Remember our discussion on how low interest rates are PE friendly and PEs use them? This bloomberg opinion piece concluded “Using cheap debt to pay themselves dividends isn’t such a savvy investment model after all”. Please click the image below to read the full article. It addresses so many points we discussed in the class.
Remember in the CEO-2030 class I discussed how companies that save cash for a rainy day can make go bargain hunting? I also discussed why ‘resource allocation and deployment’ must be taught as an elective. Here is an example of how cash comes handy. Click on the URL below.
Private Equity firms have more than 1$ Trillion in cash! This could be the beginning of a once in a lifetime investment opportunity for those in waiting. Remember the discussion in the CEO-2030 class how the 2007 financial crisis opened up opportunities for acquistions and thus a spike in demand for new CEOs? CNBC had an intetresting article on this topic. Please click the image below. Should companies take PE’s money or not? Do they even have an option? What if the PE firms go hostile? I’m interested in what you have to say on this.
Should large corporations assume that governments have their back? I said in the class that when interest rates are low, companys take on debt and often put it to good use. Remember our discussion on overdoing it? Some aspects of what we discussed are addressed in this CNBC article. Click the image below to read further.
These articles in Bloomberg and CNN discuss how the airlines in the US spent their free cash flow to buy back their shares. It raises so many points we discussed in the class. But, did the money really disappear? Where did all the money go? CNN reports “The Big Four Airlines, according to Baldwin’s office, spent $42.5 billion on buybacks between 2014 and 2019. That nearly matches $50 billion the industry is now asking for”. What a coicidence! I Would like to hear from those who disagreed with me. Click on the images below.
In PE class we discussed how PEs can play both a positive and potentially negative role. I couldn’t play this video in full. Please click on the link below to watch it in full.
The slides I used in this presentation can be downloaded from the links below. Please credit appropriate authors when you reuse the content. As usual, if you have questions, please contact me through my Stanford email id.
I have addressed this in detail in the CEO-2030 lecture. Read on!
While at Mumbai recently, I had a conversation with IIM-A alum about Fintech, CEO-2030, Entrepreneurship, and B-school pedagogy.
Wall street’s stronghold on IPO market is being questioned finally! I have been writing for years about how Wall street’s monopoly is not good for both the listing companies and investors. Looks like Wework’s IPO fiasco is waking up VC firms to consider alternatives.
“Powerful figures are gathering 2,500 miles from Wall Street to redesign one of its oldest and most lucrative businesses — but few from the industry will have a seat at the table. Attendees plan to discuss alternative strategies including direct listings, which replace financial underwriters with cutting-edge computer code.”
Read the Bloomberg article below.