Harvard Business Review

OCTOBER 5, 2023

With cost of capital this low, many managers have paid scant attention to the time value of money — an essential concept in doing financial analysis. In the United States, short-term interest rates have been near zero for most of the last 15 years.

Cost of Capital 20

Cost of Capital Short-term Management Analysis 20

Six Disciplines

MARCH 25, 2011

Harry Joiner over at Marketing Headhunter , posted his favorite Top 20 quotes from the Daily Drucker , with respect being paid to management thought-leader, Peter Drucker. Listening (the first competence of leadership) is not a skill, it is a discipline. There are keys to success in managing bosses. One can't manage change.

Drucker 136

Drucker Cost of Capital Definition Commitment 136

CoachStation

SEPTEMBER 16, 2015

Compare Michael Porter’s competitive advantage definition: “Competitive advantage, sustainable or not, exists when a company makes economic rents, that is, their earnings exceed their costs (including cost of capital).” Develop skills in story-telling and influence differently.

Storytelling 146

Storytelling Competitive Advantage Conference Cost of Capital 146

Harvard Business Review

FEBRUARY 7, 2011

The outcomes for many activities in life — including sports, business, and investing — combine skill and luck. When we enjoy a good outcome due to luck, we are naturally inclined to chalk up our success to skill. Similarly, if we suffer an adverse outcome because of poor skill, we blame our bad luck.

Skills 15

Skills ROIC Sports Cost of Capital 15

Harvard Business Review

APRIL 16, 2015

” A quarter century later, not much seems to have changed: fewer than five out of the 100 CEOs on HBR’s 2014 list of best-performing CEOs even mention “return on capital” on their official biography — and none of those five lead companies listed in the Dow Jones Industrial Average (DJIA) or in the EuroStoxx50.

CEO 8

CEO ROIC Cost of Capital Merton 8

Harvard Business Review

OCTOBER 25, 2018

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.)

Industry 12

Industry Company GDP Bottom-up 12

Harvard Business Review

OCTOBER 3, 2011

Critics imply that managing for shareholder value is all about maximizing the short-term stock price. Companies that manage for shareholder value, the thinking goes, do whatever it takes to engineer an ever-higher market price. If the market doesn't respond, management can take action to benefit from the value gap.

Short-term 11

Short-term Long-term Price CEO 11