That is largely unknown to the public. The company name is regarded as an asset, because name recognition means something in the marketplace. If the company wants to keep its edge in the marketplace, it has a reputation to protect. If people believe that it is superior to generic, they will probably buy it. But without any concrete published quality control figures, one has to go on gut feeling.
Competition leads to innovation. When Henry Ford said that you can have any color you want so long as it is black, he lost out when a competitor marketed a car with a different color. It was General Motors, not Ford, that was accused of dismantling L.A.'s mass transit system. In reality, the old surface-oriented mass transit technology started being insufficient due to increased use of the auto. However, L.A.'s newly developed subway system is proving successful.How many different auto manufacturers do we need? Do they need to change their designs every year? I, for one, would prefer a cheaper, well built car than have such a wide selection of ever-changing models.
Also, it’s well known that Los Angeles used to have one of the best mass transit systems in the world… until Ford Motor Company bought it all up and dismantled them. And Ford was perfectly within the law, due to our capitalistic society.
LOVE!
Is that money wasted? After all, that $100k had to go somewhere – leasing retail space, buying equipment, legal, advertising, etc. And someone had to build that building, design and manufacture equipment, etc. It’s not like that money is retroactively taken away from everyone “down the chain” because the original intent of that money didn’t come to fruition.
You claim there is a difference but you don’t know what that difference is. We do know that Bayer spends money in order to imply that there is a difference, but they have never definitively said why their product is better either.
It would not be very prosperous for an investment advisor (who works on commission) to recommend stocks that are not predicted to do well. In other words, “water is wet.”
Ok, so we agree on the waste thing.It would not be very prosperous for an investment advisor (who works on commission) to recommend stocks that are not predicted to do well. In other words, “water is wet.”
There is no standard way that investment advisors are paid for services. Some are fee only. Others earn commissions. My association has an investment advisor who markets her services toward clients wanting retirement security. She is being paid an ongoing management fee determined by the companies she deals with. In other words, her choices are not necessarily the best for my group. The portfolio she has selected for us is not the best for us, but it might be best for her. Her firm has been in business for twenty years and has a list of satisfied clients. Again, if the results expected by the client are achieved, even though not optimum, the client is generally satisfied.It would not be very prosperous for an investment advisor (who works on commission) to recommend stocks that are not predicted to do well. In other words, “water is wet.”
The one area where there is huge waste in our economic system is in the financial industry. There are too many conflicts of interest which result in people oftentimes being given suboptimal choices. This is particularly the case with 401k plans.
Are you saying that there is no need for people to buy and sell ownership shares in corporations? Are you saying that there is no need for banks to issue corporate bonds to people who might want to put their money into them?Look at all the waisted time and energy that goes into the stock market and related financial institutions.
LOVE!
Last year I had a 20% return on my 401k and17% on my Edward Jones account. You call that wasted time and energy?Look at all the waisted time and energy that goes into the stock market and related financial institutions.
LOVE!
The market as a whole was up 32% last year, so it could be a waste depending on your asset allocation. If you were all stocks, then your return was a waste.
Yes, thank you for once again stating the obvious. Of course, had I left the same money in the bank I would have drawn .5% interest on it. So in hindsight, I guess we can say that instead of wasting the monetary potential for a measly .5% interest, I did far better by getting a return at 17%. Huh? :roll eyes:
buzz.money.cnn.com/2013/12/31/stocks-record-bull-market/
Please, nmgauss, don’t let facts get in the way of the narrative.
It is a concept in economics we call opportunity cost. The basic idea is that in the stock market I can always get the market return by investing in the market portfolio. For example, if you put your money in spiders you would have made 32% last year. Now, if you can easily get the market return from spiders, why would you invest in a different portfolio than the market portfolio? The reason is simple, to get a higher return. And if you don’t get a higher return, then the difference between the market return and what you received is wasted. For example, you said your portfolio returned 17% last year. Spiders returned 32%’ so on a $100k portfolio that is a $15k difference in return. Not insignificant by a long shot.
What facts are getting in the way of the narrative? My numbers may be a bit off from the other poster, but it is likely because I was using total return data.Please, nmgauss, don’t let facts get in the way of the narrative.
Does Capitalism promote wasted human energy?I’m talking about everybody competing against one another, instead of cooperation where all one’s effort goes to the common good. Forming a new business, for example, is a big risk, with a great potential of all one’s energy going to waste. It seems better for a group of people to understand what is needed in society, and combining people’s effort to achieve that goal.
Material is also wasted in our capitalistic, throw-away society. This too results in wasted human energy. It’s ‘planned obsolescence,’ where goods that could last a lifetime, break or wear out far before their time is due.
Capitalism is effective in getting people to produce, and it has played an important role in world growth over the past 200 years or so, but perhaps the time has come to look for a new, cooperative economy. Call me a Catholic lunatic, but I envision a truly spiritual economy where people gladly work for spiritual rewards that come from God Himself. One world under God!
LOVE!
What is total return data? Where is it published? Citing your source would help. Does it include all the types of securities in the market, or does it include only stocks?