Originally Posted by
Blackhawk
A get irritated when people get caught up on "profit" and "revenue". Yes, this is a good turn around, but it is still a -3.3% return on investment, a better calculation of how much money a company is making. The press seems to forget this as do the people. It makes it easier to thrash the "evil large corporations" when you report their profit instead of their ROI.
That's how buffett determines if he should buy a company or not. People put too much emphasis on profit. Like you said, if you put $500 million into Company "A" that made $50 million, or put $5 million into Company "B" that made $10 million, the winner is Company "B" even though they had significantly less profit.
Airlines, however, have always had low ROI due to the high cost of entry (ie equipment), so I welcome ANY profit at this point
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