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Why Financial Statements Don’t Work for Digital Companies

Harvard Business

Similarly, Microsoft paid $26 billion for loss-making LinkedIn in 2016, and Facebook paid $19 billion for WhatsApp in 2014 when it had no revenues or profits. This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement.

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How Companies Can Use Investors to Their Advantage

Harvard Business

Yet investors can be a powerful strategic resource, providing not only capital but also less-biased insight into the threats and opportunities that a company encounters. By 2016, the rise of smart phones seemed to have made the company less relevant: Its revenues were at almost the same level they had been a full decade earlier.

Company 28
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Laughable Eurozone Banking "Non-Union"; Expect Disorderly Breakup

MishTalk

A big bank collapse would dwarf the available resources; some €473bn of capital has been pumped into EU banks since 2008. Its resolution system will only be up and running from 2016. He notes that the ECB will end up as "supervisor" of 128 banks with an aggregate balance sheet "somewhere between €26 trillion and €27 trillion."

Banking 73
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Inequality Isn’t Just Due to Market Forces — It’s Caused by Decisions the Boss Makes, Too

Harvard Business

Despite these significant labor investments, from 2007 to the end of 2016, Costco’s stock price increased over 200%, far outpacing the overall growth of the S&P 500 (58%) and that of competitors like Walmart (45%) and Target (26%), which is known to pay workers low wages and offer relatively meager employee benefits.

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Midsize Cities Are Entrepreneurship’s Real Test

Harvard Business

Independently, Michael Porter’s Social Progress Index in 2016 specifically highlighted opportunity in Manizales as significantly higher than both Medellin and Bogota. In contrast, our scale up methodology assumes that selfless contributions of time and resources – donating blood, if you will – for growth can only go so far.

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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

Rather than cut expenditures to a level that could be supported by recurring revenues, the city mostly used non-recurring resources to fill the gap from one fiscal year to the next. It is not a balance sheet test, but a cash flow test. So, Chicago’s structural budget gap is a political, not economic, creature. State Rep.