LoveFolio

S: Did I tell you about my friend who recently broke up with her boyfriend? At the moment, she feels like it’s the end of the world for her.

P: And did I tell you about my friend who lost all the money he invested in a single stock? He also is in the ruins.

P: I told him. He should have diversified the investment.

S: And may be we had something like that in relationships!

P: A profound thought! May be we do have something like that in relationships.

S: As in …?

P: Think about this. Ask a young couple in love and they think that one relationship is the axis of their life.

S: Yeah. And it sounds romantic till it works that way.

P: Exactly like the dream run of a stock. But what happens when it doesn’t? Nothing lasts forever. How about diversification out there? Don’t you think that such people often fail to give due importance to their families and friends who are equally important?

S: But friends and family are always there to support you.

P: Yeah. Like the fixed return on Govt Securities. Always dependable, but to get the maximum out of life, you need that someone special.

S: Which would translate into more risk and more returns?

P: Voila! So can I say that people who don’t take that extra risk don’t get a lover. That is to say, arranged marriages are like passive investment strategy. Playing it safe.

S: And sometimes you do tend to have a bad judgement about what you can expect in return, in both cases.

P: Hmm.. The returns are also unpredictable just akin to investments.

S: So by nurturing different relationships with their own due importance, we diversify our risk.

P: Yeah.. different relationships are like different sectors.. loss in one could be made up by gain in the other..

S: like once you friends ditch you, family provides you the respite and the problems in family can be discussed with friends..

How naively this LoveFolio Management Theory ignores the differences.

Differences like - love increases when you distribute it unlike money. True love is all about giving. And even if you don’t get anything back, love is still worth investing. Because not only being loved gives you happiness, loving someone is equally pleasant.

Love doesn’t make you greedy. It makes you selfless. It takes you to the point where right and wrong doesn’t matter to you because someone matters more than anything to you. Love brings out the best in you. It doesn’t breed hubris like money does. Rather it makes you a better person.

Not the fault of our S & P. This is what happens when you try to marry logic and love.