News for hackers. Stuff that matters.

A comment on The story of Henry Ford's $5 a day wages: not what you think (2012). Parent comment

Re:The story of Henry Ford's $5 a day wages: not what you th... by sandoooo on Monday March 16, 2020 @12:01AM (#22589797)
Ah, I see what you're saying.

This suggests a wide availability of alternative, reasonable-risk passive investments with 15% yield, which seems unusually high. What is this investment, usually? Stock buybacks?

[ Parent | on HN ]
Re:The story of Henry Ford's $5 a day wages: not what you th... by WalterBright on Monday March 16, 2020 @12:18AM (#22589901)
Stocks, bonds, etc. Larger corporations often have a department tasked with managing such investments.

If you were considering starting a business, would you consider a business with a projected ROI of 15% and you had to work 24/7 on it, compared with 10% ROI investing in the S&P 500 passively?

I.e. don't look at what you'd make running the business. Look at what you'd make relative to passively investing the money instead. That's "opportunity cost".

[ Parent | on HN ]