Letters to a Young Peter

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Hello,

As I am reading through your thoughts I am trying to apply your terminology onto my perception. I failed to understand what is the link between return on key components vs. financial term internal rate of return.

Am I right if I state that ROCK is analysis of the very core of the business, process that takes assets, transforms into products and via distribution channels delivers to your customer. While IRR is simply monetary explication on how capital invested multiplies over the time period?

Which is something totally different because ROCK evaluates the core factor of business while IRR does not take respect to particular company operations creating added value yet both can be expressed in monetary terms?

Or is ROCK simply a selective yet precise analysis of company assets, transformation and delivery to customer without monetary quantification?

Or is ROCK added value with or without respect to price of initial assets?

Does it make sense?

Peter


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