CASH IS THE KING
In business we call it dead inventory. Destructive power of depreciation.
THE RED BULL RULE
There is specific mindset needed to spot opportunities that market, and not only market, presents. The mindset that keeps investors searching for and seeing
value even without identifiable plan related to it. The ability to recognize value
before others do is an ultimate investing principle. Sometimes it is hidden, but in
many cases value is simply being ignored. 15% per year ROI sounds like a winner,
so let me compare it with costs of overspending.
I’m addicted to Red Bull. Closest to me place where I can buy one is asking $2.69 for
8.4 ounce can. From time to time they run promotion where price drops to $4.00 for two. This is a more common price offered by larger stores. Gas stations and convenience stores charge for it from $2.39 to $2.69 per can. Amazon Prime offers it
at $1.50 delivered to my door. . With my predictable need for 8 to 10 cans a day,
numbers will add up.  Those are small amounts with big principle behind. And there
is more expenses to consider often referred to as hidden costs. Physical shopping
will require transportation, and that is another often not included into a price
cost component. Trip to the nearest store costs me around a buck and that will
add on average about $0.10 to cost of can. 4.5% sales tax adds another $0.09
and beverage deposit will run you $0.05 at the cashier. That is an extra $0.24 in
hidden costs. Red Bull accounts for plus minus 50% of value of what we do with
Prime, so it will cost $3.70 per month or $0.12 per can to cover the
membership fees that includes shipping...
 
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One of the universal rules of money management. In easy terms.
ABOUT DIVERSIFIED ASSETS
It goes hand in hand with principles of diversified stock portfolio…
ABOUT CAPITAL FORMATION
These remarks are mainly for guys starting with a limited amount of funds…
ABOUT CREDIT
Negative interest is a trap that keeps many  in financial trouble. But in the right …