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by noir_lord 3138 days ago
Not to mention K-Factor (carrying cost) and that 200K in stock sat in your yard is 200K you aren't earning interest on/able to re-invest into you business.

It's a double whammy, you pay (in terms of utilities, rent etc) to hold stock that means you can't use the money elsewhere and for a lot of stock you also have depreciation (though I work for a company that makes stone products so at least our raw materials don't expire).