DIVERSIFY to hedge against CATASTROPHE...

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$7,000,000,000 Billion in quarterly PROFIT w/ a CATASTROPHE?

Diversification hedges against loss...even when the loss could be viewed as catastrophic..

This will be short and sweet today folks.  Diversification seems to work.  The fact of the matter is that companies and organizations are hedging their bets against catastrophic losses by simply diversifying their product or service lines.  In some ways, this is like pouring creamer in very strong coffee, changing the model and in many cases, proving to be an effective way to head off potential problems.

In the twitter.com post by kilokeal, (shout out to dude's page), and through the macrumors.com post, "Samsung Quarterly Earnings Guidance Shrugs Off Galaxy Note 7 Woes", Samsung announced strong third-quarter earnings to its investors in spite of the catastrophic effects of millions of exploding phones in the United States.  The Korean conglomerate boasted profits of over $7B, (like an echo in my ear...$7 BILLION...BILLION...BILLION...in operating profit for the three month period ending September 30th.  Let's put this into perspective...shall we?

$7,000,000,000 Billion

583,333,333,333.33 per mo.

$19,444,444.44 per day

$810,185,185 per hr

$13,503.09 per min.

These amount of profits over a quarterly period, in spite of the fact that news reports have been covering the recall of over 2.5 million Galaxy Note 7 smartphones for battery related fires.  Although the earnings will not be released until the end of October, strong sales of other products from the organization speak to the robust nature of its diversification of product lines.  As evidenced by its forays into chip making, component supplying, semiconductor manufacturing, etc.  

So...what can we take from this?

DIVERSIFY

The time is NOW for all organizations to look at product modifications, programs and even technologies to begin the diversification process.  In the interim, organizations move with ebbs and flows, improving product lines based upon the outcome of sales.  What if the main focus of increased investment in research and development would place the organization in development mode?  The outcomes would lead to additional development, thinking outside of the box and overall mastery of the existing programs.  Research and development also lends itself to bringing in the development of additional ROI, (return on investment), that results from diversification.  

Unfortunately, there are many who faced defective products in this latest model of the Samsung smartphone line, but overall, the organization seems to be moving in continued upward profit directions.  

The word for the day folks is "DIVERSIFY"

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