Investment Topics

32 Posts

Weekend Reads for Investors: Volatility and the “Yellen Put”

Investors: Volatility and the "Yellen Put"

Up until last week’s wild ride for stocks, volatility had been largely absent from the market, but the cumulative effect of ongoing geopolitical chaos, spreading Ebola anxiety, and uninspiring economic data, combined with the rumored unwinding of some leveraged positions by hedge funds, at least temporarily jolted global equity markets. Complacency was quickly replaced with panic and we got a reminder of what happens when everyone heads for the exit at the same time. Read more

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Shareholder Value Maximization: The World’s Dumbest Idea?

Shareholder Value Maximization: The World Dumbest Idea?

Jame Montier made his case against shareholder value maximization during his closing keynote address at the 2014 European Investment Conference in London. In his characteristic iconoclastic style with a generous use of ironic humor, Montier labeled shareholder value maximization the way Jack Welch, the former CEO of GE, had once described it in 2009, as “the dumbest idea in the world.” Read more

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Is Venture Capital a Giffen Good?

Robert Giffen

When investment is about capital alone, entrepreneurs have better alternatives today in the form of choosing nimble business models or crowdfunding. Conventional, money-only venture capital could indeed be considered a Giffen good. However, by contributing intellectual firepower and entrepreneurial networks, venture capitalists can accelerate the growth of start-ups better than capital alone. Read more

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How to Win Investors’ Trust

How to Win Investors Trust

The combination of the financial crisis, events like the Libor scandal, and frequent news stories about financial organizations putting their interests above their clients, it is obvious why some investors may be concerned about the quality of advice and the motivations of their financial service providers. Read more

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