Do you see your firm’s profit goal a means to build owner wealth, as well as being an indicator of management effectiveness and a premium for the risk of being in business? Or is it a hunch? A dream or wishful thinking? Deeply subjective? Hunches are great for innovation and growth (I wrote the book … Continue reading Is Company Profit Also Building Your Owner Wealth?
Imagine you’ve got $100,000 to invest. If you invest it in a financial asset (mutual fund, stock or bond) that has a rate of return of 5%, after one year you’ll have $105,000. (I’m keeping this simple now, so let’s not worry about taxes or other considerations.) You understand that the 5% rate of return … Continue reading