Irrational Optimism

No doubt many of you (myself included) will dutifully report to our students that the historical average return for large stocks is about 12% which corresponds to a risk premium of around 8%. (keeping math simple 😉 (see virtually any investment text for these numbers)) However, Dimson, Marsh, and Staunton report that this is probably an overly optimistic number. Not because the expected … [ Read more ]

Solving the Health Care Conundrum

Executive summary of a presentation on reforming health care made by Professor Michael Porter at a Harvard Business School Publishing Virtual Seminar.

Flight for Survival: A New Business Model for the Airline Industry

To pare down their colossal operating costs, giant U.S. and European carriers must restructure the hub-and-spoke system and eliminate complexity.