No one can be that shallow! Can they?

on the way to www.dictionary.com to look for the meaning of integrity

As I was completing my Securities Assignment one month before the due date, I came across the question where I had to analyse the various capital and funding sources and their impact on a start up company in the case study. My response: "A hybrid security that offers the benefits of interest repayments on equity based funding is best for the company. This will enable the company to offer a lower return to investors than pure debt instruments while the company is establishing itself within the market, after which investors have the option to convert the securities into ordinary shares when earnings will have stabilised growth.” And then it occurred to me, that company is me, albeit I have unlimited liability and reduced tax concessions.

How is that company a metaphor for my current position? Well, I’m trying to establish myself within the market and to do this; I’ve adopted an expenditure and acquisitions policy. Spending on assets that will maximise my future earnings potential so I can become, how should I say, a ‘hot’ stock everyone wants to own and be associated with. But what assets are worthy of my acquisition? Well, I think you all know what they are. Hint: wishlist. Are they outrageously expensive? Of course, but when they are amortised over their expected useful lives, they’ve entered the realm of cheap’n’cheerful, where even I can not refuse.

But the core of any acquisition is the funding. This is where, I think, I have the most flexible policy at this stage of my position and it involves the use of debt and equity. Debt – obviously credit cards and equity, my earnings. The policy involves putting everything through on credit where the resulting rewards will reduce the cost base and all earnings are placed in a high yielding account to pay the debt in full every month as to minimise servicing costs. I don’t think I’ve formally developed this policy until yesterday, where over lunch with tong xue men (fellow Chinese school students), we were discussing credit cards and the stealth ways of how banks attempt to slap any sort of fees onto you. This is where I joined the conversation (as I have never experienced any ridiculous bank fees yet) and I told them, formally, my funding and expenditures policy and how I bought a happy meal at McDonalds on credit the other night. Undoubtedly, they were shocked! $3.95 on credit! What company would allow such frivolous transactions; this is where I remarked that the cheapest I’ve done was $1.50 on a birthday card at Target and how I never buy the newspaper unless I can get it on credit and how I don’t pay any bank fees because the bank still thinks I’m a full time student because I put down 2008 as the year of my graduation. After the laughter died down, everyone gazed at me with a look of enlightenment and I admit, I felt proud that I’ve taught people how to rort work around the banking system.

But back to the core issue of establishing companies, I think all that bullshit at the start of the blog is my attempts at rationalising my expenditures where once again, the acquisitions policy was in full force yesterday.

Am I going to be more aware of my spending because of my rationalising? No
Am I going to learn anything from this experience? No
Am I going to stop telling people my exploits of the bank? No
Am I going to reduce spending with debt? No
Am I going to learning anything from my Securities assignment? No
Am I going to put everything on credit? Yes
Am I going to maximise my utility of my recent acquisitions? Yes
Am I going to become the hottest stock in town? Yes and Hell Yes

posted by tykang @ 6/20/2004 11:48:00 AM