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Fool Me Once Or Fool Me All The Time

Martinka Consulting

First, five points from the article I found interesting and then some comparisons to other areas of business. A 1932 research paper showed firms had loaded up with cash and post-crash, “companies were flush with cash and investors beleaguered,” which they wouldn’t pay out. Zweig asks, “Can “Ebidtdaft” be far behind?”.

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Is Corporate Short-Termism Really a Problem? The Jury’s Still Out

Harvard Business

The observation that many “unicorn” companies with no profits — and sometimes no revenues or even fully developed products — get valued so highly makes me skeptical of the idea that the capital market is systematically myopic. Some companies have great ideas, great management teams, and compelling strategies.

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How Incentives for Long-Term Management Backfire

Harvard Business

Why isn’t more of that cash going into developing businesses for long-term gains — the big, outsized gains that come from big bets on the future? Their measurements conflict with their managerial inclinations, encouraging them to use earnings booked today to immediately return cash to shareholders.

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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business

And our analysis suggests there are strategies that they can use to compete successfully online. By comparison, online lenders face capital costs that can be higher than 10%, sourced from potentially fickle institutional investors like hedge funds. Lending to small and medium-sized businesses is ready to move online. Eastern Bank).

Banking 35
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5 Ways the Best Companies Close the Strategy-Execution Gap

Harvard Business

Executives say that they lose 40% of their strategy’s potential value to breakdowns in execution. In our experience at Bain & Company, however, this strategy-to-performance gap is rarely the result of shortcomings in implementation; it is because the plans are flawed from the start. Value flexibility.