Money and Finance
This looks like an interesting paper, and it reminded me of THIS previous post/quote.
- Capital Allocation: Evidence, Analytical Methods, And Assessment Guidance - By Michael Mauboussin And Dan Callahan
Link to paper: Capital Allocation: Evidence, Analytical Methods, and Assessment GuidanceCapital allocation is a senior management team’s most fundamental responsibility. The problem is that many CEOs don’t know how to allocate capital effectively....
- Benjamin Franklin And The Birth Of A Paper Money Economy - By Farley Grubb
Link to: Benjamin Franklin And the Birth of a Paper Money Economy Paper money has often been controversial and misunderstood. Why it has value, why that value changes over time, how it influences economic activity, who should be allowed to make it,...
- The Man Who Saved Aig
Found via Canadian Value Investor. One day you may be lucky enough to rent "Bobby's Cabana," a well-appointed cottage on a lavish estate just north of Dubrovnik, Croatia. It's where the estate's owner, Bobby, really gets to be Bobby -- innkeeper,...
- Building Debt - By Michael Pettis
Before starting on the subject of debt I wanted to make a quick reference to something sent to me by Charles Horner, a senior fellow at the Hudson Institute. I am glad to say that the overinvestment thesis is much more widely acknowledged today than it...
- Dividends Aren't Evil
Matt Yglesias has a post called "Dividends Are Evil", he is right in some ways, but mostly wrong. Let's count the ways: 1. Yglesias begins by saying that dividends are a "triumph of short term thinking"; I could not disagree more. Dividend investing...
Money and Finance
Incentives, Downsizing, and Value Creation at General Dynamics (August 1994 Paper)
This looks like an interesting paper, and it reminded me of THIS previous post/quote.
Link to paper: Incentives, Downsizing, and Value Creation at General Dynamics
In 1991, defense contractor General Dynamics engaged a new management team which adopted an explicit corporate objective of creating shareholder value. The company tied executive compensation to shareholder wealth creation, and subsequently implemented a strategy that included downsizing, restructuring, and exit. Paying large executive cash bonuses amid layoffs ignited controversy. However, by 1993 shareholders realized gains approaching $4.5 billion, representing a dividend-reinvested return of 553%. The study shows how incentives assist in shaping strategy, illustrates the political costs and economic benefits of downsizing, and demonstrates that even firms in declining industries have substantial opportunities for value creation.
- Capital Allocation: Evidence, Analytical Methods, And Assessment Guidance - By Michael Mauboussin And Dan Callahan
Link to paper: Capital Allocation: Evidence, Analytical Methods, and Assessment GuidanceCapital allocation is a senior management team’s most fundamental responsibility. The problem is that many CEOs don’t know how to allocate capital effectively....
- Benjamin Franklin And The Birth Of A Paper Money Economy - By Farley Grubb
Link to: Benjamin Franklin And the Birth of a Paper Money Economy Paper money has often been controversial and misunderstood. Why it has value, why that value changes over time, how it influences economic activity, who should be allowed to make it,...
- The Man Who Saved Aig
Found via Canadian Value Investor. One day you may be lucky enough to rent "Bobby's Cabana," a well-appointed cottage on a lavish estate just north of Dubrovnik, Croatia. It's where the estate's owner, Bobby, really gets to be Bobby -- innkeeper,...
- Building Debt - By Michael Pettis
Before starting on the subject of debt I wanted to make a quick reference to something sent to me by Charles Horner, a senior fellow at the Hudson Institute. I am glad to say that the overinvestment thesis is much more widely acknowledged today than it...
- Dividends Aren't Evil
Matt Yglesias has a post called "Dividends Are Evil", he is right in some ways, but mostly wrong. Let's count the ways: 1. Yglesias begins by saying that dividends are a "triumph of short term thinking"; I could not disagree more. Dividend investing...