For individuals, your labor alone will never make you rich. Working harder and longer may create a small boost in income, but you will never become truly rich this way. To become truly rich requires that you control consumption and invest your excess capital to make your money work for you.
The same is true with business. Using a company’s free cash to buy more inventory is like working longer and harder at your job. It might allow you to bring in a little more money, but it will never make the company grow rich. However, investing the free cash in R&D efforts to develop a new product line can make a company grow and become rich.
Do you understand your investment strategy?
IF YOU LIKE OUR CONTENT PLEASE SUBSCRIBE AND SHARE IT ON YOUR SOCIAL MEDIA CHANNELS. THANK YOU!