Comments on: Investment Opportunity of the Year http://emergentchaos.com/archives/2007/04/investment-opportunity-of-the-year.html The Emergent Chaos Jazz Combo Wed, 01 Feb 2012 19:20:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mordaxus http://emergentchaos.com/archives/2007/04/investment-opportunity-of-the-year.html/comment-page-1#comment-3506 Mordaxus Sat, 14 Apr 2007 17:33:44 +0000 http://emergentchaos.com/?p=2317#comment-3506 No, no, the risks aren't about money. This risks are about value. Let's suppose that I go buy N copies of Windows on December 29, planning to resell them at a premium after they're not available. If Microsoft decides on December 30 that they'll continue selling XP for another six months, then I have a problem. Worse, Microsoft might decide to resume XP production in March because of the success of my own secondary market. Forgive me more pedantry, but I think you mean <i>cash</i>, not money. Money is risk. Cash is a way of reducing risk in money by lowering rate of return, which is exactly my point. Essentially hoarding a product that can be produced at small marginal cost, is a very risky strategy. No, no, the risks aren’t about money. This risks are about value. Let’s suppose that I go buy N copies of Windows on December 29, planning to resell them at a premium after they’re not available. If Microsoft decides on December 30 that they’ll continue selling XP for another six months, then I have a problem. Worse, Microsoft might decide to resume XP production in March because of the success of my own secondary market.
Forgive me more pedantry, but I think you mean cash, not money. Money is risk. Cash is a way of reducing risk in money by lowering rate of return, which is exactly my point. Essentially hoarding a product that can be produced at small marginal cost, is a very risky strategy.

]]> By: Iang http://emergentchaos.com/archives/2007/04/investment-opportunity-of-the-year.html/comment-page-1#comment-3505 Iang Fri, 13 Apr 2007 18:39:15 +0000 http://emergentchaos.com/?p=2317#comment-3505 Actually, money is supposed to be unrisky, albeit not the the risk-free rate of return :) Actually, money is supposed to be unrisky, albeit not the the risk-free rate of return :)

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