Harvard Business Review

NOVEMBER 7, 2011

Listen up, CEOs: Only you can make the big bets about where your industry's hockey puck is going. But instead of trusting our "educated gut" and making the bet, we used traditional market research to ask customers in those segments what they thought about the idea right now! Too many of you know you need to do it, but you still don't.

CEO 12

CEO Net Present Value Banking Metrics 12

Harvard Business Review

OCTOBER 3, 2011

This blog post is part of the HBR Online Forum The CEO's Role in Fixing the System. Most CEOs, as well as some of the other contributors to this forum, appear to have a false sense of what creating shareholder value means. It is now in vogue to dismiss the idea that creating shareholder value should be a CEO's guiding objective.

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

JUNE 28, 2016

Also, as we explained in an earlier article , we believe that being an established CEO of a small firm involves much less angst than being a senior member of a consulting, investment banking, or private equity firm. So, we begin by assuming that the traditional path offers cash compensation equal to the average starting salary.

Consultative 8

Consultative CAGR EBITDA CEO 8

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

JULY 9, 2012

A major customer may default, a promised source of funding may disappear, or the world's markets may sour — any of these can shift your trajectory in an instant. After all, if he were on a desert island without a capital market, the value of his skill goes nearly to zero. Then again, you may be lucky. So, Luck matters.

Net Present Value 15

Net Present Value Entrepreneur Strategic Fit Open-book 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

Harvard Business Review

DECEMBER 1, 2011

This blog post is part of the HBR Online Forum The CEO's Role in Fixing the System. The short-term investor does not reduce the firm's long-term competitiveness and value;short-term management does. A firm's long-term value should correspond to the present value of future expected cash flows.

Short-term 14

Short-term Hostile Takeover Long-term Management 14