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

---

What Does it Take to be a Stock Trader?

It takes a total mental commitment to the task. It... Read More

Investing in Trash Company Stocks

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

China Syndrome

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

Online Investing & Stock & Share Trading: 4 Reasons Why Most Online Investors & Traders Go Broke

Are you attracted to the idea of being in control... Read More

10 Tips For Creating Wealth From the Stock Market

1. Do not spread your money too thin.My friend has... Read More

NASDAQ 800?

In November of 2000 when the NASDAQ was trading at... Read More

The Next Bull Market

We are already in it, but you can't see it.... Read More

Dividend Paying Stocks

I would like to share with the reader an article... Read More

Its A Duck

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

Tips to Finding Other People?s Simple Trading Plans

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

Wal-Mart: Discount Store, Discounted Stock?

As GuruFocus updates the stock buys and sells of gurus,... Read More

Good News?

As the man said, "I've got some good news and... Read More

Dont Buy Worldcom! A Guide to Wise Bottom Fishing

Over the past few months, several investment professionals have brought... Read More

Learn to Calculate a Stock?s Pivot Point

Stocks breakout from properly formed bases everyday but many investors... Read More

Mutual Fund Honor Roll ? Buy High, Sell Low by Chasing Performance

Buy high and sell low -- It's not a typo.Millions... Read More

Bull or Bear?

Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More

Mutual Funds are Dead

You may have wondered why your mutual funds have been... Read More

High Price/Earnings Ratios and the Stock Market: a Personal Odyssey

After some forty years of banking and investments, I retired... Read More

Long Term Financial Vehicles

Investing in long-term financial vehicles give you the most gains... Read More

You Don?t HAVE To Be Trading

As a novice trader, you'll often feel the need to... Read More

Traders, Defend Against the Dreaded Death Spiral.

It has often been said that there is only two... Read More

Political Investing

We have two candidates for president that have really different... Read More

Analyzing Growth Stocks: An Important Focus For Any Investor

Analyzing growth stocks is an important focus for any investor.... Read More

Investment Research - The Dalbar Study

Very few people, even professionals, have heard of the Dalbar... Read More

Some Good News for A Change

Before we get into all the good news out there,... Read More

The Importance of Using Stop Loss Orders When Spread Trading the Financial Markets

A Guide to Using Stop Loss Orders Stop losses are... Read More

Stock Market Diversification

In one of my previous articles (Investing in the stock... Read More

Investing in the Stock Market

From the book 'The Stockopoly Plan' by the author Charles... Read More

Why Change Funds?

On November 17 I bought 7 different mutual funds and... Read More

Index Fund Trading Using Technical Analysis and Swing Trading Strategies

Index Fund Trading can be one of the most profitable...or... Read More

KISS Formula

There are formulas for just about everything, but it has... Read More

How to Maximize Your 401k Mutual Fund Returns

When it comes to 401k's there is an overabundance of... Read More

Paddle Your Canoe

At some time in your life you have been on... Read More