Raising the Bar, Creating Wealth
At HOLT, we measure the wealth creation of over 20,000 stocks worldwideall relative to an appropriate market index for their country. HOLT tracks about 6,000 stocks in the U.S. and compares them to the S&P index on a weekly basis while providing insight on those who are and could be performing better than the benchmarks.
You can't have a big growing company like Wal-Mart or REX Stores without having practically all individual locations earning above its cost of capital. For a manufacturing companybig ones and small onesyou can't make money and grow unless you identifyand invest inthose products and processes that earn above the cost of capital. That's why big companies like Wal-Mart, GE and Motorola have succeeded while companies like Service Merchandise, Zenith and Westinghouse have almost gone out of business. If you understand the concept of earning a positive return or spread above the cost of capital, you will be able to build a more profitable and growing business. In so doing, they create wealth for the company owners and/or shareholders and or employees.
To create real wealth, it is necessary to not only meet but to beat the average return of alternative investments like an index fund composed of the S&P 500 stocks.