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This is the classical example of what happens when you have to chase quarterly (and yearly) results. They traded short term gains for long term losses. Which,
by ulfw 8y ago
This is the classical example of what happens when you have to chase quarterly (and yearly) results.
They traded short term gains for long term losses. Which, most likely, will be some other leadership’s problem.
- i_feel_great 8y ago"They traded short term gains for long term losses." This is the entirety of the problem with modern capitalism, isn't it? There is no way to account for long term losses that stakeholders can put value on. Just look at what we've done to the environment.
- chillacy 8y agoI'm not a finance person but it seems there is at least a way to put a value on future gains vs present gains, and it looks like money now is always quantitively better than money later: https://en.wikipedia.org/wiki/Discounted_cash_flow https://en.wikipedia.org/wiki/Discounted_cash_flow
- i_feel_great 8y agoAnd that article has a section where it plainly mentions its shortcomings: https://en.wikipedia.org/wiki/Discounted_cash_flow#Doesn't_account_for_all_variables https://en.wikipedia.org/wiki/Discounted_cash_flow#Doesn't_a...
- thibautg 8y agoI once spoke with some Alstom director. He told me that contracts with China required giving away their intellectual property. And they did not have that many other contracts outside China. I asked him if they weren’t shooting themselves in the foot. He responded: “I can either fire everyone now or in a few years, what would you chose?”. I’m glad I don’t have to take this kind of decision.