
Ep 398. The Financial History of General Motors with Capital Allocation Author, Jacob McDonough
Focused Compounding
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The Importance of Return Equity in the Industrials
I did do a return equity number because I wanted to compare it to today And I was surprised at how high it was and I was wondering if that was sort of the Criticism that a lot of the industrials in this time frame get. Yeah, I mean they're years where it seems like you have Return on sales is over 10% and you're probably having one and a half turns or something. But all these years too, it's still way way lower the returns on equity that they could have Versus how much growth they would need to be able to meet demand to keep their market share next year.
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