Saturday, 17 October 2009

Is Investing In Real-world Business Safer Than Stocks? - Part 2


7. Competitors Risk - This risk is so real and can happen sooner than expected.


Is Investing In Real-world Business Safer Than Stocks?


That coffee shop next to Hougang MRT station has a number of good years until recently Hougang Mall built an extension building to it and guess what?

It houses a 24x7 KopiTiam Food court and if we buy food using KopiTiam Card, there is a 10% discount.

Both noodle stalls at the coffee shop and KopiTiam food court are selling Pak Choi Mee at $3 a bowl, but at KopiTiam food court after discount it is only $2.70; so it is cheaper and in air-con environment.

Not sure for how long can the noodle stall at the coffee shop survives with a new competitor selling it cheaper and in a better eating environment?

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