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

In The News:


Barron's

ETFs Chasing Mutual Funds as Stock Buyer
Barron's
Mutual funds' outflows since last year have driven their equity ownership to a nearly 13-year low, according to Goldman Sachs. ETFs, meanwhile, are growing by leaps and bounds as a stock market force. “Corporations and ETFs will continue to drive ...


Bloomberg

ETFs Are Giving Mutual Funds a Run for Their Money - Bloomberg
Bloomberg
Nobody owns more U.S. stocks than mutual funds. But with their position slipping, the question is how much longer can they control the market? Mutual fund ...

and more »

WealthManagement.com

Mutual Funds Still Dominate the Stock Market, But Here Come ETFs
WealthManagement.com
Mutual fund ownership of equities is at its lowest level in nearly 13 years, according to a research note from Goldman Sachs Group Inc. Meanwhile, exchange-traded funds are becoming an even bigger force in the stock market, the team led by Chief U.S. ...


US-based stock mutual funds take in most cash in a year -ICI
Reuters
By Trevor Hunnicutt NEW YORK, March 1 Fund investors' aversion to riding the market's highs showed signs of waning as stock mutual funds attracted the most cash in a year in the latest week, Investment Company Institute data showed on Wednesday.

and more »

Utility Stocks for Retirement Investors: 1 Stock, 1 ETF and 1 Mutual Fund
Investorplace.com
But here's the real kicker for utility stocks. The Fed is raising rates, and that has caused them to flounder. But the sector has historically realized faster dividend growth than the pace of interest rate increases and inflation. For retirement ...


TheStreet.com

Hedge Funds Love These 4 Stocks -- Should You? - TheStreet
TheStreet.com
Here's a closer look at four stocks pro investors love for 2017....BAC.

and more »

Forbes

5 Best Funds For Your 401(k) And IRAs
Forbes
Over the last few years, mutual fund companies and discount brokers have been duking it out to see who can offer the lowest-cost ETF. An ETF is like a mutual fund that pools a wide range of stocks and bonds, only it trades on stock exchanges. It's an ...

and more »

CNBC

Why mutual funds could be on their way to another lousy year
CNBC
The improvement comes amid multiyear lows in the tendency of stocks to correlate up and down together, as well as an elevated level of dispersion, or the difference between returns for various sectors. Stock pickers in actively managed mutual funds ...
Stock pickers lift performance in battle of the benchmarksFinancial Times

all 4 news articles »

5 Aggressive Growth Mutual Funds to Buy in March
Zacks.com
This category of funds also invests heavily in undervalued stocks, IPOs and relatively volatile securities and seeks to profit from them in a congenial economic climate. The securities are selected on the basis of a company's potential for growth and ...

and more »

Market Realist

How Hedge Funds and Mutual Funds View Financial Stocks
Market Realist
According to Goldman Sachs (GS), hedge funds have reduced their position in financial stocks (XLF). However, mutual funds have strengthened their position in financial stocks. In the last one month of market rallies, financial stocks have led the gains ...

and more »
Google News

Mutual Fund Ball and Chain

The broker told me not to sell because the mutual... Read More

A Good Fund Manager

Every Wall Street analyst, financial planner and broker will tell... Read More

What To Buy?

Now that you have some money burning a hole in... 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

Mutual Fund Commissions

You have heard about a particular mutual fund from a... Read More

Overseas Investing: Going Against the Mainstream

TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More

Understanding a Stocks PEG Ratio

A PEG ratio cannot be used alone but is a... Read More

A Personal Stock Market Investment Philosophy

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

Buy and Hold Investment Philosophy

Wall Street has been preaching the doctrine of Buy and... Read More

Trading For A Living

How many times have you said to yourself, "I'd like... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

How to Short Stocks? How to Make Money when Your Stocks Go Down by Shorting

The stock market can present you with a lot of... Read More

Dispelling Illusions of the Stock Market

How can you dispel an illusion unless you look directly... Read More

Investment Discipline

One of the great "secrets" of successful people is discipline... Read More

Investing in Trash Company Stocks

Refuse is a serious issue in any society, about as... Read More

Hold Em and Fold Em

When most analysts, financial planners, fund specialists and investors try... Read More

Economists

In today's volatile and confusing stock markets everyone is searching... Read More

Its A Duck

If it walks like a duck, quacks like a duck... Read More

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

Shorting Stocks ? The Basics, Part I of II

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

So, What is This Stock Market Thing Anyway?

We've all heard of the stock market and probably have... Read More

China Syndrome

There has been great condemnation recently because China has been... Read More

Diversification

Wall Street's watchword has always been diversification, but what does... Read More

Advantages and Disadvantages of Mutual Funds

Outlined below are some of the advantages and disadvantages of... Read More

Take The Time

You must take the time once a month to review... Read More