Thursday, 29 May 2014

b.Return on Capital

The last part is here:   Return From Powerful Retreat

During my most recent sabbatical, I have learned one very important point:   Return on Capital is vulgar only if there are restrictions to the game. Otherwise, it is very normally grim.

Some of the investments I have gotten has a return of 5-8 years. To achieve such a great return requires lots of finesse. I must say it was a cooperative effort that came out very fine. The return on capital was stable and non-volatile. The sums involved were also not very large, mostly manageable bite-sizes, which is great for piece-meal engagement.

Even the coming restaurant share investment is also rather bite-size. So it would have made my original premise of not borrowing from the bank possible.

Now is summer time, the land deals in white land is stiff. Summer time is a time where deals are struck as they were able to see and feel their purchases. Speaking from experience, I always without fail would fall in love with the properties I visit. I used to scold Chrysanthemum about her falling in love with the properties she visited. Truly I was no better. So I would give it a short break. Come winter, the deals would have sweetened themselves. Why? In winter, people are less like to travel. If the sellers are desperate for cash, the deals would be better. Now in the shopping malls, more stores are closed and not replaced. Frequently, these voids were not filled till a year later. It is very painful for the whites. Recently they reopened the flooding gates for more immigrants, hoping to reduce their pain.

As the word implies, I am currently torn between investing more cash into businesses or fixed assets. A fine balance is needed. With the recessionary pressures at their greatest, fixed assets are burning and great deals are everywhere. I am simply spoilt for choice. But, business investments must still have to be ongoing, else these businesses will take forever to fruit.

I am holding 50-50 view over the two investment choices.

People management

This remains extremely tricky to me. Most of the people I engaged were cunning and useless. But, therein lie a few gems. These gems interestingly did yield an overall benefit. Just one gem would have make up for the lost time and money invested in 10 other useless assholes. So it is quite profitable. Just be wary of unusual leeches. They come in all shapes and sizes.

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