The fact is, there's no single magic number that defines profitability for a game.
Obviously, consideration of costs is key, including opportunity costs. Of course capital isn't free. It's easy to figure out your cost of borrowing, but theorists went bonkers on the cost of equity capital. They say that if you're generating a 100% return on capital, then you shouldn't invest in something that generates an 80% return on capital. It's crazy.
The more you learn the more you earn.
There is no such thing as Something for nothing.
About this business of being a gentleman: I paid so heavily for the fourteen years of my gentleman's education that I feel entitled, now and then, to get some sort of return.
Making an investment decision is like formulating a scientific hypothesis and submitting it to a practical test. The main difference is that the hypothesis that underlies an investment decision is intended to make money and not to establish a universally valid generalization.
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong
We regard using [a stock's] volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return. Some great businesses have very volatile returns - for example, See's [a candy company owned by Berkshire] usually loses money in two quarters of each year - and some terrible businesses can have steady results.
While theoretically and technically television may be feasible, commercially and financially I consider it an impossibility.
As a producer or financier, you are going to go where you get the best bang for your buck.
We're looking to have the ability to come in and be able to capitalize on the marketing in order to grow the top-line. We basically leverage what has worked with our other successful acquisitions - investment in marketing, retention and student services.
Using volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return.
Most of the things I do brand wise are both missionary and mercenary in their position, and that's really important to me; that's one of the first things I look at when I say, 'does it make sense to do a deal?'
I have a business to run and stockholders to think about.
I never lost money by turning a profit.
Capital is money, capital is commodities. By virtue of it being value, it has acquired the occult ability to add value to itself. It brings forth living offspring, or, at the least, lays golden eggs.
When you make a film, you will either make money or won't.
We're guessing at our future opportunity cost. Warrenis guessing that he'll have the opportunity to put capital out at high rates of return, so he's not willing to put it out at less than 10% now. But if we knew interest rates would stay at 1%, we'd change. Our hurdles reflect our estimate of future opportunity costs.
Revenue cures everything in the business world.
A lot of people love Oreos. So their manufacturer is making money. That means more dividends for shareholders.
I've made a payroll. I know what it's like to execute a business plan. I know what it's like to expect the proper return on investment... and I know you can't spend your way out of debt.
Our progress isn't just limited to the operation. Financially, we have been performing well. United's 2015 earnings were one of the best in the company's history, and we made significant progress shrinking the margin gap with our closest competitors, strengthening our balance sheet, and returning significant cash to shareholders.
If you're going to charge someone for something, you have to show them value for it.
I want to make sensible commercial films.
Anything that won't sell, I don't want to invent. Its sale is proof of utility, and utility is success.
