Harvard Business Review

MAY 4, 2017

When your product can become more valuable to your customers over time, the way you prioritize building features and harvesting profits within a business needs to change. How can you continuously defer short term profitability to grow your network effect? The Refresher: Net Present Value. The list goes on.

Collison 8

Collison Net Present Value Company Short-term 8

Harvard Business Review

FEBRUARY 7, 2011

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 12

NPV Short-term Discount Politics 12

Harvard Business Review

APRIL 27, 2017

” 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 8

Hedge Short-term Long-term NPV 8

Harvard Business Review

MAY 1, 2017

Today, the average cost of equity capital sits at close to half that: just 8% for the roughly 1600 companies comprising the Value Line Index. So, in real terms, debt financing is essentially free. In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins.

ROE 12

ROE Long-term GDP Six Sigma 12