Jack Hough’s article, “Why More is Less” in this month’s Smart Money magazine quotes a stat, I found very interesting:
"A study published in The Journal of Finance found that over the 35 years ended in 2003, shares of companies with little or negative asset growth in a given year outperformed those with fast asset growth by nearly 20 percentage points in the following year and continued outperforming for five years."What this means is companies who are increasing their ROI (returns on investment) with less stuff actually are better bets than those who gain in both returns and stuff.
Seems a bit logical, stuff takes time and money to maintain. It drains resources away from the mission of the company when it breaks down or is not functioning correctly.
There also seems to be a general principle here that translates over to the personal balance sheet, and it had me thinking of where I could maximize my ROI – God’s Kingdom. After all, He takes dirty ragamuffins, cleanses them and equips them for service for Him.
Maybe then I should be asking myself this question: are there areas where my earthy ‘assets’ are minimizing His Kingdom ROI?
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