Expectations Quote by William Stanley Jevons
“What capital I give for the spade merely replaces what the manufacturer had already invested in the expectation that the spade would be needed.”
About This Quote
Investing in a tool's production cost replaces the earlier expectation that the tool will be needed, highlighting the shift from anticipated demand to actual capital outlay.
In simple terms: Spending on a product replaces the hope it will be needed.
Key Takeaway
Cost replaces expectation.
Themes
economics
production
investment
expectation
Mood
analytical
pragmatic
Type
philosophical
economic
When to use this quote
- budget planning for new equipment
- capital budgeting for a startup
- government procurement decisions
Key Concepts
opportunity cost
resource allocation
Practical Applications
- evaluate true demand before purchasing
- use cost‑benefit analysis
Questions to Reflect On
- How does replacing expectation with cost affect long‑term strategy?
- When is it justified to invest before demand is proven?
A Different Perspective
May overlook intangible benefits like brand value or future innovation.
![“Wesco had a market capitalization of $40 million when we bought it [in the early 1970s]. It's $2 billion now. It's been a long slog to a perfectly respectable outcome - not as good as Berkshire Hathaway or Microsoft, but there's always someone in life who's done better.” quote by Charlie Munger](https://sms4smile.com/quotes/img-quotes/c1e/charlie-munger-458_billions_wesco-had-a-market-capitalization-of-40_2073813.jpg)
