Laws and Efficiencies and Theories of Diminishing Returns

The basis of diminishing return discussions surround such simple notions; that when you have a very fast aircraft, you also have coefficients of drag issues. When you are building a quarter mile car and want to go faster you must realize that for every tenth of a second you need to lose 100 lbs., but to go faster you also need more power, thus the problem in Einstein's theory of the threshold of speed being that of the speed of light. In aviation there is a hyperbolic curve with coefficients of drag that makes aircraft design nearly obsolete when dealing within the boundaries of the atmosphere with the relationships of time, speed and distance equations.

Some thoughts on the streamlining of service vehicles placed on a grid system of distance, point of origin and return, rings of service area, GPS and ESRI tracking and coding are discussed in my essay on Grid Marketing which is available on this site.

In the case of a refuse, trash or garbage company or even a police department that gets calls to pick up the trash in our society we see the need for efficiencies, but also the theories of diminishing returns on the implemented efficiencies. The problem being that you need X amount of drivers, vehicles and infrastructure to pick up X amount of garbage. Once the best optimum is reached there is no way to increase production or in this case collection.

When looking at companies to invest in one needs to look at the infrastructures and equipment in place and the theory of diminishing returns. Can the company continue to have exponential gains without new customers thru efficiency alone? And if one of the market drivers of stock and shareholders equity is from increased ROI, then there comes a time when you can no longer redline your equipment any further. Think on this concept.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

---

Which Way The Market

I am hearing predictions by brokers, financial planners, talk show... Read More

A Stock Market Investment Plan that Never Lets You Down

The bulls and bears of the stock market are both... Read More

Protect Your 401K

Checked your 401K lately? Going back to about a year... Read More

One Way Street

Ever turn down a street, get half way and suddenly... Read More

The Great Stock Market Secret

When the stock market is going up and all your... Read More

The Secret Method to Selecting a Winning Trading System

Every successful trader has a winning system. There are of... Read More

Top 25 Growth Funds

On Monday, November 25, 2000 Investor's Business Daily listed on... Read More

Bad News is Good News

For weeks, no, months we have been bombarded with nothing... Read More

Protectionism

First let's see what protectionism is. According to Mr. Webster... Read More

Inertia

One of the basic laws of physics is that a... Read More

Shorting Stocks ? The Basics, Part I of II

What does it mean to short a stock?This means that... Read More

Investment Lawyers and Trash Stocks

The trash business in its efforts to cook their books... Read More

Different Types of Mutual Funds

This is a guide to the different types of mutual... Read More

Hot Stock Investing ... How to Pick Hot Stocks with Momentum Stock Trading

Profitable day traders recognize that momentum trading is among the... Read More

Cash Is A Position

I go to the Money Show every year to visit... Read More

Stock Market Course .... Day Trader Online Seminar ... Can You Generate Profits Trading from Home?

When it comes to stock market trading it PAYS to... Read More

Trading Education: The Best of Both Worlds!

I made my very first investment in the stock market... Read More

Performance Funds

Mutual funds are doing more and more to discourage investors... Read More

Trading Baskets II: The Crapolio, A Roll of the Dice in the Stock Market

In a previously written article, we expanded the use of... Read More

How to Pay Less and Get More: Discount Broker vs Professional

How do you invest? What do you really pay? At... Read More

Kick The Tires

Before you buy another car you walk around the lot,... Read More

How To Pick A Mutual Fund

Mutual funds by definition are a mixed bag of stocks,... Read More

A Penny for Your Stocks

According to Investopedia Inc. the penny stock market has seen... Read More

Economists #2

Economists know more about how the fragments of society work... Read More

Trading Tips No 8: Picking the Best Stock Market Price

Carefully thinking through your goal as a trader is of... Read More

Zero Sum Game

Most people think the stock market is a zero sum... Read More

Long Term Financial Vehicles

Investing in long-term financial vehicles give you the most gains... Read More

Frog In The Pot

You remember the story about the frog that was put... Read More

Investing in the Stock Market

From the book 'The Stockopoly Plan' by the author Charles... Read More

A Personal Stock Market Investment Philosophy

∙ Make every investment in the stock market a long-term... Read More

Investment Capital Gains

Have you bought any mutual funds this year or late... Read More

Analysts - Do They Really Know The Stock Market?

When you become interested in a stock or mutual fund... Read More

Getting Even

I know there are a lot of you out there... Read More