Hello, everyone, I want to open with some thoughts on a subject I find interesting. I will then update you on a couple of things going on at ASA.
Not long ago, I was discussing forecasts with a colleague, and he said something to the effect of “I am an economist, so I evaluate things not based on what the client tells me, but what the behavior has been.” How much do you focus on what the client tells you versus the behavior?
For example, if a client has spent on average $1 million per year on capital expenditures, would you believe him or her if they told you confidently that expenditures would not exceed $250,000 each year in the long term? Probably nine out of ten projections I review show SG&A costs growing more slowly than revenues and, therefore, increasing margins. Usually management is very confident in these types...
