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There are companies on this planet that can only dream about 25% operating profit.



Google's corporate culture relies on a high profit margin. The perks, the ability to invest in large bets, all hinge on a high profit margin. If their profit margin shrinks you'll end up loosing the culture. Without the culture, Google would turn into an IBM/Oracle/HP.


How on Earth is this relevant? Whatever your salary is, I guarantee there are people on this planet who could only dream of earning that much. Should you earn less because of that?


No, but we're talking about a company, not individual people.


What do you think a company is? A group of individuals.


Sure.... but they are very different things.


Yeah, and value is relative?

Who cares if there’s a consumer staple company with 5% margins out there? Companies are evaluated against their own results and valuation.


So?




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