The club owned one chair, twelve paper portfolios and no investments. For years the retired members had held a simulation in which each paper portfolio began with the same imaginary sum. (simulation: imitation, model, representation; portfolio: investment holdings, investment collection) This season, asset allocation was the subject. (asset allocation: alternate name portfolio allocation, investment allocation) Each competitor had to justify the division among cash and other assets. (justify: warrant, support, defend) Diversification earned no points unless the entrant could explain what risks the holdings shared. (diversification: variation, broadening, variegation)
One member chose capital preservation and described risk mitigation in small, painstaking letters. (capital preservation: preservation of principal, principal preservation; risk mitigation: risk reduction, reduction of risk exposure; painstaking: meticulous, scrupulous, conscientious) Another wanted liquidity because he expected a withdrawal. (liquidity: marketability, cash convertibility) His account was liquid on paper, but when the treasurer asked for an actual contribution to the rent he had forgotten his wallet. (liquid: readily realizable, readily marketable) A third disputed the valuation of the chair. (valuation: appraisal, assessment, evaluation) Its upholstered seat had cost more to mend than the club had paid for it.
The debate ended when a visitor arrived carrying a cushion for her father. Every member stood to offer a seat, although there was only one to offer. The treasurer finally knew what to call the missing asset. Their social capital had been growing for years. (social capital: in this context network resources, relational capital) She opened the door to the cafe next door. Its owner brought eleven stools.