Harvard Business Review

JUNE 8, 2018

The market caps of just four companies, Apple, Alphabet, Amazon, and Microsoft, now exceed $3 trillion. Their combined assets of $944 billion are an order of magnitude lower than the combined assets of $7,700 billion of the largest 3,177 companies in 1986, when the aggregate market capitalization reached $3 trillion for the first time.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

NOVEMBER 7, 2011

In the late 1990s, we presented the Gretzky metaphor to a division of a large, global bank. Three years ago we determined that two of our key customer segments, Small Businesses and Affluent Consumers, would want PC banking in the next 2-3 years. And using net-present-value estimates for "beginning" ideas is nuts.

CEO 12

CEO Net Present Value Banking Metrics 12

Harvard Business Review

DECEMBER 22, 2010

Consider, for example, that the estimated net present value of obligations under the Social Security system is approximately $8 trillion. The total value of explicit loan guarantees is well over $10 trillion.

GDP 15

GDP Net Present Value Crisis Cost 15

Harvard Business Review

FEBRUARY 24, 2011

But why compare apples (book value) to oranges (share price and dividends)? Buffett explains that book value is the best proxy for "intrinsic value," the net present value of all estimated future cash flows. Consider that since 1965, Berkshire's book value grew 434,057% and the S&P index grew only 5,430%.

Letter 15

Letter P&L Net Present Value Insurance 15

Strategy Driven

SEPTEMBER 9, 2011

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. With Discovery-Driven Growth , Rita and Ian offer managers everywhere a time-tested blueprint for planning and executing a strategic growth agenda with confidence – in any market.

Innovation 50

Innovation NPV Business Model Constraint 50