Why Mattress Stores Are Everywhere

The profit margins that mattress stores are able to achieve are absolutely staggering. If you want to earn obscene returns on capital in life, it seems that selling bottled water, operating a surgical center, providing printer ink to customers, selling designer handbags, and having an interest in a mattress store is the way to go.

In 2018, the difference between the cost of production and the cost to the end buyer is approximately 12.23x. If you pay $800 for a mattress, you can reasonably guess that the mattress store paid somewhere around $65 from the wholesaler. And then, of course, there are the luxury $3,500 mattresses that only cost $250-$300 to manufacture, the single sale of which can pay for half of a mattress store’s rent.

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Where Should A Dividend Investor Begin?

poorcharlie

The best accidental side effect of running a website and writing articles for Seeking Alpha is that it occasionally allows me to stumble into friends I haven’t to in a while—the kind of people that you enjoyed being around, but then life happens, and for whatever reasons, things happen and you fall out of touch. Long story short, I recently got in touch with one of my best friends from my Freshman year at Washington & Lee, and he asked me a question about starting a long-term investing strategy and the kind of books that will send you in the right direction. Because the question was broad enough to be useful to a general audience, I thought I’d share my response with you all. I would mention his first name, but since he is the only person I’ve ever met in my life with that name, it might give too much privacy away. Anyway, he knows who he is, and without further delay, here’s my book recommendation:

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Originally posted 2013-06-28 13:43:12.