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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

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Why Those Guys Won the Economics Nobels

Harvard Business Review

It seems like the clearest practical lessons from this academic work have been in asset management. There are people very much steeped in this work, including you, who are out there managing stocks and other assets based on it. What we often find is that asset allocation is something the clients themselves want to manage.

CAPM 8