The Murphmeister demand investment. The Murphmeister doesn’t understand investment

As we know, no one is to be allowed to just save. They must invest.

You know, spend now, gain later?

Ahem:

Now much less might be right. But, and I stress the bit, only if they explain why. In full. With logic as to why they continue to support loss making operations when it would seem utterly logical for them to retreat from Europe as they would make more by doing so. Shareholder capitalism would require nothing less.

??

6 thoughts on “The Murphmeister demand investment. The Murphmeister doesn’t understand investment”

  1. Not sure why the potato has such a downer on amazon – failed delivery ? allowing negative reviews for his books ?

    He conveniently forgets that for years amazon made a loss overall. I presume their profit margins are low because A) they have invested a shit load of money in warehouse/delivery/technology. I know that they pay pretty well for technical staff – a mate’s son is joining them after completing his masters – apart from the £40k+ starting salary, there’s the £10k relocation payment. the share options etc.
    B) they are trying to build market share especially against ebay for 3d party sellers. Ebay is at an advantage because it’s got a sweetheart tax deal courtesy of Juncker when he was in charge of Luxembourg, plus they skim a bit more than the fees from paypal which they also own. I don’t know but i expect that the margins they are operating on are pretty slim. If their game plan is market domination then instant profits are of little consequence overall.

    Why should amazon withdraw from europe – they are making a profit and increasing their market share. How many times and ways does the potato have to demonstrate his idiocy?

  2. Not sure what you mean by saving here, Tim. Do you mean put money under a mattress or use a savings vehicle? If it’s the latter, how does that differ from investment? The return of the capital is expected with some further financial benefit accruing. And the money’s out there somewhere doing something. Hopefully beneficial.
    I think Murphy gets trapped by his own loose use of the word investment.
    All investments are gambles*. If it’s Amazon we’re talking about, it’s gambling its investment in European operations will eventually repay the capital & produce a profit. But because he regards all spending as investment (unless it’s spending he disagrees with) he can’t see why it would be done without an immediate identifiable certain benefit. At the moment Amazon Europe is Schrodinger’s unopened box. Amazon doesn’t know whether it contains a live cat or dead.

    * And of course, playing the horses or buying lottery tickets is investment. The gambler is expecting to get their stake returned plus profit. Or they wouldn’t do it.

  3. Incidentally, I’d say Spuds in no way a gambler. Don’t suppose he”s ever knowingly taken a punt on anything in his life. He’s always cast iron certain whatever he’s spending his own or other people’s money on is infallible. He’s an anti-entreprenneur, if that’s a word.’.

  4. “At the moment Amazon Europe is Schrodinger’s unopened box. Amazon doesn’t know whether it contains a live cat or dead.”
    Not really my field (I’d defer to Professor Murphy, the inventor of the second law of thermodynamics, in matters of physics). But, isn’t the point about the cat is that it is both alive and dead while the box is shut?

    By that quantum logic, Amazon knows that it has made both a profit and a loss on Amazon Europe until it draws up its accounts whereupon a loss or a profit crystallises.

  5. BiS

    ‘He’s an anti-entrepreneur, if that’s a word’ – if it isn’t it should be!

    I mean I’d go further and describe him as ‘anti-human’ but the ‘anti-entrepreneur’ label is a good start.

    Moqifen

    ‘How many times and ways does the potato have to demonstrate his idiocy?;’

    I’ve never seen someone as pathologically stupid as this guy. Even Owen Jones seems to have greater awareness. He has no understanding of economics, finance or business. And yet as I mention, people continue to cite him as some kind of authority – it’s extraordinary – I’ve seen dozens of people in the local Ladbrokes who arguably have a far greater understanding of economics than he does. Maybe the likes of the BBC should head there for rentaquotes…

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