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 the purchaser.
Consider the recent enthusiasm generated by Tesla’s reaching its goal of producing 5,000 model 3s in one week. Congratulations! However, investors may want to ask, can they sell them, rather than, can they make them?
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA