Forum Archive Index - March 2000

[Nigel McCarter <n.mccarter@clear.net.nz>]

opportunity cost is the difference between return gained by doing one thing
(holding on to AIA) and the return from an alternative (putting the money
in other higher (presumably) yielding investments). 
Or putting a thousand in to the bank and a thousand in to ADV
Very much a theoretical and tenous arguement since in most case one cannot
prophesy the results of any course of action with accuracy.

At 07:57 PM 3/8/00 NZDT, you wrote:
>Another Aucklander here just wanting to add that the sale of the airport 
>shares will also relieve pressure on Infrastructure Auckland to have to sell 
>off Ports of Auckland Ltd in order to put more money into transport and 
>stormwater. I don't know how many Aucklanders realise (I have read this in 
>one of the Council's newsletters) that Auckland City presently incurs costs 
>of $14 million to $16 million per annum ($38,000 to $44,000 per day) just to 
>hold onto the airport shares.  Apparently this is an estimate of the 
>"opportunity cost" (don't ask me what this is?) compared to the share 
>proceeds being used to repay debt or put into other investments. In my mind, 
>the sale of the shares is a foregone conclusion and one that will be 
>extremely beneficial for Auckland ratepayers.
>
>p.s. Thanks for your posting Frank which was not only very informative but 
>also substantively analytical.
>
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Nigel McCarter
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Box 23 019 Hamilton
Phone 64 7 858 2429 Fax 64 858 2689
Mobile 02 212 4901

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