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jjmarryesterday at 8:25 PM3 repliesview on HN

In a zero interest rate environment, literally any return on investment justifies spending.

If interest rates are 3.8%, the company needs at least a 3.8% return every year on your yearly compensation to justify your job.


Replies

Retricyesterday at 8:33 PM

Not if they are compensated during the year.

Grocery stores have slim margins, but if you make 10k after selling 1M worth of stock buy turn over that stock 12 times a year that’s ~12% annual ROI not 1%.

show 2 replies
alexanderchryesterday at 8:46 PM

You'd calculate return on investment based on invested capital, not on expenses, so this does not follow.

xorcistyesterday at 9:53 PM

That's .. not at all how interest rates work.