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
Time to look back2004 is over, now we are in... Read More
Both the stock market and oil prices rallied recently, which... Read More
I receive emails from Morningstar. This company provides statistics and... Read More
"Buy and hold" is one of the most heralded investment... Read More
I'll bet with almost anyone that has stocks or mutual... Read More
The Shadow knows. Remember him? It seems a shadow has... Read More
Congress recently passed another new law that is supposed to... Read More
What is leverage?Here is a definition of leverage from an... Read More
I was devastated!I just couldn't believe it. I was 10... Read More
Success in small cap & micro cap stock trading like... Read More
During our travel down life's path we come to many... Read More
Mutual funds were moderately successful in creating a presence in... Read More
On the 40 year journey through the turmoil of a... Read More
If there is one term over-used when talking about making... Read More
The World Bank claims that some two billion of the... Read More
Ever done any whitewater rafting or canoeing? Long periods of... Read More
Just about everything you have been told about Social Security... Read More
Because there are so many stocks that are NOT paying... Read More
Jack and Jill went up the hill to fetch a... Read More
Fundamental analysis.Fundamentals analysis says the best way to predict the... Read More
Options trading can increase the profits you make when trading... Read More
If you have been dealing with mutual funds for any... Read More
Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More
Robert Rodriguez likes to buy stocks at their lows. When... Read More
Exchange Traded Funds (ETFs) are a group of passive index... Read More
There are many good penny stock investments available, which could... Read More
We need a rabbit!This was a pretty horrible week for... Read More
There are many important things you need to know to... Read More
The big bad bear is stirring again. So far he... Read More
Checked your 401K lately? Going back to about a year... Read More
How many people went to a cash position this week?... Read More
Ever done any whitewater rafting or canoeing? Long periods of... Read More
Minority Report the movie may not be far off if... Read More
In 1960 an engineer working for a watch company in... Read More
Recently I watched my favorite football team lose a vital... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
In today's volatile and confusing stock markets everyone is searching... Read More
∙ Make every investment in the stock market a long-term... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
First let's see what protectionism is. According to Mr. Webster... Read More
Mutual funds and brokers are always preaching not to buy... Read More
One of the main reasons many of us get into... Read More
Even if you don't own any of their stock or... Read More
Ever jumped out of an airplane? It's OK if you... Read More
One of the basic laws of physics is that a... Read More
I continually hear from economists, talking heads, other market letter... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
If you haven't heard of the technical indicator with the... Read More
It looks like the market is ready to start up... Read More
Any online investor / trader seeks an excellent off or... Read More
Stocks & Mutual Fund |