Market-Expected Return on Investment Bridging Accounting and Valuation
Morgan Stanleymorganstanley.comSaved by Daniel Bakalarz
Market-Expected Return on Investment Bridging Accounting and Valuation
Many companies’ decision-making systems are designed to steer investments to initiatives that offer the most tangible and immediate returns, so companies often favor these and shortchange investments in initiatives that are crucial to their long-term strategies.
Clayton M. Christensen • How Will You Measure Your Life?
Accounting is the language of business and you need to understand it to appreciate economic value and to assess competitive positioning. Investors face a slew of psychological challenges. Perhaps the most difficult is updating beliefs when new information arrives. Position sizing and portfolio construction still do not get the attention they warran... See more
Dan Callahan • Reflections on the Ten Attributes of Great Investors
A word on rate of return as a strategic principle of business. I am not going to say that rate of return is a magic wand for every occasion in business. There are times when you have to spend money just to stay in business, regardless of the visible rate of return. Competition is the final price determinant and competitive prices may result in prof
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There are some phenomenal products in some of the companies that were overfunded and are haunted by past decisions. The valuations at which these companies raised capital set them on the wrong path - a path that fails to attract and reward critical talent, a path that incentivizes excess expenditure for growth at the expense of structuring a busine... See more