Collection Strategy & Economic uncertainty

TennKnifeman said:
Ken told Bob to review his collection every year, and pick out the ones that had appreciated and that he liked the best--and sell the rest. Annually. Of course that implies that Bob would have been keeping up with prices enough to know what was going up or down.
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Ken is known to be a very smart man. Great advice.
 
Hi Kevin,

So technically, isn't Peter just making an investment in giving Les a one year unsecured business loan for $10,000 at 10% interest?
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Why would I go to an investor for an "unsecured loan" at 10%. I can get one from my bank for 7 1/2% interest.

If you would like to look at it as a Loan, so be it. Now, who else can you loan money to and have a guaranteed 10% return?

I'll be waiting for the contact information of this person so I can send them $10K.
 
ptgdvc said:
I confess my ignorance. What in your opinion is a RISK FREE investment?
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I was trying that route, but didn't get anywhere. There is no such thing as a risk free investment. They do not exist, period...unless one guy has somehow firgured out a system that the rest of the known finance world is unaware of....
 
Hi David,

I was trying that route, but didn't get anywhere. There is no such thing as a risk free investment. They do not exist, period...unless one guy has somehow firgured out a system that the rest of the known finance world is unaware of....
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Are you a Financial Advisor or A banker or some other type of investment financier? If not, I think it would be almost impossible for you to say, with a level of expertise that would make you an authority, there are No" risk free investments.

However, I will concede there is great risk if you are counting the Apocalypse caused by a world wide health Pandemic/epidemic, nuclear winter or the earth being destroyed by an Asteroid. Yes you are correct there is no guarantee. However, with regards to those events...having your money back won't make a difference.

You know David, one way to shut me up would be to give me the $10,000 and if within 12 months you don't receive $11,000. You can sue me and trash me all over the internet and run me out of custom knives.

EDIT: David I realize that $10K is a lot of money. My initial offer was a 10% return on $1,000. I'll even do it for $500.

So maybe along with you, you can get Giant, Bright Red, Brownshoe and one other to each put up $100 or $200.

Of course the other side of this is when you receive your check for the 10% return. Each of you will have to sing my praises here on BF. :D

HOLY COW, I just realized that you were right...even If you did receive the 10%...there would be risk involved. :D
 
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Les Robertson said:
Hi Kevin,



Why would I go to an investor for an "unsecured loan" at 10%. I can get one from my bank for 7 1/2% interest.

I don't know, that's why I'm asking? Because that's basically what's happening. Peter's loaning you $10K, you're buying inventory with it and he's getting a 10% return or interest. By the way, banks aren't giving many "unsecured loans" these days and have tightened their lending in general. Good that you can get an unsecured loan @ 7 1/2%.

If you would like to look at it as a Loan, so be it. Now, who else can you loan money to and have a guaranteed 10% return?

There's people who will borrow money @ 10% + and guaranteed it with collateral. How is Peter's investment or loan guaranteed? Are you backing the guarantee with anything or is it just guaranteed because you say it is?

I'll be waiting for the contact information of this person so I can send them $10K.
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Just trying to stir the pot a bit ,as I find this interesting.
 
Les Robertson said:
Hi David,



Are you a Financial Advisor or A banker or some other type of investment financier? If not, I think it would be almost impossible for you to say, with a level of expertise that would make you an authority, there are No" risk free investments.

However, I will concede there is great risk if you are counting the Apocalypse caused by a world wide health Pandemic/epidemic, nuclear winter or the earth being destroyed by an Asteroid. Yes you are correct there is no guarantee. However, with regards to those events...having your money back won't make a difference.

You know David, one way to shut me up would be to give me the $10,000 and if within 12 months you don't receive $11,000. You can sue me and trash me all over the internet and run me out of custom knives.

EDIT: David I realize that $10K is a lot of money. My initial offer was a 10% return on $1,000. I'll even do it for $500.

So maybe along with you, you can get Giant, Bright Red, Brownshoe and one other to each put up $100 or $200.

Of course the other side of this is when you receive your check for the 10% return. Each of you will have to sing my praises here on BF. :D

HOLY COW, I just realized that you were right...even If you did receive the 10%...there would be risk involved. :D
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No, I am not a senior investment analyst by profession...but neither are you.

That being said, can you find even one single investment professional who will go on record to say that risk-free investments exist anywhere in the world? I can find thousands that say the opposite. I'll even take web links!

I don't think my profession has much to do with being wary, though, as I am not the one guaranteeing and advertising a 10% ROI on an unsecured loan on a public internet forum. My concern over your attractive offer doesn't require a profession in financing to be legitimate...it just requires a basic understanding of what an investment entails by definition.

You theoretically getting me a 10% return doesn't prove your point that its guaranteed. It just proves you pulled it off. I can guarantee that I will be at work on time for the next month, but the day my car dies on the way to work, my guarantee becomes worthless. All those days I arrived at work on time would not in any way "prove" that my guarantee was legitimate as i have no way to back that guarantee other than my own word which has absolutely no value in a legal/financial guarantee like this.

I really am not trying to go out of my way to be a jerk here...but the fact that you believe and insist there are in existance truely risk-free investments as you claim is probably the #1 example of why i'd be a bit concerned about the "guarantee."
 
Les Robertson said:
So maybe along with you, you can get Giant, Bright Red, Brownshoe and one other to each put up $100 or $200.
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good joke! :D

i bought three knives from you, an excellent hunter by burt foster and a couple of everything but exciting knives that are stored in my give-away drawer. then we were talking about john white and you told me that you'll meet him at blade, that you have a slot with him, could get a knife for me etc. you never got back to me on that. never.

and you want $100 from me? LOL! not a penny, dear! hey, i did my homework! :D


David Schott said:
but the fact that you believe and insist there are in existance truely risk-free investments as you claim is probably the #1 example of why i'd be a bit concerned about the "guarantee."
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well said, david! :thumbup:

hans
 
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David Schott said:
That being said, can you find even one single investment professional who will go on record to say that risk-free investments exist anywhere in the world?
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I'm sure Bernie Madoff made such promises, implicitly if not in so many words.

20% annual growth, like clockwork! :thumbup:
 
Les Robertson said:
Hi Kevin,



Why would I go to an investor for an "unsecured loan" at 10%. I can get one from my bank for 7 1/2% interest.

If you would like to look at it as a Loan, so be it. Now, who else can you loan money to and have a guaranteed 10% return?

I'll be waiting for the contact information of this person so I can send them $10K.
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Before we all heard the words "Sub Prime" there used to be quite a few around, but they are all in jail now.

Give it a few years and new bunch of cowboys will show up with the next great "Rock Solid, Guaranteed" investment. Maybe they will also be knife purveyors.

I'd better go stock up before the boom hits :D
 
Peter to Peter - I guess I must confess my ignorance as well. I did interpret Les' offer of a "guaranteed 10% ROI" meant there was NO RISK?

The way I interpreted the offer was, if I "invested" the $10,000 no matter what transpired, I would receive $11,000 in 12 months or less. I guess my definition of guaranteed is incorrect?

As the OLD cliche goes "if it sounds too good to be true...." applies here!

Peter
 
Peter to Peter

Les is a smart guy whose knowledge of the custom knife market is exceptional. I absolutely believe that he would bend over backwards to make good on his word.

But in life, stuff happens which is completely beyond the control of any individual. Lightening strikes, houses burn down, people get in car accidents, families have life and death emergencies. Life is a risk. The best we can do is to try and limit the risk with by managing it the best we possibly can.

P
 
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HI Peter,

I guess I must confess my ignorance as well. I did interpret Les' offer of a "guaranteed 10% ROI" meant there was NO RISK?
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One more time, I offer a legally binding contract. Obviously if I didn't think I could do this...I wouldn't offer it.

What investment firm offers that? Guaranteed ROI. None that I know of.

My offer was two fold:

1) To allow those who invested to make money.

2) To prove to people that custom knives can be viewed as an investment.

Judging by those here you feel they are not. Perhaps it is just because I am offering it.

Best of luck with your collections.
 
Hi BJ,

Bernie Madoff, did not have a legally binding contract with a 12 month time frame. If he did, he would have been found out to be a thief long before he was.

Lets try to compare apples to apples.
 
Hi STizman,

This is an interesting discussion. I'm waiting for the answer Les. BLP, GLP or MOP?
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The answer for BF would be...it doesn't matter. Buy what you like.

Feel free to email me for the answer.
 
Les Robertson said:
HI Peter,

One more time, I offer a legally binding contract. Obviously if I didn't think I could do this...I wouldn't offer it.

What investment firm offers that? Guaranteed ROI. None that I know of.

My offer was two fold:

1) To allow those who invested to make money.

2) To prove to people that custom knives can be viewed as an investment.
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I am having difficulty understanding the value of such contract. You had said you don't have a prepared document depicting the terms of the contract.

You said I could formulate it, yet when I asked about collateral, that caused you to change course?

Without collateral, what is the value of such a contract, and what are you legally bound to provide according to the "legally binding contract"?

Thanks,
Peter
 
ptgdvc said:
Peter to Peter

Les is a smart guy whose knowledge of the custom knife market is exceptional. I absolutely believe that he would bend over backwards to make good on his word.

True, however Les didn't guarantee Peter he would bend over backwards, he guaranteed a 10% return. Don't get me wrong though, I have full confidence Les can deliver. It's really not that hard to accomplish. Now a 20% return would have made this proposition even more interesting.

But in life, stuff happens which is completely beyond the control of any individual. Lightening strikes, houses burn down, people get in car accidents, families have life and death emergencies. Life is a risk. The best we can do is to try and limit the risk with by managing it the best we possibly can.

True again, however that's why Les' guarantee isn't very prudent, nor is his hawking investments on a public knife forum.

P
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