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I am considering investing in certain emergency-related devices and consumables. I intend to sell at a 1000%+ profit, at a future date. The profit will reflect inflation, opportunity and carrying costs. Q: should I stock these supplies or will I be barred from making a profit?

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Sjors Provoost

@provoost

Apr 24, 2020

Assuming you build this supply in calm times: it depends. You could sell (non transferable) call options to future customers with a strike price at 10x the normal level. That seems perfectly ethical and compensates you both immediately and if a bad event happens.

Jesse Powell

@jespow

Replying to

@provoost

Hm. great idea!

8:18 PM · Apr 24, 2020Twitter Web App

Replying to

Business ethics seems to depend on symmetry of information. You don't know when a crisis is going to hit, neither does your customer. But when it does hit and you raise prices to an unpredictable level, the (perceived) asymmetry gets you lynched. medium.com/incerto/why-ea

Jesse Powell

@jespow

Apr 24, 2020

Ultimately, every trade is about information, risk, opportunity cost. Some people saw a pandemic coming and were prepared. Some have been taking losses "prepping" for an apocalypse for decades. Some build businesses around 100-year events (insurance). Perception seems irrational.

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