Would you play a game where you have 99% chances of losing? Before you answer, listen. Or read… sometimes I forget that this is an email… ​ Well… read or listen. ​ It’s impossible to make an adult to change their mind. Impossible, at least in one conversation, demonstration or else. In fact, the more you try, the more convince that “adult” is on their position. ​ It’s that simple. ​ And if not impossible, let’s say that this won’t happen 99% of the time. ​ Well… ​ People are still playing that game. Over and over. Over and over. Every single day. ​ No wonder why they could be called losers. ​ Still, people argue. People get angry with one another. People lose their friendships. ​ What a waste. ​ And very importantly remember this. Remember it very well. Repeat it every day. People prefer to be right than knowing the truth. I do my things. I let others argue, enter into arguments… I just go with MY flow. ​ I do small investments, some other quite big. ​ Since I don’t argue, I live happier and wealthier, and I go faster. ​ A lot of this is expressed in my philosophy about how approach real estate. ​ If you want to know more… here you can get some clarity. ​Is this piece of real estate a good investment​ ​ PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. ​ ​ |
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Conflict of interest: A time bomb You can have the best lawyers.The shiniest financial model.The perfect risk matrix. The most balance incentive a.k.a. bonuses program… And still see your project collapse…Because of conflict of interest. Take the Athens ring road extension. During procurement, it turned out that one of the “independent” advisors hired to evaluate bids had close financial ties with a consortium member. Not a minor connection. A proper stake in the game. When journalists...
Yesterday I told you about a KPI regime that seemed a horror story. Today, I bring you another that kills. Kills contract, I mean. I often tell people that vertical PPPs are not my cup of tea. Hospitals… I run away. Too complicated. Too political. Too high stakes. Take the wave of hospital PPPs in the UK during the 2000s. On paper, they looked brilliant: new facilities, modern equipment, long-term maintenance secured. But still… the KPI regime was written by bureaucrats with too much coffee...
Some PPPs die before they start.Others collapse under the weight of construction. And then there are those that rot from within — strangled by their own KPI regime. Take the Peterborough Prison PPP in the UK.On paper, it was innovative: the first privately financed prison with a focus on rehabilitation. The government loved the concept. The innocent believers in human nature wet dreamt about it. The financiers lined up.The operator thought they could make it work… if not, they would still...