Strategic Positioning

I had a lunch meeting with my Christian friend today. We don't get together very often, but when we do, we always have a lively exchange of ideas. The topic today was centered around strategic positioning. Things are looking increasingly crazy around the world, so we made a vow to help each other in case of trouble.

My friend is exposed to real estate while I'm pledged to liquidity. These are complimentary positions. If he gets in a squeeze, I can help with liquidity. If I need to get out of town, he has a few places I can choose from. In an extreme situation, he has land that can be used for farming.

My friend and I agree on most things, so it's easy to find common ground. Among the things we agree on is the advantage of living in a peripheral country like Portugal or Norway. These are places that are less likely to go completely bananas, because they are farther away from the centers of corruption.

Ideally, things won't get much worse than they are now. In that case, my friend will rent out his houses to tourists, and I will stay in my wife's apartment in Porto. However, if things go crazy, tourism will lock up, and there may even be food shortages. That's when our deal may come in handy. We move out of the city, grow our own food, and live from our savings and fixed incomes.

My Christian friend is my closest ally. However, I'm scouting for collaborators. That's part of the reason I talked to my wife's friend the other day. It's also why I find it important to stay on good terms with Mr. Cork. These are people I want to have on my side in case of trouble. Hence, I'm making an effort to be polite and helpful, and generally likable.

With this in mind, I wrote Mr. Cork an e-mail the other day to let him know that I remain enthusiastic about the cork business, but that I find now the wrong time to get invested. I rounded off the e-mail with a wish that we should meet again.

There was nothing in my e-mail to suggest that Mr. Cork should reply. It was meant strictly as a friendly gesture to let him know that I'm not simply dropping our e-mail exchange without a conclusion. I round things off, and let people know where I stand.

To my great delight, Mr. Cork responded to my e-mail with a "let's stay in touch". If I meet him again, I can strike up a conversation. I can even contact him directly if there's something we might both benefit from, and that's all I need to know for now.

At the other extreme of the social specter, I make a point of being polite to my down and out friends in our neighborhood. I greet them in the streets when I see them. This is partially to make sure they don't turn on me if things get ugly. If they get desperate, they'll hopefully ask me for help rather than rob me.

This is not to say that I see these people primarily as personal assets. I like them, and I wish them all the best. There's no conflict between this and me thinking strategically about how they may come in handy. On the contrary, it's a sign of affection.

There are people I'm making a point of avoiding. Decidedly dangerous dangerous individuals who are liable to denounce me in a situation where things get testy. However, even these I treat with respect. I don't want my foes to know what I really think about them.

Friends and foes