Ten golden rules of investing September 13, 2012 Companies fail largely because their businesses are poorly financed. A strong balance sheet tells you many things. Most importantly, it tells you that the company is very unlikely to fail. But balance sheet strength is not just about the liabilities. It’s also important to look at the assets. What a company does with its cash [...]
Does the proposed merger between BAE and EADS make good commercial sense? September 13, 2012 YES Peter Luff The proposed deal reflects the underlying reality of the European defence market. Some kind of consolidation in the market was inevitable and, on the face of things, the deal should be good news for UK industrial and defence interests. However there are many complexities – what the US authorities will make of [...]
Rapid Responses September 13, 2012 The West’s demise [Re: The East is getting rich and working harder than the waning West, yesterday] Douglas McWilliams paints a worrying picture. He is right – the success of Hong Kong and Singapore are a sign of things to come across Asia. But how to deal with the root cause of our malaise – [...]
We need chutzpah as well as cuts to restore British competitiveness September 12, 2012 WITH unemployment falling over the last six months, and over 1m private sector jobs created under the coalition, it is not all bad news on the economy. There is no reason for Britons to be defeatist. We’re still in a rut, but there is a way out. The key thing is not to sacrifice long-term [...]
The East is getting rich quick and working harder than the waning West September 12, 2012 WE’RE witnessing the world’s greatest ever economic event: the industrialisation of the two thirds of the world that were previously impoverished. This has implications for the West, which once had a monopoly in the provision of sophisticated products. The emergence of the East not only affects nine times the proportion of the world’s population as [...]
Ten golden rules of investing September 12, 2012 Acompany is essentially a group of people with a common goal, namely to create the best possible product at the best possible price. This is what I call “quality”. Sure, companies need fixed assets but they are worthless without people. Once one thinks in these terms, one can appreciate that predicting the long-term performance of [...]
Should the UK welcome proposals for a Europe-wide banking supervisor? September 12, 2012 YES Mark English Problems in banks spread quickly across borders. A single system of supervision for the euro area means reinforced application of rules and will result in more confidence. Enhanced stability will help tackle the current crisis and help to prevent future crises. It will mean added protection for UK banks – and the [...]
RAPID responses September 12, 2012 Draghi’s limits [Re: Draghi’s plan will merely buy a bit of time for the Eurozone, Friday] The European Central Bank’s (ECB) programme can’t “theoretically be unlimited in scale” if Mario Draghi sticks to his promise to sterilise – that is to offset – purchases of dodgy sovereign bonds with sales of other assets. The ECB only [...]
Cable is wrong on state aid rules and his plan for a business bank September 11, 2012 ONE of the best aspects of the EU is that under the so-called “state aid rules” member states are forbidden from subsidising businesses through grants, tax breaks and soft loans. State aid invariably distorts competition and trade: protecting businesses from foreign competition, or propping up failing businesses, whose failure would create space for value-generating alternatives. [...]
Ten golden rules of investing September 11, 2012 When considering a company, the first question you need answered is “who controls it?” The second is “do you trust them?” Minority shareholders are just one of many company stakeholder groups (others include employees, the government, suppliers, bankers and major shareholders such as a founding family). While you should not, as a minority shareholder, expect [...]