M. Barton Waring
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199573349
- eISBN:
- 9780191721946
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199573349.003.0004
- Subject:
- Business and Management, Public Management, Pensions and Pension Management
Unless defined benefit pension plans are managed much better and more cost-effectively, they will be replaced by defined contribution plans. Benefit and contribution policies need to be carefully ...
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Unless defined benefit pension plans are managed much better and more cost-effectively, they will be replaced by defined contribution plans. Benefit and contribution policies need to be carefully evaluated to make sure that a reasonable level of ongoing contributions, together with investment income, are adequate to fund the defined benefit plan without unpleasant surprises. Unless valuation and contribution conventions change to market-valued economically based quantities, decision makers will lack the right information with which to make informed policy decisions.Less
Unless defined benefit pension plans are managed much better and more cost-effectively, they will be replaced by defined contribution plans. Benefit and contribution policies need to be carefully evaluated to make sure that a reasonable level of ongoing contributions, together with investment income, are adequate to fund the defined benefit plan without unpleasant surprises. Unless valuation and contribution conventions change to market-valued economically based quantities, decision makers will lack the right information with which to make informed policy decisions.
Don Rose and Cam Patterson
- Published in print:
- 2016
- Published Online:
- May 2016
- ISBN:
- 9781469625263
- eISBN:
- 9781469625287
- Item type:
- chapter
- Publisher:
- University of North Carolina Press
- DOI:
- 10.5149/northcarolina/9781469625263.003.0003
- Subject:
- Business and Management, Innovation
A university startup has a number of characteristics, many of which are common to any startup. Central to the startup is the business model, the mechanism by which the company will create, market, ...
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A university startup has a number of characteristics, many of which are common to any startup. Central to the startup is the business model, the mechanism by which the company will create, market, and sell products and services in exchange for money from the customer. In addition, university startups involve many discrete operations including technology development, product development, sales and marketing, and manufacturing. The university startup is set in the context of an ecosystem composed of the university, people, and money. The university provides the innovation, usually in the form of intellectual property by way of a license, around which the startup is formed. People provide the expertise, management, judgement, decision-making, advice, and connections essential for launching and growing a startup. Money is the fuel to build the startup. It comes in two basic forms: dilutive and non-dilutive. The former involving a sharing of the company ownership and the latter not.Less
A university startup has a number of characteristics, many of which are common to any startup. Central to the startup is the business model, the mechanism by which the company will create, market, and sell products and services in exchange for money from the customer. In addition, university startups involve many discrete operations including technology development, product development, sales and marketing, and manufacturing. The university startup is set in the context of an ecosystem composed of the university, people, and money. The university provides the innovation, usually in the form of intellectual property by way of a license, around which the startup is formed. People provide the expertise, management, judgement, decision-making, advice, and connections essential for launching and growing a startup. Money is the fuel to build the startup. It comes in two basic forms: dilutive and non-dilutive. The former involving a sharing of the company ownership and the latter not.
Nils Ringe
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199572557
- eISBN:
- 9780191722431
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199572557.003.0004
- Subject:
- Political Science, Comparative Politics, European Union
Chapter 4 revisits the book's theoretical framework by questioning the assumption of the perceived preference coherence model that nonexpert MEPs blindly adopt the policy positions of ‘their’ expert ...
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Chapter 4 revisits the book's theoretical framework by questioning the assumption of the perceived preference coherence model that nonexpert MEPs blindly adopt the policy positions of ‘their’ expert colleagues when making policy choices. Recognizing that this assumption is problematic, the chapter introduces the distinction between indifferent and invested legislators. Unlike their indifferent colleagues, invested legislators consider a proposal salient enough to want to know how it relates to their most preferred outcomes. This information is provided by policy experts in the form of focal points, which summarize and evaluate the expected implications of the legislation. Invested legislators are not equally receptive of all focal points, however. Only if they perceive to share a common set of preferences concerning desirable policy outcomes with the provider of focal points will they accept and act upon their input. In other words, perceived preference coherence remains key to understanding policy choice.Less
Chapter 4 revisits the book's theoretical framework by questioning the assumption of the perceived preference coherence model that nonexpert MEPs blindly adopt the policy positions of ‘their’ expert colleagues when making policy choices. Recognizing that this assumption is problematic, the chapter introduces the distinction between indifferent and invested legislators. Unlike their indifferent colleagues, invested legislators consider a proposal salient enough to want to know how it relates to their most preferred outcomes. This information is provided by policy experts in the form of focal points, which summarize and evaluate the expected implications of the legislation. Invested legislators are not equally receptive of all focal points, however. Only if they perceive to share a common set of preferences concerning desirable policy outcomes with the provider of focal points will they accept and act upon their input. In other words, perceived preference coherence remains key to understanding policy choice.
Georgia Levenson Keohane
- Published in print:
- 2016
- Published Online:
- September 2017
- ISBN:
- 9780231178020
- eISBN:
- 9780231541664
- Item type:
- book
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231178020.001.0001
- Subject:
- Business and Management, Business Ethics and Corporate Social Responsibility
Despite social and economic advances around the world, poverty and disease persist, exacerbated by the mounting challenges of climate change, natural disasters, political conflict, mass migration, ...
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Despite social and economic advances around the world, poverty and disease persist, exacerbated by the mounting challenges of climate change, natural disasters, political conflict, mass migration, and economic inequality. While governments commit to addressing these challenges, traditional public and philanthropic dollars are not enough. Here, innovative finance has shown a way forward: by borrowing techniques from the world of finance, we can raise capital for social investments today. Innovative finance has provided polio vaccines to children in the DRC, crop insurance to farmers in India, pay-as-you-go solar electricity to Kenyans, and affordable housing and transportation to New Yorkers. It has helped governmental, commercial, and philanthropic resources meet the needs of the poor and underserved and build a more sustainable and inclusive prosperity.
Capital and the Common Good shows how market failure in one context can be solved with market solutions from another: an expert in securitization bundles future development aid into bonds to pay for vaccines today; an entrepreneur turns a mobile phone into an array of financial services for the unbanked; and policy makers adapt pay-for-success models from the world of infrastructure to human services like early childhood education, maternal health, and job training. Revisiting the successes and missteps of these efforts, Georgia Levenson Keohane argues that innovative finance is as much about incentives and sound decision-making as it is about money. When it works, innovative finance gives us the tools, motivation, and security to invest in our shared future.Less
Despite social and economic advances around the world, poverty and disease persist, exacerbated by the mounting challenges of climate change, natural disasters, political conflict, mass migration, and economic inequality. While governments commit to addressing these challenges, traditional public and philanthropic dollars are not enough. Here, innovative finance has shown a way forward: by borrowing techniques from the world of finance, we can raise capital for social investments today. Innovative finance has provided polio vaccines to children in the DRC, crop insurance to farmers in India, pay-as-you-go solar electricity to Kenyans, and affordable housing and transportation to New Yorkers. It has helped governmental, commercial, and philanthropic resources meet the needs of the poor and underserved and build a more sustainable and inclusive prosperity.
Capital and the Common Good shows how market failure in one context can be solved with market solutions from another: an expert in securitization bundles future development aid into bonds to pay for vaccines today; an entrepreneur turns a mobile phone into an array of financial services for the unbanked; and policy makers adapt pay-for-success models from the world of infrastructure to human services like early childhood education, maternal health, and job training. Revisiting the successes and missteps of these efforts, Georgia Levenson Keohane argues that innovative finance is as much about incentives and sound decision-making as it is about money. When it works, innovative finance gives us the tools, motivation, and security to invest in our shared future.
Jonathan Charkham and Anne Simpson
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198292142
- eISBN:
- 9780191684876
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198292142.003.0016
- Subject:
- Business and Management, Corporate Governance and Accountability, Business History
Against the background of existing or developing obligations and the conclusion that many shares are under the effective control of a relatively small group of fund managers, the question to be asked ...
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Against the background of existing or developing obligations and the conclusion that many shares are under the effective control of a relatively small group of fund managers, the question to be asked concerns what strategies are open to them. If they are in-house, what strategy can they sell to their own management/board? If they are professional fund managers what strategy can they sell to the trustees to whom they look for business or to the consultants advising them? This chapter discusses the three main types which have an impact on corporate governance: active investing, value investing, and indexation.Less
Against the background of existing or developing obligations and the conclusion that many shares are under the effective control of a relatively small group of fund managers, the question to be asked concerns what strategies are open to them. If they are in-house, what strategy can they sell to their own management/board? If they are professional fund managers what strategy can they sell to the trustees to whom they look for business or to the consultants advising them? This chapter discusses the three main types which have an impact on corporate governance: active investing, value investing, and indexation.
Howard Marks
- Published in print:
- 2013
- Published Online:
- November 2015
- ISBN:
- 9780231162845
- eISBN:
- 9780231530798
- Item type:
- book
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231162845.001.0001
- Subject:
- Economics and Finance, Financial Economics
In The Most Important Thing investing insight of this book’s author’s celebrated client memos was distilled into a single text and made his philosophy available to general readers. In this book, this ...
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In The Most Important Thing investing insight of this book’s author’s celebrated client memos was distilled into a single text and made his philosophy available to general readers. In this book, this wisdom is joined by the comments, insights, and counterpoints of four renowned investors and investment educators. These experts lend insight into the most important concepts in successful investing, such as “second-level thinking,” the price/value relationship, patient opportunism, and defensive investing. The author also adds his own annotations, expanding on his book’s original themes and issues. A new chapter addresses the importance of reasonable expectations, and a foreword by Bruce C. Greenwald, called “a guru to Wall Street’s gurus” by the New York Times, speaks on value investing, productivity, and the economics of information. The book provides valuable lessons for critical thinking, risk assessment, and investment strategy. Encouraging investors to be “contrarian,” he judges market cycles and achieves returns through aggressive yet measured action. Which element is the most essential? Successful investing requires thoughtful attention to many separate aspects, and each of the book’s subjects proves to be the most important thing.Less
In The Most Important Thing investing insight of this book’s author’s celebrated client memos was distilled into a single text and made his philosophy available to general readers. In this book, this wisdom is joined by the comments, insights, and counterpoints of four renowned investors and investment educators. These experts lend insight into the most important concepts in successful investing, such as “second-level thinking,” the price/value relationship, patient opportunism, and defensive investing. The author also adds his own annotations, expanding on his book’s original themes and issues. A new chapter addresses the importance of reasonable expectations, and a foreword by Bruce C. Greenwald, called “a guru to Wall Street’s gurus” by the New York Times, speaks on value investing, productivity, and the economics of information. The book provides valuable lessons for critical thinking, risk assessment, and investment strategy. Encouraging investors to be “contrarian,” he judges market cycles and achieves returns through aggressive yet measured action. Which element is the most essential? Successful investing requires thoughtful attention to many separate aspects, and each of the book’s subjects proves to be the most important thing.
Jonathan A. Knee
- Published in print:
- 2016
- Published Online:
- January 2019
- ISBN:
- 9780231179287
- eISBN:
- 9780231543330
- Item type:
- book
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231179287.001.0001
- Subject:
- Business and Management, Corporate Governance and Accountability
The past thirty years have seen dozens of otherwise successful investors try to improve education through the application of market principles. They have funneled billions of dollars into alternative ...
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The past thirty years have seen dozens of otherwise successful investors try to improve education through the application of market principles. They have funneled billions of dollars into alternative schools, online education, and textbook publishing, and they have, with surprising regularity, lost their shirts. In Class Clowns, professor and investment banker Jonathan A. Knee dissects what drives investors' efforts to improve education and why they consistently fail. Knee takes readers inside four spectacular financial failures in education: Rupert Murdoch's billion-dollar effort to reshape elementary education through technology; the unhappy investors—including hedge fund titan John Paulson—who lost billions in textbook publisher Houghton Mifflin; the abandonment of Knowledge Universe, Michael Milken's twenty-year mission to revolutionize the global education industry; and a look at Chris Whittle, founder of EdisonLearning and a pioneer of large-scale transformational educational ventures, who continues to attract investment despite decades of financial and operational disappointment. Although deep belief in the curative powers of the market drove these initiatives, it was the investors' failure to appreciate market structure that doomed them. Knee asks: What makes a good education business? By contrasting rare successes, he finds a dozen broad lessons at the heart of these cautionary case studies. Class Clowns offers an important guide for public policy makers and guardrails for future investors, as well as an intelligent exposé for activists and teachers frustrated with the repeated underperformance of these attempts to shake up education.Less
The past thirty years have seen dozens of otherwise successful investors try to improve education through the application of market principles. They have funneled billions of dollars into alternative schools, online education, and textbook publishing, and they have, with surprising regularity, lost their shirts. In Class Clowns, professor and investment banker Jonathan A. Knee dissects what drives investors' efforts to improve education and why they consistently fail. Knee takes readers inside four spectacular financial failures in education: Rupert Murdoch's billion-dollar effort to reshape elementary education through technology; the unhappy investors—including hedge fund titan John Paulson—who lost billions in textbook publisher Houghton Mifflin; the abandonment of Knowledge Universe, Michael Milken's twenty-year mission to revolutionize the global education industry; and a look at Chris Whittle, founder of EdisonLearning and a pioneer of large-scale transformational educational ventures, who continues to attract investment despite decades of financial and operational disappointment. Although deep belief in the curative powers of the market drove these initiatives, it was the investors' failure to appreciate market structure that doomed them. Knee asks: What makes a good education business? By contrasting rare successes, he finds a dozen broad lessons at the heart of these cautionary case studies. Class Clowns offers an important guide for public policy makers and guardrails for future investors, as well as an intelligent exposé for activists and teachers frustrated with the repeated underperformance of these attempts to shake up education.
John Y. Campbell and Luis M. Viceira
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780198296942
- eISBN:
- 9780191596049
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296940.003.0007
- Subject:
- Economics and Finance, Financial Economics
This chapter uses a life‐cycle model calibrated to microeconomic US data to examine financial asset allocation strategies of working households saving for retirement. For typical US households with ...
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This chapter uses a life‐cycle model calibrated to microeconomic US data to examine financial asset allocation strategies of working households saving for retirement. For typical US households with relatively safe labour income streams, risky investments should be extremely attractive when they are young, have modest savings and have many years until retirement; but risky assets should be less attractive later in life, as human wealth declines and financial assets accumulate. Households whose income comes from private businesses, which are exposed to many of the same risks as publicly traded companies, should find risky investments in stocks less attractive at all ages. Households with high‐risk aversion should be cautious investors both because of their high‐risk aversion and their tendency to accumulate greater precautionary savings. Impatient households, on the other hand, accumulate relatively little savings; financial risks are relatively unimportant for them compared to income risks, and thus they can afford to invest more aggressively.Less
This chapter uses a life‐cycle model calibrated to microeconomic US data to examine financial asset allocation strategies of working households saving for retirement. For typical US households with relatively safe labour income streams, risky investments should be extremely attractive when they are young, have modest savings and have many years until retirement; but risky assets should be less attractive later in life, as human wealth declines and financial assets accumulate. Households whose income comes from private businesses, which are exposed to many of the same risks as publicly traded companies, should find risky investments in stocks less attractive at all ages. Households with high‐risk aversion should be cautious investors both because of their high‐risk aversion and their tendency to accumulate greater precautionary savings. Impatient households, on the other hand, accumulate relatively little savings; financial risks are relatively unimportant for them compared to income risks, and thus they can afford to invest more aggressively.
Marko Dimitrijević
- Published in print:
- 2016
- Published Online:
- September 2017
- ISBN:
- 9780231170444
- eISBN:
- 9780231542357
- Item type:
- book
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231170444.001.0001
- Subject:
- Business and Management, Strategy
Where are the next decade's greatest investment opportunities? Veteran investor Marko Dimitrijevic argues that they can be found in frontier markets, which account for seventy-one of the world's ...
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Where are the next decade's greatest investment opportunities? Veteran investor Marko Dimitrijevic argues that they can be found in frontier markets, which account for seventy-one of the world's seventy-five fastest-growing economies and 19 percent of the world's GDP. Yet many investors ignore them. Fueled by new access to technology and information, frontier markets are emerging even faster than their predecessors, making them an essential component of a globally diversified portfolio. In Frontier Investor, Dimitrijevic shows through colorful case studies, compelling charts, and fascinating travel anecdotes that it is not only possible but prudent to invest in these unfamiliar and undervalued options. Dimitrijevic explains how frontier markets such as Nigeria, Panama, and Bangladesh are poised to follow the similar paths of Chinese, Indian, and Russian markets, which were considered exotic two decades ago. He details a strategy for how and where to invest, directly or indirectly, to profit from frontier growth. Dimitrijevic covers the risks, political and otherwise, of these markets, the megatrends that promise exciting investment opportunities in the coming years, and the prospects for countries beyond the frontier, including Myanmar, Cuba, and even Iran. Rich with experience and insight, Frontier Investor opens up a whole new world—and worldview—to investors.Less
Where are the next decade's greatest investment opportunities? Veteran investor Marko Dimitrijevic argues that they can be found in frontier markets, which account for seventy-one of the world's seventy-five fastest-growing economies and 19 percent of the world's GDP. Yet many investors ignore them. Fueled by new access to technology and information, frontier markets are emerging even faster than their predecessors, making them an essential component of a globally diversified portfolio. In Frontier Investor, Dimitrijevic shows through colorful case studies, compelling charts, and fascinating travel anecdotes that it is not only possible but prudent to invest in these unfamiliar and undervalued options. Dimitrijevic explains how frontier markets such as Nigeria, Panama, and Bangladesh are poised to follow the similar paths of Chinese, Indian, and Russian markets, which were considered exotic two decades ago. He details a strategy for how and where to invest, directly or indirectly, to profit from frontier growth. Dimitrijevic covers the risks, political and otherwise, of these markets, the megatrends that promise exciting investment opportunities in the coming years, and the prospects for countries beyond the frontier, including Myanmar, Cuba, and even Iran. Rich with experience and insight, Frontier Investor opens up a whole new world—and worldview—to investors.
Stefan Nagel
- Published in print:
- 2021
- Published Online:
- May 2022
- ISBN:
- 9780691218700
- eISBN:
- 9780691218717
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691218700.001.0001
- Subject:
- Economics and Finance, Financial Economics
Investors in financial markets are faced with an abundance of potentially value-relevant information from a wide variety of different sources. In such data-rich, high-dimensional environments, ...
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Investors in financial markets are faced with an abundance of potentially value-relevant information from a wide variety of different sources. In such data-rich, high-dimensional environments, techniques from the rapidly advancing field of machine learning (ML) are well-suited for solving prediction problems. Accordingly, ML methods are quickly becoming part of the toolkit in asset pricing research and quantitative investing. This book examines the promises and challenges of ML applications in asset pricing. Asset pricing problems are substantially different from the settings for which ML tools were developed originally. To realize the potential of ML methods, they must be adapted for the specific conditions in asset pricing applications. Economic considerations, such as portfolio optimization, absence of near arbitrage, and investor learning can guide the selection and modification of ML tools. Beginning with a brief survey of basic supervised ML methods, the book discusses the application of these techniques in empirical research in asset pricing and shows how they promise to advance the theoretical modeling of financial markets. The book presents the exciting possibilities of using cutting-edge methods in research on financial asset valuation.Less
Investors in financial markets are faced with an abundance of potentially value-relevant information from a wide variety of different sources. In such data-rich, high-dimensional environments, techniques from the rapidly advancing field of machine learning (ML) are well-suited for solving prediction problems. Accordingly, ML methods are quickly becoming part of the toolkit in asset pricing research and quantitative investing. This book examines the promises and challenges of ML applications in asset pricing. Asset pricing problems are substantially different from the settings for which ML tools were developed originally. To realize the potential of ML methods, they must be adapted for the specific conditions in asset pricing applications. Economic considerations, such as portfolio optimization, absence of near arbitrage, and investor learning can guide the selection and modification of ML tools. Beginning with a brief survey of basic supervised ML methods, the book discusses the application of these techniques in empirical research in asset pricing and shows how they promise to advance the theoretical modeling of financial markets. The book presents the exciting possibilities of using cutting-edge methods in research on financial asset valuation.
Hiroyuki Odagiri and Akira Goto
- Published in print:
- 1996
- Published Online:
- October 2011
- ISBN:
- 9780198288022
- eISBN:
- 9780191684555
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198288022.003.0007
- Subject:
- Economics and Finance, South and East Asia
This chapter starts by introducing one of the biggest companies in Japan in the 1900s, Yawata Steel Works. This company symbolized the result of adopting modern Western technology. The chapter ...
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This chapter starts by introducing one of the biggest companies in Japan in the 1900s, Yawata Steel Works. This company symbolized the result of adopting modern Western technology. The chapter discusses the reasons behind Yawata's success and the history of the government's involvement in the industry. It is obvious that the government and the military played a vital role in the development of the industry. The discussion in this chapter illustrates the situation wherein an introduction of one technology may cause imbalance for further innovations.Less
This chapter starts by introducing one of the biggest companies in Japan in the 1900s, Yawata Steel Works. This company symbolized the result of adopting modern Western technology. The chapter discusses the reasons behind Yawata's success and the history of the government's involvement in the industry. It is obvious that the government and the military played a vital role in the development of the industry. The discussion in this chapter illustrates the situation wherein an introduction of one technology may cause imbalance for further innovations.
John D. Martin, J. William Petty, and James S. Wallace
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195340389
- eISBN:
- 9780199867257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195340389.003.0003
- Subject:
- Economics and Finance, Macro- and Monetary Economics, Financial Economics
This chapter first explains the importance of using a single metric to manage the creation of a firm's value. While multiple-measure techniques such as the balanced scorecard can yield valuable ...
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This chapter first explains the importance of using a single metric to manage the creation of a firm's value. While multiple-measure techniques such as the balanced scorecard can yield valuable information, they fail to provide managers with a means to make necessary tradeoffs. The question then becomes, what metric best measures value creation? The chapter discusses several shortcomings of traditional metrics, both market based (e.g., shareholder return) and accounting based (e.g., net income and return on invested capital). These deficiencies center around the failure of traditional metrics to provide any charge of nondebt financing, therefore leading to a faulty appearance of profitability. Economic profit metrics avoid these pitfalls because they incorporate the magnitude of both the return and the required investment, as well as the opportunity cost of capital. The decision rule becomes simple: Fund projects with expected positive economic profit, and reject the others.Less
This chapter first explains the importance of using a single metric to manage the creation of a firm's value. While multiple-measure techniques such as the balanced scorecard can yield valuable information, they fail to provide managers with a means to make necessary tradeoffs. The question then becomes, what metric best measures value creation? The chapter discusses several shortcomings of traditional metrics, both market based (e.g., shareholder return) and accounting based (e.g., net income and return on invested capital). These deficiencies center around the failure of traditional metrics to provide any charge of nondebt financing, therefore leading to a faulty appearance of profitability. Economic profit metrics avoid these pitfalls because they incorporate the magnitude of both the return and the required investment, as well as the opportunity cost of capital. The decision rule becomes simple: Fund projects with expected positive economic profit, and reject the others.
John D. Martin, J. William Petty, and James S. Wallace
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195340389
- eISBN:
- 9780199867257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195340389.003.0007
- Subject:
- Economics and Finance, Macro- and Monetary Economics, Financial Economics
Single-period performance measures made popular by VBM vendors for the evaluation of a firm's ongoing operations can easily be misinterpreted and misused to evaluate period-by-period performance of ...
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Single-period performance measures made popular by VBM vendors for the evaluation of a firm's ongoing operations can easily be misinterpreted and misused to evaluate period-by-period performance of new investment opportunities. Nothing is wrong with single-period measures of performance per se (e.g., EVA); the problem lies in the use of such measures as indicators of value-creation potential for long-lived projects. In this situation it is best to simply use project NPV, which, furthermore, is completely consistent with EVA when the present value of all future project EVA is considered. The chapter also discusses a modification of EVA that corrects for the problems that arise in the use of traditionally defined EVA in project analysis. However, the fix comes at a high cost in terms of the required information inputs.Less
Single-period performance measures made popular by VBM vendors for the evaluation of a firm's ongoing operations can easily be misinterpreted and misused to evaluate period-by-period performance of new investment opportunities. Nothing is wrong with single-period measures of performance per se (e.g., EVA); the problem lies in the use of such measures as indicators of value-creation potential for long-lived projects. In this situation it is best to simply use project NPV, which, furthermore, is completely consistent with EVA when the present value of all future project EVA is considered. The chapter also discusses a modification of EVA that corrects for the problems that arise in the use of traditionally defined EVA in project analysis. However, the fix comes at a high cost in terms of the required information inputs.
Edward Morris
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780231170543
- eISBN:
- 9780231540506
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231170543.003.0005
- Subject:
- Business and Management, Business History
The chapter describes the life of Charles Merrill and the formation of Merrill Lynch.
The chapter describes the life of Charles Merrill and the formation of Merrill Lynch.
Edward Morris
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780231170543
- eISBN:
- 9780231540506
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231170543.003.0008
- Subject:
- Business and Management, Business History
The life of Benjamin Graham and the development of securities analysis.
The life of Benjamin Graham and the development of securities analysis.
Caroline Heldman
- Published in print:
- 2017
- Published Online:
- May 2018
- ISBN:
- 9781501709203
- eISBN:
- 9781501709470
- Item type:
- book
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9781501709203.001.0001
- Subject:
- Political Science, Democratization
This book is the first to analyze the democratic effects of consumer activism, defined as boycotting, socially responsible investing, social media campaigns, and direct consumer actions. America has ...
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This book is the first to analyze the democratic effects of consumer activism, defined as boycotting, socially responsible investing, social media campaigns, and direct consumer actions. America has had a long and unique history of consumer activism, starting with the Boston Tea Party. Since the founding, activism in the marketplace has been used as a political tool for those who are politically disenfranchised, including the colonists who lacked formal representation in the British parliament, women before suffrage rights, and Black Americans during Jim Crow. More recently, consumer activism has become a countervailing force against overbearing corporate power in politics. This book blends democratic theory with data, historical analysis, and an examination of consumer campaigns for civil rights, environmental conservation, animal rights, gender justice, LGBT rights, and conservative causes. Consumer activism is a democratizing force that improves political participation, self-governance, government accountability, and corporate political accountability.Less
This book is the first to analyze the democratic effects of consumer activism, defined as boycotting, socially responsible investing, social media campaigns, and direct consumer actions. America has had a long and unique history of consumer activism, starting with the Boston Tea Party. Since the founding, activism in the marketplace has been used as a political tool for those who are politically disenfranchised, including the colonists who lacked formal representation in the British parliament, women before suffrage rights, and Black Americans during Jim Crow. More recently, consumer activism has become a countervailing force against overbearing corporate power in politics. This book blends democratic theory with data, historical analysis, and an examination of consumer campaigns for civil rights, environmental conservation, animal rights, gender justice, LGBT rights, and conservative causes. Consumer activism is a democratizing force that improves political participation, self-governance, government accountability, and corporate political accountability.
Howard Marks
- Published in print:
- 2011
- Published Online:
- November 2015
- ISBN:
- 9780231153683
- eISBN:
- 9780231527095
- Item type:
- book
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231153683.001.0001
- Subject:
- Economics and Finance, Financial Economics
After four decades spent ascending to the top of the investment management profession, the author of this book is today sought out by the world's leading value investors, and his client memos brim ...
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After four decades spent ascending to the top of the investment management profession, the author of this book is today sought out by the world's leading value investors, and his client memos brim with insightful commentary and a time-tested, fundamental philosophy. Informed by the author's experience and study, this book explains the keys to successful investment and the pitfalls that can destroy capital or ruin a career. Utilizing passages from his memos to illustrate his ideas, the author teaches by example, detailing the development of an investment philosophy that fully acknowledges the complexities of investing and the perils of the financial world. Brilliantly applying insight to today's volatile markets, the book offers a volume that is part memoir, part creed, with a number of broad takeaways. It expounds on such concepts as “second-level thinking,” the price/value relationship, patient opportunism, and defensive investing. The book provides valuable lessons for critical thinking, risk assessment, and investment strategy. Encouraging investors to be “contrarian,” it wisely judges market cycles and achieves returns through aggressive yet measured action. Which element is the most essential? Successful investing requires thoughtful attention to many separate aspects, and each of the book's subjects proves to be the most important thing.Less
After four decades spent ascending to the top of the investment management profession, the author of this book is today sought out by the world's leading value investors, and his client memos brim with insightful commentary and a time-tested, fundamental philosophy. Informed by the author's experience and study, this book explains the keys to successful investment and the pitfalls that can destroy capital or ruin a career. Utilizing passages from his memos to illustrate his ideas, the author teaches by example, detailing the development of an investment philosophy that fully acknowledges the complexities of investing and the perils of the financial world. Brilliantly applying insight to today's volatile markets, the book offers a volume that is part memoir, part creed, with a number of broad takeaways. It expounds on such concepts as “second-level thinking,” the price/value relationship, patient opportunism, and defensive investing. The book provides valuable lessons for critical thinking, risk assessment, and investment strategy. Encouraging investors to be “contrarian,” it wisely judges market cycles and achieves returns through aggressive yet measured action. Which element is the most essential? Successful investing requires thoughtful attention to many separate aspects, and each of the book's subjects proves to be the most important thing.
Robert Hagstrom
- Published in print:
- 2013
- Published Online:
- November 2015
- ISBN:
- 9780231160100
- eISBN:
- 9780231531016
- Item type:
- book
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231160100.001.0001
- Subject:
- Economics and Finance, Financial Economics
This updated second edition explores basic and fundamental investing concepts in a range of fields outside of economics, including physics, biology, sociology, psychology, philosophy, and literature. ...
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This updated second edition explores basic and fundamental investing concepts in a range of fields outside of economics, including physics, biology, sociology, psychology, philosophy, and literature. It discusses how the theory of evolution disrupts the notion of the efficient market and how reading strategies for literature can be gainfully applied to investing research. Building on Charlie Munger's famous “latticework of mental models” concept, the book argues that it is impossible to make good investment decisions based solely on a strong knowledge of finance theory alone. The concepts are reinforced with additional data and a new chapter on mathematics, and updated text throughout to reflect the developments of the past decade, particularly the seismic economic upheaval of 2008. Additionally, a hundred new titles have been added to the book's reading list.Less
This updated second edition explores basic and fundamental investing concepts in a range of fields outside of economics, including physics, biology, sociology, psychology, philosophy, and literature. It discusses how the theory of evolution disrupts the notion of the efficient market and how reading strategies for literature can be gainfully applied to investing research. Building on Charlie Munger's famous “latticework of mental models” concept, the book argues that it is impossible to make good investment decisions based solely on a strong knowledge of finance theory alone. The concepts are reinforced with additional data and a new chapter on mathematics, and updated text throughout to reflect the developments of the past decade, particularly the seismic economic upheaval of 2008. Additionally, a hundred new titles have been added to the book's reading list.
Annalisa Primi
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780231175180
- eISBN:
- 9780231540773
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231175180.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter seeks to answer the question of what lessons Africa can learn from the experiences in Latin America given the changing global landscapes that both regions face in pursuing economic ...
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This chapter seeks to answer the question of what lessons Africa can learn from the experiences in Latin America given the changing global landscapes that both regions face in pursuing economic transformation today with the “new geography” of growth, production, trade, and innovation as a result of the rise of emerging economies, especially China.Less
This chapter seeks to answer the question of what lessons Africa can learn from the experiences in Latin America given the changing global landscapes that both regions face in pursuing economic transformation today with the “new geography” of growth, production, trade, and innovation as a result of the rise of emerging economies, especially China.
Antony Bugg-Levine
- Published in print:
- 2011
- Published Online:
- November 2015
- ISBN:
- 9780231158633
- eISBN:
- 9780231530286
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231158633.003.0020
- Subject:
- Economics and Finance, Financial Economics
This chapter explores, from a more practical perspective, sovereign wealth funds (SWFs) and their potential role in helping to form a new form of capitalism, and the benefits that will accrue. It ...
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This chapter explores, from a more practical perspective, sovereign wealth funds (SWFs) and their potential role in helping to form a new form of capitalism, and the benefits that will accrue. It discusses the emergence of a new asset class called impact investing. It is a subset of socially responsible investment (SRI) in which investors are actively placing capital with the intention of addressing social and environmental problems, not through philanthropy but rather using for-profit investments with the intent to solve social problems. SWFs are well positioned to take advantage of this new asset class. In particular, as long-term investors, they are better placed to benefit from these investments, which pay off only after future policy changes have been implemented. By focusing on this asset class, SWF can also play a catalytic role in accelerating reform.Less
This chapter explores, from a more practical perspective, sovereign wealth funds (SWFs) and their potential role in helping to form a new form of capitalism, and the benefits that will accrue. It discusses the emergence of a new asset class called impact investing. It is a subset of socially responsible investment (SRI) in which investors are actively placing capital with the intention of addressing social and environmental problems, not through philanthropy but rather using for-profit investments with the intent to solve social problems. SWFs are well positioned to take advantage of this new asset class. In particular, as long-term investors, they are better placed to benefit from these investments, which pay off only after future policy changes have been implemented. By focusing on this asset class, SWF can also play a catalytic role in accelerating reform.
