Why Profit Is an Illusion: The Real Math of Success (Mihir Desai)

Think about the biggest lie we are taught about business: that profit is the ultimate measure of success. What if profit is just an opinion, and cash is the only verifiable fact? Today, we explore Mihir Desai’s brilliantly disruptive book, How Finance Works, to reveal why highly 'profitable' companies can suddenly go bankrupt and how to separate accounting fiction from financial reality. We break down the infamous W.T. Grant collapse and introduce the real oxygen of your business: Free Cash Flow.Ready to stop flying blindfolded? Upgrade to Premium for our full 20-minute deep dive. We unpack the exact ROIC framework used by Amazon, Mark Zuckerberg's billion-dollar capital allocation masterclass at Meta, and the dangerous traps of the 'MBA Disease'. Upgrade now to master the numbers!Become a supporter of this podcast: https://www.spreaker.com/podcast/momentum-your-daily-edge-in-leadership--6706012/support.Enjoyed this 5-minute briefing?The full, 20-minute deep dive on this book is waiting for you in our premium feed.Unlock the masterclass to get every key lesson, framework, and actionable insight.🚀 Subscribe to Momentum Premium here!