Practitioners typically inherit an anti-growth tilt from issue fashions, but company finance implies that scaling optimistic–internet current worth alternatives creates worth. We reconcile these views by exhibiting that the funding–return relation is conditional on profitability: When profitability exceeds the price of capital, further funding raises worth and predicts increased returns, holding valuation fixed. We operationalize this wealth-creation channel because the interplay of profitability and funding. In US equities (1963–2024), a protracted–brief wealth creation issue delivers alphas as much as 31 bps monthly (25.5 bps monthly internet of transaction prices) and raises the tangency Sharpe ratio by as much as 10% over the Fama–French five-factor mannequin.
