“There is nothing in this world more powerful than a good story”
We humans see in stories. We think in stories. We invest in stories.
NARRATIVE IS THE CURRENCY OF FINANCIAL DECISION-MAKING
Where narrative matters:
investment decision-making
We think in story form. It stands to reason that we also decide through narrative. The lens of conviction narrative theory (CNT) captures the way we construct and compare narratives to build the conviction we need to act in the face of radical uncertainty. This makes narrative the currency of decision-making.
valuations
Company valuations may take the shape of income statements and cashflow calculus. That is the skeleton. But the beating heart is the story we put on those bones. To understand that is to appreciate the difference between value and price; between WeWork the office rentals business and WeWork the “We Generation” narrative.
Macroeconomics
We have long known that markets move on sentiment. Keynes called this force “animal spirits”. Now, in the form of a burgeoning species of economics called narrative economics, we have the tools to quantify the stories we tell and tweet. We can extract their explanatory and predictive power over asset prices.
At Investment Narrative we help you find and tell your story.
Harness the power of narratives to drive financial decision-making around:
Fundraising activities
Private placement memoranda
Annual financial reports
IPO narrative strategies
“To understand the way financial assets are valued we must realise that, in essence, what is being traded are stories – competing imaginative accounts about the news and its impact on an uncertain future”
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“We cooperate effectively with strangers because we believe in things like gods, nations, money and human rights.”