The primary driver of returns for high profitability companies…

The primary driver of returns for high profitability companies is growth in assets. High profitability companies mostly deliver returns by getting bigger, with a decrease in gross profit/assets ratio offset by an increase in valuation multiple.

— from Expanding Your Range (Growth/Change/Education/Learning/Habit) · Humble Investor: How to Find a Winning Edge in a Surprising World by Daniel Rasmussen

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