Using evolution as the template to understand growth, The Nature of Value takes a first-principles approach to explore the parallels between economic and ecological systems. Not only does Gogerty show how value is born out of tiny sparks of adaptive innovation, but he also explores the full scope of the economy as a complex network. He borrows from an array of disciplines-including anthropology, psychology, ecology, physics, sociology, and ethics-and, most revealing of all, examines how evolution's processes can help investors avoid risk and improve their allocation decisions. Starting with a look at how innovation creates value for firms, Gogerty considers the economic niches where companies compete and explores how they can create defensive moats to enhance their ability to survive. Throughout the book, Gogerty demonstrates how this ecological understanding of the economy can help allocators improve their performance, supporting his arguments with extensive data and years of practitioner experience from scientific, social, and economic disciplines.
Gogerty's practical takeaways, couched in vivid explanations and accompanied by intuitive illustrations, help investors of all backgrounds gain fresh insight into the behavior of corporations and the economy in general.
Nick Gogerty is a private account strategist and general problem solver for the world's leading hedge funds, banks, technology firms, and scientific research institutes. He has worked as a quantitative developer and trader on a proprietary foreign exchange desk in London, advised major institutions and the government on risk, and been a serial entrepreneur at the convergence of technology and media. He is deeply interested in growing sustainable economic value and reducing global poverty.
Preface Part I: Value 1. The Problem with Price? It's Not Value 2. Value and Why It Matters 3. The Theory of Value Part II: Inos 4. Knowledge and Innovation 5. How Innovative Capabilities Enable Value Creation 6. Allocating to Firms with a Unique Capability Mix Part III: Clusters 7. Birth and Growth of Clusters 8. Cluster Convergence, Maturation, and Death 9. Stable and Unstable Clusters Part IV: Moats 10. The Value of Moats 11. How Moats Affect Cost, Competition, and Customer Forces 12. Managing Moats, for Value Creation Today and Wealth Tomorrow Part V: The Economy 13. The Economy as a Macroprocessing Network 14. Monetary Shocks and Their Implications for the Allocator Part VI: The Nature of Value 15. The Nature of Value Allocation 16. Conclusion Notes Index