Amazingly simple way to make money
Discussion
Over the weekend I met up with an old schoolfriend who wanted to talk to me about a business proposal. As it happens the proposal didn't appeal to me. Anyway, we got chatting about how he made his money in the 1990's. In short, he noticed that shops that were busy tended to produce better financial results - no surprise. However, by simply observing the 'busyness' of shops he found that, with some accuracy, that he could predict retailers that were likely to show good and poor results. Based on simply 'counting' people that left certain stores having purchased goods, he started buying and selling shares. Apparently, nowadays there are a lot of companies that monitor such things - so it's not as easy to be ahead of the game.
minimax said:
god, theres soooo many jokes in there... im sorry LaLa. im doing my best not to say anything.
:snigger: you said 'toss'
think yourself lucky he didn't say swizzlesticks or something equally hilarious, then you'd be stuck
thats genuinely just ruined me: you said swizzlesticks. im done for now, giggling like a child here
nervous said:
I'm sorry, are you saying that by looking at businesses and noting if they're successful, you're able to ascertain whether they're successful or not. that is bloody genius. i can see why they pay you the big bucks.
Astonishingly yes - but a little more scientific. Reason being, by the time the sales figures had made their way back to the boardroom it could be days, weeks or even months! If sales were slow, then a profits warning would be issued and there would be a run on the share price. Equally, if profits were higher than expected then the share price would rise. He had a knack of being over 80% right. Nowadays, it's different because the retailers and investors have wised up.
With retailers, profit is almost always turnover driven, because the overhead costs tend to be constant regrdless of turnover. So, for example, if turnover rises by, say, 10% then profits may rise by, say, 30%.
los Angeles said:
actually 'flick' is quite funny too
Sorry, Srebbe, this is why I write comedy now, everyone laughs when I'm serious.
which shows do you write LA? got any going at the moment? got any links? i'd be interested in taking a look
how is your city after the quake the other day? ok I trust
Tom
los Angeles said:
So, for example, if turnover rises by, say, 10% then profits may rise by, say, 30%.
I don't understand a word of that. Brain too small.
Well, imagine you own the local Tescos. You employ 50 people - and you have to pay their wages regardless of how much food is sold that week. Equally, you have to pay electricity, rent, etc, etc.
Let's assume you make 20% Gross Profit (you buy a pie for £1 and can sell it for £1,20).
If your turnover is below a certain figure you are certain to make a loss. If however, it gets above a certain figure - for every quid take in the till you make 20p. As such, the profit line is seldom straight - it jumps around depending on turnover!
srebbe64 said:
srebbe64 said:
So, for example, if turnover rises by, say, 10% then profits may rise by, say, 30%.
I don't understand a word of that. Brain too small.
Well, imagine you own the local Tescos. You employ 50 people - and you have to pay their wages regardless of how much food is sold that week. Equally, you have to pay electricity, rent, etc, etc.
Let's assume you make 20% Gross Profit (you buy a pie for £1 and can sell it for £1,20).
If your turnover is below a certain figure you are certain to make a loss. If however, it gets above a certain figure - for every quid take in the till you make 20p. As such, the profit line is seldom straight - it jumps around depending on turnover!
you had me at pie.
minimax said:
minimax said:
actually 'flick' is quite funny too
Sorry, Srebbe, this is why I write comedy now, everyone laughs when I'm serious.
which shows do you write LA? got any going at the moment? got any links? i'd be interested in taking a look
how is your city after the quake the other day? ok I trust
Tom
Oh please do include me in this L.A.
Can we meet next month when i'm in LA?
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