Wednesday, December 30, 2009

Boom Times

I can't help but wonder as I shopped with my younger daughter at The Game City Mall. It  was clear that business is strong and a lot of people can't get enough of what is available. No wonder the Game City Mall is expanding. Actually, the same type of activity can be witnessed at the River Walk Mall and Molapo Crossing.
Could this be proving the pundits wrong. I remember a few year ago, +/- 5 years, some of the pundits were expressing concern that so many investors seemed to be putting a lot of their investments in building shopping complexes. Their concerns were whether there would be sufficient business generated to cover the costs of such investments.
This sort of remind me of the not uncommon errors we keep on making. That is, we tend to think small, when the rest of the world has a bigger picture. Investments by the way are not costs, but represent future value creation. If we always think in terms of costs, we are likely to make dysfunctional decisions and focus on short term gains.

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