Sunday, May 29, 2016

Yaruzi Bought His First Ever Prada!


I'll probably never know why people, especially ladies, are willing to spend thousand of dollars for a "bag". But I figured out that the company selling them would make a nice profit. It's not a surprised that Prada's gross margin is at 72.37%! Yes you read it right. For every $10,000 you spend on Prada's bag, the actual cost to produce the bag is $2,730.

So instead of buying the bag, I decided to buy 1000 shares of Prada at HKD 25.35 per share today.

2 comments:

  1. So maybe this Prada can have higher capital or Divdiend cashflow than the product "Prada"!

    haha...

    Good choice!

    ReplyDelete
    Replies
    1. Hi Rolf,

      I was looking for a "Prada" that will appreciate overtime, instead of depreciating. Hopefully it can buy me the real "Prada" one day ... LOL.

      Delete