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Strong Economy – Strong Buy-Sell Market

Martinka Consulting

The driving force is the baby boomer generation is large and highly entrepreneurial (as per an Intuit study saying this generation owns a disproportionate share of businesses. 70% of medium sized companies will change hands (2008). 70% of medium sized companies will change hands (2008). Easy money. Demographics. And guess what?

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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.

Metrics 30
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Oil’s Boom-and-Bust Cycle May Be Over. Here’s Why

Harvard Business

In fact, 2018 may mark the first year shale producers will be able to fund future expansions of drilling programs through their own cash flow. By 2050, more than half of the world’s passenger cars are likely to be electric vehicles, according to the Morgan Stanley study.

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

MishTalk

So refraining from any forecast of what will happen in the near term, it’s sufficient to observe that the economic data is not nearly as strong as widely perceived, and the impact of QE on stock prices does nothing to improve the underlying cash flows. December 2008 (85). November 2008 (78). October 2008 (108).

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The Comprehensive Business Case for Sustainability

Harvard Business

Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. In the largest study on climate change data and corporations, 8,000 supplier companies (that sell to 75 multinationals) reported on their level of climate risk.

Study 28
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Profit Leakage Calculator: Diagnose How Much Profit a Business is Losing

ConsultX

They are seeing first hand how many opportunities are being missed to improve profitability and cash flow just from existing operations alone. This algorithm has been developed since 2008 and has been constantly improved with the input of over 500 consultants working with 15,000+ businesses.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business

Academic studies have linked the possible effects of short-termism to lower investment rates among publicly traded firms and decreased returns over a multiyear time horizon. Our belief is that the earnings of long-term companies will rely less on accounting decisions and more on underlying cash flow than other companies.