Originally Posted by
TurboFanMan
Franke isn’t interested in single digit profits. Time to clean house up top, hopefully sooner than later.
To be fair, if you skip to 19:00 in the CAPA interview, Franke stated, “At the end of the day, I can’t survive low single-digit returns on capital.”
He did not say, “At the end of the day, I can’t survive low, single-digit returns on capital.” (Note the placement of the comma.)
The conversation they were having was not that single-digit returns are bad but, instead, that single-digit returns on the low end of the scale are bad, i.e. less than 5%.
This is my interpretation, anyway.