3 ms·
If a passive business costs you $1000 on the free market to buy/sell (nevermind whether you own it already or not, the opportunity cost of acquiring/retaining i
by savanaly 9y ago
If a passive business costs you $1000 on the free market to buy/sell (nevermind whether you own it already or not, the opportunity cost of acquiring/retaining it is the same for our decision making purposes either way), and it only returns $10 per year, that's a 1% return on your $1000.
Then you would wish to sell the business and spend the $1000 on a strictly better investment like a T-bill which returns more than 1% per year on a $1000 investment.