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> Comparing to revenue is a stupid way to think about things. Profit is the incentive to conduct business Because it is and it isn't. Companies can make people
by Spivak 3y ago
> Comparing to revenue is a stupid way to think about things. Profit is the incentive to conduct business
Because it is and it isn't. Companies can make people filthy rich while not making a single dollar of profit thanks to the stock market where the price does grow, broadly, in terms of revenue.
- fauxpause_ 3y agoYou’re right in that it ought to be compared to the scale of profits, not a percentage, as many run on a loss during growth. But profit is still what matters. Including the promise of future profits. Talking of the future doesn’t help much because both numbers will change. And punishing a company based on its future state is… not possible