Cues from private equity

Hugh MacArthur, a partner at consulting firm Bain & Company, says executives can learn lessons from private equity firms, which make investments in firms that don't trade on public stock exchanges. The most successful ones have a formula for generating strong profits for investors, surpassing earnings growth at most corporations. "It's important for companies to listen to these lessons right now because the economy is getting more challenging," he told IBD.

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