Your guide to corporate (and personal) wealth creation.
Understanding how businesses create value is the key to understanding how individuals build real wealth. Insights from a 3-time NYSE company leader and creator of the Value Equation.
Punching your ticket to the upper 1% is tied to knowing how businesses create value.
Most American multi-millionaires — and all self-made billionaires — build their wealth by owning stock in companies they start or work for. It isn't a secret reserved for the elite. It can be learned.
Current Pre-Tax Return on Equity
- 01 Sales Number of customers × average price × units
- 02 Business Investment Cash assets − free money
- 03 Operating Profit Margin % of sales after cash operating costs
- 04 % of OPM in the Stack OPM (borrowings and leases) ÷ Business Investment
- 05 Rate Charge on OPM Cost of using OPM (borrowing and leases)
- 06 Maintenance CapEx Cost to keep the business going
Six variables, middle-school math, universal relationships. Add five more growth variables and you arrive at total expected returns — the Universal Business Model.
3x
NYSE IPO company leader
$20B+
capital deployed to U.S. businesses
40+
years of finance & leadership
6
variables in the Value Equation
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