It is social cohesion by our inate eusocial behaviour that allows us to finance corporations as we even preyed on mastodons. That is a lesson economics has ignored.

1. “
Man Bites Man! Getting Your Mastodon?
“Selfishness beats altruism within groups. Altruistic groups beat selfish groups. Everything else is
commentary.” – Edward O. Wilson
“Physics is mathematical not because we know so much about the physical world but because we
know so little; it is only its mathematical properties we can discover.” - Bertrand Russell
Our position as dominant species of our planet though puny among an evolution of giants
entirely depends on our abilities to act in social cohesion. In group efforts we can persevere
against seeming impossibilities to get our meal even at the expense of whales or mastodons. Our
verbal evocations lead the rationale for us combining our individual limitations to strength of
numbers in group action to enable our collective success in preying on species larger stronger
and faster than us. Survival of the fittest is over-ruled by group cohesion.
We are social because it advances us. We align our interests to advance through our exercise of
our capacities to act through group congregate abilities to succeed and endure against enormous
and otherwise awesome real world. We recognize our social relations by caring for our
collaborators that become injured and honouring our dead as group acts furthering the mutuality
of our bonds in group allegiance and success. We have evolved our social institutions on these
lines, even to the point of developing corporations to engage in enterprise larger than even
sovereign chartered syndicate monopoly companies had been capable.
The Eusocial contract of recent discussion that advances by our virtuous acts is an essential
feature of our societal values. Virtuous actions are most often discounted by self-interest in so
many discussions in economics. As Edward Wilson writes, “Goodness might actually be an
adaptive trait, allowing more cooperative groups to outcompete their conniving cousins.”
Ah, yes, those conniving cousins and cartels against “We The People.” The history of the
corporation is not found in self-interest, but in social needs for our achievement of mutual
prosperity, as in our getting our mastodon. The selfish manager chooses to ignore that context,
snake-oil greases too many such connivances. The moral hazard of the principal-agent problem
is well expressed in the biological evidence of Wilson, where, “Selfishness beats altruism within
groups. Altruistic groups beat selfish groups. Everything else is commentary.”
Virtue is central to the theme of Adam Smith’s The Theory of Moral Sentiment published twenty
years prior and remains a significant theme he later returns to in his writing The Wealth of
Nations. It is observed that his Invisible Hand is evolved almost wholly on the role of virtue in
reaching contract or price agreements. The role of ethics is essential to agreement necessary for
negotiating our transactions as contracts. We need foremost to have confidence the transaction is
going to survive to completion and settlement of accounts, indeed trust that our investment of
equity treasure or sweat in the corporate endeavour will payout.
Constitutional debates understood the argument from liberalities and individualism locked up for
a millenium and released by the Renaissance and Reformation through Locke to Adam Smith's
first predicate, in Moral Sentiments through his later Wealth, was empathy for social good that
ethics requires. In Adam Smith’s lengthy 500 page Moral argument lays the core of the famed
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The author does not provide investment advice. In order to use reproduce or convey the material herein,
in any way, written agreement must be obtained from the author or its agent Architypes Inc.
StockTakers Limited is an Alberta corporation providing information on “likeables” equities.
StockTakers Limited encourages your seeking tax law advisor for capital gains tax dispositions.

2. “
Man Bites Man! Getting Your Mastodon?
"Invisible Hand" that is unfortunately misunderstood by most as indicative of price-equilibrium.
They ‘will’ not see the clouds for their fog of misappropriated hard physics models.
Agreement depends on good will and confidence in the integrity of an offer being considered.
One does not freely contribute treasure or sweat effort to a shady operator. Markets depend on
such altruism he argues. His intent closely approximates the Eusocial contract of recent
discussion that advances by our virtuous acts. As Edward Wilson writes of biological
behaviours, “Goodness might actually be an adaptive trait, allowing more cooperative groups to
outcompete their conniving cousins.” Greed is not good for us socially, altruism isn’t an illusion.
Seeking result in mutual benefit remains at the core of negotiating transactions including credit
ethically sought and ethically provided in sympathy, virtue and prudence extended in mutual
respect and tolerance. That is Smith's perspective (and while not essential in a criminal, as he
relates) he believes it is most highly desired such virtues be sought as virtue alone sustains a
moral conservative society. His argument proceeds from both humanist and theological streams.
Excess and greed are not virtuous or good but ultimately oppressive, whether unrepentant
monarchist, capitalist or socialist. Philosophically, said also Karl Popper and his friend Hayek.
Confidence is built into our search for ethics in transactions we engage. Our facility for lodging
trust to invest in the ideas of a virtuous business plan needs ethics to stand in front and shake
hands. As one sage corporate lawyer expressed, the contract no matter how thick and evolved in
its articles really just depends on the integrity in the hand shake. We got our mastodon that way.
There is no integrity in the mis-appropriation of hard physics models when they do not relate to
the real world. Clouds are real facts even children engage, while equilibrium models in
economics are suspect fog. The balance of ethics holding group cohesion in economic endeavour
is more relevant to business transactions. We prefer clouds to these invocations of fog.
Our reasons for having any equity in our portfolios are clear, concise and consistent. The equities
we hold are “likeables” tending to gain 67% of the time. The markets make stock prices but we
can reasonably respond to stock price tendencies, by our knowing the Risk Price, the downside,
and buying and holding accordingly. That is new fundamentals from our theory we have put into
policy obtaining 29% IRR average. Know What You Have. Have What You Know
Our view is risk averse. Of course we require a fee for doing that. Mail us for our help.
Ernst and Hans Goetze,
Architypes Inc and StockTakers Limited
Head Office
76 Midridge Close SE
Calgary, AB
T2X 1G1
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450 538-1270
May 2012 © Copyright StockTakers Limited, All Rights Reserved. Copying Prohibited.
The author does not provide investment advice. In order to use reproduce or convey the material herein,
in any way, written agreement must be obtained from the author or its agent Architypes Inc.
StockTakers Limited is an Alberta corporation providing information on “likeables” equities.
StockTakers Limited encourages your seeking tax law advisor for capital gains tax dispositions.