Asset To The Company Quotes

You may wish to spend a moment thinking about whether this person is an asset or a liability to your company

IP filing is a race. The first person to file and get accepted wins and can shut you down, even if the idea was yours in the first place. Waiting too long means you don’t get a patent. Too many companies do just that.

It’s better to have one huge filing with lots of detail, data, and use cases than a dozen failed filings of five to ten pages each. Minimum filing requirements are not minimum requirements to secure a patent. Who does your patent keep out, and how? Your goal in creating IP is for it to be valuable, to be connected to the company, to be linked to your products or service, and to keep out competitors.

The value of a business is a function of how well the financial capital and the intellectual capital are managed by the human capital. You'd better get the human capital part right.

Hiring is hard. Letting go is harder. It’s far easier to hire the right person from the start than to hire the wrong person, realize they’re a bad fit for your company, and then figure out how to let them go. When you know what you want in a new hire, the hard part gets easier. And when you know how to protect your IP, you don’t have to learn the hard lesson.

Charisma can be as much a liability as an asset, as the strength of your leadership personality can deter people from bringing you the brutal facts.

A company can't produce income without assets. So protecting assets is critical to the survival of every company.

First Who ... Then What. We expected that good-to-great leaders would begin by setting a new vision and strategy. We found instead that they first got the right people on the bus, the wrong people off the bus, and the right people in the right seats—and then they figured out where to drive it. The old adage “People are your most important asset” turns out to be wrong. People are not your most important asset. The right people are.

In a small company, the CTO, R&D, the COO, and even the CEO or cofounders or owners can be responsible for reviewing documentation. Don’t rely on your memory; write it down. Ideas become reality when we speak them and write them. So document them in an idea journal (digital or traditional) without judgment at the time. Inventors (and especially software developers) tend to edit or judge ideas and conclude they are not patentable because they were simple—even though they solve important problems and do not exist elsewhere.

At Mayflower-Plymouth, we are aiming to be one of the largest capital holdings companies around in terms of Net Asset Value.

I’m now much less of an asset to the company than I could be. I keep my head down and for self-preservation just do my work with little conversation with anyone. Yet the irony is this: in my self-preservation, I’m actually destroying myself. In bottling up my unexpressed feelings, I’m making myself sick emotionally and physically.

A company can accept lower margins when it has less debt. Debt forces prices up and because of the risk it adds to the company, it also forces continuous wider margins.

There are lots of ways to measure a company's success. You can look at earnings reports and get really specific with the numbers. You can look at social capital and the influence the company has on people. You can look at the balance sheet and the value of its assets. You can look at its legal framework, it's brand, it's staff. The key to valuing a company is to look at the company holistically.

In Haiti, untitled rural and urban real estate holdings are together worth some 5.2 billion. To put that sum in context, it is four times the total of all the assets of all the legally operating companies in Haiti, nine times the value of all assets owned by the government, and 158 times the value of all foreign direct investment in Haiti's recorded history to 1995.

And I hate to be a stickler for the rules but the Hibatsu Survival Settlement Charter clearly states that any individual who cannot reimburse the company in liquid assets must make it up with voluntary existence suspension.

Those companies that view data as a strategic asset are the ones that will survive and thrive.

The intrinsic value of an asset is determined by the cash flows you expect that asset to generate over its life and how uncertain you feel about these cash flows.

It's hard to keep a company going with little cash, little sales, high debt and decreasing asset values. If a company ever gets into this situation, it's a wrap.

When surplus assets sit idle in companies, this is its own form of waste. Unproductive capital is a form of waste. Idleness is a form of waste.

He's not as bad as everyone makes out. He might buy venerable old companies and strip their assets, causing numerous layoffs and the odd corporate suicide or two, but that's business. Inside, he's a big teddy bear.

Stronger, faster companies can detect and pounce on opportunities, for instance, to take advantage of the downturn by snapping up assets at bargain prices and snatching market share out from under their competitors.

It is no longer just engineers who dominate our technology leadership, because it is no longer the case that computers are so mysterious that only engineers can understand what they are capable of. There is an industry-wide shift toward more "product thinking" in leadership--leaders who understand the social and cultural contexts in which our technologies are deployed. Products must appeal to human beings, and a rigorously cultivated humanistic sensibility is a valued asset for this challenge. That is perhaps why a technology leader of the highest status--Steve Jobs--recently credited an appreciation for the liberal arts as key to his company's tremendous success with their various i-gadgets.

Dedication is a great trait. It’s also the trait most abused by superiors. In short, you are an asset that can be easily replaced. Your proficiency is profitable to the company and makes life easier for supervisors. But the constant imbalance may result in a divorce or decline in health. Is that what you agreed to when you were hired?

In an era of generative AI, trust will accrue greater value in the marketplace. People will elevate trust on their list of prerequisites to purchase and prerequisites to engage with content. Furthermore, there will be a redistribution of income and assets from companies and people who are less trusted to those companies and people who are more trusted.

Raven is an asset in any game including One-Eye. One-Eye cheats. But never when Raven is playing.

ROA: is the company taking the best advantage of assets?   ROA is calculated by dividing the net profit by total assets. For

Give people a voice, encourage, motivate and reward them

People are assets; not expennses.

Productive companies tend to be profitable companies. So using productivity as a prerequisite for where we employ capital is to some extent a guarantee on profit.

My goal is for Mayflower-Plymouth to have the most Assets Under Management than every other Asset Management company.

I vote you fire him and then kick his ass so your liability is reduced to only your personal assets versus the company’s.

The value of a business is a function of how well the financial capital and the intellectual capital are managed by the human capital. You'd better get the human capital part right.

The company’s working capital is the amount of money left over after you subtract current liabilities from current assets. Current Assets  –  Current Liabilities  =  Working Capital

Companies should optimize working capital management because it allows them to maximize efficiency and profitability. Efficient management of working capital ensures that a company has enough liquidity to meet its short-term obligations while minimizing excess capital tied up in non-productive assets, ultimately enhancing cash flow, reducing financing costs, and improving overall financial health.

Leaders of large businesses sometimes make huge bets in expensive mergers and acquisitions, acting on the mistaken belief that they can manage the assets of another company better than its current owners do.

The tech companies are destroying something precious, which is the possibility of contemplation. They have created a world in which we’re constantly watched and always distracted. Through their accumulation of data, they have constructed a portrait of our minds, which they use to invisibly guide mass behavior (and increasingly individual behavior) to further their financial interests. They have eroded the integrity of institutions—media, publishing—that supply the intellectual material that provokes thought and guides democracy. Their most precious asset is our most precious asset, our attention, and they have abused it.

Book Value Book value represents the value at which assets are carried on the “books” of the company. The book value of a company is defined as its total assets less its current liabilities and less any long-term debt.

With real assets, everything is different. The price of real estate, like the price of shares of stock or parts of a company or investments in a mutual fund, generally rises at least as rapidly as the consumer price index.

The Communist Party leadership likes SOEs because they can implement its policies. The Party members who run them can be ordered to carry out Party policies. But many bosses like running SOEs because they provide plenty of opportunities for personal enrichment. Setting up a subsidiary company and appointing oneself to the board is an easy way to make money. Another is to set up a private company owned by a friend or relative and either sell its assets at cheap prices or award it lucrative contracts.

Liquidation Value The liquidation value is what the company’s assets would bring at a forced sale. Normally the liquidation value of a going concern has little relevance since the value of an operating business is much greater than its liquidation value.

Every ‘asset’ is a ‘liability’, unless proven otherwise - even your (share) capital is put under ‘liability’ head, or for that matter manpower as well. Now one who can be the soul of a family, company, society or country and turns these around is a true CEO.

After the New Deal, economists began referring to America’s retirement-finance model as a “three-legged stool.” This sturdy tripod was composed of Social Security, private pensions, and combined investments and savings. In recent years, of course, two of those legs have been kicked out. Many Americans saw their assets destroyed by the Great Recession; even before the economic collapse, many had been saving less and less. And since the 1980s, employers have been replacing defined-benefit pensions that are funded by employers and guarantee a monthly sum in perpetuity with 401(k) plans, which often rely on employee contributions and can run dry before death. Marketed as instruments of financial liberation that would allow workers to make their own investment choices, 401(k)s were part of a larger cultural drift in America away from shared responsibilities toward a more precarious individualism. Translation: 401(k)s are vastly cheaper for companies than pension plans. “Over the last generation, we have witnessed a massive transfer of economic risk from broad structures of insurance, including those sponsored by the corporate sector as well as by government, onto the fragile balance sheets of American families,” Yale political scientist Jacob S. Hacker writes in his book The Great Risk Shift. The overarching message: “You are on your own.

Cash is king. No matter how many good opportunities come your way, do not invest all your cash. If you run out of reserves, the smallest or foolish of things may bring you down. Companies with millions in assets have gone bankrupt because they cannot make a $25,000 payment.

At Mayflower-Plymouth, we see ourselves as primarily a Capital Holdings Company. We aim to continually acquire, own and steward a massive portfolio of assets of various kinds; creating wealth for our partners and enormous value for the people we serve through our stewardship.

Costco is well positioned to buck the ugly trends in retail for a number of reasons, including 11 billion of them sitting in its bank account. Honeywell’s $15 billion will likely carry it into a post-corona land of milk and honey. Johnson & Johnson has nearly $20 billion—it’s not going anywhere. Every one of these companies will have their pick of the assets and customers left behind when their weaker competitors shut down. In every category, there will be more concentration of power in the two or three companies with the strongest balance sheets.

But Sony couldn’t. It had pioneered portable music with the Walkman, it had a great record company, and it had a long history of making beautiful consumer devices. It had all of the assets to compete with Jobs’s strategy of integration of hardware, software, devices, and content sales. Why did it fail? Partly because it was a company, like AOL Time Warner, that was organized into divisions (that word itself was ominous) with their own bottom lines; the goal of achieving synergy in such companies by prodding the divisions to work together was usually elusive. Jobs did not organize Apple into semiautonomous divisions; he closely controlled all of his teams and pushed them to work as one cohesive and flexible company, with one profit-and-loss bottom line. “We don’t have ‘divisions’ with their own P&L,” said Tim Cook. “We run one P&L for the company.

I was targeting good real estate assets overburdened by excessive debt. Well, I began seeing similar scenarios unfold in the corporate world and realized I could provide equity to those companies for a stake at a discounted price, and that would help them position themselves for when the market recovered.

The super-rich have so much that there is no way they can spend all of it on things they can use, so they recycle the rest into further rounds of speculation, buying up property, companies and financial assets that generate little or no productive investment, and merely siphon off more wealth that others have produced.

company and for similar companies in the same industry. • The percentage of institutional ownership. The lower the better. • Whether insiders are buying and whether the company itself is buying back its own shares. Both are positive signs. • The record of earnings growth to date and whether the earnings are sporadic or consistent. (The only category where earnings may not be important is in the asset play.) • Whether the company has a strong balance sheet or a weak balance sheet (debt-to-equity ratio) and how it’s rated for financial strength. • The cash position. With $16 in net cash, I know Ford is unlikely to drop below $16 a share. That’s the floor on the stock. SLOW GROWERS • Since you buy these for the dividends (why else would

The best foundation for a successful investment—or a successful investment career—is value. You must have a good idea of what the thing you’re considering buying is worth. There are many components to this and many ways to look at it. To oversimplify, there’s cash on the books and the value of the tangible assets; the ability of the company or asset to generate cash; and the potential for these things to increase.

Sometimes the foreign direct investor may even actively destroy the existing productive capabilities of the company bought by engaging in 'asset stripping'. For example, when the Spanish airline Iberia bought some Latin American airlines in the 1990s, it swapped its own old planes for the new ones owned by the Latin American airlines, eventually driving some of the latter into bankruptcy due to a poor service record and high maintenance costs.

Every innovation—technological, sociological, or otherwise—begins as a crusade, organizes itself into a practical business, and then, over time, degrades into common exploitation. This is simply the life cycle of how human ingenuity manifests in the material world. What goes forgotten, though, is that those who partake in this system undergo a similar transformation: people begin as comrades and fellow citizens, then become labor resources and assets, and then, as their utility shifts or degrades, transmute into liabilities, and thus must be appropriately managed. This is a fact of nature just as much as the currents of the winds and the seas. The flow of force and matter is a system, with laws and maturation patterns. We should harbor no guilt for complying with those laws—even if they sometimes require a little inhumanity. —TRIBUNO CANDIANO, LETTER TO THE COMPANY CANDIANO CHIEF OFFICER’S ASSEMBLY

Communist Romania almost everything was owned by the state. Democratic Romania quickly privatised its assets, selling them at bargain prices to the ex-communists, who alone grasped what was happening and collaborated to feather each other’s nests. Government companies that controlled national infrastructure and natural resources were sold to former communist officials at end-of-season prices while the party’s foot soldiers bought houses and apartments for pennies. Ion Iliescu was elected president of Romania, while his colleagues became ministers, parliament members, bank directors and multimillionaires. The new Romanian elite that controls the country to this day is composed mostly of former communists and their families. The masses who risked their necks in Timişoara and Bucharest settled for scraps, because they did not know how to cooperate and how to create an efficient organisation to look after their own interests.21

JIT is a technique used to eliminate the waste of excess inventory. Parts and materials are “pulled” through the production process only as needed, rather than “pushed” out onto the production floor in large quantities. Accountants justifiably see inventory as an asset because it represents an investment by the company. From a JIT perspective, however, it is an avoidable cost that must be minimized. Any costs that do not contribute to the value of the output are to be eliminated.

The fact that the information platform requires an extension of sensors means that it is countering the tendency towards a lean platform. These are not asset-less companies – far from it; they spend billions of dollars to purchase fixed capital and take other companies over. Importantly, ‘once we understand this [tendency], it becomes clear that demanding privacy from surveillance capitalists or lobbying for an end to commercial surveillance on the Internet is like asking Henry Ford to make each Model T by hand’.15 Calls for privacy miss how the suppression of privacy is at the heart of this business model. This tendency involves constantly pressing against the limits of what is socially and legally acceptable in terms of data collection. For the most part, the strategy has been to collect data, then apologise and roll back programs if there is an uproar, rather than consulting with users beforehand.16 This is why we will continue to see frequent uproars over the collection of data by these companies.

I have often witnessed this at hospital billing counters, where salaried or reasonably well to do people typically have a health insurance to take care of their bills, while a common man loses out. In such a pesky situation, these commoners are compelled to either take loans or sell their personal assets to be able to afford a reasonable medical treatment. Lack of home insurance has always been another concern. People lose out on their entire life’s savings when their homes get whisked away due to calamities.

Syn scanned the crowd with the same precision Nykyrian used, except she noticed the way his gaze would pause on particularly nice jewelry as if mentally calculating its value. As well as pause on any attractive woman and her ‘assets.’ “So who is this Paulus dick?” Kiara cringed in distaste. “He’s a walking nightmare. His father made a fortune with their media company before becoming an art sponsor and, as a result, Paulus thinks he should have the privilege of sleeping with any dancer who catches his eye.” “I can tell you love him.” “Yeah, like a boil in my nether regions.” Syn laughed out loud. “Nether regions, huh? I’m going to have to remember that one.

What in essence happened under the Treuhand was a complete transfer without compensation of property and assets accumulated over forty years through hard work and effort by GDR citizens, as well as the land they owned (which in the GDR had no monetary value as such) to, in the main, West German owners. This transfer of a country's assets — unprecedented anywhere in the world during peacetime — amounted to billions of Euros: a robbing of ordinary people for the enrichment of a few. Of those companies and individuals who bought GDR property, 80 per cent were West Germans, only 10 per cent were from other countries, and a mere 5 per cent went to GDR citizens.

Many energy companies will use models to value assets with lifetimes of 20 years or longer—things like power plants, pipelines, and natural gas wells. Even if the model was sufficient when first developed, it can still fail before its lifetime is up. Assumptions made 15 years earlier are often invalidated due to regulatory changes, population shifts, and technological changes. Exacerbating this problem is the problem of employee turnover—commonly, the original developers of the models have moved to other jobs when problems develop. After a number of years, organizations need to take steps to ensure that someone still understands every model that is in production.

Toyota wasn’t really worried that it would give away its “secret sauce.” Toyota’s competitive advantage rested firmly in its proprietary, complex, and often unspoken processes. In hindsight, Ernie Schaefer, a longtime GM manager who toured the Toyota plant, told NPR’s This American Life that he realized that there were no special secrets to see on the manufacturing floors. “You know, they never prohibited us from walking through the plant, understanding, even asking questions of some of their key people,” Schaefer said. “I’ve often puzzled over that, why they did that. And I think they recognized we were asking the wrong questions. We didn’t understand this bigger picture.” It’s no surprise, really. Processes are often hard to see—they’re a combination of both formal, defined, and documented steps and expectations and informal, habitual routines or ways of working that have evolved over time. But they matter profoundly. As MIT’s Edgar Schein has explored and discussed, processes are a critical part of the unspoken culture of an organization. 1 They enforce “this is what matters most to us.” Processes are intangible; they belong to the company. They emerge from hundreds and hundreds of small decisions about how to solve a problem. They’re critical to strategy, but they also can’t easily be copied. Pixar Animation Studios, too, has openly shared its creative process with the world. Pixar’s longtime president Ed Catmull has literally written the book on how the digital film company fosters collective creativity2—there are fixed processes about how a movie idea is generated, critiqued, improved, and perfected. Yet Pixar’s competitors have yet to equal Pixar’s successes. Like Toyota, Southern New Hampshire University has been open with would-be competitors, regularly offering tours and visits to other educational institutions. As President Paul LeBlanc sees it, competition is always possible from well-financed organizations with more powerful brand recognition. But those assets alone aren’t enough to give them a leg up. SNHU has taken years to craft and integrate the right experiences and processes for its students and they would be exceedingly difficult for a would-be competitor to copy. SNHU did not invent all its tactics for recruiting and serving its online students. It borrowed from some of the best practices of the for-profit educational sector. But what it’s done with laser focus is to ensure that all its processes—hundreds and hundreds of individual “this is how we do it” processes—focus specifically on how to best respond to the job students are hiring it for. “We think we have advantages by ‘owning’ these processes internally,” LeBlanc says, “and some of that is tied to our culture and passion for students.

In the longer term, by bringing together enough data and enough computing power, the data giants could hack the deepest secrets of life, and then use this knowledge not just to make choices for us or manipulate us but also to reengineer organic life and create inorganic life-forms. Selling advertisements may be necessary to sustain the giants in the short term, but tech companies often evaluate apps, products, and other companies according to the data they harvest rather than according to the money they generate. A popular app may lack a business model and may even lose money in the short term, but as long as it sucks data, it could be worth billions.4 Even if you don’t know how to cash in on the data today, it is worth having it because it might hold the key to controlling and shaping life in the future. I don’t know for certain that the data giants explicitly think about this in such terms, but their actions indicate that they value the accumulation of data in terms beyond those of mere dollars and cents. Ordinary humans will find it very difficult to resist this process. At present, people are happy to give away their most valuable asset—their personal data—in exchange for free email services and funny cat videos. It’s a bit like African and Native American tribes who unwittingly sold entire countries to European imperialists in exchange for colorful beads and cheap trinkets. If, later on, ordinary people decide to try to block the flow of data, they might find it increasingly difficult, especially as they might come to rely on the network for all their decisions, and even for their healthcare and physical survival.

Revenue Multiples. In the section on myths we also discussed the problems associated with revenue multiples and why they are poor indicators of value. Multiples of revenues are bogus for four reasons. First, because the range of multiples is too wide to be useful. Second, because comparisons using the multiple are simply not valid. Just because one company sold for a certain multiple of revenue does not mean that another company will sell for that same multiple, even if the companies are similar. Third, revenue multiples do not consider cost structures, management talent, pricing, profitability, or growth. And fourth is the problem of narrow markets; there are only a limited number of strategic buyers who can benefit from the seller’s key assets. These buyers care only about the strategic fit with their company, not some revenue multiple. WHAT

Once the habit is ingrained and you become the starter, the center of the circle, you will find more and more things to notice, to instigate, and to initiate. Momentum builds and you get better at generating it. If you go to bed at night knowing that people are expecting you to initiate things all day the next day, you’ll wake up with a list. And as you create a culture of people who are always seeking to connect and improve and poke, the bar gets raised. What might be considered a board-level decision at one of your competitors’ companies gets done as a matter of course. What might be reserved for a manager’s intervention gets handled at the customer level, saving you time and money (and generating customer joy). This incredibly prosaic idea, the very simple act of initiating, is actually profoundly transformative. Forward motion is a defensible business asset.

HSBC's executives saw an emerging class of global rich as the bank's path to prosperity. The superwealthy were increasingly stateless. They banked in Geneva. Lived in London and New York. Shopped in Paris and Milan. And they held their assets through offshore companies registered in places like the British Virgin Islands. HSBC executives were reading the telltale signs of a new age of inequality, even if they didn't recognize it as such. Governments were retreating from providing their citizens pension and health organizations, and HSBC strategy report observed. The stateless rich balked at paying taxes in their home countries, to which they felt little allegiance. It made sense to them to base their operations inside tax havens and to bank in Switzerland, where discretion was woven into the country's DNA. These trends represented an opportunity for the wealth management industry.

This vision is very much in line with the views of the economist John Kay in his book Other People’s Money (2015). As he says, stock markets, when first started, were the vehicles for raising finance often for large infrastructure projects (typically railways) from many dispersed shareholders. But markets no longer provide this function. Almost no new projects are financed via the stock market. (Indeed, the observation that few early-state companies come to the stock market for financing rather confirms the hypothesis that stock markets have significant problems dealing with them.) Rather, stock market trading is dominated by large asset managers trading with each other. In Kay’s view, they are searching for returns over and above those available to the market as a whole (searching for “alpha”) by trying to anticipate what others are thinking about the value of assets rather than the value of the underlying assets themselves.

I do not believe in supporting bailouts without strong ramifications. It is a fool’s fantasy to think we can live in a globally connected economy and never have a situation arise where the government prudently steps in to prevent a failure that might lead to catastrophic ramifications. In most cases, I believe it would be much better to let bailed-out companies fail when they have mismanaged themselves, rather than waste taxpayer money propping up greedy idiots who are trying to salvage their own bonuses; however, there are exceptions to almost every rule. The wiser course would be to penalize the CEO or board of directors who drove the company to the brink of failure. The most obvious punishment would be the elimination of any “golden parachutes” or bonuses for the executive and seizure of all company-derived assets, including any attempts to hide company assets in the spouse’s name. When C-level executives come to the realization that managing a company is not a game and that there are serious consequences for their actions, we will see fewer instances of requests for bailouts.

The Proofs Human society has devised a system of proofs or tests that people must pass before they can participate in many aspects of commercial exchange and social interaction. Until they can prove that they are who they say they are, and until that identity is tied to a record of on-time payments, property ownership, and other forms of trustworthy behavior, they are often excluded—from getting bank accounts, from accessing credit, from being able to vote, from anything other than prepaid telephone or electricity. It’s why one of the biggest opportunities for this technology to address the problem of global financial inclusion is that it might help people come up with these proofs. In a nutshell, the goal can be defined as proving who I am, what I do, and what I own. Companies and institutions habitually ask questions—about identity, about reputation, and about assets—before engaging with someone as an employee or business partner. A business that’s unable to develop a reliable picture of a person’s identity, reputation, and assets faces uncertainty. Would you hire or loan money to a person about whom you knew nothing? It is riskier to deal with such people, which in turn means they must pay marked-up prices to access all sorts of financial services. They pay higher rates on a loan or are forced by a pawnshop to accept a steep discount on their pawned belongings in return for credit. Unable to get bank accounts or credit cards, they cash checks at a steep discount from the face value, pay high fees on money orders, and pay cash for everything while the rest of us enjoy twenty-five days interest free on our credit cards. It’s expensive to be poor, which means it’s a self-perpetuating state of being. Sometimes the service providers’ caution is dictated by regulation or compliance rules more than the unwillingness of the banker or trader to enter a deal—in the United States and other developed countries, banks are required to hold more capital against loans deemed to be of poor quality, for example. But many other times the driving factor is just fear of the unknown. Either way, anything that adds transparency to the multi-faceted picture of people’s lives should help institutions lower the cost of financing and insuring them.

Shareholders have a residual claim on a firm’s assets and earnings, meaning they get what’s left after all other claimants—employees and their pension funds, suppliers, tax-collecting governments, debt holders, and preferred shareholders (if any exist)—are paid. The value of their shares, therefore, is the discounted value of all future cash flows minus those payments. Since the future is unknowable, potential shareholders must estimate what that cash flow will be; their collective expectations about the future determine the stock price. Any shareholders who expect that the discounted value of future equity earnings of the company will be less than the current price will sell their stock. Any potential shareholders who expect that the discounted future value will exceed the current price will buy stock. This means that shareholder value has almost nothing to do with the present. Indeed, present earnings tend to be a small fraction of the value of common shares. Over the past decade, the average yearly price-earnings multiple for the S&P 500 has been 22x, meaning that current earnings represent less than 5 percent of stock prices.

Jobs and Wozniak had no personal assets, but Wayne (who worried about a global financial Armageddon) kept gold coins hidden in his mattress. Because they had structured Apple as a simple partnership rather than a corporation, the partners would be personally liable for the debts, and Wayne was afraid potential creditors would go after him. So he returned to the Santa Clara County office just eleven days later with a “statement of withdrawal” and an amendment to the partnership agreement. “By virtue of a re-assessment of understandings by and between all parties,” it began, “Wayne shall hereinafter cease to function in the status of ‘Partner.’” It noted that in payment for his 10% of the company, he received $800, and shortly afterward $1,500 more. Had he stayed on and kept his 10% stake, at the end of 2012 it would have been worth approximately $54 billion. Instead he was then living alone in a small home in Pahrump, Nevada, where he played the penny slot machines and lived off his social security check. He later claimed he had no regrets. “I made the best decision for me at the time. Both of them were real whirlwinds, and I knew my stomach and it wasn’t ready for such a ride.

Revitalized and healthy, I started dreaming new dreams. I saw ways that I could make a significant contribution by sharing what I’ve learned. I decided to refocus my legal practice on counseling and helping start-up companies avoid liability and protect their intellectual property. To share some of what I know, I started a blog, IP Law for Startups, where I teach basic lessons on trade secrets, trademarks, copyrights, and patents and give tips for avoiding the biggest blunders that destroy the value of intellectual assets. Few start-up companies, especially women-owned companies that rarely get venture capital funding, can afford the expensive hourly rates of a large law firm to the get the critical information they need. I feel deeply rewarded when I help a company create a strategy that protects the value of their company and supports their business dreams. Further, I had a dream to help young women see their career possibilities. In partnership with my sister, Julie Simmons, I created lookilulu.com, a website where women share their insights, career paths, and ways they have integrated motherhood with their professional pursuits. When my sister and I were growing up on a farm, we had a hard time seeing that women could have rewarding careers. With Lookilulu® we want to help young women see what we couldn’t see: that dreams are not linear—they take many twists and unexpected turns. As I’ve learned the hard way, dreams change and shift as life happens. I’ve learned the value of continuing to dream new dreams after other dreams are derailed. I’m sure I’ll have many more dreams in my future. I’ve learned to be open to new and unexpected opportunities. By way of postscript, Jill writes, “I didn’t grow up planning to be lawyer. As a girl growing up in a small rural town, I was afraid to dream. I loved science, but rather than pursuing medical school, I opted for low-paying laboratory jobs, planning to quit when I had children. But then I couldn’t have children. As I awakened to the possibility that dreaming was an inalienable right, even for me, I started law school when I was thirty; intellectual property combines my love of law and science.” As a young girl, Jill’s rightsizing involved mustering the courage to expand her dreams, to dream outside of her box. Once she had children, she again transformed her dreams. In many ways her dreams are bigger and aim to help more people than before the twists and turns in her life’s path.

Banks were once an extremely valuable part of the economy and did a lot of good in advancing civilization. Banks played a pivotal role in financing big projects like roads, bridges, factories, stadiums, etc. Banks were to the economy what the heart is to the human body. But that has ended. Traditional banks have become extra toxic entities in the economy. It’s partially the fault of excessive government regulations that have made everything dysfunctional and it’s partially the fault of greedy bankers putting profits above customers and shareholders above society... But nonetheless, banks today offer very little benefit to their clients. They pay barely anything in interest. They offer barely anything in growth. They move money too slowly. They’re too restrictive. They’re selling the same boring products and services they did a hundred years ago. And they have too much power over peoples accounts. Soon, the many new companies and applications that emerge on the Ethereum infrastructure will eliminate the need for traditional banks and eliminate their value proposition by providing people with superior value. Everything from growth to asset management to lending can be done even better on the Ethereum infrastructure by anyone.

Daily work in the field of online advertising, as Jack Goldenberg sees it, is still significantly different from what the trends are propagated by online promotions. Defining online budget According to Jack Goldenberg a vast majority of the budget for online advertising does not exceed $2,000 on a monthly basis, depending on the perception of the company as they can bring effects "online adventure", established budgets for online advertising move in value from $200 to $2,000 per month (with highest proportion of $200-$500). This does not mean that a number of companies gives less advertising - but even then it can not be called "creating the campaign." Goldenberg believes that in order to create an online advertising campaign there should be a budget of at least $500 for the use of different types of online advertising. Goldenberg explains this as: In an environment of such budget is not simply distribute the money "wisely" and that since it has obvious benefits through a variety of online advertising systems. Jack Goldenberg found out how most companies in the world and USA are oriented towards effects in relation to the funds that are made for advertising. In this type of company, regardless of what everyone knows to be used types of brand advertising (advertising through banners - display advertising) to create recognizable firms in certain target groups, the effects of such advertising are not directly comparable with respect to the effects of (price per click - CPC - Cost per click) with contextual advertising, which for years has given much more efficient (measurable) results in relation to advertising banners, concludes Mr. Goldenberg. According to Yoel Goldenberg it is good when there is an understanding in companies that brand advertising has a different type of effects in relation to the PPC (contextual) advertising, and that would be it "documented" in a certain way, it is necessary to constantly explore and find those web sites that deliver the best effects for optimum need of assets. The process of creating an online advertising campaigns, explained by Goldenberg, usually starts (or should start) finding individual Web sites on which to advertise a company could, possibly longer term. Unfortunately, says Goldenberg, in our country is not in all sectors (industries) simply find diverse Web sites from which to choose "pretenders" for online advertising. An even greater problem is the fact that long-term advertising on a Web site does not bring the desired effect, unless it is constantly not working to the content of advertising often changes with an emphasis on meeting the needs of potential clients.

A few years ago my friend Jon Brooks supplied this great illustration of skewed interpretation at work. Here’s how investors react to events when they’re feeling good about life (which usually means the market has been rising): Strong data: economy strengthening—stocks rally Weak data: Fed likely to ease—stocks rally Data as expected: low volatility—stocks rally Banks make $4 billion: business conditions favorable—stocks rally Banks lose $4 billion: bad news out of the way—stocks rally Oil spikes: growing global economy contributing to demand—stocks rally Oil drops: more purchasing power for the consumer—stocks rally Dollar plunges: great for exporters—stocks rally Dollar strengthens: great for companies that buy from abroad—stocks rally Inflation spikes: will cause assets to appreciate—stocks rally Inflation drops: improves quality of earnings—stocks rally Of course, the same behavior also applies in the opposite direction. When psychology is negative and markets have been falling for a while, everything is capable of being interpreted negatively. Strong economic data is seen as likely to make the Fed withdraw stimulus by raising interest rates, and weak data is taken to mean companies will have trouble meeting earnings forecasts. In other words, it’s not the data or events; it’s the interpretation. And that fluctuates with swings in psychology.

Buffett declared the best inflation hedge is a company with a wonderful product that requires little capital to grow. As a test, he invited each of us to look at our own earning ability. In inflation, your compensation can go up without any additional investment. As a business example, Buffett noted that when See’s Candy was purchased in 1971, it had the revenues of $25 million and sold 16 million pounds of candy annually with $9 million in tangible assets. Today, See’s sells $300 million of candy with $40 million of tangible assets. Berkshire needed to invest only $31 million to generate a more than 10-fold increase in revenues. In aggregate, Buffett noted that Berkshire has earned $1.5 billion in profits at See’s over the years. See’s inventory turns fast, has no receivables and has little fixed investment – a perfect inflation hedge. Buffett allowed that if you have tons of receivables and inventory, that’s a lousy business in inflation. The railroad and MidAmerican Energy both have these undesirable characteristics, but that is offset by their utility to the economy and subsequent allowable returns. Buffett rued that there simply aren’t enough “See’s Candys” to buy. Buffett added that being an investor has made him a better businessman and that being a businessman has made him a better investor.(125) Munger noted that they didn’t always know this inflation-business element, which shows how continuous learning is so important.

Statisticians say that stocks with healthy dividends slightly outperform the market averages, especially on a risk-adjusted basis. On average, high-yielding stocks have lower price/earnings ratios and skew toward relatively stable industries. Stripping out these factors, generous dividends alone don’t seem to help performance. So, if you need or like income, I’d say go for it. Invest in a company that pays high dividends. Just be sure that you are favoring stocks with low P/Es in stable industries. For good measure, look for earnings in excess of dividends, ample free cash flow, and stable proportions of debt and equity. Also look for companies in which the number of shares outstanding isn’t rising rapidly. To put a finer point on income stocks to skip, reverse those criteria. I wouldn’t buy a stock for its dividend if the payout wasn’t well covered by earnings and free cash flow. Real estate investment trusts, master limited partnerships, and royalty trusts often trade on their yield rather than their asset value. In some of those cases, analysts disagree about the economic meaning of depreciation and depletion—in particular, whether those items are akin to earnings or not. Without looking at the specific situation, I couldn’t judge whether the per share asset base was shrinking over time or whether generally accepted accounting principles accounting was too conservative. If I see a high-yielder with swiftly rising share counts and debt levels, I assume the worst.

Bibb Steam Mill Company also introduced to the county the ruthless form of industrial slavery that would become so important as the Civil War loomed. The mill acquired twenty-seven male African Americans, nearly all strapping young men, and kept them packed into just six small barracks on its property. The Cottingham slave cabins would have seemed luxurious in contrast.51 The founders of Bibb Steam, entrepreneurs named William S. Philips, John W. Lopsky, Archibald P. McCurdy, and Virgil H. Gardner, invested a total of $24,000 to purchase 1,160 acres of timbered land and erect a steam-powered sawmill to cut lumber and grind corn and flour.52 In addition to the two dozen slaves, Bibb Steam most likely leased a larger number of slaves from nearby farms during its busiest periods of work. The significance of those evolutions wouldn’t have been lost on a slave such as Scipio. By the end of the 1850s, a vigorous practice of slave leasing was already a fixture of southern life. Farm production was by its nature an inefficient cycle of labor, with intense periods of work in the early spring planting season and then idleness during the months of “laid-by” time in the summer, and then another great burst of harvest activity in the fall and early winter, followed finally by more months of frigid inactivity. Slave owners were keen to maximize the return on their most valuable assets, and as new opportunities for renting out the labor of their slaves arose, the most clever of slave masters quickly responded.

The Rockefeller Foundation was established in 1913 to maintain the control of the family’s oil empire. Today this foundation is the most important shareholder of Exxon with 4.3 million shares. Additionally, the foundation has two million shares in Standard Oil of California and 300.000 shares in Mobil Oil. Other smaller foundations belonging to the Rockefellers have three million shares in Exxon, and 400.000 shares in Standard Oil of Ohio. The total asset of this group of Rockefeller companies, amount to more than fifty billion dollars.[20] For a researcher who concentrates on the Rockefeller family, it won’t be difficult to prove that this immensely rich family has played an important role in the American politics of the twentieth century. The drift and decisions of American politics lead directly back to the Rockefeller family. The Rockefellers immigrated to America from Spain. The best-known member of this family was the influential industrialist, banker John Davidson Rockefeller. He asserted himself as the richest man of his time. Before going into oil transport, he was a wholesaler of narcotic drugs.[21] With an unbridled energy, he set up the Standard Oil Trust, which now possesses ninety percent of the oil refineries in the United States.[22] John Davidson Rockefeller also bought the Pocantico Hills territory in New York, which is the domicile of over a 100 families with the name Rockefeller. David Rockefeller, an absolute genius in the field of finances, has been managing Chase Manhattan Bank, the most important bank in the world, since 1945. The power of this bank is great enough to bring about or destroy governments, to start or end wars, and ruin companies or let them flourish worldwide, ultimately exerting great influence on the entire human race.

History favors the bold. Compensation favors the meek. As a Fortune 500 company CEO, you’re better off taking the path often traveled and staying the course. Big companies may have more assets to innovate with, but they rarely take big risks or innovate at the cost of cannibalizing a current business. Neither would they chance alienating suppliers or investors. They play not to lose, and shareholders reward them for it—until those shareholders walk and buy Amazon stock. Most boards ask management: “How can we build the greatest advantage for the least amount of capital/investment?” Amazon reverses the question: “What can we do that gives us an advantage that’s hugely expensive, and that no one else can afford?” Why? Because Amazon has access to capital with lower return expectations than peers. Reducing shipping times from two days to one day? That will require billions. Amazon will have to build smart warehouses near cities, where real estate and labor are expensive. By any conventional measure, it would be a huge investment for a marginal return. But for Amazon, it’s all kinds of perfect. Why? Because Macy’s, Sears, and Walmart can’t afford to spend billions getting the delivery times of their relatively small online businesses down from two days to one. Consumers love it, and competitors stand flaccid on the sidelines. In 2015, Amazon spent $7 billion on shipping fees, a net shipping loss of $5 billion, and overall profits of $2.4 billion. Crazy, no? No. Amazon is going underwater with the world’s largest oxygen tank, forcing other retailers to follow it, match its prices, and deal with changed customer delivery expectations. The difference is other retailers have just the air in their lungs and are drowning. Amazon will surface and have the ocean of retail largely to itself.

One of the issues that animated the Tea Party in South Carolina and nationally during my campaign for governor was bailouts. The debate started with the Troubled Asset Relief Program (TARP) passed by Congress in 2008 and signed by President Bush. The TARP bailout was a perfect example of government not understanding the value of a dollar. It was a quick fix to get everyone to calm down. But what did it actually do? The banks that received the money didn’t expand lending to businesses. They used the cash to help their own books, and the taxpayers were put on the hook as loan guarantors. No one—not the politicians who encouraged the recklessness, not the quasi-governmental entities like Fannie Mae that got rich off it, and certainly not the Wall Street firms that got bailed out—was ever held accountable. And the American people ended up worse off than they were before. As a small businessperson, I found the message government was sending incredibly offensive. In my version of capitalism, if a company succeeds, you don’t punish it by raising its taxes; and if a company fails, you don’t reward it by having the taxpayers bail it out. TARP opened the floodgates for a wave of unaccountable spending that flowed out of Washington. Soon afterward, President Obama bailed out the auto industry to rescue big labor. His allies in Congress passed the $787 billion stimulus bill, most of them without having read it. And he forced through a trillion-dollar health-care takeover. With each bailout, more and more of us felt we were getting further and further from what America was meant to be: a free and striving people with a limited and accountable government. Instead, Washington was revealing itself to be an inside game, with the rules fixed to benefit the establishment. The rules favor the well connected, while the rest of us in flyover country pay the bills.

Key Points: ● Transparency - Blockchain offers significant improvements in transparency compared to existing record keeping and ledgers for many industries. ● Removal of Intermediaries – Blockchain-based systems allow for the removal of intermediaries involved in the record keeping and transfer of assets. ● Decentralization – Blockchain-based systems can run on a decentralized network of computers, reducing the risk of hacking, server downtime and loss of data. ● Trust – Blockchain-based systems increase trust between parties involved in a transaction through improved transparency and decentralized networks along with removal of third-party intermediaries in countries where trust in the intermediaries doesn’t exist. ● Security – Data entered on the blockchain is immutable, preventing against fraud through manipulating transactions and the history of data. Transactions entered on the blockchain provide a clear trail to the very start of the blockchain allowing any transaction to be easily investigated and audited. ● Wide range of uses - Almost anything of value can be recorded on the blockchain and there are many companies and industries already developing blockchain-based systems. These examples are covered later in the book. ● Easily accessible technology – Along with the wide range of uses, blockchain technology makes it easy to create applications without significant investment in infrastructure with recent innovations like the Ethereum platform. Decentralized apps, smart contracts and the Ethereum platform are covered later in the book. ● Reduced costs – Blockchain-based ledgers allow for removal of intermediaries and layers of confirmation involved in transactions. Transactions that may take multiple individual ledgers, could be settled on one shared ledger, reducing the costs of validating, confirming and auditing each transaction across multiple organizations. ● Increased transaction speed – The removal of intermediaries and settlement on distributed ledgers, allows for dramatically increased transaction speeds compared to a wide range of existing systems.

Collateral Capacity or Net Worth? If young Bill Gates had knocked on your door asking you to invest $10,000 in his new company, Microsoft, could you get your hands on the money? Collateral capacity is access to capital. Your net worth is irrelevant if you can’t access any of the money. Collateral capacity is my favorite wealth concept. It’s almost like having a Golden Goose! Collateral can help a borrower secure loans. It gives the lender the assurance that if the borrower defaults on the loan, the lender can repossess the collateral. For example, car loans are secured by cars, and mortgages are secured by homes. Your collateral capacity helps you to avoid or minimize unnecessary wealth transfers where possible, and accumulate an increasing pool of capital providing accessibility, control and uninterrupted compounding. It is the amount of money that you can access through collateralizing a loan against your money, allowing your money to continue earning interest and working for you. It’s very important to understand that accessibility, control and uninterrupted compounding are the key components of collateral capacity. It’s one thing to look good on paper, but when times get tough, assets that you can’t touch or can’t convert easily to cash, will do you little good. Three things affect your collateral capacity: ① The first is contributions into savings and investment accounts that you can access. It would be wise to keep feeding your Golden Goose. Often the lure of higher return potential also brings with it lack of liquidity. Make sure you maintain a good balance between long-term accounts and accounts that provide immediate liquidity and access. ② Second is the growth on the money from interest earned on the money you have in your account. Some assets earn compound interest and grow every year. Others either appreciate or depreciate. Some accounts could be worth a great deal but you have to sell or close them to access the money. That would be like killing your Golden Goose. Having access to money to make it through downtimes is an important factor in sustaining long-term growth. ③ Third is the reduction of any liens you may have against these accounts. As you pay off liens against your collateral positions, your collateral capacity will increase allowing you to access more capital in the future. The goose never quit laying golden eggs – uninterrupted compounding. Years ago, shortly after starting my first business, I laughed at a banker that told me I needed at least $25,000 in my business account in order to borrow $10,000. My business owner friends thought that was ridiculously funny too. We didn’t understand collateral capacity and quite a few other things about money.

The first thing to note about Korean industrial structure is the sheer concentration of Korean industry. Like other Asian economies, there are two levels of organization: individual firms and larger network organizations that unite disparate corporate entities. The Korean network organization is known as the chaebol, represented by the same two Chinese characters as the Japanese zaibatsu and patterned deliberately on the Japanese model. The size of individual Korean companies is not large by international standards. As of the mid-1980s, the Hyundai Motor Company, Korea’s largest automobile manufacturer, was only a thirtieth the size of General Motors, and the Samsung Electric Company was only a tenth the size of Japan’s Hitachi.1 However, these statistics understate their true economic clout because these businesses are linked to one another in very large network organizations. Virtually the whole of the large-business sector in Korea is part of a chaebol network: in 1988, forty-three chaebol (defined as conglomerates with assets in excess of 400 billion won, or US$500 million) brought together some 672 companies.2 If we measure industrial concentration by chaebol rather than individual firm, the figures are staggering: in 1984, the three largest chaebol alone (Samsung, Hyundai, and Lucky-Goldstar) produced 36 percent of Korea’s gross domestic product.3 Korean industry is more concentrated than that of Japan, particularly in the manufacturing sector; the three-firm concentration ratio for Korea in 1980 was 62.0 percent of all manufactured goods, compared to 56.3 percent for Japan.4 The degree of concentration of Korean industry grew throughout the postwar period, moreover, as the rate of chaebol growth substantially exceeded the rate of growth for the economy as a whole. For example, the twenty largest chaebol produced 21.8 percent of Korean gross domestic product in 1973, 28.9 percent in 1975, and 33.2 percent in 1978.5 The Japanese influence on Korean business organization has been enormous. Korea was an almost wholly agricultural society at the beginning of Japan’s colonial occupation in 1910, and the latter was responsible for creating much of the country’s early industrial infrastructure.6 Nearly 700,000 Japanese lived in Korea in 1940, and a similarly large number of Koreans lived in Japan as forced laborers. Some of the early Korean businesses got their start as colonial enterprises in the period of Japanese occupation.7 A good part of the two countries’ émigré populations were repatriated after the war, leading to a considerable exchange of knowledge and experience of business practices. The highly state-centered development strategies of President Park Chung Hee and others like him were formed as a result of his observation of Japanese industrial policy in Korea in the prewar period.

As it turned out, Mary Jo White and other attorneys for the Sacklers and Purdue had been quietly negotiating with the Trump administration for months. Inside the DOJ, the line prosecutors who had assembled both the civil and the criminal cases started to experience tremendous pressure from the political leadership to wrap up their investigations of Purdue and the Sacklers prior to the 2020 presidential election in November. A decision had been made at high levels of the Trump administration that this matter would be resolved quickly and with a soft touch. Some of the career attorneys at Justice were deeply unhappy with this move, so much so that they wrote confidential memos registering their objections, to preserve a record of what they believed to be a miscarriage of justice. One morning two weeks before the election, Jeffrey Rosen, the deputy attorney general for the Trump administration, convened a press conference in which he announced a “global resolution” of the federal investigations into Purdue and the Sacklers. The company was pleading guilty to conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, as well as to two counts of conspiracy to violate the federal Anti-kickback Statute, Rosen announced. No executives would face individual charges. In fact, no individual executives were mentioned at all: it was as if the corporation had acted autonomously, like a driverless car. (In depositions related to Purdue’s bankruptcy which were held after the DOJ settlement, two former CEOs, John Stewart and Mark Timney, both declined to answer questions, invoking their Fifth Amendment right not to incriminate themselves.) Rosen touted the total value of the federal penalties against Purdue as “more than $8 billion.” And, in keeping with what had by now become a standard pattern, the press obligingly repeated that number in the headlines. Of course, anyone who was paying attention knew that the total value of Purdue’s cash and assets was only around $1 billion, and nobody was suggesting that the Sacklers would be on the hook to pay Purdue’s fines. So the $8 billion figure was misleading, much as the $10–$12 billion estimate of the value of the Sacklers’ settlement proposal had been misleading—an artificial number without any real practical meaning, designed chiefly to be reproduced in headlines. As for the Sacklers, Rosen announced that they had agreed to pay $225 million to resolve a separate civil charge that they had violated the False Claims Act. According to the investigation, Richard, David, Jonathan, Kathe, and Mortimer had “knowingly caused the submission of false and fraudulent claims to federal health care benefit programs” for opioids that “were prescribed for uses that were unsafe, ineffective, and medically unnecessary.” But there would be no criminal charges. In fact, according to a deposition of David Sackler, the Department of Justice concluded its investigation without so much as interviewing any member of the family. The authorities were so deferential toward the Sacklers that nobody had even bothered to question them.

When two or more specific assets are closely linked, the chance for opportunistic behavior is greater than if the assets have separate owners (Rubin: p. 8). Since the landfill is a specific asset that is required for the garbage company, there is a greater chance that a holdup may occur if owned by a separate company. This makes a compelling case for vertical integration even though, owning and managing

country's middle class was growing at a very slow pace. By the late 1940s, around 5 per cent of the population controlled more than 65 per cent of the country's asset base (private companies and traded stocks); more than 20 per cent of all Egyptian peasants were landless while around 3 per cent of the population held around 80 per cent of all cultivated land; and foreigners continued to exert dramatic influence on the economy.

At Pixar, Toy Story 2 taught us this lesson—that we must always be alert to shifting dynamics, because our future depends on it—once and for all. Begun as a direct-to-video sequel, the project proved not only that it was important to everyone that we weren’t tolerating second-class films but also that everything we did—everything associated with our name—needed to be good. Thinking this way was not just about morale; it was a signal to everyone at Pixar that they were part owners of the company’s greatest asset—its quality.

Clip This Article on Location 1397 | Added on Monday, September 1, 2014 4:10:39 PM REVIEW & OUTLOOK An $8.3 Billion Rebuke to the FDA Roche buys a drug approved in Europe but not in America. 359 words Amid this summer's M&A fever, Roche's agreement Monday to buy the San Francisco biotech InterMune deserves special notice. The tie-up is an $8.3 billion guided missile into the fortified bunker that is the Food and Drug Administration. InterMune has never turned a profit in 16 years of existence and other than its clinical expertise the company holds a single asset: an idea for treating a lethal lung disorder called idiopathic pulmonary fibrosis with no known cause, cure or approved therapy—at least in the U.S. An InterMune drug called pirfenidone that slows the progression of irreversible lung scarring is on the market in Europe, Japan, Canada and even China. Bloomberg News But the FDA refused to approve pirfenidone in 2010, despite the 40,000 Americans who are killed annually by lung fibrosis and a positive recommendation from its outside scientific advisory committee. The agency brass claimed the evidence was statistically unsatisfactory, when one clinical trial was inconclusive but another showed strong benefits such as improved lung function. The results of the third trial the FDA ordered were reported earlier this year and confirmed that pirfenidone is even more of a treatment advance than it seemed in 2010, and may prolong life. The agency is expected, finally, to approve the medicine in November. Roche is paying a 38% premium over Friday's closing share price, and 63% over trading before the news of InterMune's corporate suitors broke a few weeks ago. The deal is a big vote of confidence in pirfenidone, not least because a rival lung fibrosis drug is awaiting U.S. approval. Then again, maybe that drug's maker, the German pharmaceutical consortium Boehringer Ingelheim, will have the same FDA experience as InterMune. The Roche deal is a tacit reprimand to the FDA's unscientific and uncompassionate—and wrong—2010 defenestration. Amid medical ambiguity about effectiveness, the humane option is to allow a drug to come to patients and follow on with more research, in particular for a drug with few side effects. Pulmonary fibrosis is a protracted death sentence of three to five years. The FDA denied tens of thousands of dying people better and possibly longer lives in the time they had left. ==========

Indeed, a truly predatory type of investor - sometimes referred to as a vulture capitalist - looks to use the chasm period of struggle and failure as a means to discredit the current management, thereby driving down the equity value in the company, so that in the next round of funding, he or she has an opportunity to secure dominant control of the company, install a new management team, and, worst case, become the owner of the major technology asset, dirt cheap. This is an incredibly destructive exercise during which not only the baby and the bathwater but all human values and winning opportunities are thrown out the window. Nonetheless, it happens.

There are three key assets in retail: real estate, inventory, and people.

Your Highlight on page 69 | location 1044-1046 | Added on Friday, 6 June 2014 10:01:18 All of a sudden, it’s obvious why you need a permission asset. If your company doesn’t have one yet, you can start today, for free, by using Outlook on your PC. Give people an email address to write to. Write back. You’re on your way. ==========

In the 1920s, he decided that it was cheaper to drill for oil than to buy the overvalued shares of other oil companies. After the 1929 stock market crash, he completely changed tack; he saw that oil shares were selling at a great discount to assets, and he turned to prospecting for oil on the floor of the stock exchange—in

Now that Worthington’s face as it looked in his early thirties has been banked in a computer, this “digital asset” could be used in a film decades from now, when Worthington looks very different. Currently, the production companies own the scans that they commission, but Debevec thinks that actors will one day pay to retain the rights to their digital selves. He said, “Within ten years, it will seem anachronistic to have a different actor playing a younger version of a character.

This practice often produces a receivables asset that is one of the largest tangible assets on a company's balance sheet. A review of the 2004 Fortune 500 certainly reveals this truth. Receivables ranked among the top three tangible assets for 75% of the top 100 companies. Surprisingly, management of this multi-million (or multi-bil- lion) dollar asset rarely receives much senior management attention, except when a serious problem develops. The custodians of the receivables asset are similar to umpires of a baseball game; they are not noticed unless they do

• Besides fixed assets, an industrial company needs to manage working capital efficiently.

Raising capital. Organisations like Rio Tinto, TomTom and GKN have all raised significant sums through the equity markets. Refinancing debt. Some companies, like Yell and Schaeffler, have rolled over billions in bank finance. However, many businesses are still finding banks reluctant to lend and have turned to bond issuance as an alternative. Divestment. Companies can sell off valuable assets, such as Barclays did with Barclays Global Investors, and it is always better to do so before a crisis; otherwise it will be seen for the fire sale it is and the price will be a fire-sale price. Furthermore, any sell-off that weakens a firm’s core capability or its long-term competitive position may also shorten its life. Cut costs but not capability The managing uncertainty survey revealed that the most common action that companies took when the financial crisis struck was to cut costs. Some 82% of respondents cut costs. When asked about their future responses to uncertainty, 76% indicated they would continue to focus on cost reduction.

For example, there’s an uncharacteristic explosion of creativity among accountants. Yes, accountants: Groups like the Thriveal C.P.A. Network and the VeraSage Institute are leading that profession from its roots in near-total risk aversion to something approaching the opposite. Computing may have commoditized much of the industry’s everyday work, but some enterprising accountants are learning how to use some of their biggest assets — the trust of their clients and access to financial data — to provide deep insights into a company’s business. They’re identifying which activities are most profitable, which ones are wasteful and when the former become the latter. Accounting once was entirely backward-looking and, because no one would pay for an audit for fun, dependent on government regulation. It was a cost. Now real-time networked software can make it forward-looking and a source of profit. It’s worth remembering, though, that this process never ends: As soon as accountants discover a new sort of service to provide their customers, some software innovator will be seeking ways to automate it, which means those accountants will work to constantly come up with even newer ideas. The failure loop will

Uber’s algorithm (which it has been refining since 2011) is the company’s greatest asset and most significant innovation, allowing it to find the price that will attract drivers—whom, as independent contractors, it can’t order onto the road—without alienating customers.

Ben Graham–style bargain equities, we may become quite uncomfortable at times, especially if the market value of the portfolio declined precipitously. We might look at the portfolio and conclude that every investment could be worth zero. After all, we may have a mediocre business run by mediocre management, with assets that could be squandered. Investing in deep value equities therefore requires faith in the law of large numbers—that historical experience of market-beating returns in deep value stocks and the fact that we own a diversified portfolio will combine to yield a satisfactory result over time. This conceptually sound view becomes seriously challenged in times of distress. By contrast, an investor in high-quality businesses that are conservatively financed and run by shareholder-friendly managements may fall back on the well-founded belief that no matter how low the stock prices of those companies fall, the businesses will survive the downturn and recover value over time.

Where things get really complicated is when the philanthro-capitalists use their money to finance a political agenda that dovetails with their personal business interests or with the interests of the plutocratic class as a whole. The Koch brothers, for instance, have pushed for less government regulation of industry, including state efforts to protect the environment. They are lifelong libertarians who are genuinely skeptical about climate change. They also happen to own a company whose assets include oil refineries, oil pipelines, and lumber mills—all businesses that would benefit from a weakened EPA.

What’s more, a real premium began to be placed on being part of this knowledge oeuvre—not just in what McKinsey knew but in who at McKinsey knew these subject areas. An unstated understanding emerged that if you were a logistics expert in, say, the retail sector and you were called by a partner you had never met who mainly did work with pharmaceutical companies, you would nevertheless return the call. That reputation for contributing was your asset in the firm.