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Return on Equity, Earnings Yield and Market Efficiency: Back to Basics!

Musings on Markets

Carrying this through to the real world, you should not be surprised to see technology and pharmaceutical companies, the two biggest spenders on R&D, report much higher accounting returns than they are actually earning on their investments.

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Transcript: Lisa Shalett, CIO Morgan Stanley

Barry Ritholtz

But let’s start with your background in your career, applied mathematics and economics from Brown and then a Harvard MBA. So what I always say is that, you know what the Nobel Prize winners and behavioral economics will tell you is that emotionally losses hurt four to five times more than gains satisfy. It’s volatile.

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Investing Politics: Globalization Backlash and Government Disruption!

Musings on Markets

That said, to value companies today, I have no choice but to bring in the economics and politics of the world that these companies inhabit. China : The biggest winner from globalization has been China, which has seen its economic and political power surge over the last four decades.

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Chinese Study highlights limitations on IAS 38, accounting for intangible assets

CFO Talks

This study provides some key insights that are highly relevant to our discussions and podcasts at the CFO Club on how South Africa can improve its treatment of intangible assets to foster economic growth. Like China, our future economic growth depends heavily on innovation and technology-driven industries.

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Musings on Markets: META Lesson 2: Accounting Inconsistencies and Consequences

CFO News Room

That skewing can affect valuation and pricing judgments about these firms, and correcting accounting inconsistencies is a key step towards leveling the playing field. I believe it is, since failure to do so can have both valuation and pricing consequences.

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META Lesson 2: Accounting Inconsistencies and Consequences

Musings on Markets

That skewing can affect valuation and pricing judgments about these firms, and correcting accounting inconsistencies is a key step towards leveling the playing field. Accounting 101 I am not an accountant, and have no desire to be one, but I have used their output (accounting statements) as raw material in valuation and corporate finance.

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Musings on Markets: Data Update 5 for 2022: The Bottom Line!

CFO News Room

Even though we live in an age where user platforms and hyper revenue growth can drive company valuations, that adage remains true. The last few years have been eventful for all companies, with the COVID crisis and ensuing economic shut down causing pain for companies, with recovery coming in 2021, as the global economy opened up again.

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