Valuation Quotes

“This phenomenon has serious consequences for hierarchical organizations. Executives are just as loss-averse when the bets are small as they are when the gambles are large, even though small gambles do not raise the same issues of survival or ruin that provide a rationale for aversion to large risks. What’s more, small gambles offer opportunities for the risk-reducing effects of aggregation.”
― McKinsey & Company Inc., Valuation: Measuring and Managing the Value of Companies

“We've found, empirically, that long-term revenue growth—particularly organic revenue growth—is the most important driver of shareholder returns for companies with high returns on capital.”
― Tim Koller, Valuation: Measuring and Managing the Value of Companies