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2008 Financial Crisis – Causes and historical context

Tom Spencer

My friends and I walked out of the Big Short several years ago feeling like a group of global financial crisis experts. Many an economics and finance course later, I see that the layers of complexities to the 2008 financial crisis are innumerable. MBS are financial assets with a claim on a pool of mortgages. trillion.

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Winning Isn’t Everything: The Art of Playing Well

Tom Spencer

Michael Porter: Focus on creating value Professor Michael Porter, a leading authority on competitive strategy , has emphasised that the true measure of success for a company is not just its quarterly financial performance, but also how those results are attained. One example of Buffett’s approach is his investment in Coca-Cola.

Ethics 78
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Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

China Financial Markets. Financial Sense. The central effect of QE is not on the real economy, but on financial speculation. As the buyers become less eager and the sellers become more eager, an uneasy period of ‘financial distress’ follows. Top Financial Blog Citations. Burning Platform. Daily Bell.

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Strong Economy – Strong Buy-Sell Market

Martinka Consulting

70% of medium sized companies will change hands (2008). Notice the same predictions from 2008-2015? Cash flow is king (they don’t require full collateralization, but will take as much as they can). Ten percent buyer down payment (minimum), which frees up cash to grow the business. And guess what?

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What GE’s Board Could Have Done Differently

Harvard Business

Since Immelt’s departure, GE’s stock is down another 30%, as its new CEO, John Flannery, has struggled to cope with the cash flow drain from years of problematic acquisitions, divestitures, and buybacks. Because of these dubious decisions, GE’s ratio of debt to earnings has soared from 1.5 in 2013 to 3.7

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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business

Similarly, considering greater accruals (which represent the difference between reported income and operating cash flows) to measure short-term orientation has its difficulties. It assumes that a smaller proportion of cash flows in earnings indicates a myopic firm. Overly optimistic financial statements.

Metrics 31
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4 Assumptions About Risk You Shouldn’t Be Making

Harvard Business

Most executives know that the present value of an investment comes from projecting its cash flows and discounting those numbers into today’s dollars. The way in which many companies make investment decisions blinds them to this reality. That assumes, however, that the base case is zero. They don’t.