The first edition of this book was published in 1990, yet it continues to attract readers around the world. We believe that die book has succeeded because it is grounded in universal economic principles. While we continue to improve and update the text as our experience grows, the fundamental principles do not change. They arc valid across time and geography.
Our message is simple: Companies thrive when they create real economic value for their shareholders. Companies create value by investing capital at rates of return that exceed their cost of capital. This applies equally to U.S., European, and Asian companies. It applies equally to mature manufacturing companies and high-growth Internet companies. Only the implementation details are different.