Post
Topic
Board Economics
Re: The Higher the capital the higher the returns
by
Mame89
on 28/06/2024, 19:30:54 UTC
Its not that we cant deny that the more capital we have, the greater the profit we have, it's just that it only refers to that context because in fact we have to think about how to profit as well because it doesn't mean that with a lot of capital, we will definitely profit and with little capital we will make a big profit because its just a way to look at it from a positive perspective.  When talking about business or investment, its not as easy as just based on capital, there are so many things that need to be prepared, there is a plan that we must realize is more important and of course we need several backup plans to support it better because in the end, the benefits of business or other things such as investment are certainly not only based on capital alone. Although capital is important, there are other aspects that support it so that capital does not just disappea .
Yes that's right. To invest or do business, the main thing for making a profit is not capital but knowledge and experience. Indeed, a lot of capital is one of the factors because it cannot be denied that with a lot of capital we can get more profits. However, a lot of capital without adequate knowledge will not work optimally, because as you said, apart from having lots of capital, other aspects are also really needed.

Moreover, if our mindset is that if we have a lot of capital then we will get more profits, this is also wrong because it will make it difficult for us to do something, be it business or investment. Because in general to start both of them you don't need a lot of capital, because with a little capital we can also make a profit, even though it's not a lot, but if we get profits consistently then the profits can also be more.