“Companies thrive when they create real economic value for their shareholders. Companies create value by investing capital at rates of return that exceeds their cost of capital”
— Valuation, 6th Edition

“Creating value for both current and future shareholders means managers should not take actions to increase today’s share price if those actions will damage it down the road” ... don’t brand build and “inflate short-term profits even as revenue growth declines” ...

It’s a terrible mistake ...

Some examples: “ shortchanging product development, reducing product quality, skimping on safety, making investments without considering changes in regulation or consumer behavior (environment and health)” ...

I will continue this thread later today, just slept in the middle of it yesterday https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">