
Understanding Business Value
The WealthAbility Show with Tom Wheelwright, CPA
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Are You Looking for Returns Higher Than the Cost?
The S&P 500 for its whole lifespan, the return has been kind of in the neighborhood of 9 or 10% a year. So that basically might suggest that your average business person is happy making 9 or 10%. That company won't be worth more than the cost of create because you're hitting what that investor wanted.
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