Loser, Capitalism is About Owning the Factors of Production

[Philip J. Fry]

Losers. Capitalism is about owning the factors of production and having other people work for you, while you sit back and collect the profits. It's not about working harder so that you can afford status symbols.

With that being said, here's my new rental properties. Both are 4 bedroom student housing across the street from the university. Pandemics might come and the economy might slow down, but the state is not going to close the university down anytime soon and, because of that, this is recession resistant.

I'd even argue that business is not about making profits or more profits but, in actuality, being able to withstand the next recession. The former is about work. The latter is about strategy, prudence, and temperament.

Good luck.

 

[GrandMaster]

"Losers", But he keeps coming back and posting in this and only this thread. Hmm.

I spot a peasant trying really hard to keep up.



C240 WOW. That looks like a 1999 model.

 

[Philip J. Fry]

"Losers", But he keeps coming back and posting in this and only this thread. Hmm.

I spot a peasant trying really hard to keep up.



C240 WOW. That looks like a 1999 model.

You didn't comprehend what I wrote.

Losers as in they're losers in the game of Capitalism. It's not a personal attack. I explain how they're losers in the same paragraph.

Also, the house is a rental property that I own. That is not my car but my tenant's car. There's a difference. The tenant who's driving a C240 might also be a loser too. Too early to tell.

You're trying to discredit me and insinuate that I'm poor. Why thought? It must be because you're jealous. Get over it.

Thank you.

 

[Nargil]

You're trying to discredit me and insinuate that I'm poor. Why thought? It must be because you're jealous. Get over it.

Just as you are trying to discredit the rest because of your "superior" way of thinking, while having no idea what the others actually own, do or are invested in.

Stay humble and behave.

 

[eliquid]

Losers. Capitalism is about owning the factors of production and having other people work for you, while you sit back and collect the profits. It's not about working harder so that you can afford status symbols.

With that being said, here's my new rental properties. Both are 4 bedroom student housing across the street from the university. Pandemics might come and the economy might slow down, but the state is not going to close the university down anytime soon and, because of that, this is recession resistant.

I'd even argue that business is not about making profits or more profits but, in actuality, being able to withstand the next recession. The former is about work. The latter is about strategy, prudence, and temperament.

Good luck.

"Losers", But he keeps coming back and posting in this and only this thread. Hmm.

I spot a peasant trying really hard to keep up.



C240 WOW. That looks like a 1999 model.

I feel both of you went a bit overboard to be honest.

@GrandMaster, no disrespect man at all. Trust me. But we don't know if this is his car or not. I see your other points a bit, but this made your post look bad.

@Philip J. Fry, also no disrespect man. But opening up with Losers seems like you putting everyone down that posted something flashy or of status. You really can't say we or anyone is working harder just for status symbols and NOT running a business where others work and the owners collect the profits. At some point in either method you are going to reward yourself something.

Would you call Warren Buffet a loser if he posted a pic of himself in his plane? Maybe it wasn't to show off, but just him in it during an interview? Even a low end plane ( if you own it ) is a status symbol.

I've been working in Higher Ed for the last 20 years. While the state is not going to close down the Uni anytime soon, the direction is getting moved to online classes and MOOCs and people are waking up to the fraud that is a degree. Which means over time you will potentially have less and less potential renters. and might have to compete on price alone at some point in the future. Not anytime soon, but you need to realize this.

Also I've seen plenty of people have their asses handed to them in real estate. If housing was recession resistant, we would have had what happened in 2008/2009 even with the bad loans because everyone needs housing, right?

As far as a business is more about lasting through the recession. I am not sure. I see your point, but take this into consideration:

1. Small flower shop. Conservative mom running it. Does OK, maybe nets $80k a year in a rural area. Is enough to feed her family and pay her mortgage but she still lives month to month. She lives cheaply cutting coupons and saving every dime. Recession hits, but she does fine because she banked some savings and let go some employees. Still living month to month in the recession. She makes it through, but is she really doing good just bc she made it through it?

This person got by in the recession. I know thousands of business owners like her. At the end of the day she is still living month to month and somewhat struggling in either market.

2. Affiliate exploits a perfect storm of new ad platform, new product, new LP style and makes $5m in 12 months time. Bottom falls out on the product being touted as fraud and ad network closing down affiliate accounts. All the affiliate focuses on is pure profit and profit getting every chance he can. They turn that $5m into $7m when things hit the shitter by selling off the partial data and emailing past customers on other stuff. Guru's out and makes yet another $1m in conference trainings and info product deals about how to "be an affiliate" so his total is $8m in maybe 24 months time total ( first 12 did $5m, second 12 did $3m ).

Recession hits and he is out. No more money coming in. This affiliate business did not make it through the recession, but their PROFIT did. Business is dead, but he has $8m in the bank. In which they can travel, own a home outright, have no debt, send their kids to the best school and afford the best medical/health, start 4 new businesses after the recession and continue making money, and draw a paycheck from dividends and index funds.

I know several people personally that have this story too.

Guess who is still making out better today? 11-13 years later?

Yeah, I don't do all this work to push a Rav4 like in #1. At some point you will reward yourself in some way. You have to have profit to last though a recession, and if you don't have profit to enjoy life then why have a business? Just go back to working a job where you might also last through a recession and still be broke too like our mom in the #1 example.

Profit is always king. Always. Because everything has a season, everything.

.

 

[Philip J. Fry]

I feel both of you went a bit overboard to be honest.

@GrandMaster, no disrespect man at all. Trust me. But we don't know if this is his car or not. I see your other points a bit, but this made your post look bad.

@Philip J. Fry, also no disrespect man. But opening up with Losers seems like you putting everyone down that posted something flashy or of status. You really can't say we or anyone is working harder just for status symbols and NOT running a business where others work and the owners collect the profits. At some point in either method you are going to reward yourself something.

Would you call Warren Buffet a loser if he posted a pic of himself in his plane? Maybe it wasn't to show off, but just him in it during an interview? Even a low end plane ( if you own it ) is a status symbol.

I've been working in Higher Ed for the last 20 years. While the state is not going to close down the Uni anytime soon, the direction is getting moved to online classes and MOOCs and people are waking up to the fraud that is a degree. Which means over time you will potentially have less and less potential renters. and might have to compete on price alone at some point in the future. Not anytime soon, but you need to realize this.

Also I've seen plenty of people have their asses handed to them in real estate. If housing was recession resistant, we would have had what happened in 2008/2009 even with the bad loans because everyone needs housing, right?

As far as a business is more about lasting through the recession. I am not sure. I see your point, but take this into consideration:

1. Small flower shop. Conservative mom running it. Does OK, maybe nets $80k a year in a rural area. Is enough to feed her family and pay her mortgage but she still lives month to month. She lives cheaply cutting coupons and saving every dime. Recession hits, but she does fine because she banked some savings and let go some employees. Still living month to month in the recession. She makes it through, but is she really doing good just bc she made it through it?

This person got by in the recession. I know thousands of business owners like her. At the end of the day she is still living month to month and somewhat struggling in either market.

2. Affiliate exploits a perfect storm of new ad platform, new product, new LP style and makes $5m in 12 months time. Bottom falls out on the product being touted as fraud and ad network closing down affiliate accounts. All the affiliate focuses on is pure profit and profit getting every chance he can. They turn that $5m into $7m when things hit the shitter by selling off the partial data and emailing past customers on other stuff. Guru's out and makes yet another $1m in conference trainings and info product deals about how to "be an affiliate" so his total is $8m in maybe 24 months time total ( first 12 did $5m, second 12 did $3m ).

Recession hits and he is out. No more money coming in. This affiliate business did not make it through the recession, but their PROFIT did. Business is dead, but he has $8m in the bank. In which they can travel, own a home outright, have no debt, send their kids to the best school and afford the best medical/health, start 4 new businesses after the recession and continue making money, and draw a paycheck from dividends and index funds.

I know several people personally that have this story too.

Guess who is still making out better today? 11-13 years later?

Yeah, I don't do all this work to push a Rav4 like in #1. At some point you will reward yourself in some way. You have to have profit to last though a recession, and if you don't have profit to enjoy life then why have a business? Just go back to working a job where you might also last through a recession and still be broke too like our mom in the #1 example.

Profit is always king. Always. Because everything has a season, everything.

.

You're actually proving my point. This is capitalism and owning capital is what's key. #2 would be labeled "good" because of the capital.

For #1, you make #1 seem as if I'm advocating penny pinching. I'm not. I'm arguing that businesses should make decisions that maximize cash holdings, minimize debt, and diversify, which would allow them to last longer during a recession. #1 is not diversified. #2 actually failed many times and is just a skilled freelancer.

What I arguing for is not a skilled freelancer who can make a lot of cash but a business that: 1.) can be professionally managed and does not rely on the labor of the founders 2.) can be sold to a trust 3.) can have the children of the founders be the sole beneficiaries of the trust. It's on a different level. The business needs to be around for generations, not years.

Just as you are trying to discredit the rest because of your "superior" way of thinking, while having no idea what the others actually own, do or are invested in.

Stay humble and behave.

This is the bragging thread. It's in the nature of this thread. I'm not apologizing for bragging, in the bragging thread. Thank you very much.

 

[eliquid]

You're actually proving my point. This is capitalism and owning capital is what's key. #2 would be labeled "good" because of the capital.

For #1, you make #1 seem as if I'm advocating penny pinching. I'm not. I'm arguing that businesses should make decisions that maximize cash holdings, minimize debt, and diversify, which would allow them to last longer during a recession. #1 is not diversified. #2 actually failed many times and is just a skilled freelancer.

What I arguing for is not a skilled freelancer who can make a lot of cash but a business that: 1.) can be professionally managed and does not rely on the labor of the founders 2.) can be sold to a trust 3.) can have the children of the founders be the sole beneficiaries of the trust. It's on a different level. The business needs to be around for generations, not years.



This is the bragging thread. It's in the nature of this thread. I'm not apologizing for bragging, in the bragging thread. Thank you very much.

Ok, but that is not what your original statement said. It actually said ( via the wording ) something different than what you have here.

I am only going off what you wrote earlier.

This is not an attack. Just pointing out earlier statements for clarity.