Sunday, August 24, 2008

Profit from Enterprise

As the business awareness of my batch rises sharply with every passing day, its worth the time to read Fred L. Kent's engaging letter about Profit from Enterprise. Although a bit long, the letter has an easy flow to it so shouldn't take too long.

I was always pro-profit so the letter just reinforced my thoughts, though I now wonder whether one can generate profit in the 100 person society by:
a) Confidently predicting the availability of water from mathematical models based on reliable factors like rain tomorrow, ground water level etc.,
b) Brokering deals between the cobbler & the tailor on the ratio of the number of good to be exchanged (between the two) as a function of the water in the reservoir 6 months from today,

and so on.

Point being that, it is easy to see the profits as a cut of the common good for the society resulting from a person's enterprise.

I honestly find it hard to see societal good emanating from a & b (futures trading / derivatives etc.)!
Someone enlighten me :D

Disclaimer: Kindly excuse the author for half-baked knowledge and ambitious generalisations.

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