Hurdle Rate

“So it turns out it's really interesting that companies, they calculate their cost of capital. They know it, but they don't use it. For almost everything they do, they use a hurdle rate, and that hurdle rate's roughly 15%. So whether the cost of capital goes to…”

“When you've been investing without thinking of geopolitical risk as one of your main things, you then have to add it into your underwriting. So that just makes the hurdle rate higher for a China investment.”