Sublime
An inspiration engine for ideas
Career
N S • 2 cards
If our returns as CVCs exceed the weighted average cost of capital for our parent companies, we have effectively “made money” and also gained valuable intelligence about the larger ecosystem. Internally, I call this “getting paid to learn.”
James Mawson • Corporate Venturing: A Survival Guide
Operations
Anthony Fiedler • 1 card
Our ability to attract the best startups is based on our reputations.
Patrick Vernon • Venture Capital Strategy: How to Think Like a Venture Capitalist
This, in turn, enables excess returns on invested capital for long periods of time (also known as the competitive advantage period, CAP).
Gautam Baid • The Joys of Compounding: The Passionate Pursuit of Lifelong Learning, Revised and Updated (Heilbrunn Center for Graham & Dodd Investing Series)
Comment: Projects with higher risk (such as acquisitions) should require higher returns. Be very wary of the adjective strategic—it is often corporate code for low returns. 4. Calculate the return for stock repurchases. Require that acquisition returns meaningfully exceed this benchmark. Comment: While stock buybacks were a significant source of
... See moreWilliam Thorndike • The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
The cash-on-cash return (also called the equity dividend rate) is the ratio between the property’s cash flow in a particular year (usually before taxes) and the amount of the initial capital investment. It is expressed as a percentage.