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So, something I said today: There are business operators who know ROIC *touches head* And then there are business operators who know ROIC *touches heart* The latter group are vastly more successful than the former.

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Cedric Chin

@ejames_c

Feb 24, 2021

This is something that I do in real world conversation that I have trouble replicating online: There’s a difference between knowing *touches head* And knowing *touches heart* The trouble is going from the first to the second.

1:34 PM · Mar 19, 2021Twitter Web App

Replying to

The more mundane observation here is that some business people know how to grow their company without dying, and others don't.

Cedric Chin

@ejames_c

Mar 19, 2021

Like, you can tell, when you are talking to a business operator, if they have an intuitive understanding of "oh, maybe I shouldn't continually reinvest in this company, because each marginal dollar I put back in doesn't seem to result in as much good shit as two years ago".

Cedric Chin

@ejames_c

Mar 19, 2021

And they either have this intuitive sense or they do not. Interestingly enough, whether they have it seems orthogonal to whether they know of ROIC as a concept. It's truly two different things to know *touch head* and to know *touch heart*.