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by dingaling 2662 days ago
Some profit is useful for saving as a cushion. But in general remember that profit is money that the business literally didn't find a way to spend, to the extent that they're willing to throw away 20% of it as tax.

I'd rather deal with a company that ploughs surplus back into salaries or R&D or even charity than squandering it as profit.

1 comments

Agreed, but on a transaction level having higher profit MARGINS is what enables the company to have money to plow back into the business.