Practitioners usually inherit an anti-growth tilt from issue fashions, but company finance implies that scaling constructive–web 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 larger returns, holding valuation fixed. We operationalize this wealth-creation channel because the interplay of profitability and funding. In US equities (1963–2024), an extended–quick wealth creation issue delivers alphas as much as 31 bps monthly (25.5 bps monthly web of transaction prices) and raises the tangency Sharpe ratio by as much as 10% over the Fama–French five-factor mannequin.
