Thursday, March 17, 2011

Breakdown the Earnings of Giant Corporations

Let's say you want to know how much a giant conglomeration like GE earns from each type of its businesses (they do everything from television to home supplies to nuclear reactors).

They don't always get broken out in traditional financials. SO:
Go to MINT, type in your company, and select SEGMENTS as a value.

You'll get earnings (in the case of GE) by infrastructure, home solutions, entertainment, etc....

Monday, March 14, 2011

GINI Index Can Predict Social Unrest

May you live in interesting times.

Ever heard of the GINI index? Basically, it measures just how the poor are and how rich the rich are in relation to each other in any given country (full definition included on the link).

If you have allowed for differences in outcomes and ability, and your country still has an unusual disparity in wealth, that is a sign something isn't working.

Because you want to be careful investing in, exporting or importing to/from, or starting a business in a country that is about to go up in revolution.

Tuesday, March 8, 2011

Outsourcing Production in China Is Risky

Interesting article about the risks of outsourcing your production to China, especially if you're a small business.

Main points of article:

1. Poor Quality of Product to the point of recalls, destroyed production runs, and damaged reputation.

2. Delays in getting your product run going. Chinese factories serve a variety of clients and as a small business you have last priority.

3. High Shipping Costs

4. Theft of your intellectual property. Expect to see knockoffs of your product in the marketplace.

If there were ever an argument for capitalism being linked to democracy and rule of law, this would be it.