Humans are flawed beings. We tell ourselves that we will go to the gym more often, but don’t seem to make it. We convince ourselves to try new things, but resort to the same old routines. Even our best intentions often end in failure. What if humans could be pushed to make better decisions without [...]
Read moreMany organizations are shifting focus away from cost cutting toward cautious reinvestment in growth. While companies are looking to reinvigorate their performance, they are striving to grow “intelligently,” by remaining prudent in cost and capital management. Certainly corporate scrutiny remains high on any growth investment and executives continue to be concerned about their ability to [...]
Read more(The Wall Street Journal, 23 March 2011) In Brief: Warren Buffett is considering investment opportunities in high-growth countries outside the U.S., such as India. While Mr. Buffett believes the U.S. economy is slowly and steadily improving, he believes emerging markets offer “logical” investment options. Our View: While only 10% of companies source more than half [...]
Read more(The Wall Street Journal, 24 March 2011) In Brief: ConocoPhillips plans to sell $5 billion to $10 billion in assets over the course of the next two years to fund buyback and capital spending programs. CEO Jim Mulva claims the plan will “improve returns and create value through disciplined capital spending, noncore asset sales, and [...]
Read moreFrom speaking with treasury teams around the world it is evident that one finance trend born of the recession is set to grow and mature in the years ahead: the worry about asset quality. This trend goes way beyond the obvious trials and travails of the financial services sector; finance teams in industries as diverse [...]
Read more(Livemint.com, 3 January 2011) The Indian government is exploring a proposal to reduce the limit on foreign direct investment (FDI) allowed in the pharmaceutical industry through the automatic route to 49% from 100% amid concerns over the takeover of local drug makers by foreign firms. Our View: The Indian drug industry is valued at around [...]
Read moreSource Article: (The Wall Street Journal, 16 October 2010) Pension funds are moving out of equities in search of yield and are increasingly reallocating assets into fixed income securities as a safe haven. Our View: This marks a departure from the previous environment in which growth investments were the first choice for future cash deployment. [...]
Read moreSource Article: (The Wall Street Journal, 26 August 2010) Canadian insurer Fairfax Financial Holdings began hedging against U.S. deflation. Its derivative investments now total $174 million, which are positioned to protect the company’s $22 billion investment portfolio. Our View: Deflation and inflation are notoriously difficult to predict; finance executives should ensure teams have worked through both [...]
Read moreSource Article: (@Risk, 24 August 2010) Thirty-eight large companies are reportedly planning to make changes to their benefit plans for 2011. Around 61% of the companies surveyed will offer a consumer-directed health plan, according to the National Business Group on Health, a non-profit that represents corporate health policy issues. How We Can Help: The obligation [...]
Read moreWith all the market volatility, you are probably wondering what to make of your company’s pension funding. Corning (www.corning.com) established a process of early warning indicators to add visibility to pension cash flow forecasting. Using this agile process, you can adjust pension planning with alternative scenarios. It will help you weather stormy markets, says Jim [...]
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