The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving 480: Why approve investments with negative returns? (Strategy Skills classics)
Sep 4, 2024
The discussion delves into the pitfalls of superficial financial analysis and why halting all unprofitable investments can harm a company's core. It highlights the strategic categorization of investments and the importance of evaluating them beyond immediate cash flow. Additionally, the podcast explores how accepting short-term losses in a broader portfolio can lead to long-term growth, especially in government projects. The conversation emphasizes critical thinking in investment decisions and the complex interplay between short-term setbacks and overall economic benefits.
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