The DuPont Return on Equity Model: Boston Beer & Brown-Forman as Case Studies

The DuPont Return on Equity Model: Boston Beer & Brown-Forman as Case Studies

The financial ratios that make up the Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC) have been on my mind lately. Today I wanted to touch on Return on Equity. The DuPont return on Equity Model breaks down the components that drive profitability in a businesses. Let’s take a closer look at two businesses that generate fantastic Returns on Equity to see what makes them tick.

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Random Musings on Wage Stagnation, Inflation, and Vancouver Housing

Random Musings on Wage Stagnation, Inflation, and Vancouver Housing

I was looking at the hourly wages at my job back in 1992 in an old contract. When you adjust the hourly wage to 2016 dollars, there has literally been no real – i.e. inflation adjusted – growth in the hourly wage for over 24 years. What you could buy with an hours’ worth of work back in 1992 buys you the same amount of goods with 2016 dollars. Or put another way…

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Mental Model: LIFEMORTS

Interrupting your regularly scheduled broadcast of my monotone voice reading out Berkshire Hathaway’s annual shareholders letter from 1977 onward (find 1977 here and 1978 here) – which got interrupted, first by a weekend of intense video gaming with a friend visiting from out of town and then by Father’s Day, but should be back on track starting this weekend with 1979 almost fully recorded – I recently finished Why We Snap: Understanding the Rage Circuit in Your Brain by Douglas Fields and I wanted to try something slightly ambitious: connect the main concept of the acronym LIFEMORTS from the book into the Trump phenomenon. Bloody hell that sentence was the length of a paragraph. My sentences seem to get longer and longer with each passing year out of school.

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