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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

In both places, we know the instability will worsen macroeconomic performance in the short term. If that is the case, and the faster growth generates higher profits for them over the long term, that might well compensate for any short-term losses from the disruption. Tunisia and Egypt are cases in point.

NPV 13
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How Marketers Can Avoid Big Data Blind Spots

Harvard Business Review

Overcoming “short-term-ism”. One major blind spot for marketers to be aware of is “short-term-ism” that most analytics engender. The reality is that the majority of marketing activities have both a short- and long-term impact on sales. One consumer food brand almost fell into this short-term trap.

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Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business Review

How can you continuously defer short term profitability to grow your network effect? But as long as there is stickiness to be created, it’s a sensible strategy. Today, AWS is a much more valuable business for the company’s long-termism. Risk losing short-term. Or almost certainly lose long-term.

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Case Study: Should a Hotelier Invest in a New Kind of Online Travel Agency?

Harvard Business Review

” “I have Carly running the ROI — both short-term and long-term,” he said, referring to Carly Janssen, his finance director, “but I have to say that I find it intriguing. How long will it take you to get those traffic numbers up?” But that offer won’t stand for long.

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. Next time you're deciding about a big investment, NPV can help you make a more informed decision. Do: Enroll in an online or community college class to learn about basic financial concepts and terms.

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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

So, in real terms, debt financing is essentially free. Next time you're deciding about a big investment, NPV can help you make a more informed decision. Equity cash flows, in turn, are a function of a company’s long-term return on equity (ROE), growth, and the value of shareholders’ equity on its books.

ROE 14
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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business Review

” Laying out their data, they find that long-term oriented companies create more financial value and more jobs. I agree with their vision of a future in which more companies focus on the long term and become more productive for the world (their findings accord with my own work on the dangers of short-termism ).

Hedge 9