Less Heart, More Brain 🧠

Welcome to the 102nd edition of ፍራንክ Digest!

Your weekly brief on all things Finance and Investing. Quick, enjoyable reads for busy professionals in 5 minutes or less.

Here’s what’s coming your way:

• 🥲 Emotional Investing, let’s talk about it

• ⚡ How to Profit When the Pumps Run Dry

• 🗝️ The Key Takeaways

Thanks for reading!

‘There there’: Explaining the ‘Emotion’ in Emotional Investing

Investing

“It’s nothing personal…just business”

This is not the cold line delivered by a betraying mafia member getting rid of his uncle. It’s what savvy investors say to an investment that is leaving their portfolio.

In fact, this phrase is not said enough amongst those who tend to hold on to things, far longer than they should. Those who have a sentimental attachment to an investment are fueled by a phenomenon called ‘Emotional Investment’.

Emotional Investment happens when investors, are ‘dictated by feelings caused by price movements in the market, sentimental attachments or just plain stubborness which in turn impacts our decisions’

As Jay-Z once said ‘Numbers don’t lie’.

Decision making processes are factual, example, sleeping 8 hours instead of 4 guarantees better rest. Facts show the way, it’s up to the human mind to decide whether or not to take the right course of action.

Now, the research we did to write this article focused a lot on ‘trading psychology’, what high frequency trading individual investors need to avoid in order not to lose it all. The Ethiopian context won’t comprehend this now but who knows, the ESX could mint future millionaires, with stories talking about the risk-taking prowess traders that rose and fell...and rose again!

But Emotional Investing can still manifest itself in the not yet mature Ethiopian investment scene, so we feel like it’s still a very relevant topic to cover. Think about it, amongst your close circle, imagine those who have a portfolio of properties (Commercial spaces, apartments…), shares in companies or government bonds.

How do you think their brains work? 

They’re calm and collected.

They make moves when the move makes sense, they are not easily swayed by the chatter in the market, and most importantly, they don’t follow the crowd.

When overloaded with information, they take a step back and trust the fundamentals. They don’t let the name of the investment intimidate them, instead they try to understand the content and analyze future outcomes.

Another superpower they possess is that they don’t wait for the right time to sell (Yes, it’s counterintuitive). But fear of getting less than the initial investment cost can create an unnecessary burden and derail your original plan.

And finally, emotionally unattached investors regularly take a step back and audit their portfolio: What’s working? What’s not? Where can we trim? Where can we double down? 

Idle money makes no money but emotionally charged financial decisions can make idle money seem like a safer bet. Investing requires discipline and patience, but too much of it can cause paralysis and cause stagnation. So risk needs to be harmonized, keeping emotions intact while activating calculated bets mode.

 Key Takeaways

1. Emotional Investing is a real thing and we should all try to avoid it

2. Less Heart, More Brain: emotionally intelligent investors have principles and always trust the fundamentals

3. Harmony is key in any situation, fundamentals are great but a pinch of risk can always make the investment dish taste better

ፍራንክ Picks 

🚶🏽 Event: 27th Addis Chamber International Trade Fair @ Exhibition [April 23-25]

🗞️ In the news: Escrow Account System to protect home buyers says EREDA

♟️ Innovation: ‘Dashen for Friends’ is first of its kind digital referral program

Benzene Blues, Electric Views

Economy

Checking the fuel gauge on your dashboard nowadays feels a bit like checking your bank balance after a long holiday weekend.

With the recent tensions in the Middle East, the global oil market has decided to go on a rollercoaster ride that only goes up. Just last week, we saw local pump prices reach Br. 142.41 for regular benzene and Br. 163.09 for Diesel. That’s a 10.29% and 26.31% increase from December 2025 levels.

For us in Ethiopia, the "pinch" feels more like a punch.

We’ve historically spent nearly $4 billion a year just to keep our engines humming and with the ወሽመጥ of Hormuz effectively a "no-go" zone for tankers right now, that bill is skyrocketing.

If you've tried to find a liter of diesel in Addis lately, you’ve probably seen queues snaking into side streets and circling back at the fuel station.

But we prefer to see the solutions in the face of problems. There’s a saying “When the wind blows, some build walls, others build windmills”.

If you’re looking for a resilient business opportunity, look no further than Electric Delivery Revolution. The government already did us a favor by banning fossil-fuel car imports back in 2024 and slashing duties on EVs to as low as 0% for locally assembled kits.

Heavy Lifters: Electric Trucks

With current fuel price levels and queues, traditional logistics companies are bleeding cash and time.

We can’t fathom moving construction materials, drinking water or retail inventory across the city with donkey carts. So how about offering small-scale logistic services using electric light trucks?

With so many local assembly plants, getting a "Green" truck is relatively easier. While your competitors are sleeping in their trucks at the NOC station waiting for a refill, you can charge overnight for a fraction of the cost, assuming Ethiopian Electric Utility (EEU) doesn’t decide to raise tariff rates (it does every quarter).

Quick Snacker: E-Bikes

People ordering delivered food has been growing for the past couple of years and the only reason they would consider ordering less would be if the delivery fee costs more than the meal.

To keep up the trend, a fleet of electric bicycles or scooters for "Last Mile" delivery is critical.

These can bypass the gridlock of Addis and don't require a drop of benzene. They’re also exempt from the no-motorbikes restrictions across major ‘corridor developments’.

As a country endowed with renewable energy sources, we should prioritize energy resilience. This crisis is the ultimate wake-up call.

The long-term implications are clear: Energy Sovereignty.

Thanks to the Grand Ethiopian Renaissance Dam (GERD), which is now basically complete and churning out over 5,000 MW, we have the "fuel" we need right in our backyard. There’s more coming with Koysha dam with a planned 2,200MW.

Bottom Line

Don't just complain; provide the solution.

If you have space and access to cash, setting up a charging hub for the growing fleet of EVs is the 2026 equivalent of owning a fuel station…low margins but high traffic so you can market adjacent products.

Even better yet, invest in a fleet of light e-trucks or e-bikes to replace those rickety dinosaur fuel fleets on the streets. Requires minimum space and scalable over time, aka less burden on upfront cash.

Yes, the black market for fuel is hitting Br. 500 to 1,000 per liter in some regions. Yes, the government is telling non-essential staff to take leave just to save fuel. It feels chaotic and that’s where you can be the voice of reason.

Of course, you’re still dependent on EEU doing its job and continuing to provide attractive tariffs. Better to deal with a domestic issue than a global one.

Stay Resilient, Stay Charged.

Thanks for sticking with us, ፍራንክ family! Keep those wallets smart and your inbox open - we’ll be sliding in next week!