Tag: CEORater

Management Teams Are An Afterthought

Management Teams Are An Afterthought

Management Teams are an afterthought and it is a shame. Microsoft would not be enjoying the same level of success if Steve Ballmer was still at the helm.Not every Steve Ballmer successor would have been as effective as current Microsoft CEO Satya Nadella. Bill Gates was the right person at the right time to co-found … Continue reading Management Teams Are An Afterthought

It Always Makes Sense To Invest In Quality Names

It Always Makes Sense To Invest In Quality Names

Many Technology investors got religion on August 26th as it relates to interest rate increases (more to come) and a Fed pivot (not any time soon). The message of "higher for longer" was reiterated yesterday by Fed Chair Powell. The Fed tends to undershoot when it comes to inflation and its Fed Funds target. We … Continue reading It Always Makes Sense To Invest In Quality Names

When CEO Compensation Is The Primary M&A Driver

When CEO Compensation Is The Primary M&A Driver

Too frequently companies execute M&A transactions not because a given acquisition strengthens the acquiring company's competitive position or enhances customer value, but because the acquired company could help boost CEO compensation of the acquirer by driving some combination of higher total revenue growth, higher EBITDA, higher bookings and/or a higher stock price. Today's announcement that … Continue reading When CEO Compensation Is The Primary M&A Driver

A Return To Fundamental Investing

A Return To Fundamental Investing

When may this occur? Don't hold your breath. Investors' obsession with interest rates will likely persist until the market finds a bottom. It is unlikely that equity markets will find a bottom while the Fed is tightening monetary policy. We saw the NASDAQ Composite recover in October 2019 as the Fed became more accommodative. We … Continue reading A Return To Fundamental Investing

Quality of Management

Quality of Management

Talk about an overlooked investment decision-making variable. Nothing is more overlooked by investors than the Quality of Management. Define "quality" how you will. At present, Quality of Management seems to be an afterthought amongst many investors. Even peddlers of financial knowledge such as the CFA Institute (remind me what practical value the CFA institute provides?), … Continue reading Quality of Management

VC Culture Ruins Companies

VC Culture Ruins Companies

The grow-at-all-costs venture capital culture of the past 20-plus years ruins companies. How? Far too much focus is placed on revenue growth at the expense of sound operations and profitability. Too many venture-backed companies grow at a pace that far outstrips those companies' ability to scale operations in a manner that supports growth. The result … Continue reading VC Culture Ruins Companies

Management Teams Will Matter More To Investors

Management Teams Will Matter More To Investors

As growth slows and interest rates climb, management teams will command a greater weighting in investors' due diligence processes as compared to the 2009-2022 period of ultra-low interest rates and Quantitative Easing ("QE"). While it is too early to call peak inflation and far too early to talk about a Fed pivot, it is never … Continue reading Management Teams Will Matter More To Investors

What Does Pinterest’s New CEO Mean for Google?

What Does Pinterest’s New CEO Mean for Google?

Pinterest has a new CEO. Google needs to simplify its Payments strategy. The two are related. On June 4th we wrote (article HERE), that Google's Payments strategy is confusing given the company's three-pronged approach to consumer-facing payment apps - Google Pay, G-Pay and Google Wallet. Much of our surprise was due to the fact that … Continue reading What Does Pinterest’s New CEO Mean for Google?

“G” Matters. Throw Out The “ES”.

“G” Matters. Throw Out The “ES”.

If we have said it once we have said it a thousand times: "G" is what matters in ESG investing. The "G" stands for Governance. Nothing is more determinant to a company's success than the people who lead that company, beginning with the CEO (which of course is the reason why we started CEORater 5 … Continue reading “G” Matters. Throw Out The “ES”.