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Stop Focusing on Profitability and Go for Growth

Harvard Business

Our models suggest that by 2025 global financial capital could easily surpass a quadrillion dollars, more than 10 times global GDP. Equity cash flows, in turn, are a function of a company’s long-term return on equity (ROE), growth, and the value of shareholders’ equity on its books. times global GDP).

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business

Our belief is that the earnings of long-term companies will rely less on accounting decisions and more on underlying cash flow than other companies. economy could be giving up another $3 trillion in foregone GDP and job growth by 2025. We assume long-term companies will invest more and more-consistently than other companies.