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jerryking : capital_markets   15

Capital Markets 'Impediment' to Innovation - The CFO Report - WSJ
June 20, 2011, 10:05 PM ET

By MICHAEL HICKINS

Glenn Hutchins, the co-founder and co-CEO of private equity firm Silver Lake, believes the expectations of shareholders and analysts often prevent companies from investing in new businesses or technologies. “One of the largest impediments to getting all of this done is in fact the capital markets,” he said during the opening panel discussion of The Wall Street Journal’s CFO Network Conference.
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CFOs often find it tough to make aggressive, long-term investments because explaining the reason for “making a short-term diminution for the purpose of a long-term gain [to the equity markets] is very difficult to do.”

Still, companies need to be willing to overhaul their entire businesses, if necessary, to avoid being overtaken by aggressive innovators...He lauded Apple for being willing to promote something like the iPad despite the fact that the tablet may in fact destroy the computer maker’s iMac franchise. “Business model innovation is underrated,”.....Also speaking on the panel, HBS professor Clayton Christensen blamed a corporate culture born, ironically, of business school formulas that separate strategy and finance. “The business schools decided to teach strategy and finance [separately] and this got carried over into companies. [But] a lot of things that make sense financially make no sense strategically.”
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With the finance function certainly in mind, Christensen wrote that, “Managing innovation is the complexity of managing the resource allocation process.”
Silver_Lake  Clayton_Christensen  innovation  strategy  finance  CFOs  long-term  impediments  capital_markets  business_models  Glenn_Hutchins  resource_allocation  expectations  new_businesses  new_products  investors'_expectations  short-sightedness  short-term_thinking 
february 2015 by jerryking
Think markets raise capital? Think again.
March 25, 2013 | G&M | John Kay as told to Brian Milner

On the glut of information available to investors:

“We need to dispose of the idea that more information is better and eliminate informa...
economists  information_overload  investment_custodians  relevance  middlemen  dysfunction  money_management  asset_management  capital_markets  noise  incentives  conflicts_of_interest 
march 2013 by jerryking
Canada urged to defend lead in mining business
January 30, 2013 | Globe & Mail pg. B2 | by Pav Jordan.

A new report on the mining sector is urging Canada to streamline worker immigration procedures and boost tax incentives to encourage exploration in remote areas.
The report by the Canadian Chamber of Commerce warns that the country must not sit on its laurels if it wants to hold its lead in global mining, pointing at areas from the equipment supplies sector to bank financing and legal services and infrastructure as places where government and companies can work together to sharpen the nation’s edge.
The Canadian mining industry is among the world’s biggest, contributing $35.6­ billion to gross domestic product in 2011. That same year mining exports were valued at $102 ­billion, more than 20% of the national total. The Toronto Stock Exchange is the global capital for mining equity and British Columbia has the largest concentration of mining exploration firms anywhere.
mining  competitiveness_of_nations  Canada  Canadian  tax_codes  TMX  capital_markets  geology  engineering  legal  epicenters  hyper-concentrations 
january 2013 by jerryking
Risk? Bring it on, Canadian miners say - The Globe and Mail
DOUGLAS MASON

Special to The Globe and Mail

Published Thursday, Nov. 22 2012

There are few business sectors where Canada can claim global dominance, but as a centre for mining development, it is an industry leader....No other place has the same concentration and depth of services and financial market sophistication to support mining finance and development.

How does Canada do this? According to Kevan Cowan, president of TSX Markets, Canadians have a long history of participating in early-stage mining investments and a “whole ecosystem” has developed to support the industry.

“We have a tremendous network of industry players. Our legal services are the best expertise in this sector worldwide, together with a huge pool of geologists, engineers and mining entrepreneurs, as well as sophisticated capital markets for mining finance. We are a world ahead of our competitors.”
Canada  Canadian  mining  risk-taking  TSX  entrepreneurship  DRC  Banro  early-stage  ecosystems  capital_markets  geology  engineering  legal  TMX  epicenters  hyper-concentrations 
december 2012 by jerryking
I Think I Can, I Think I Can... - WSJ.com
March 12, 2007 | WSJ | By GEORGE ANDERS.
Successful entrepreneurs believe they can make a lot of money, even when they don't. But can that confidence be taught?

We had one of those prodigies in our high school. Andy was clever, funny -- and constantly in trouble with the principal. His grades were mediocre, but he made a lot of money (and provided jobs for the rest of us) by running a snack bar on site that sold hundreds of candy bars a week.

Within a decade of graduation, Andy was making more than $1 million a year as a commodity trader in Chicago. Ever since, he has been a major player in the capital markets, creating firms and darting into new trading areas. Meanwhile, classmates with much better grades have opted for the safe obscurity of a windowed office inside a major law firm.
confidence  entrepreneurship  inspiration  parenting  traders  commodities  capital_markets  George_Anders 
august 2012 by jerryking
Our fascination with the well-to-do: The money myth;
Feb 12, 2002 | National Post. . pg. SR.1.FR| Deirdre McMurdy

Inherited wealth continues to be relatively rare. About 80% of the country's millionaires represent first-generation wealth.

It's worth noting that it isn't the option-soaked corporate fat cats or the sharp-shooting lawyers who earn the biggest bucks: small business owners and entrepreneurs are four times more likely to be millionaires than those who work for others. They usually do it, furthermore, by retaining a narrow focus on their objective and working extremely hard in low-glamour Old Economy industries like packaging, auto parts or waste disposal.

For the most part, these are frugal folks who live modestly among us and quietly manage their holdings. And that's not just the case in Canada. American sociologists Thomas Stanley and William Danko -- who wrote the 1999 bestseller, The Millionaire Next Door -- found that most millionaires live in homes worth less than $300,000, drive three-year-old U.S.-made cars and never pay more than US$400 for a suit....Within the genus of millionaires, the Bay Street and Wall Street crowds are a distinct species. Those who have coined it in capital markets are a breed apart -- and certainly not representative of most millionaires...But our admiration for wealth is not without its caveats. Some forms and display of money are more inspiring than others. We may aspire to the toys and the lifestyle, but stock-market fortunes are subtly less respected than those garnered through manufacturing or more traditional methods. Accurately or not, the view tends to prevail that market millionaires have been lucky in a game of chance.
ProQuest  high_net_worth  myths  small_business  entrepreneur  owners  capital_markets  unglamorous  modesty  frugality  hard_work  focus  obsessions  industrial_economy  fascination  inheritors  first-generation  founders 
october 2011 by jerryking
Felix Chee: Building an economic bridge to China - The Globe and Mail
JACQUIE McNISH
TORONTO— From Saturday's Globe and Mail
Published Friday, Mar. 25, 2011.

Felix Chee nudged China’s sovereign wealth fund to its most successful
direct investment ever, when he convinced China Investment Corp. to bet
$1.5-billion (U.S.) in 2009 on embattled Teck Resources Ltd. TCK.B-T
That investment is now worth $5.4-billion. In January 2011 came “the
highlight” of Mr. Chee’s career, when CIC opened a Toronto office with
him at the helm as its chief representative. The world’s fifth-largest
sovereign wealth fund, with $332-billion of assets, snubbed larger
capital markets by opening its first non-Asian office here, putting Mr.
Chee in a unique position to help build the fragile economic bridge that
links Canada’s resource riches with the world’s fastest-growing major
economy.
China  Canada  FDI  Manulife  uToronto  profile  sovereign_wealth_funds  Felix_Chee  CIC  capital_markets 
march 2011 by jerryking
Op-Ed Columnist - The Democrats Rejoice
March 22, 2010 | - NYTimes.com | By DAVID BROOKS.The essence
of America is energy — the vibrancy of the market, the mobility of the
people and the disruptive creativity of the entrepreneurs. This vibrancy
grew up accidentally, out of a cocktail of religious fervor and
material abundance, but it was nurtured by choice. It was nurtured by
our founders, who created national capital markets to disrupt the
ossifying grip of the agricultural landholders. It was nurtured by
19th-century Republicans who built the railroads and the land-grant
colleges to weave free markets across great distances. It was nurtured
by Progressives who broke the stultifying grip of the trusts.
David_Brooks  GOP  Democrats  dynamism  entrepreneurship  capital_markets 
march 2010 by jerryking
Intact Financial: Defensive, disciplined and eyeing acquisitions
Jan. 09, 2010 | The Globe and Mail | by Tara Perkins.
Canada's $36-billion property and casualty insurance sector, a
fragmented industry where the top five players hold only about one-third
of the market....Charles Brindamour, is the CEO of Intact Financial
Corp.(IFC-T ) Canada's biggest home, auto and business insurer. He saw
three main themes in 2009 that not only defined the year for his
industry, but also set the stage for the months ahead: the global
capital markets crunch that marked the start of last year, increasing
evidence that the weather is becoming less predictable, and the return
to optimism in capital markets. Weather patterns..."We've done much
work here on pricing, products and equipping our customer service
operations to deal with storms and water damage. And we're doing a lot
of work with our clients on prevention as well as climate change
adaptation". Opportunity for Pelmorex?
weather  CEOs  patterns  insurance  Intact_Financial  fragmented_markets  volatility  climate_change  catastrophes  natural_calamities  threats  capital_markets 
january 2010 by jerryking
Illness as Economic Metaphor - WSJ.com
JUNE 20, 2009 | Wall Street Journal | By MICHAEL MILKEN and JONATHAN SIMONS. The first rule, as always, is do no harm.

"[There's] a remarkable alignment between treatment regimens for sick economies and sick people. In both cases, it's important at some point to let the patient's immune system carry the load of recovery. Overtreatment is bad medicine.

Before the 1970s, our economy's "immune system" resided in financial institutions, especially banks and insurance companies. Companies looked to these institutions for capital that could restore growth and create jobs whenever the economy got sick. Beginning with the 1974-75 recession, however, capital markets took over the healing function; equity and bond markets provided the "antibodies" that corporate America could depend on to fight off the infection of recession.

Economies that lack the crucial immune-system component of a corporate bond market tend to suffer longer, deeper recessions. The most obvious case in point is Japan, whose banks struggled to recapitalize in the 1990s.
'70s  antibodies  capital_markets  deleveraging  economic_downturn  financial_institutions  immune_system  metaphors  Michael_Milken  overtreatment  recessions  stress-tests  
june 2009 by jerryking
Why Capital Structure Matters - WSJ.com
APRIL 21, 2009| Wall Street Journal | by MICHAEL MILKEN

The optimal capital structure evolves constantly, and successful
corporate leaders must constantly consider six factors -- the company
and its management, industry dynamics, the state of capital markets, the
economy, government regulation and social trends. When these six
factors indicate rising business risk, even a dollar of debt may be too
much for some companies.
corporate_finance  capital_structure  Michael_Milken  debt  equity  capital_markets 
april 2009 by jerryking

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