The Celeri Journal #10: To Borrow or Not to Borrow

Written by Michael

On February 14, 2020

Global Markets Recap

There are four trillion-dollar companies in America, and they are all technology concerns and household names – Apple, Amazon, Google, Microsoft. Think about this for a moment: how many of us can make it through a single day without relying on a product of one of these titans – or at a minimum, one of their competitors.

We live in a Digital Age, and the rate of change will certainly only accelerate over time. There’s a concept called Moore’s Law that suggests the rate of change in semi-computing would be cut in half every 18 months in perpetuity; when the theory emerged in the late 1970s at the laboratories of Hewlett-Packard, critics scoffed at the notion those rates of change would be permissible forever without slowing down. Today, children play on iPhones that have at their disposal more computing power than the largest banks on Wall Street had in their collective databases only a generation or two ago.

Tesla today said it would tap debt markets to raise an additional $2 billion in cash even though CEO Elon Musk said “it didn’t make sense” because the company, in his estimation, doesn’t need the money.

Tech drives the global economy, and all the big tech companies have debt on their balance sheet. They know their rates of return blow away the carrying costs of the loans. Small businesses looking to grow should consider the world around them.

Limited preview. Subscribe below.

Subscribe

* indicates required

You May Also Like…

The Celeri Journal #41: Next Steps

The Celeri Journal #41: Next Steps

Global Markets Recap For small business owners, this is a remarkable time. It’s challenging to keep your doors open and the lights on amid a global economic recession and once-in-a-lifetime health scare. But there is demonstrable hope. We’ve spent the weekend looking...

read more
The Celeri Journal #40: Hit it

The Celeri Journal #40: Hit it

Global Markets Recap Many Americans are probably pretty exhausted as the week draws to a close. Stress is closing in on many people like never before: volatile stock market swings, schedule adjustments, and lockdowns; lest we forget medical scares. For 3.2 million...

read more
Webinars for Small Business

Webinars for Small Business

There is no doubt that a webinar is becoming a crucial part of today's business world. As a live and interactive online seminar, it provides audience training and instructions. The hosts of the webinar are usually professionals or industry leaders. Audiences can learn...

read more

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *