Return On Equity
topic on 4 shows · 6 statements across 6 episodes
the Knowledge Project 
Capital Allocators 
TBPN 
20VC
6 statements about Return On Equity, every show
Singlehurst: Return on equity is critical at scale, yet anathema in VC
“One of the single most important factors is the return that you make on equity. And this notion, this concept is, is almost it's almost an anathema within the venture world.”
Coogan: Asset-light land optioning increased homebuilders' ROE from 10% to 22%
“75% of the land is optioned versus 25% a decade ago, and that has increased the return on equity for this business from 10% to 22%, so much more asset light.”
Masters: Unsecured lending alone cannot generate acceptable return on equity
“If a client is very concentrated in a single product line and that being unsecured lending, for example, very hard to achieve the return on equity that is appropriate To not destroy shareholder value at a bank. And that was true then. And it's true multiple fo…”
Taussig: Return on capital deployed compounds businesses better than margin metrics
“What's your return on equity? Like what is your, when you make a hundred million dollars in investment, you know, in the coming year, well, what do we expect the return on that hundred million dollars to be over the ensuing five years? And that's a hard thing …”
Companies growing at 30% with 10% ROE will inevitably dilute shareholders
“Because the guy growing at 30% with a 10% return on equity, you just haven't figured out he's going to dilute you because he can't fund it, right?”
Bakshi: Costco Generates 20% ROE and High Turns on Sub-2% Margins
“Costco, I think, makes about 20% return on equity, which is actually quite healthy if you look at, ah, interest rates over this part of the world, and it has, ah, a pat margin of less than two percent, so it has very high capital turns, ah, and it can do that …”