Saturday, April 16, 2005

The 5 Forces of Finance

Picked this up from my Finance class, taught by Tom Rietz and thought I'd pass it along.

1. More money is better. This assumes that all things being equal, people would rather have more money than less.
2. Having money now is better than later. People would rather have $10,000 today as opposed to a year from now.
3. A sure thing is better than a risky thing. If everything else was equal, people would rather stay away from risk.
4. Taxes are bad for investors. Because there are only two sure things in life, death and taxes, in order for companies to get people to invest with them, they have to compensate people who pay taxes (everybody).
5. Inflation is bad for savers and investors. Inflation erodes the value of an investment or savings account over time.

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