December 6, 2019 admin123@ No comments exist

Guess the Word  and Contact Us for Prizes!  Series 52 starts soon….. 1st letter of each Post Title (in a Series) spells a business word – spelt correctly or jumbled up.  Previous answers: Series 51  spelt  P-A-W-W-I-S-H   (WHIPSAW) Series 50  spelt  L-I-O-N-S-M-E-E-T   (MILESTONE) Series 49  spelt  C-G-U-R-N-E-Y   (URGENCY) Series 48  spelt  T-I-C-K-S-L-O-P-E-S   (STOCKPILES) Series 47  spelt …

December 4, 2019 admin123@ No comments exist

Hedge funds Hedge fund fees pour out of the sky during market-beating alpha returns which averaged 18.3% pa in 1990s, 6.4% in 2000s, 3.4% pa since 2010.  But buoyant markets now mask outflows to keep their global size constant at £2.3tn ($3tn, €2.7tn).  In 2018, 580 funds out of 11,000 closed, outnumbering launches for a…

December 2, 2019 admin123@ No comments exist

Saving Germans squirrel away 10% of disposable income regardless of economic crises or interest rates, double that of the average European or American.  Only Swedes & Swiss save more.  In contrast, Britons save about 3%.  In 2016, their savings rate was actually negative. 1778: world’s 1st savings bank founded in Hamburg.  Most Germans view the…

November 29, 2019 admin123@ No comments exist

Internal rate of return How do private equity funds juice the internal rate of return (IRR)?  IRR is calculated once clients’ money comes in.  The shorter the period their money is put to work, the higher the annual IRR.  So, funds borrow money for the initial investment, & ask for client money later, to make…

November 27, 2019 admin123@ No comments exist

Winner takes all Winner-takes-all nature of modern markets means top firm benefits don’t impact the whole economy, as in the past.  Bank of England data: the most-productive 1% of firms raised productivity by 8% a year from 2004 – 2014.  The other 99% barely raised productivity at all.  Highly successful global companies can still leave…

November 26, 2019 admin123@ No comments exist

White elephant When it arose, Canary Wharf was called a white elephant. But in 2012, it overtook the City of London as an employer of bankers & 120,000 people now work there.  New challenge: how to remain king of the jungle & adapt its fortress-like towers to the open, flexible workspace now in vogue? Guessed…

November 22, 2019 admin123@ No comments exist

Almighty The US dollar remains almighty.  It makes up 2/3 of international debt & 2/3 of global currency reserves.  Oil & gold are priced in dollars.  Kidnappers of ships & people demand dollars.  European firms buy European planes in dollars.  Even when the US is the source of the problem, as in the 2008 global financial…

November 20, 2019 admin123@ No comments exist

Private equity What’s the big deal with private equity (PE)?  PE firms use debt to buy weak companies, turn them around & sell them.  They load the debt on to the acquired company & sell off its assets to create massive returns for investors quickly, while charging huge fees.  PE is changing finance & the…

November 15, 2019 admin123@ No comments exist

Guess the Word  and Contact Us for Prizes!  Series 51 starts soon….. 1st letter of each Post Title (in a Series) spells a business word – spelt correctly or jumbled up.  Previous answers: Series 50  spelt  L-I-O-N-S-M-E-E-T   (MILESTONE) Series 49  spelt  C-G-U-R-N-E-Y   (URGENCY) Series 48  spelt  T-I-C-K-S-L-O-P-E-S   (STOCKPILES) Series 47  spelt  F-L-A-Y-Q-U-I   (QUALIFY) Series 46  spelt …

November 13, 2019 admin123@ No comments exist

Triple bottom line TBL = people, profit, planet (3Ps). 1981: Freer Spreckley says firms should measure their TBL. 1994: John Elkington’s 3Ps suggests sustainability as a goal.  1997: his book ‘Cannibals with Forks‘ asks firms to measure/ report financial performance, social wealth creation & environmental aspects.  What next for stakeholders?  Quadruple bottom line, which includes…