A crucial understanding of the nature of corporate profitability is that it is a zero-sum game. Profits enjoyed by corporations must be financed by one of three macroeconomic entities dissaving: households, governments, or foreigners. Alternatively, profits can be generated by businesses choosing to reinvest in aggregate. This understanding allows

... See more

Given that I am a macro investor I look at cues to explain aggregate profits of all firms of the market. Individual firm’s profit is a produce of how well it runs its operations and how it is able to out-compete others in creating good products at low cost with good sales and distribution strategies. Assessing all these parameters is the job of my

... See more