Holed below the waterline

The UK is in the process of enduring its worst flooding for several centuries. Dream houses abutting the Thames River have taken on the function of inland covered lagoons for breeding fish. Rugby pitches serving as environments where youngsters can practice rowing without the tidal issues of a major waterway. Salvador Dali meets Gainsborough.

Are the owners of such property foolish for not anticipating this ‘Black Swan’ event? How many centuries should one go back in respect of property due diligence? There is a relevant English expression ‘holed below the waterline’ that suggests that some boats are fundamentally poorly designed. The same might be true of property and of business models.

Volatility seems to be on the rise both meteorologically and from a market perspective. Now might be a good time to establish whether your business model would withstand a market lashing? It might be easier in the long run to simply move to higher ground. In other words it might be time to move your value proposition a safe distance above the commodity waterline.