface interface from Magdala. 76 00:09:57,780 --> 00:10:02,010 Part of the brain is broken or doesn't work properly. 77 00:10:02,790 --> 00:10:09,090 They almost can't leave. They can't make any decision. 78 00:10:09,810 --> 00:10:14,460 They barely could survive in the normal life. 79 00:10:14,760 --> 00:10:20,370 Still having extremely high IQ result. 80 00:10:21,240 --> 00:10:28,280 That was. That was amazing. Later on, about ten years later. 81 00:10:29,260 --> 00:10:46,030 Mr. Yes, please. Daniel Kahneman published the result of his research, which he did together with Amanda Persky, who unfortunately passed away. 82 00:10:46,040 --> 00:10:57,009 So in 2002, when Daniel Kahneman was awarded by Nobel Prize for his research, that was only him. 83 00:10:57,010 --> 00:11:02,950 But actually research was done by those two scientists. 84 00:11:02,960 --> 00:11:09,670 He published the book which called The Fuss and Slow Thinking and what? 85 00:11:10,860 --> 00:11:16,980 Daniel Kahneman found out was that we as a human. 86 00:11:18,200 --> 00:11:22,730 A thinking in two completely separated ways. 87 00:11:23,960 --> 00:11:37,960 One is. Very fast way of thinking where we act emotionally immediately without any time for reflection and deeper analysis. 88 00:11:39,070 --> 00:11:51,730 And this the second one, which is called the slow system or system number two, which is the way where we start to use our IQ. 89 00:11:53,310 --> 00:12:05,070 But actually this slow system change with this slow system of thinking, use much more energy from us. 90 00:12:05,670 --> 00:12:12,850 So. Almost every decision we do during our normal life. 91 00:12:13,830 --> 00:12:19,590 Is decision done by the system? Number one, the fast thinking system. 92 00:12:22,160 --> 00:12:26,740 Which came from our. Evolution. 93 00:12:28,060 --> 00:12:39,120 Uh, because this way of thinking in many times in the past, but also right now, helps us to survive in the dangerous situation. 94 00:12:39,130 --> 00:12:46,090 There are no time to analyse the situation, but immediately we have to make a decision is it a threat or not? 95 00:12:46,390 --> 00:12:50,890 And if it's a threat, either we have to fight or run. 96 00:12:51,760 --> 00:12:58,140 There are no time for the slow way of thinking and also slow way of thinking. 97 00:12:58,570 --> 00:13:01,900 Consume a lot of our brain energy. 98 00:13:01,930 --> 00:13:13,720 That's why, for example, it's so difficult to think about some difficult task where we are practising something in the gym. 99 00:13:14,410 --> 00:13:25,150 It's almost impossible running very, very fast and thinking about something serious because there are not enough energy in our body. 100 00:13:26,650 --> 00:13:31,830 But that. So fast way of thinking. 101 00:13:32,970 --> 00:13:44,890 Although it works. Properly and very well in the natural environment. 102 00:13:46,500 --> 00:13:50,100 Right now seems to be it not be enough. 103 00:13:50,850 --> 00:14:02,290 In a little bit more complicated word that we created, because this is this way of using emotional intelligence. 104 00:14:02,940 --> 00:14:06,780 When we start to use this system of thinking for the. 105 00:14:09,290 --> 00:14:13,310 Management problem for the investment decision. 106 00:14:13,910 --> 00:14:18,100 We do so many mistakes that. 107 00:14:20,800 --> 00:14:27,740 It's creates a lot of problems. What? What kind of mistakes we could do. 108 00:14:28,430 --> 00:14:31,460 For example, once we don't. 109 00:14:33,220 --> 00:14:40,629 No. The answer for the problem. We tried to find some similar, simpler situation from our past, 110 00:14:40,630 --> 00:14:47,260 and then we followed the solution we did in the past when we don't know the answer for the problem. 111 00:14:48,160 --> 00:14:53,670 We intentionally followed the group. That's our, that's our behaviour. 112 00:14:56,400 --> 00:15:01,680 When we we are so easy person to be framed. 113 00:15:02,620 --> 00:15:17,560 Once we heard the solution or the price we so willing, even if we not realised to follow this this price what advice to us which is sometimes. 114 00:15:18,710 --> 00:15:23,420 Probably irrational price, but that's how we how we work. 115 00:15:27,790 --> 00:15:31,890 Uh. This. 116 00:15:32,370 --> 00:15:35,610 This way of thinking. Could you? I do. 117 00:15:36,150 --> 00:15:45,360 This came of thinking, as I said, is mostly related to some atavism. 118 00:15:45,930 --> 00:15:51,180 The way how we as a life creature evaluated. 119 00:15:51,960 --> 00:16:03,810 But it makes a lot of problems. This is the example described by Professor Kahneman, and he did the research a couple of times. 120 00:16:03,810 --> 00:16:11,310 He repeated that a lot of medical doctors conferences. 121 00:16:12,120 --> 00:16:18,720 So he asked them. For solving such a problem. 122 00:16:19,380 --> 00:16:23,820 Let's say theoretically that in some neighbourhood. 123 00:16:24,790 --> 00:16:28,620 Uh. Suddenly, uh. 124 00:16:30,180 --> 00:16:38,190 We have the problem with unknown disease, which we could call Asian disease. 125 00:16:39,410 --> 00:16:43,070 It's a very serious deadly disease. 126 00:16:43,820 --> 00:16:48,350 But actually, we have two treatments against it. 127 00:16:49,190 --> 00:16:54,980 Treatment A and treatment B, but according to the producers. 128 00:16:56,250 --> 00:17:11,130 Treatment a. As the producer says, could save 200 people because in this neighbourhood there are 600 people and all of them could die. 129 00:17:11,150 --> 00:17:16,820 But if we use treatment, a 200 people could be safe for sure. 130 00:17:17,180 --> 00:17:29,570 But 400 people will die for sure. Treatment B according to producer of treatment, be you saying completely something different. 131 00:17:29,990 --> 00:17:37,250 You're saying that we don't know how many people we could save, but according to our research. 132 00:17:38,830 --> 00:17:44,320 One third. 33% of people could be. 133 00:17:47,200 --> 00:17:53,950 With one third probability. So 33% of the probability we could save everybody. 134 00:17:55,820 --> 00:18:09,470 From this 6600 people society all but two third, which is a 67% probability are. 135 00:18:10,740 --> 00:18:16,460 We have to say that. Everybody will die. 136 00:18:17,860 --> 00:18:23,270 So which kind of treatment? Do you prefer teachers and the medical doctors? 137 00:18:24,020 --> 00:18:29,720 More than 90% of them decided to choose a treatment b. 138 00:18:30,910 --> 00:18:40,470 Which is ridiculous because I the same sector the same. Uh, so. 139 00:18:43,160 --> 00:18:46,160 The question is why they did this decision. 140 00:18:46,400 --> 00:18:57,380 Also, it's related to the way how we think because based on the evolution, we prefer not to lose. 141 00:18:59,940 --> 00:19:03,090 Then to win. So. 142 00:19:05,040 --> 00:19:08,820 If we use treatment a for sure immediately. 143 00:19:09,300 --> 00:19:13,890 We decided the two that 400 people will die. 144 00:19:14,190 --> 00:19:21,130 So we don't want to lose for sure. Maybe. Maybe we we win. 145 00:19:24,220 --> 00:19:33,510 Could we go further? So. This is this is the example of how we how we think and. 146 00:19:35,690 --> 00:19:39,880 It's it's amazing because it's so many decision. 147 00:19:40,910 --> 00:19:50,520 Adam in this way. And if so many decision might be wrong. 148 00:19:51,540 --> 00:19:58,650 So it means that we have a serious problem because it's not only about the business, but it's also about the. 149 00:19:59,590 --> 00:20:04,810 Regulators, politicians and the people who are ruling the country's. 150 00:20:06,220 --> 00:20:21,860 But unfortunately this is the fact government. And for this point of part of this research for last. 151 00:20:23,000 --> 00:20:26,000 Almost 20 years, 152 00:20:26,000 --> 00:20:38,000 more than 50% of Nobel Prize awarded actually relate was related to to this kind of topics but and it's called the behaviour economist. 153 00:20:38,810 --> 00:20:53,480 But. The lack of behavioural economy is that almost everything what was written about that was reflected to this single investment decision. 154 00:20:53,990 --> 00:21:00,520 Just one person. So we have the level of the single investor. 155 00:21:01,580 --> 00:21:08,960 On the other hand, we have the companies and we have the whole markets industry. 156 00:21:10,360 --> 00:21:27,280 Once Industry investment theory investment system was linked to Darwin. 157 00:21:29,050 --> 00:21:34,510 Evolution theory. For the last 50 years. 158 00:21:34,510 --> 00:21:43,510 As far as I remember, once a liberal school of economics was created in Chicago by High-iq Friedman and the other guys. 159 00:21:43,660 --> 00:21:50,560 They always proved that they're exactly the same principles, exactly the same rules, 160 00:21:50,950 --> 00:21:58,150 which works in the life environment, picking up the best fitness for the environment. 161 00:21:58,180 --> 00:22:01,480 It works exactly the same in the economy. 162 00:22:01,780 --> 00:22:05,170 So which is nothing new right now. 163 00:22:05,440 --> 00:22:15,430 The latest research show and prove that it's exactly the same and this single human, 164 00:22:16,390 --> 00:22:26,020 uh, example, but it's still a big gap between the investor and the whole market. 165 00:22:28,040 --> 00:22:35,360 What is in the gap that companies. So the question is what happened to the to the companies. 166 00:22:36,410 --> 00:22:38,120 And actually, 167 00:22:38,990 --> 00:22:53,690 I believe that the companies are following exactly the same principles and this is the part of the of the book will be just published how to. 168 00:22:58,300 --> 00:23:04,330 How to run the future research about the companies in this in this context. 169 00:23:05,710 --> 00:23:17,230 So if we see this simple diagram here, we have how it works in the camp on this we have a normal. 170 00:23:19,690 --> 00:23:22,959 No rebuild Tory of economics. 171 00:23:22,960 --> 00:23:26,560 We do everything rational. The market is always right. 172 00:23:26,560 --> 00:23:36,220 Markets rational, but based on our sentiments, based on the our emotion, we do some decision. 173 00:23:36,460 --> 00:23:47,140 Sometimes it's right, sometimes it's wrong. Later on we switch on our analysis, try to analyse the result of this decision. 174 00:23:47,710 --> 00:23:50,770 If it's okay, it's fine. If not again change. 175 00:23:51,100 --> 00:24:00,070 We switch our IQ, then we adjust it again by our IQ, by our emotion. 176 00:24:00,280 --> 00:24:04,360 And then we go to this behaviour economics. 177 00:24:05,610 --> 00:24:19,910 Other words. We could show it in this way that doing a rational decision and using our IQ. 178 00:24:21,630 --> 00:24:31,140 We could predict every time where this ball be, it'll be for sure in the lowest point because of the gravity. 179 00:24:34,910 --> 00:24:42,650 But the problem is that in most cases we not realise that this ball is a part of the bigger scheme. 180 00:24:43,160 --> 00:24:47,530 It's a part of the platform. Its platform is moving, is accelerating. 181 00:24:47,580 --> 00:24:56,810 Slowing down is stopping. Going back going forward and obviously in impact very much the ball. 182 00:24:56,930 --> 00:25:08,240 So the ball is in a completely different place where we could expect that this is a more or less the dilemma right now in in the economy. 183 00:25:08,660 --> 00:25:12,130 What is the ball cursor? 184 00:25:12,530 --> 00:25:15,829 All economists are using. 185 00:25:15,830 --> 00:25:19,920 They actually think the ball should be here. No, but the ball is here. 186 00:25:21,230 --> 00:25:24,260 Okay. Here. So it takes us some time. 187 00:25:24,260 --> 00:25:31,130 We could use this Newton to take some time to be here, but in the meantime, platform going forward. 188 00:25:31,140 --> 00:25:40,040 So the ball is here. I could say that right now we face a very similar situation, 189 00:25:40,040 --> 00:25:55,160 like a scientist being in the beginning of two centuries when they realised that Newton theory didn't work anymore as far as a high speed account. 190 00:25:55,610 --> 00:26:03,140 So. And it's exactly the same in this case when the platform was moving slowly. 191 00:26:04,200 --> 00:26:19,740 The ball was always here. Right now, the platform is moving in unpredictable direction, so it's almost impossible to predict where is the ball. 192 00:26:20,430 --> 00:26:24,760 And now it's actually, uh. 193 00:26:25,980 --> 00:26:31,170 It means that we have even more than any time before. 194 00:26:32,200 --> 00:26:37,660 In business decision investment to use our emotions. 195 00:26:38,780 --> 00:26:45,140 To use our intuition because it's almost impossible to predict and count. 196 00:26:45,410 --> 00:27:01,510 Where is the ball? The company, as I said, in my opinion, follow exactly the same. 197 00:27:03,310 --> 00:27:07,610 Low. And the same laws, the same principles like. 198 00:27:09,180 --> 00:27:12,940 Single. Investor. 199 00:27:13,290 --> 00:27:16,660 Like a market and. Speaking. 200 00:27:18,080 --> 00:27:29,350 Bigger, like. Life animals in the life environment following Darwin evolution story. 201 00:27:30,270 --> 00:27:37,260 But if so, it's raised the question. How is it happen in real? 202 00:27:38,600 --> 00:27:48,050 How those companies are changed. How this evolution theory in practice will work in the company case. 203 00:27:50,190 --> 00:27:56,190 I think all of us we heard so many times saw the very come and think about DNA of the company. 204 00:27:56,760 --> 00:27:58,910 The company has to change its DNA. 205 00:27:58,920 --> 00:28:11,040 All this company has a very strong DNA, but in most cases, its use like very much to this, in the context of the culture of the company. 206 00:28:11,520 --> 00:28:14,910 Nobody really think about the real DNA. 207 00:28:15,360 --> 00:28:25,320 But what if we try to create the real model of DNA with the real chains of DNA, very similar to DNA. 208 00:28:25,560 --> 00:28:32,790 And this actually it tension of of this DNA model. 209 00:28:34,490 --> 00:28:37,820 Once a single investor. 210 00:28:38,800 --> 00:28:45,060 We? Use all the time IQ and IQ. 211 00:28:45,240 --> 00:28:52,530 So I believe this is exactly the same. The company, all the companies consist from the intelligence. 212 00:28:53,850 --> 00:28:59,190 Uh hmm. From the IQ and from the emotion. 213 00:28:59,430 --> 00:29:13,020 Intelligence. And if we try to describe in this way that this is logical and analytical intelligence of the company, 214 00:29:13,320 --> 00:29:23,760 which is all the hard data of the company, which the company has it not necessary mind must be the company. 215 00:29:23,760 --> 00:29:27,540 It could be as well. Oxford. But here in the organisation. 216 00:29:27,540 --> 00:29:39,719 So we have here this old knowledge in this company, in this university, all books, all properties, 217 00:29:39,720 --> 00:29:45,330 all finance, household, the rules, everything which could be described and treated. 218 00:29:48,780 --> 00:30:03,519 But this. Obviously it's not everything is very common saying that the most important in every organisation that people in this case fellows, 219 00:30:03,520 --> 00:30:11,410 professors, doctors and that be the second chain which I called in the company emotional intelligence. 220 00:30:11,860 --> 00:30:21,660 This is all set of people working or somehow related to the organisation, to the companies. 221 00:30:22,390 --> 00:30:30,250 And then only the combination of two chains finally gives the proper picture of the company. 222 00:30:30,790 --> 00:30:34,000 And inside the chain. 223 00:30:34,320 --> 00:30:44,780 Chain. Both of them. We have some genes. Which could be financial strategy, technology, I.T., marketing, whatever you want, 224 00:30:45,260 --> 00:30:56,360 but also every people related to the to the organisation, to the company, to this in this case, to to Oxford University. 225 00:30:56,690 --> 00:31:08,150 Obviously, picking up one gene and putting different one in place of this completely might completely change the organisation, 226 00:31:08,600 --> 00:31:16,160 especially that be the dean of CEO in the company or for example, 227 00:31:16,520 --> 00:31:27,170 if we completely change the financial situation of the company because of some extraordinary event, there'd be not the same company anymore. 228 00:31:27,680 --> 00:31:29,000 So having this model, 229 00:31:29,570 --> 00:31:43,070 we could actually observe the how the company mutate being either a better fit to this environment or and then the company be growing, 230 00:31:43,460 --> 00:31:54,500 the company developing or actually those mutation could go in the wrong direction and the company be weaker than than before. 231 00:31:57,650 --> 00:32:02,180 So because of the emotional intelligence of the company. 232 00:32:04,110 --> 00:32:15,659 It's actually very new concept. So I would like to, based on this graph, explain you what I mean here. 233 00:32:15,660 --> 00:32:26,610 It's not only just in knowledge and emotion of the every employee in the company, but also extremely important relation among them, 234 00:32:27,360 --> 00:32:39,930 the atmosphere, how they feel, uh, and all this things related to the ah, I could call emotional intelligence of the company. 235 00:32:40,080 --> 00:32:46,770 And obviously if this level of the emotion is higher, the company is more competitive, 236 00:32:46,770 --> 00:32:54,720 the same actual in the heart that data, when the company is more profitable, has a more equity. 237 00:32:55,020 --> 00:32:58,640 Also, it means that this IQ is higher. 238 00:32:58,650 --> 00:33:07,710 The company is more competitive. And actually using this model. 239 00:33:09,690 --> 00:33:16,220 If we. Agree for this. 240 00:33:17,850 --> 00:33:30,730 Parodic. What does it mean that the company DNA mutating this right direction, improve the fitness that could be used? 241 00:33:31,210 --> 00:33:42,010 That could be the good opportunity to just to search if the company is developing properly. 242 00:33:43,200 --> 00:33:52,799 I think in most cases people believe that the most important for the company is just net profit. 243 00:33:52,800 --> 00:33:57,930 Either company is producing profit or not. It's almost right. 244 00:33:57,940 --> 00:34:08,170 Although I believe it's even more important to answer if the company, after the mutation, is able to produce a more cash flow than before. 245 00:34:08,200 --> 00:34:19,239 And the cash flow is much more important than than the profit then those guys who are more related to the business, they understand what they mean. 246 00:34:19,240 --> 00:34:29,680 And I think they could agree with me, but we could say also that's right here, it's very similar. 247 00:34:30,400 --> 00:34:33,970 I don't want to complicate could we go on there? 248 00:34:34,930 --> 00:34:49,930 And the company, which is actually a good example, the company also follows exactly the same rules as a human as I said before, that we. 249 00:34:50,960 --> 00:34:54,020 Uh, actually always following. 250 00:34:55,530 --> 00:35:01,260 Strategy not to lose. Instead of the strategy to win. 251 00:35:02,640 --> 00:35:08,640 Other words, the fear of the pain is bigger than the pleasure of the gain. 252 00:35:08,970 --> 00:35:19,380 It's actually work the same in the company. Once those guys say, I don't know if you remember, probably this is a very famous here in Britain. 253 00:35:22,740 --> 00:35:28,210 Nick Leeson, actually. He didn't steal this money. 254 00:35:28,780 --> 00:35:32,499 He just played. He made the small losses at the beginning. 255 00:35:32,500 --> 00:35:42,580 Only 2 million. But he was so afraid to show this losses, he was afraid to lose his job. 256 00:35:43,060 --> 00:35:51,340 So he was always playing. He did always the new bat, believing that finally he would win. 257 00:35:51,340 --> 00:35:54,970 So he was unable to accept his losses. 258 00:35:55,330 --> 00:35:59,140 They are the example where exactly? Exactly the same. 259 00:35:59,350 --> 00:36:05,280 Which means that this one of the gin in the company was actually wrong. 260 00:36:05,290 --> 00:36:08,530 And the company finally bankrupt all those. 261 00:36:08,740 --> 00:36:14,290 Those banks. Your father. There are so many. 262 00:36:15,450 --> 00:36:22,650 Examples. In the life environment which confirm that actually life. 263 00:36:23,920 --> 00:36:30,140 Word. Is acting exactly the same as the companies, which is. 264 00:36:33,500 --> 00:36:48,110 Some prove that they believe that. Uh, my thinking about the company in the context of theory of evolution is probably, probably right. 265 00:36:51,750 --> 00:36:57,780 I believe very few of you know that once birds. 266 00:36:59,890 --> 00:37:02,950 Flying for the winter to North Africa. 267 00:37:04,280 --> 00:37:08,720 They first of all, concentrated in the one big fleet then. 268 00:37:10,760 --> 00:37:12,980 They split them on a couple of them. 269 00:37:13,280 --> 00:37:21,110 And every part of this fleet using completely different direction to reach exactly the same point in the North Africa. 270 00:37:22,940 --> 00:37:23,750 Why so? 271 00:37:24,140 --> 00:37:38,960 Because they would like to share the risk that at least some part of Bird during this long journey arrive to Africa and be able to be back next. 272 00:37:40,730 --> 00:37:44,230 Yea. And then have a. 273 00:37:45,300 --> 00:37:50,430 Uh, they new generation and send the genes. 274 00:37:52,500 --> 00:37:57,320 Come on. This is exactly the strategy we do in the business. 275 00:37:57,330 --> 00:38:08,400 There's a very common saying that puts every exit into one box, which means that invests everything in one in one project is exactly the same case. 276 00:38:11,500 --> 00:38:17,820 Completely irrational decision. From logic standpoint of is altruism. 277 00:38:18,780 --> 00:38:22,710 It's raised by a single people, by the companies. 278 00:38:23,040 --> 00:38:29,460 That's makes sense. Why are altruist? Actually, it makes sense. 279 00:38:30,150 --> 00:38:37,050 It's actually a very common process also among animals in the life environment. 280 00:38:37,500 --> 00:38:49,320 And finally, making a long story short, it helps us to replicate our our genes and why the companies are altruistic. 281 00:38:49,350 --> 00:39:01,500 It's quite obvious, actually. This is a part of my being. We believe that after all, in this way or the other other one, it help us in the future. 282 00:39:05,790 --> 00:39:14,230 Also there is. Very nice example with bees. 283 00:39:15,400 --> 00:39:19,480 When the bee decided to. 284 00:39:21,250 --> 00:39:26,980 Uh. Change the king. 285 00:39:28,290 --> 00:39:34,800 For the new one. And they push. Away the old king to find a new house. 286 00:39:37,720 --> 00:39:41,200 Surprisingly the most experienced bees. 287 00:39:43,320 --> 00:39:55,100 We go with this old king. Because only the most experienced bees could help to create the new royal family. 288 00:39:56,820 --> 00:40:05,220 And it gives the biggest channel, the biggest and the highest churn chance to success for this process. 289 00:40:07,600 --> 00:40:14,220 Uh. I believe that all of you heard that so many mergers and acquisitions failed. 290 00:40:16,350 --> 00:40:21,960 Why so? Especially one this is acquisition overseas, for example. 291 00:40:23,750 --> 00:40:28,530 Believe me that. Most cases. 292 00:40:28,590 --> 00:40:32,520 The reason is that once finally the transaction is done. 293 00:40:34,660 --> 00:40:37,989 The company which Bolt and other one decided to do. 294 00:40:37,990 --> 00:40:46,930 The branch is sending not the best people, the most experience, but the people that really they don't. 295 00:40:49,580 --> 00:40:53,690 Have any idea what to do with those guys. So they sending experts? 296 00:40:55,100 --> 00:40:59,120 It's not the case sometimes in the university. Never. 297 00:40:59,150 --> 00:41:09,469 Okay. And then what happened? We send the managers who are not really the best ones in our own environment to the completely 298 00:41:09,470 --> 00:41:15,380 different one are known and we believe that they be succeed there on one side and not succeed here. 299 00:41:15,680 --> 00:41:19,160 No way. And be smart. 300 00:41:20,090 --> 00:41:23,570 They send in the best of the best. We go further. 301 00:41:25,610 --> 00:41:29,320 And. Also. 302 00:41:29,830 --> 00:41:37,630 Similarly, uh, similarities are reflected to the whole industry for the stability of the whole industry. 303 00:41:38,540 --> 00:41:47,230 Uh, actually right now there are so many programs and uh, also actually here in Oxford. 304 00:41:48,490 --> 00:41:52,720 Which trying to find the similarities between. 305 00:41:53,170 --> 00:41:58,510 Stability of ecosystem and stability of our financial systems. 306 00:41:58,870 --> 00:42:01,930 And actually, there are so many of them. 307 00:42:03,430 --> 00:42:07,930 If we look into the natural ecosystem. 308 00:42:10,280 --> 00:42:16,010 Here we have microorganism at the very bottom and here predators. 309 00:42:16,820 --> 00:42:28,670 And actually if this strangle. It's wider at the fundamental and there are so many of them at the lower level. 310 00:42:29,540 --> 00:42:33,560 The ecosystem is more. Stabilised. 311 00:42:33,590 --> 00:42:38,660 It's exactly the same. In the business. 312 00:42:39,320 --> 00:42:49,330 So. It's a pure correlation, a very strong one between the number of micro and small companies. 313 00:42:50,860 --> 00:43:06,340 In in any. Industry in any business environment and with the stability of this of the system. 314 00:43:06,970 --> 00:43:11,370 But what doesn't mean. Being a micro. 315 00:43:12,530 --> 00:43:16,069 Exactly the same as in life environment. 316 00:43:16,070 --> 00:43:26,870 There are a lot of small animals, small colonies and a lot of them very soon that die or they food for this higher level. 317 00:43:27,170 --> 00:43:29,690 Exactly the same in business. 318 00:43:29,690 --> 00:43:40,220 We have a lot of micro companies and they accept the very high level of risk and only because of this that they are accepting the high level of risk. 319 00:43:40,670 --> 00:43:51,320 So they could survive. But on the other hand, once they accept a so high level of risk, a lot of them be bankrupt. 320 00:43:51,590 --> 00:43:54,649 And then we have the small medium size for lower risk. 321 00:43:54,650 --> 00:44:03,440 And finally, we have a global corporation, the biggest predator, which actually in most cases cannot accept almost any risk. 322 00:44:03,950 --> 00:44:11,299 We saying that all those big companies, big elephants, are so bureaucratic it's nothing impossible to deal with them. 323 00:44:11,300 --> 00:44:15,890 But at the very end, it help them to survive. 324 00:44:17,840 --> 00:44:21,740 This is exactly the same case in the life environment. 325 00:44:22,760 --> 00:44:29,750 So that's be very much for today and the rest be in the book. 326 00:44:30,170 --> 00:44:34,610 So I advise you to it. Thank you so much. 327 00:44:36,720 --> 00:44:36,900 You.