Buy low sell high by leveraging information asymmetry is something every business thrives on. It is something taught to every MBA every business student. This becomes part of the psyche and we all tend to exercise that. The process has continued till date but we need to change that urgently as it itself no longer offers a competitive advantage.

Information is rapidly becoming a ubiquitous and free commodity for everyone, well almost. Everyone can be successful but we do not find it to work that way. Some are thriving where others are struggling.

What’s missing?

Almost everyone knows to eat healthily and exercise to get fit, still there a lot of people who don’t get there. Two startups in different parts of the world come up with similar ideas. One becomes unicorn whist the other is fledgling. The same principle applies to other spheres of life.

The individuals, that get ahead have either a great sense of awareness of what needs to be done or rely on advisors, coaches, mentors, successful associates. I don’t care what label you assign to those who help, but the right ones will get you to work hard in the right direction with the right energy.

They will help you add the missing piece — action arbitrage.

Working hard is not the solution as rarely would we come across individuals that became successful just by working hard. It is like working on the right muscles the right way. Interestingly those that have profound success attribute it to doing ‘something’ differently.

Getting ahead is not about working hard, it is about finding out what work will work or will give the most effective outcome at any given point in time and environment. Taking a step and then using the new position to repeat the process. Some call it pivoting but for pivoting to work you need action arbitrage. Like using GPS in your car navigation system, you need to worry about what lies just ahead and not the entire journey.

To find out what work will work for you at any point in time, you will need actions tailored for you at a given point in time. Your role model, coach, guru, pathfinder, guide or shall we say GPS is the one that will help you take the next step. You don’t need to worry about the whole journey then, just the next step. They will also offer you motivation when you need it most, like teaching a child to walk before the child can believe in oneself.

Photo by julio andres rosario ortiz on Unsplash

When information is ubiquitous, it is the right action that will make a difference. That is your action arbitrage.

In a race where every horse can be a winner how can you pick the best? Well, you collect all the information then you take a chance. If you are scientific in your approach, you will improve your odds among many bets. It may still look like a gamble but you improve your odds. Warren Buffet has successfully done this with his investments while many have lost their fortunes.

How you are going to take advantage of action arbitrage?

Information arbitrage: not anymore a competitive advantage.