4min chapter

Forward Guidance cover image

Inflationary Recession Is On The Horizon | Paul Hodges

Forward Guidance

CHAPTER

The Importance of Return on Capital

Paul Tudor Jones: Lending to companies who cannot pay their interest bill out of profits is flawed. He says if you get to a period where nobody wants to roll over loans or they only want to roll them over at a much higher interest rate, those zombie companies go bust. Jones worked for what was then the largest company in the UK and never had a debt to equity ratio of more than 35 percent.

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