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Jokerjanet

226 Posts.

18

07/12/17

23:01

Post #: 29469647
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Originally posted by Zestfulmocha ↑

Your logic is sound, but economies of scale come into it - let the explorers explore you know? that’s their bread and butter.

Consider this, you run a business and need staff, do you do it yourself? Maybe not unless you have a lot of spare capacity, you might go to a recruiting agency to find you staff, they have weeded out the duds and given you a decent candidate, you pay a fee and take that candidate straight to your sales floor to make you money.

Now consider the recruiting agency, do they find a salesmen and think, maybe I should just start my own car yard and then i’ll keep the end profit and realise the value of this candidate, rather than sell him for x% of his annual worth.

In exactly the same way a miner will look at land and think I can waste time and risk money exploring, or I just buy something I know I can spend moneynon to make x% returns - and I have the skills and experience for that job, and the economies of scale, so I can be competitive and make a profit.

If it was any other way, a single company would have already snowballed and own the world - expanding one business line at a time. In fact some try this - look at Coles, a supermarket now selling car insurance? Total different business models and organisational skillsets yet they throw their hat in the ring. I guess it fails for companies more often than not?

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Excellent explanation,opens my eyes and shows me another way at looking at it from a differant angle thanks very much lets hope we can prove it up and it all works out

VEC Price at posting: 2.4¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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