The Horizons Tracker

NOVEMBER 17, 2021

It’s a situation chronicled in a recent paper from Wharton, which highlights how in recent years high-skilled graduates have discovered that they can earn more in salaried jobs than they could by starting their own business. This would have less of an impact on higher-skilled entrepreneurs, for whom the decline has been most pronounced.

Entrepreneur 82

Entrepreneur Long-term Cost of Capital Engineering 82

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

A CEO's job is about resource allocation with a goal of earning a return in excess of the opportunity cost of capital. The challenge is figuring out how to allocate human and financial capital to its best and highest use for the long term. Value drivers include sales growth, operating profit margin, and investment requirements.)

Short-term 11

Short-term Long-term Price CEO 11