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8min chapter
E56: AI Agents are Coming; China’s Internet; Google Wants to Win
"The Riff" with Byrne Hobart and Erik Torenberg
Return on Equity: A Historical Perspective
This chapter explores the evolution of return on equity as a key metric for business performance, emphasizing its historical mismanagement and the implications of a changing venture landscape. It highlights the complexities of unit economics, capital expenditures, and stock buybacks, stressing the need for a deep understanding of financial health within various business models.
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