Survival of the Fittest (Cheapest?)

According to Wikipedia, survival of the fittest is a phrase that originated from Darwin’s evolutionary theory as a way of describing the mechanism of natural selection. In the corporate world, perhaps an appropriate corollary would be, survival of the lowest costs, and the probable fate of high cost producers as an industry develops excess capacity. … Continued

Scarcity Versus Shortage

Scarcity and shortage are not synonyms.  Scarcity is the simple concept that, while some resources may be limited, supply equals demand.  Shortage, on the other hand, occurs when markets are out of equilibrium and demand exceeds supply. Investors should understand the differences between scarcity and shortages before making a portfolio decision.  Just because a product … Continued

Understanding the Big Picture

When considering a possible investment, it is important to understand the big picture as opposed to focusing on a single issue.  In general terms, business activity includes both supply and demand.  This translates into determining whether a product or service can be provided at a price that is profitable to the supplier and attractive to … Continued