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They're making that 5% margin on multiple seatings per day, rather than once per year. It doesn't really make sense to compare things this way, they're so diff
by CydeWeys 7y ago
They're making that 5% margin on multiple seatings per day, rather than once per year.
It doesn't really make sense to compare things this way, they're so different. Better to do an income flow analysis. For a given amount in invested capital, how much profit will a profitable restaurant generate in a year vs the stock market. The restaurant is gonna come in way ahead, though of course it's a very active investment (a full time job plus some) vs the passive index fund investment.