Greetings, friends!
This continues a story I recently posted the first part of. You can find it here:
In it, I got to a point where I shared what I am aware of as major categories of options for re-investing your gains.
...Real Estate, Your Business (right? we'll get back to it later, perhaps in next chapter), stocks, currencies, precious metals, commodities, etc.
Since it's the business that presumably brought you the capital to invest or re-invest in the first place, it seems only natural that you continue to support it and try to go up the levels.
That, alone, leaves you with a great variety of options since it's too undefined a concept. It's not just money in — money out. The capital has to be properly allocated.
Capital, actually, includes properties/ facilities, people with their skills, logistic network, outlets...everything that you use in order for the whole to work from end to end.
I also wrote in the previous chapter about two production facilities. Let's elaborate a bit and say they are at two different locations. One is on the rise and the other is in general decline. That's due to the
human capital. One one side, the major workforce fares worse at Production Facility A, and on the other side, the management can only focus on the other facility which promises better returns of all efforts invested.
Aye, efforts are some invisible variable in the capital equation.
So, Production Facility B, the one that is faring better, gets equipped with a robot to further optimize the production process. It has the following sign, "tattooed on one arm":
The makers of this robot might not be native English speakers. Then again, they might be trying to actually warn you about the real beneath-the-surface reasoning of the robot.
So nice of its makers to warn you. Anyway, what we call a robot here is not an AI. It's a machine that is operated and it runs on a single program.
It can take the load which would be carried by 5 persons, move it and load it in 12 different processing units at 12 different locations next to each other — from ground floor to the ceiling.
It moves with a speed that does not impress but is steady. It is well suited for the one operator to meanwhile be able to catch up.
Its size is...well, some people live in smaller homes. It's about 3x4x10 meters.
And it costs about 6 annual salaries.
And it takes care of roughly 1/20th of the production process in Production Facility B.
How long till it pays for itself if you bought one for Production Facility A?
Well, there's nobody there who could operate it during your absence. Not yet. You need to invest in human capital, first. Recruiting, training, educating, testing, replacing, etc. Too early to think about robots, perhaps.
All right, you may think about them but just that. You should be able to think of...everything related.
Good luck and have fun!
Yours,
Manol
