We tend to get our understanding of profit measurements confused. At least I do.
Last week, I had lunch and a good conversation with my old friend Jay Franklin, a no-till farmer from Vinita, Okla., who has always been an economist at heart and, for several years now, a banker, too.
I was lamenting the change in business attitudes in corporate America, how 10% was once considered a good return but now most companies want 20-30%.
Jay asked me if I was confusing return on investment with return on equity.
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