
LONG-TERM PROFITABILITY
To stay profitable in the near to long term, the Company will need to diversify by focusing objectively at the evidence on the long-term returns of our different assets, and to holding period returns (returns that accrue over different lengths of investment, and to the short-term advantage of holding cash assets.
As the theory of portfolio diversification originated by Markowitz suggests, to achieve effective diversification in the long term, management has to correlate between the asset returns and the liability returns.
We will maximize diversification both in the short and long term to ensure an effective mix of Asset and Liability returns to keep Velltant as a going-concern.