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Profit maximization can be considered the most important objective for a business or any investment After all shareholders

invest their hard earned money into the business in the hope of commensurate reward for their 'risk capital'. Nowadays the concept has expanded into a three pronged approach where people, planet and profit are the three pillars of achievement

Is the profit-margin worth looking at? if sales keep on growing without growth in profits it won't make any difference to an investor. Increased sales without a corresponding increase in profits is meaningless sustainable profit margins? When one buys a car or a television one buys it on the basis of the current utility of the product. Unfortunately this is not the case with Business. The success of a Business purchase does not depend on what is generally known about the company at the time of the purchase. Rather it depends on what is discovered about the company after it is bought. Therefore it is not the profit margins of the past, but rather the future profit margins which are of concern to an investor Does the company have a long range or short range profit outlook? If you entered an investment in an industry which is just starting Ex. The real estate business of uganda and your main target was to profit on the purches sale transaction you would miss out on the rental income wich has grown rapidly over years. A person who is in it for the short term may just book 15-20% gains on an investment purchase. But may lose out on potential multi-baggers over the long term Think of it this way if one bought a toll bridge (Jinja Bridge) at 100,000 in 1962 in eras ware the uganda had not more than 1,000,000 cars and not more than 1,000 cars use the bridge on the daily basis and sold in 1970 at 180,000 he would have got a profit from that investment but would have missed the era like 2000 when the bridge is used by more than 100,000 cars daily and no futher investment has been put in since then. Please its my thinking advice any ware the more we clean our glasses the clearer we can see

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