Sunday, March 28, 2010

Failure to plan is planning to fail...or so I've heard.

I think the idea of short term variables and long run variables are intersting. They both need to be taken into account in order for a business to be successful, but certain variables can only be thought of from certain perspectives. The idea of a "plant" is such a variable. Certain companies would die overnight if they had no plant, however in long term planing it seems that not much can be said about the plant as it is tied directly to fixed costs in the short term. So even though the plant's cost's arn't counted for long term investing, if the plant ceased to exist the company would fail. A very important aspect of the company planning phase which seems to be well understood in order to be met with success.

Sunday, March 21, 2010

Another would be gold rush...

Just a quick blurb on something thats been plauging my mind recently (mainly due to the nonstop comercials about it), why would one want to buy gold now? Gold is being advertized as the recession proof asset thats perfect for short and long term investors due to its relative stability and security and that we should all buy it right now because its dollar value has never been higher. It sounded like a good idea to me at first but I started thinking, and I began to wonder, if its more expensive now then its ever been...why would I want to buy it now. Its one thing to invest in something and expect it to turn you a profit but generaly one buys low and sells high. Ive never really heard of people buying high and then riding their investment to the ground. Also, if gold is desirable for its resiliance and stability, so that one could fall back on it in times of economic hardship, why would I want to buy gold during an economic hardship? Seems like those who didnt already have gold going into the recession already missed the boat on this one and should wait for prices to come back down. I could be wrong, just a thought.