The Equity Kicker - Latest Comments in Reminder – success equals profits

Re: Reminder – success equals profits

martinowen — Fri, 04 Sep 2009 04:35:55 -0000

Until there are profits, any enterprise is less than a zero sum game. In a buy out, or even in an IPO, losses are passed from one investor to another. It is only when a product/system/service is actually genreating added value can it be successful. Individual investors can be successful - but that would be as a result of some other investor's loss. Only when returns exceed investment is there a real "success"

Re: Reminder – success equals profits

brisbourne — Thu, 03 Sep 2009 07:26:02 -0000

That warm glow inside is no substitute for a good meal...

Re: Reminder – success equals profits

Philip Wilkinson — Thu, 03 Sep 2009 07:18:01 -0000

Nick - are you sure success isn't just about how many times you can get your business name mentioned at networking events and dinner parties? ;-)

Re: Reminder – success equals profits

csertoglu — Thu, 03 Sep 2009 06:29:45 -0000

Great point Nic. One additional axis that may be considered is value creation. I see companies that turn a profit (spammers, etc.) that can identify an opportunity and go after is aggressively, that end up generating returns to their shareholders. I find it hard to call them successful. There needs to be "thick" value for success.

Re: Reminder – success equals profits

Alx Klive — Thu, 03 Sep 2009 06:24:24 -0000

Great point Nic. A return for shareholders can come in different ways and is not necessarily predicated on profits as you say. Another source of return for shareholders could be a share buyback.