3 ms·

Not if they are compensated during the year. Grocery stores have slim margins, but if you make 10k after selling 1M worth of stock buy turn over that stock 12

by Retric 7mo ago

Not if they are compensated during the year. Grocery stores have slim margins, but if you make 10k after selling 1M worth of stock buy turn over that stock 12 times a year that’s ~12% annual ROI not 1%.

deleted 7mo ago
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jjmarr 7mo ago
If the company is spending $100k to employ you, you need to deliver $103.8k/year of value.
- Retric 7mo ago
  Again you assume a year delay on a workers full salary before the company gets compensated. Cash flow rarely works like that. Uber driver does what 2 weeks of work before getting paid, they also front the cost of their car and gas etc. Meanwhile users are paying as soon as the ride occurs, so uber doesn’t need an account with a full years salary for every driver somewhere at the start of the year. Get paid before the worker and the worker is in effect giving you a zero interest loan. Now for a consultant the company may get paid after the worker but the company is rarely waiting a more than a few weeks.
  - jjmarr 7mo ago
    Do you see the broader point I'm making, which is that non-zero interest rates means delivering value isn't enough anymore?
    - Retric 7mo ago
      +/- 0.1% over a year isn’t meaningful here. I understand that you’re unwilling to reconsider your beliefs when they are based on faulty math and thus don’t reflect the underlying reality here. A plumber, doctor, teacher, cook, etc does work before getting paid and the company rarely needs to wait 365 days for someone to pay them for that work. This means your idea is inherently flawed, there’s no broader point when you’re making a mistake. Further future revenue is generally inflation adjusted. If you borrow 1B to build a power plant you sell electricity at future prices not what electricity was worth when you started building. When the reverse happens say at collages when they get paid months before professors get paid, the school isn’t increasing salaries every month to keep up with inflation.

by Retric 7mo ago

deleted 7mo ago

[deleted]

jjmarr 7mo ago

If the company is spending $100k to employ you, you need to deliver $103.8k/year of value.

Retric 7mo ago
Again you assume a year delay on a workers full salary before the company gets compensated. Cash flow rarely works like that. Uber driver does what 2 weeks of work before getting paid, they also front the cost of their car and gas etc. Meanwhile users are paying as soon as the ride occurs, so uber doesn’t need an account with a full years salary for every driver somewhere at the start of the year. Get paid before the worker and the worker is in effect giving you a zero interest loan. Now for a consultant the company may get paid after the worker but the company is rarely waiting a more than a few weeks.
- jjmarr 7mo ago
  Do you see the broader point I'm making, which is that non-zero interest rates means delivering value isn't enough anymore?
  - Retric 7mo ago
    +/- 0.1% over a year isn’t meaningful here. I understand that you’re unwilling to reconsider your beliefs when they are based on faulty math and thus don’t reflect the underlying reality here. A plumber, doctor, teacher, cook, etc does work before getting paid and the company rarely needs to wait 365 days for someone to pay them for that work. This means your idea is inherently flawed, there’s no broader point when you’re making a mistake. Further future revenue is generally inflation adjusted. If you borrow 1B to build a power plant you sell electricity at future prices not what electricity was worth when you started building. When the reverse happens say at collages when they get paid months before professors get paid, the school isn’t increasing salaries every month to keep up with inflation.