Business Blog

Tricks of the trade. Business tricks that win

Tricks of the trade. Business tricks that win

Not all of business is deep strategic thinking and disciplined execution.  There are lots of lesser techniques and business tricks that are more like the business analogy of the sports technique of drawing the foul.  Not exactly “noble” or sportsmanlike, but such tricks have won many a game.

Yet another year of the black swan

Yet another year of the black swan

Whenever I lose more than a million dollars I feel compelled to sit down and think about what lessons I learned. I paid for them. The year of 2008 was, alas, highly educational. I remember the story about Solomon to whom God offered the choice of either great wisdom...

Metrics for Cyclical Businesses

Metrics for Cyclical Businesses

By examining the scatterplot of profit from operations vs the revenue for a profit and loss unit, one can learn a lot about how the business manages through industry cycles. The discussion includes fixed and variable costs and gross margin of cyclical businesses

Growth, Profitability, and the Stock Price

Growth, Profitability, and the Stock Price

Ever wonder what the relationship is among growth, profitability, and stock price (or market cap)? Below, I try to calculate the relationship from first principles.

Let the games begin!

Let the games begin!

As budget season approaches the Company must decide which of its strategic concepts will be crystallized into real strategies by allocating to them our scarce resources.  While the goal is to maximize shareholder value, the need for crisp decisions inevitably leads to...