We believe that improving the performance of companies can provide 20 times faster economic performance. There are companies consistently growing at over 20 times the rate of other companies. For example, Wal Mart reported a 5 year sales growth of 20.8%, from 1991-1995. Sears Roebuck & Co. reported only 2% and R H Macy & Co. was only -4%. The average for all 39 such publicly traded department stores was 7.06%.
Circuit City has shown a stock appreciation growth of 41.67 compounded for the last 20 years. This means that if you invested only $1 in 1975, then it would have grown to be worth over $965 right now, a progress rate of 20 times the average.
Laurel Entertainment Inc. reported revenue growth of 183.83% from 1975-1985. From the same time period and industry, MCA Inc. was only 12.5%, and Orion Pictures was -2%; an average of 5%, less than 1/20 of what Laurel achieved.
More importantly, if all companies could grow at 20 times their historical rate, this would produce many more goods and services for people, and employment and compensation in income could be a lot greater. By doing this we believe there will be an enormous explosion in the standard of living as well as economics that can be shared with people who can't be economically productive, including some people who are physically or mentally incapable. So, helping increase companies' performance helps society as well as the companies themselves and their shareholders.
Why Companies?
One of the reasons we are so interested in companies is that we feel they provide the most effective means to make progress happen for all of humanity. We see companies as important vehicles for progress because they are able to make bigger, faster and more effective changes than governments or individuals. Individuals can make great changes for themselves, but it takes more than an individual to make and implement huge changes. There are certain kinds of changes that need more than one individual for them to occur. Even Einstein's great ideas took more than Einstein to implement them. A single runner cannot outrun a relay team.Companies are the format in which people work together to be the most economically productive. There may be other, more effective formats, but thus far, this is what we have come up with. A company's productive output also greatly affects individuals, not just a company's profits. For instance, society can come up with better ways of developing beneficial pharmaceuticals and making them readily available to people. Change is truly positive when everyone can benefit from the goods and services that businesses produce.
Jack Rabbit Growth:
Enabling companies to grow 20 times faster. . .
The concept behind improving economic performance for companies is quite simple. Here are the steps we have identified so far that must be taken.
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