Category Archive for: ‘Financial Management’

The Illusion of Record Profits

Posted Aug 31 2009 by Joshua Kennon in  with 0 Comments

When managers talk about record profits, they often leave out one crucial detail that would allow shareholders and owners to view their performance in a more honest light: the change in capital at work in the enterprise.  This seemingly small detail is actually one of the most important numbers any analyst, executive, owner, or lender needs to know. Assume you …

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"Financial success isn’t glamorous. It is making sure more money comes in than goes out and that the money you keep earns a good rate of return at the lowest possible risk. That is it. That is the recipe. If you do that for long enough, you can end up rich." - Joshua Kennon, Managing Member