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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (14532)	1/8/2000 7:01:00 AM
From: unclewest	Read Replies (1) \| Respond to of 54805

Any businessman or woman needs access to capital, and borrowing capital is central to business activity. Why is my business any different? As for your reference to your cash being your inventory, inventory is ideally bought at one price and sold to a customer at a higher price. That's not what you're doing with your cash. That's why your capital is not inventory Hi Mike, I like this discussion you and SL are having...I could argue both sides. For example, a bank's inventory is $. The bank buys it at 5% and sells it at 10%. Many think the bank is making 5%...If you visualize $ as inventory, the bank is actually making 100%. It is easier for me to see it this way. assume $ = x. then a bank buys 100x for $5 and sells the 100x for $10. of course a bank really prefers to buy x at 2% (my checking account balance), and sell these at 18% (credit card balance) for a 900% profit. The only two businesses I know that make such obscene profits are banks and carpet stores. SL's point that he is buying x ($) from a bank and using it to buy inventory (stock) which he then plans to sell at a profit is similar to a store owner buying x ($) from a bank to purchase inventory (carpet) which he plans to sell at a profit. If either of you misbuy or guage your market incorrectly those of us who read the book "The Millionaire Next Door" get to buy your products at a sale price. The sun is just rising over the ocean. Gone fishing unclewest