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If a business’s assets are more valuable than the business itself, it’s a bad business.
by philwelch 2y ago
If a business’s assets are more valuable than the business itself, it’s a bad business.
- xethos 2y agoOn a short enough time frame, the golden egg currently inside the goose is more valuable than the goose itself. The problem comes when you kill the long-term profits trying to get an immediate return. Thinking you can make more money in the short term (for example, by selling real estate) routinely kills the ability to earn a profit long term (which is now eaten by rent on land you used to own).