Musings on Markets

FEBRUARY 10, 2021

What is a hurdle rate for a business? In this post, I will start by looking at the role that hurdle rates play in running a business, with the consequences of setting them too high or too low, and then look at the fundamentals that should cause hurdle rates to vary across companies. What is a hurdle rate?

Hurdle Rate 52

Hurdle Rate Currencies Investments Valuation 52

Musings on Markets

AUGUST 19, 2024

Not surprisingly, the operating metrics change as companies age, with high revenue growth accompanied by big losses (from work-in-progress business models) and large reinvestment needs (to delivery future growth) in early-stage companies to large profits and free cash flows in the mature phase to stresses on growth and margins in decline.

Corporate Finance 98

Corporate Finance Valuation Investments Finance 98

Musings on Markets

MARCH 8, 2023

The dividend principle, which is the focus of this post is built on a very simple principle, which is that if a company is unable to find investments that make returns that meet its hurdle rate thresholds, it should return cash back to the owners in that business.

Hurdle Rate 94

Hurdle Rate Corporate Finance Investments Finance 94

Barry Ritholtz

FEBRUARY 21, 2023

And you know, just simple things like, hey, the value of tax loss harvesting, how do you make that apparent to people? But the true change comes when, hey, you know what, those loyal to that technological change figure out over not one, two, but three, five years, how to drive change and how to leverage it. BUCKLEY: Oh, how about 2?

Leadership 109

Leadership Investments Profit and Loss Technology 109