What does 20/20 hindsight mean?

Question

Context: Using twenty-twenty hindsight, Sonneborn had paid dearly for the prestige of a $1.5 million loan from major eastern insurers.
I understand "20/20 hindsight" is supposed to be something sarcastic, so I really can't understand the use of this term in this situation. Thanks for your help.

Teechr · Accepted Answer

Have a look at the link below:

https://www.EnglishForward.com/search/pro.htm?q=20/20 hindsight&sp=2

Vu Linh Chi · Answer

Sorry I do understand the meaning of "20/20 hindsight" as written in that link. However, I still can not understand the use of it here.

The whole paragraph is: Using twenty-twenty hindsight, Sonneborn had paid dearly for the prestige of a $1.5 million loan from major eastern insurers. He was so proud of the financing thal he did not spend any of the borrowed capital for six months. lnstead, he kept it as a very valuable dab of dressing on McDonald's balance sheet-something the company could use to obtain mortgage money from bankers who previously were hesitant to Joan money to the chain. Now, when those bankers looked at McDonald's financial statements and saw a huge loan from established insurers, they were much more willing to finance McDon- ald's stores. If a company already has debt, Sonneborn realized, it's easier to get more.

Is it correct if I rephrase it as follow "As of now, it is clear that Sonneborn had paid dearly for the prestige of a $1.5 million loan..."

Now can I understand "paid dearly" as paid too much, or paid generously but worth it?

Anonymous · Answer

Vu Linh Chi Sorry I do understand the meaning of "20/20 hindsight" as written in that link. However, I still can not understand the use of it here.The whole paragraph is: Using twenty-twenty hindsight, Sonneborn had paid dearly for the prestige of a $1.5 million loan from major eastern insurers. He was so proud of the financing thal he did not spend any of the borrowed capital for six months. lnstead, he kept it as a very valuable dab of dressing on McDonald's balance sheet-something the company could use to obtain mortgage money from bankers who previously were hesitant to Joan money to the chain. Now, when those bankers looked at McDonald's financial statements and saw a huge loan from established insurers, they were much more willing to finance McDon- ald's stores. If a company already has debt, Sonneborn realized, it's easier to get more.Is it correct if I rephrase it as follow "As of now, it is clear that Sonneborn had paid dearly for the prestige of a $1.5 million loan..."Now can I understand "paid dearly" as paid too much, or paid generously but worth it?

I can't understand the reason why Sonneborn had paid dearly. Did he borrow too much and couldn't repay the loans following the first one (that $1.5 million)?

Teechr · Answer

Vu Linh Chi Context: Using twenty-twenty hindsight, Sonneborn had paid dearly for the prestige of a $1.5 million loan from major eastern insurers.

Where did you get that text from?

Vu Linh Chi · Answer

Sonneborn is (was) the chief of finance for McDonald's. At the time, McDonald's was trying to gain credibility on its balance sheet, so that it could get finance for multi-restaurant packages. This $1.5 million loan was the first insitutional loan that he got for that plan. In order to have that loan, he had to sacrifice 22,5% McDonald's stock, and that amount is a lot. That's why they said he paid dearly for that loan.

Vu Linh Chi · Answer

It is from a book written by John F. Love called "Behind the Golden Arches", about the formation of McDonald's and how it became the first national fast-food chain in the world.

Teechr · Answer

Vu Linh Chihe had to sacrifice 22,5% McDonald's stock, and that amount is a lot. That's why they said he paid dearly for that loan.

You've answered your own question. Imagine how much that 22.5% of McDonald's would be worth today if Sonneborn had not sold it for a paltry $1.5 million?

Vu Linh Chi I understand "20/20 hindsight" is supposed to be something sarcastic,

No, it's not about sarcasm. It just means that it is easier to look back and judge/evaluate something after it has happened.

Vu Linh Chi · Answer

You've answered your own question. Imagine how much that 22.5% of McDonald's would be worth today if Sonneborn had not sold it for a paltry $1.5 million?

That's the part where I'm not sure about. Because the further I read this book, the clearer it is that it was very important for Sonneborn to have got that loan, even at that price. Because it solved so many critical problems for McDonald's (including the acquisition of the company) and kept it on its fast speed of expansion. However, from that sentence, it sounded like the author himself thought that Sonneborn paid a little too much for that loan and it wasn't worth it. It is confusing to understand if this author was praising or criticizing Sonneborn's action.

If I understand it as "It's clearer now to look back and see that Sonneborn had paid too much", then that means the author also thought that he over-reacted. But this author himself later said a few things like: "Had Sonneborn not lined up a $1.5 million loan a year before, there would have been no buyout because McDonald's would have been in no position to raise the cash the brothers were demanding." So the loan really was a success for McDonald's, even at that high of a price.

I'm translating this book into my language (Vietnamese), so it's important to understand how to translate this phrase correctly. Thank you very much for your help and patience.

Teechr · Answer

Vu Linh ChiSo the loan really was a success for McDonald's, even at that high of a price.

That basically sums it up.

What does 20/20 hindsight mean?

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