Oswaldo Costa
Oswaldo Costa
Sigh, my point is that I'd rather think of wines as (wasting) assets than as investments.
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Another reason I like Asimov
- Thread starter Andrew Zachary
- Start date
Sigh, my point is that I'd rather think of wines as (wasting) assets than as investments.
Cole Kendall
Cole Kendall
I was more focused on the I (sorry if my attempt at finance humor provided a negative return)
Oswaldo Costa
Oswaldo Costa
Being focused on the I as in solipsism? In any case, good tyrants are entitled to some negative return.
Jonathan Loesberg
Jonathan Loesberg
When the humor gets abstruse, the abstruse misplace their sense of humor. Only temporarily, thankfully. I admit to not being able, even with the help of a quick google search, to tell the difference, with any effective accuracy between a return on assets and an internal rate of return. And people tease literary critics for the vaporousness of their concepts.
Jeff Grossman
Jeff Grossman
Which group is that, exactly?originally posted by Peter Creasey:
I take it the group considers this to be a favorable assessment.
Oswaldo Costa
Oswaldo Costa
originally posted by Jeff Grossman:
Which group is that, exactly?originally posted by Peter Creasey:
I take it the group considers this to be a favorable assessment.
Abstrusopitecus Erectus.
Cole Kendall
Cole Kendall
OK, how I see the various return measures:
ROI, proposed by Mr. Pete, is return on investment. To me it gives the sense of I invest in various bottles and I get a return; there is an obvious confusion between the personal return (I greatly enjoyed this $10 bottle 15 years later even though it was largely point-free) versus a crasser financial return (I got a case of wine at the initial release price and was able to flip it after it got seven silver prongs from the Wine Schnauzer). I am sure Mr. Pete meant the former though the confusion is unavoidable and it makes those who use this term sound mercenary.
ROA is a measure more associated with the operations of a firm; perhaps I misunderstood the analysis (or the humor) but I saw the return on assets as somehow indicative of what I get from either (the return) from my physical (cellar) or human capital (knowledge derived from tasting and communicating), that is the assets in question. Some people who know a lot about wine may not have the time or the money to purchase the right wine at the right time and so may earn lower ROAs than those who are lucky (say they run into a friend at a wine store who says back up the truck to buy X and they actually have a truck).
IRR, the internal rate of return, was my attempt to be humorous; given that wine is a consumption good, drinking great wine is the best reward for a wine collector. I do not think much about the value of the bottles in my cellar (I almost never sell wine though I have offloaded a few bottles at charitable auctions that others might enjoy more than I would). IRR also has the feature that if the future cash flows change signs the right number of times, then the returns can be imaginary. [Geek note: IRR is the solution to a polynomial and if there are the correct number of negative coefficients there may be imaginary roots]. I find that sometimes may wine purchasing has an imaginary return, especially when I think of some of the white burg still sitting in my cellar...
ROI, proposed by Mr. Pete, is return on investment. To me it gives the sense of I invest in various bottles and I get a return; there is an obvious confusion between the personal return (I greatly enjoyed this $10 bottle 15 years later even though it was largely point-free) versus a crasser financial return (I got a case of wine at the initial release price and was able to flip it after it got seven silver prongs from the Wine Schnauzer). I am sure Mr. Pete meant the former though the confusion is unavoidable and it makes those who use this term sound mercenary.
ROA is a measure more associated with the operations of a firm; perhaps I misunderstood the analysis (or the humor) but I saw the return on assets as somehow indicative of what I get from either (the return) from my physical (cellar) or human capital (knowledge derived from tasting and communicating), that is the assets in question. Some people who know a lot about wine may not have the time or the money to purchase the right wine at the right time and so may earn lower ROAs than those who are lucky (say they run into a friend at a wine store who says back up the truck to buy X and they actually have a truck).
IRR, the internal rate of return, was my attempt to be humorous; given that wine is a consumption good, drinking great wine is the best reward for a wine collector. I do not think much about the value of the bottles in my cellar (I almost never sell wine though I have offloaded a few bottles at charitable auctions that others might enjoy more than I would). IRR also has the feature that if the future cash flows change signs the right number of times, then the returns can be imaginary. [Geek note: IRR is the solution to a polynomial and if there are the correct number of negative coefficients there may be imaginary roots]. I find that sometimes may wine purchasing has an imaginary return, especially when I think of some of the white burg still sitting in my cellar...