Thread: Owning vs Renting (not real estate)

Building on my previous post, the thread evolves:

This is a very interesting question and has produced a breakthrough, the affirmation of the priority of fundamentals and simplicity.

Premise:

The Cumulative Fundamental Skills - Growth

1) Conceptual skills and the work of simplifying lists and linking
(Represented by the general profession of leadership)
2) Human skills and the work of simplifying words (Represented by the general
profession of law)
3) Technical skills and the work of simplifying numbers (Represented by the
general profession of accounting)

Making money and the whole subject of money was best simplified in RK's Rich Dad Poor Dad which was primarily a book about accounting in tracking cash flowing through the financial statements and properly defining assets and liabilities (Home is not an asset).

The fundamental technical skills in accounting are rooted in the concepts of:
1) Positioning (Balance Sheet)
2) Activity (Income Statement)

Positioning and activity are akin to a football team marching down the field calling a successful play one after another re-positioning itself until scoring a touchdown with a score for more permanent positioning.
Activity and positioning are central to all decision making and life itself, every decision will increase or decrease choices. The cause-effect linking is critical and a technology which can never be ignored.

The Question of Ownership vs Leasing

The answer to the question is there is no answer. Remember questions are the answer! No wonder it made Biophase's head hurt. What does this mean? The technical & human skills define one's capacity at any given time.

The question always assumes an answer, it is a trap!

The measurement and valuation of ownership is constant and never ending in the financial world. It is scientific and objective. Leasing is also evaluated to adnauseam based on all present value time and dollar constraints. However leasing can be financially destructive and can still be considered a good decision to an individual. The lease decision can be outside the box and outside the universe with no constraints. Everything has boundaries and limitations even God. To set up and contrast two seemingly simple concepts involves multiple intangibles of time, space, information, needs, wants, quality, volume, valuation, measurement, ego, etc. It is open ended.

All transactions start and are reflected on the Balance Sheet so this valuation is the base and part of the identity of the lease. If this information is disregarded, so be it, but it does not change the booked identity technically based, the fundamentals are always there. The question can only be answered truthfully with qualification.

The loaded question - asking to contrast a feeling, access, and what is better, it all starts with a number even if it goes nowhere. Fastlane would demand numbers to even begin any evaluation. The technical requirement is always there, and it always contributes to the psychological feelings as it is the real component. The structuring between ownership and control may be a moot point.

Decision Framework - Real Question - The Spectrum
1) Business Financials (measured ROI)
2) Growth (measured learning)
3) Frivolous (clear lack of substance)

Frivolous is one step above parasitical. We can, in contrast with the numbers and potential growth, label something or discern something as frivolous simply because it is the polar opposite of growth. Defining it gives us power over it. This framework would be somewhat universal. Lease may imply frivolous and ownership implies an asset.

The Health Care Bill is the perfect example of the absence of business fundamentals, it is complex, it is void of system fundamentals, it is open ended, it is complex, it has unintended consequences, and is frivolous. What is the Question? How was it sold?

Decisions regarding Growth beyond Numbers requires Contrast - Comparison Shopper

Conceptual skill is the ultimate evaluation skill which includes list making, the uniting of numbers and words with a heading. However technical conceptual communication is a in a Ratio. Whereas Human and Technical skills are communicated in simple addition and subtraction from the list. Conceptual communication is global and is forever linking in increased clarity condensing the world.

Conceptual Relative Interdependence - The Ultimate Test - The Ultimate Technology

[U]Heaven[U] = [U]Valuation[U] = [U]WordsU] = [U]Numerator[U] =
- Earth - - Measurement - - Numbers --- Denominator

[U]Intangible[U] = [U]Time[U] = [U]Wants[U] = [U]Boundaries[U] = [U]Noun[U]
- -Tangible - - Space - - Needs - - Limitations - - Verb

= [U]Positioning[U] = [U]Growth[U] = [U]Attitude[U] = [U]Framework[U] =
- - Activity - - Survival - - Production - - Detail

[U]Permanent[U] = [U]Consistency[U] = [U]Human[U] =[U]Why[U] = [U]Mental[U]
-- Temporary - - Volitility - - Technical - - How - - Physical

= [U]Communication[U] = [U]Leverage[U] = [U]Love[U] = [U]Values[U] =
- - Information - - Control - - Respect - - Rules

[U]Courage[U] = [U]Organization[U]
- -Work - -- --Mechanics

The line in separating the numerator from the denominator represents perfection. Perfection is somewhere in between. Decisions are optimized with this communication. New breakthroughs are new ratios that add to the above that further condenses the world in allowing one to predict where the chips will fall.

Selling or asking a frivolous question is simply reversing the above ratios. Selling the numerator without the denominator is lack of substance and a flag. Selling courage without real work is a sham, the bill is really selling laziness as courage. Selling heaven without living on earth does not reconcile. One cannot claim values without enforceable rules. Leveraging the entire economy on a bill without control over existing systems is a piling on actually irresponsible. Selling the numerator and misrepresenting or mischaracterizing the denominator goes beyond frivolous and beyond just a flag - it is dangerous.

Post #3

I bastersized a few ratios in my above post in part for a reaction that I didn't get and part for my own error. Also failed in the mechanics to get lines in-between the numerators and denominators - might not have communicated.

Activity - Temporary - Volitility
-------- = --------- = ----------
Positioning - Permanent - Consistency


Testing the question presented and adding a few more ratios to help expose and explain:

Leasing - - - - Open - - - On - - - Output - - - Subjective
------- = ??? = - ------ = - - ------ = -------- = = - -----------
Ownership - - - - Closed - - - Off - - - Input - - - Objective


The above can explain the question without answering it. It answers the unanswerable.

Note: Can't mechanically produce a ratio on this computer if it saved me!!!