Cost Of Capital Quotes & Sayings

I started out as a business manager for a national hotel chain based in Oklahoma. I got frustrated with what was happening in the state capital - the high cost of doing business and a lack of educated workers. — Mary Fallin

A global financial cabal engineered a fraudulent housing and debt bubble [2008], illegally shifted vast amounts of capital out of the US; and used 'privatization' as a form of piracy - a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder Clearly, there was a global financial coup d'etat underway. — Catherine Austin Fitts

It takes almost no capital to open a new See's candy store. We're drowning in capital of our own that has almost no cost. It would be crazy to franchise stores like some capital-starved pancake house. We like owning our own stores as a matter of quality control. — Charlie Munger

Human capital analysis starts with the assumption that individuals decide on their education, training, medical care, and other additions to knowledge and health by weighing the benefits and costs. Benefits include cultural and other non-monetary gains along with improvement in earnings and occupations, while costs usually depend mainly on the foregone value of the time spent on these investments. — Gary Becker

I think there's an awful lot of twaddle and bullshit on EVA. The whole game is to turn retained earnings into more earnings. EVA has ideas about cost of capital that make no sense. Of course, if a company generates high returns on capital and can maintain this over time, it will do well. But the mental system as a whole does not work. — Charlie Munger

If you would make the most of yourself, cut away all of your vitality sappers; get rid of everything which hampers you and holds you back, everything which wastes your energy, cuts down your working capital. Get freedom at any cost. — Orison Swett Marden

Pervasive depletion and overuse of water supplies, the high capital cost of new large water projects, rising pumping costs and worsening ecological damage call for a shift in the way water is valued, used and managed. — Sandra Postel

If the government controls, guarantees, channels, or directs investment, it is not capitalism. Pivotal to the investment process is interest rates. For entrepreneurs to control capital, interest rates must reflect its real cost rather than merely the cost of printing money. Otherwise the money printers will dominate investment. — George Gilder

Obviously, consideration of costs is key, including opportunity costs. Of course capital isn't free. It's easy to figure out your cost of borrowing, but theorists went bonkers on the cost of equity capital. They say that if you're generating a 100% return on capital, then you shouldn't invest in something that generates an 80% return on capital. It's crazy. — Charlie Munger

For what is socialism? With the frills removed, it is people collectively running society. Instead of being the prisoners of anarchic capitalist competition and the mad rush for profit at any cost, it is working together for the common good. Our tremendous co-operative power would be controlled, not by a ruling class in the search for ever greater profits, but democratically and for the fulfillment of human need. — Alex Callinicos

You know, when the cost of capital goes down, when credit becomes cheap, people start taking greater and greater risks. — Fareed Zakaria

Think about all the time, brainpower, and social or political capital you continued to spend on some commitment only because you didn't like the idea of quitting. — Steven D. Levitt

I think a very good system in a world with a lot of passive investors is one in which there are at least a few entrepreneurial investors, prepared to say what they think, prepared to propose a change in management, change in strategy, change in cost structure, capital structure. — Bill Ackman

One of the principal impediments to job creation is uncertainty on the part of American companies, large and small. We've all watched as companies have sat on a lot of capital. They're uncertain about what tax policy is going to be. They're clearly uncertain about how health care costs. They're uncertain about all the regulations on capital markets. — Tom J. Donohue

Spain has been massively diverting capital from the private sector into politically favored environmental projects for the better part of a decade ... every green job created, eliminated 2.2 real jobs and cost around $800,000 each! — Ron Paul

A considerable proportion of the developed world's prosperity rests on paying the lowest possible prices for the poor countries' primary products and on exporting high-cost capital and finished goods to those countries. Continuation of this kind of prosperity requires continuation of the relative gap between developed and underdeveloped countries - it means keeping poor people poor. Increasingly, the impoverished masses are understanding that the prosperity of the developed countries and of the privileged minorities in their own countries is founded on their poverty. — Philip Agee

He had reached the outer limits of what Fun, capital F, could do for him. The cost was way too high, the returns pitifully inadequate. — Lev Grossman

Let's take energy, for instance. I understand that in some industries, the input cost of energy is a major factor in whether an industry is going to locate in the United States or go elsewhere. So, when, at Bain Capital, we started a new steel company called Steel Dynamics in Indiana, the cost of energy was a very important factor to the success of that enterprise. — Mitt Romney

Insurance and funding traditionally drive capital investment. But in a world based on access, not ownership, the duration, value, cost and extent of financial services is distinctly different. — Lisa Gansky

Accounting consequences do not influence our operating or capital-allocation decisions. When acquisition costs are similar, we much prefer to purchase $2 of earnings that is not reportable by us under standard accounting principles than to purchase $1 of earnings that is reportable. — Warren Buffett

To be sure, the cost of managing capital and of "formal" financial intermediation (that is, the investment advice and portfolio management services provided by a bank or official financial institution or real estate agency or managing partner) is obviously taken into account and deducted from the income on capital in calculating the average rate of return (as presented here). But this is not the case with "informal" financial intermediation: every investor spends time - in some cases a lot of time - managing his own portfolio and affairs and determining which investments are likely to be the most profitable. This effort can in certain cases be compared to genuine entrepreneurial labor or to a form of business activity. — Thomas Piketty

Setting an aggressive enough carbon-reduction goal will result in an appropriate price for carbon and will help many a renewable technology. Consumer education will help. Most importantly, though, will be the continually declining cost trajectory of the real breakthrough in clean-technology costs driven by research and innovation. In the end, private capital is the real barometer of change. — Vinod Khosla

Build into each budget the cost of hiring and don't lump yourself with capital investment. — Ann Macbeth

Our inability to share the gifts of nature causes much suffering in the world today... We mistakenly believe that a free market should allow people and corporations to profit from nature, yet we've failed to consider the immense cost to life that occurs whenever people are allowed to reap what they haven't sown at the expense of others. While the privatization of capital can lead to production efficiencies that benefit the entire market, the same can't be said for privatization of nature. Whenever the income stream from nature is privatized, human beings take for themselves the gifts that would better be freely shared with everyone. — Martin Adams

The original capital cost (i.e. actual value) of the Barts Health PFI was £1.1 billion (around £1 million per bed) but will end up costing £7.1 billion by 2049.14 £6 billion will go to the PFI consortium Skanska Innisfree and partners. Barts Health are paying £100 million a year in interest before they even see a patient.15 That's £3 billion, just in interest, over 30 years. Imagine what you could do for healthcare in East London with this money. So — Youssef El-Gingihy

I get to be the mayor of the capital city of the most polluting state of the most polluting country on the planet ... I see truly a non-carbon economy. It's cleaner. It's healthier. We're about out of alternatives, so it's going to be easier and more cost effective to start to do the right thing. — Will Wynn

Economically, the key flaw in the high-wage argument is that it confuses wage rates with labor costs - and labor costs with total costs. Wage rates are measured per hour of work. Labor costs are measured per unit of output. Total costs include not only the cost of labor but also the cost of capital, raw materials, transportation, and other things needed to produce output and bring the finished product to market. — Anonymous

One of the cost of holding a Federal office was geographic isolation in the nation's capital. — Harold Holzer

A second and more practical, but less systematic, form of this Socialism sought to depreciate every revolutionary movement in the eyes of the working class, by showing that no mere political reform, but only a change in the material conditions of existence, in economic relations, could be of any advantage to them. By changes in the material conditions of existence, this form of Socialism, however, by no means understands abolition of the bourgeois relations of production, an abolition that can be effected only by a revolution, but administrative reforms, based on the continued existence of these relations; reforms, therefore, that in no respect affect the relations between capital and labour, but, at the best, lessen the cost, and simplify the administrative work, of bourgeois government. — Karl Marx

The discounting presumably is to be done for each period of time at that rate of interest which represents the alternative cost of employing capital in the occupation in question; that is, at the rate which the entrepreneur could obtain in other investments — Kenneth E. Boulding

People are delighted to accept pensions and gratuities, for which they hire out their labour or their support or their services. But nobody works out the value of time: men use it lavishly as if it cost nothing. But if death threatens these same people, you will see them praying to their doctors; if they are in fear of capital punishment, you will see them prepared to spend their all to stay alive. — Seneca.

The entrepreneur who is reckoning in terms of a currency with a stable value is unable to compete with the entrepreneur who is prepared to make a quasi-gift of part of his capital to his customers. In 1920 and 1921, Dutch traders who had sold commodities to Austria could buy them back again after a while much cheaper than they had originally sold them, because the Austrian traders completely failed to see that they were selling them for less than they had cost. — Ludwig Von Mises

It is widely known that whenever Senator Johnson feels the urge to act the statesman at the cost of a little political capital," WFB wrote in June 1958, "he lies down until he gets over it. — William F. Buckley Jr.

We're guessing at our future opportunity cost. Warrenis guessing that he'll have the opportunity to put capital out at high rates of return, so he's not willing to put it out at less than 10% now. But if we knew interest rates would stay at 1%, we'd change. Our hurdles reflect our estimate of future opportunity costs. — Charlie Munger

But, surprise - none of these blockbuster events made the slightest dent in Ben Graham's investment principles. Nor did they render unsound the negotiated purchases of fine businesses at sensible prices. Imagine the cost to us, then, if we had let a fear of unknowns cause us to defer or alter the deployment of capital. Indeed, we have usually made our best purchases when apprehensions about some macro event were at a peak. Fear is the foe of the faddist, but the friend of the fundamentalist. — Warren Buffett

What an economy really wants, after all, is not more investment per se but better investment. It wants capital to flow to companies that will create value - not in the form of a rising stock price but in the form of more goods for less cost, more jobs, and rising wages - by enhancing productivity. — James Surowiecki

In our current distorted reality, land is often held speculatively without being put to productive use. Because people are able to profit from land and use it inefficiently, sprawl is an issue and farmland is constantly at risk of rezoning, thus forcing up the cost of all farmland.

Land contributions would remove the profit from land speculation and inefficient use, releasing more farmland and also ensuring existing farmland wasn't constantly under the shadow of rezoning. Labour and capital taxes would reduce and thus also farming costs. Overall, farming costs would reduce and farmland would be sustainably available for agriculture. — Martin Adams