Clown-Free Zone... sorry, no clowns allowed Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: pater tenebrarum who wrote (69955)	2/21/2001 5:17:33 PM
From: NOW	Read Replies (1) of 436258

Great quote from Bonner: Cisco, Amazon, GE all suffer from what Richard Thaler described as the "winner's curse." Thaler noticed that the winning bidder for oil drilling rights almost always paid too much. Estimates of the value of the rights varied greatly, he pointed out. The winner was the one with the most optimistic view. But, the most optimistic view was rarely the correct one. * Cisco, Amazon, and GE - were the big winners of the late 90s - each one dominating its space, and paying far too much for acquisitions, customers and just about everything else. They are all doomed... * One thing for which leading companies paid too much was labor. Not hourly labor - but top talent, which was typically awarded huge bonuses and stock options. * This became a feature of 'late, degenerate American capitalism' - companies were operated for the benefit of employees and customers, and not for the benefit of the capitalists. * Chief executives tended to get multi-million dollar compensation packages - including bonuses - even when they run down a firm's balance sheet. And employee stock options effectively redistributed capitalists' money to the working stiffs.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next