Tom Spencer consulting blog
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Here you'll find posts on consulting, strategy and investing!
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On 29 June 2009, Bernard Madoff pleaded guilty to defauding investors and was sentenced to 150 years in prison. The 71 year-old swindler is due to be released in 2159.
The ability to find and retain talented employees is vital to sustained business success.
Attractive remuneration, stock options plans, medical benefits, and other incentives are attractive enticements for any employee. But what factors are important in attracting, focusing and retaining the most productive and talented workers?
Mutualism, a concept from biology, refers to a relationship between two species or organisms in which both benefit from the association.
Following on from the ideas put forward in a recent talk by Robert Full, we can apply this idea to the world of business by considering the idea of “Business Mutualism”.
I have just completed the CFA Level 1 exam (and I promise to stop talking about it just as soon as I find out that I pass).
One of the take away lessons from the CFA curriculum is that the conventional method of valuing an investment is to determine the present value of expected future cashflows. One way of doing this would be to use the constant growth dividend discount model, which estimates the value of a stock by assuming that dividends grow at a constant rate … forever. If the present value of expected cash inflows exceeds the cost of the investment, then we should invest.
Exam day overview
I did the CFA Level 1 exam yesterday. It is definitely one of the most exhausting tests I have undertaken, a gruelling six hour 240 question multiple choice exam. The CFA Institute recommends 250 hours of study for the test, and I only managed to notch up about 120 hours at best. Needless to say, I found it to be quite a tough exam.
