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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

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
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How Marketers Can Avoid Big Data Blind Spots

Harvard Business Review

Overcoming “short-term-ism”. One major blind spot for marketers to be aware of is “short-term-ism” that most analytics engender. The reality is that the majority of marketing activities have both a short- and long-term impact on sales. One consumer food brand almost fell into this short-term trap.

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Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business Review

How can you continuously defer short term profitability to grow your network effect? Next time you're deciding about a big investment, NPV can help you make a more informed decision. Risk losing short-term. Or almost certainly lose long-term. When does your business actually make money?

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Case Study: Should a Hotelier Invest in a New Kind of Online Travel Agency?

Harvard Business Review

” “I have Carly running the ROI — both short-term and long-term,” he said, referring to Carly Janssen, his finance director, “but I have to say that I find it intriguing. In her short time at Ervaring, she’d come to rely on him for help with investment decisions. ” Negative NPV.

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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business Review

” 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 9
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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

So, in real terms, debt financing is essentially free. Next time you're deciding about a big investment, NPV can help you make a more informed decision. Equity cash flows, in turn, are a function of a company’s long-term return on equity (ROE), growth, and the value of shareholders’ equity on its books.

ROE 14
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Reflecting on David Garvin’s Imprint on Management

Harvard Business Review

But the article aimed higher, arguing that when corporate leaders invest with short-term results in mind, they put long-term performance at risk. One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.) Sound familiar?