AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
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.
09:16
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Investment decisions should focus on overall portfolio dynamics rather than solely on individual project profitability to foster long-term benefits.
- State-owned enterprises may need to accept short-term losses to support broader economic opportunities that align with their strategic vision.
Deep dives
Understanding Portfolio Analysis in Investment Decisions
Investment decisions should not solely focus on individual project profitability but rather consider the overall portfolio dynamics. In complex projects, some initiatives may intentionally operate at a loss to support others that will generate substantial returns. For instance, the establishment of necessary infrastructure like roads and electricity may initially incur losses but are crucial for enabling the success of more profitable ventures, such as industrial facilities. This approach allows for a holistic view of investments, where short-term losses can lead to long-term benefits within the overall economic framework.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode