Wealth creation: a systems mindset for building and investing in businesses for the long term

The idea of a firms competitive life-cycle and its stock valuation is based on the premise that competition and capital flows operate over the longer term to force companies economic returns toward the cost of capital. In a nutshell,the pattern of corporate economic returns and reinvestment rates reflects an unending struggle between managerial skills and competition over time. To maintain well above average economic returns and reinvestment rates over decades, companies must continually reinvent themselves to outperform competitors. Thisbook approaches that stock valuation process with a systems mind-set and shows the six fundamental lessons in valuation that can be learned by viewing stock valuation from the company life-cycle perspective.Bartley J. Madden is an independent researcher who currently focuses his timeon FDA reform, corporate governance, and accounting/valuation issues. He earned an MBA at the University of California at Berkeley. In 1970, Madden co-founded Callard, Madden & Associates and spent the next 14 years developing the CFROI (cash-flow-return-on-investment) valuation model widely used by large money management firms today. His firm consulted with portfolio managers and corporate managers so they better understood the connections among corporate economic performance, stock prices, and shareholder returns. He then spent the next eight years managing portfolios for Harbor Capital Advisors and continued empirical research on the CFROI framework. After Harbor Capital Advisors, he joined HOLT Value Associates in the early 1990s, a firm created to commercialize the CFROI framework worldwide. He published corporate finance articles in the Journal of Applied Corporate Finance, Journal of Portfolio Management, The Wall Street Journal, Journal of Investing, and other business publications. In 1999, his book, CFROI Valuation: A Total System Approach to Valuing the Firm, was published by Butterworth-Heinemann. Credit Suisse acquired HOLT in 2002. Sinceretiring as a Managing Director at Credit Suisse in 2003, Madden has written extensively about a Dual Track system to achieve freedom of choice for late-stage experimental drugs. In May 2007 the Heartland Institute published a booklet, More Choices, Better Health: Free to Choose Experimental Drugs, that summarized this work. His 2005 monograph, Maximizing Shareholder Value And The Greater Good, explains macroeconomic wealth creation in terms of the microeconomicsof pursuing maximization of shareholder value, emphasizing the long-term mutual interests of shareholders, employees, and customers.

• ISBN: 978-0-470-48868-3
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 178
• Fecha Publicación: 17/03/2010
• Nº Volúmenes: 1
• Idioma: Inglés