Tag: profit

April 18, 2020 admin123@ No comments exist

Demise Covid-19 spells the demise for firms in some sectors more than others.  Most at risk: energy (oil price slump), retail (non-food), airlines, travel, automotive.  Likely to thrive: healthcare (virus-facing), utilities, telecoms, communications media.  But for all firms, survival will matter more than profits or growth for the next 2 years.  All firms can go…

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…

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 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…

October 28, 2019 admin123@ No comments exist

Invisible hand 1776 economics milestone:  Adam Smith’s Wealth of Nations.  Free markets ‘led by an invisible hand’ benefit all, not just the butcher, brewer or baker seeking profit.  No other idea in history has done more to raise global prosperity.  His pin factory study showed division-of-labour specialisation & productivity motivates trade.  The ‘invisible hand’ is…

July 24, 2019 admin123@ No comments exist

Airline class Which airline class? First is back in front.  As super-rich numbers grow, airlines are revamping First Class cabins to stand out from discounters.  One First Class seat raises as much revenue as 12 in Economy/Coach, or 2 in Business.  Also helps manage occupancy & customer satisfaction in the most-profitable Business Class: No one…

April 17, 2019 admin123@ No comments exist

Nanosecond Getting data even nanoseconds faster generates huge profits.  So physical location of cables & towers to transmit data is critical.  Being closer, UK receives US data before Europe, through undersea fibre-optic cables. Light travels 30cm / nanosecond (billionth of a second).  Straight cables transmit data fastest Guessed the Word?       Series 41 (8/9) …

July 16, 2018 admin123@ No comments exist

Underdog Brands can profit from positioning as the underdog.  Determination to triumph against the odds has a strong appeal – in events (dive rescue of Thai boys), sport (Wimbledon, World Cup), books (Harry Potter), clothes (the humble waistcoat), or business Guessed the Word?           Series 27 (5/7)              [pic:…

June 22, 2018 admin123@ No comments exist

Hedge Mexico’s annual ‘Hacienda Hedge’ contrarian bet with banks protects the world’s 12th-largest oil producer from boom-&-bust prices, and made $2.4bn (£1.8bn) profit from 2001-17.  But the sun may be setting on the hedge, as world oil demand is falling Guessed the Word?           Series 26 (5/7)           [pic: Gellinger]

January 29, 2018 admin123@ No comments exist

Original No good being original if there’s no demand for the product/ service at a profitable priceA sensible economic model underpins every successful business Guessed the Word?     Series 18 (2/5)      [pic: timon klauser]