The lessons from Nature

(Section A Group 3)

(Akshat-16P006, Amrutha-16P008, Aniket-16P018, Gaurav-16P021, Jatin-16P024, Karan-16P026)

The article very well describes the processes of nature and how financial market, or any process can
eventually be tracked back to the nature.

All the processes are governed by the nature and emulate it. Humans may try to interfere and try to mold
it as per their whims, but they are unable to challenge the might of the nature.

Start-ups as Seeds

It has been beautifully described in the article how the start-ups can be compared to seeds. Just like seeds
which are distributed everywhere, there are various ideas that are being generated all over the world, like
budding start-ups. They all require proper funding, incubation centers, and execution to develop into
proper businesses just like a seed requires proper water, sunlight and soil to germinate into a plant. But as
each and every seed in unable to develop into a plant, not each idea/start-up is able to bloom into a
flourishing business.

It might not be able to generate proper funding or is not executed properly and thus may fail. Even a
brilliant idea can fail if its brilliance is not recognized and developed to its full potential just like an A
grade seed which fails to germinate if it is not properly tended to.

Secondly it might happen that even after proper funding and execution a start-up fails if the basic concept
is not aligned to the environment where it is being operated. This phenomenon is also prevalent in the
nature where a seed is unable to germinate even if properly tended if it is not the season for it to grow.

Thus we see the similarity between a seed germinating into a full-fledged plant and a start-up developing
into a profitable business.

Seasonal nature of market

Another natural phenomenon that can be seen replicated in the financial markets is the concept of season.
Season starts, the trees which bloom in that season bloom and give good fruits but as the season ends, the
tree slowly starts withering and eventually dies. Similarly there are several booms that happen in the
economy like Dot Com bubble, Housing Bubble. These were all seasons which came for some time,
people made money with them but then when the season ended they started ending and it no longer
remained a profitable venture. People who invested in them should have been careful in their judgment to
realize that it is a temporary phenomenon like a season which ends and should have withdrawn their
investment when they could sense the hype dying down. Instead they thought it to be a permanent
scenario and kept venturing further. Such people who could not see this lost a lot.

We might try to create our own rules and think that we are the masters, but in the end it is the nature that
prevails. It is the rules of the nature that govern everything and dictate how the pieces of a jigsaw puzzle
fall in place and we just play our part in it.