Posts filed under “Corporate Management”

10 Insane Things We Believe On Wall Street

To outsiders, Wall Street is a manic, dangerous and ridiculous republic unto itself – a sort of bizarro world where nothing adds up and common sense is virtually inapplicable.

Consider the following insane things that we believe on Wall Street, that make no sense whatsoever in the real world:

1. Falling gas and home heating prices are a bad thing

2. Layoffs are great news, the more the better

3. Billionaires from Greenwich, CT can understand the customers of JC Penney, Olive Garden, K-Mart and Sears

4. A company is plagued by the fact that it holds over $100 billion in cash

5. Some companies have to earn a specific profit – to the penny – every quarter but others shouldn’t dare even think about profits

6. Wars, weather, fashion trends and elections can be reliably predicted

7. It’s reasonable for the value of a business to fluctuate by 5 to 10 percent within every eight hour period

8. It’s possible to guess the amount of people who will get or lose a job each month in a nation of 300 million

9. The person who leads a company is worth 400 times more than the average person who works there

10. A company selling 10 million cars a year is worth $50 billion, but another company selling 40,000 cars a year is worth $30 billion because its growing faster

Away from Wall Street, no one believes in any of this stuff. It’s inconceivable. On Wall Street, these are core tenets of our collective philosophy.

No wonder everyone else thinks we’re insane.

Category: Corporate Management, Investing, Philosophy, Really, really bad calls

9 Out Of 10 Big Pharma Companies Spent More On Marketing Than On R&D

Source: Dadaviz See Also: John Oliver attacked Big Pharma last night. Here’s one important thing he left out. (WonkBlog)

Category: Corporate Management, Markets, Science

Adventures in Banking: Responsibility & Blame

Morgan Housel makes the delightful if infuriating observation that bank execs take credit — along with fat paychecks and even fatter bonuses — on the way up. On the way down, its always seems to be someone else’s fault: Robert Rubin, a former Treasury Secretary, joined Citigroup in 1999 as chairman of the executive committee. He was…Read More

Category: Bailouts, Corporate Management, Really, really bad calls

The Activist Investor Scorecard

Source: NY Times

Category: Corporate Management, Investing

Shareholder Value Maximization: The World’s Dumbest Idea?


Source: CFA Institute

Category: Corporate Management, Investing, Video

Exporting Corruption

From Transparency International: The OECD Anti-Bribery Convention, adopted in 1997, requires each signatory country to make foreign bribery a crime for which individuals and enterprises are responsible. The Convention is a key instrument for curbing the export of corruption globally because the 41 signatory countries are responsible for approximately two-thirds of world exports and almost…Read More

Category: Corporate Management, Legal, Politics

American Red Cross Wasted Millions of Dollars of Sandy Donations

The American Red Cross has become a man-made disaster. It wasted millions of dollars in Hurricane Sandy aid through mismanagement and poor judgment. It compounded the snafu by covering up its errors, hiring lawyers to prevent the public from finding out what happened to its donations. Earlier this year, I expressed my disappointment in the…Read More

Category: Corporate Management, Really, really bad calls

Walmart: King of Solar Power Adoption

Source: Slate

Category: Corporate Management, Energy, Technology

Buybacks: Money well spent?

Great charts from the FT’s weekend article, titled Buybacks: Money well spent?:

 

 


Source: FT
 
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Category: Corporate Management, Finance, Markets

Bill Gross’s Farewell Letter to PIMCO

Bill Gross, founder of Pimco, and its chief investment officer for the past 40 or so years, resigned last week. Rumor has it that he was but two steps ahead of a mutinous gang, swords out, planning to make him walk the plank. Gross was too quick and before the mutineers could force him, he…Read More

Category: Corporate Management, Fixed Income/Interest Rates