Library of ideas
Library of Ideas

crucible of experience
Crucible of Experience

stairway to a fortune
Stairway to a Fortune

Treasury of Tales
Treasury of Tales

Vault of Old Videos
Vault of Old Videos

Portfolio of Motivation
Portfolio of Motivation

Table of Negotiation
Table of Negotiation


Additional articles:

Get Rich After Retirement

Never Break the Copper Rule!

Barter Page

Step Thirty One to a Fortune:

photo of two Disney Christmas Carol CD's

Experiment Title

How profits stack up with the sale of CD's

Vision

I've made money several times with these Christmas tapes and CD's.  I'll keep making more money until I run out of CD's.

This is nice!  I keep making more money on those unopened Disney CD tapes my wife found in the dumpster.

 

Objective

Step 31 from the schedule of incremental investments shows an investment of up to $14.40 nurturing it upward to $15.84 or more.  

From $250.58 in accumulated capital, I can invest up to $14.40 looking for an increase to $15.84 or greater.  My scheduled profit should be $1.44 or more. 

Step 31

Starting capital                                    $250.58

Planned investment     risk                      $14.40

Investment receipt goal                           $15.84

 

Hypothesis

A profit in motion tends to stay in motion.

 

Procedure

 

We listed yet another set of Christmas CD's on ebay.

 

 

Results

Surprise!  This next set sold for much less than the previous sets!  I sold this CD set for $3.25 plus $2.67 for first class mail.  Total sale counting postage was $5.92.

Costs for this transaction totaled about $3.27.

 

sale price                                                                  $5.92

Actual investment  and expense                                   $3.27

 

Gross Profit   this deal                                     

was $2.65

 

Ending gross capital  (before deductions)            $253.23

 

Questions

Will the past result again equal the future result? The third sale was a lot less than the first so the past does not always equal the future.  A capitalist will calculate his risk, but things never go exactly as planned.  If we lose we lose.  This time we made a little. 

What did I learn from this deal?  It's hard to go broke making a little profit!   We only exceeded our goal by a few cents, but we did make our goal and we can move forward to the next higher investment with all that we have learned from the past success.

 

Conclusion or Final Result

Sometimes we make a nice profit; sometimes we make a small profit. So long as we make profits we can always make another, larger, investment.  Even if we lose money on an occassional investmest, if we manage our risk, we can move on to the next investment without devastation.  

I started with $250.58 in reserve. I planned to limit my risk to $14.40 or less expecting a gain to $15.84 or more. After the sale before tax and charitable deductions I had  $253.22.

35% tax on profit of $2.65 is $.92.  That leaves $1.73

In contribution we pay forward 10% of our increase, , for a worthwhile cause = $.17

After this deduction we are left with a new $1.56 gain.

Now we have $252.14 seed money for new investment experience.

 

Next Step 32