Friday, 28 February 2014

Razorblade Model

Today's Word: Razorblade Model

When businesses sell dependent goods for different prices. The first part is sold cheaply, but the secondpart is much pricier. It's not unlike razors with replaceable blades. Often the razor is pretty cheap, but customers have to keep replacing the blade cartridges, and that cost adds up.

Wednesday, 26 February 2014

Puke Point 

Today's Word: Puke Point

 The "puke point" is the point at which the investor can no longer stomach the losses, and decides to sell the asset, regardless of its steeply falling price.