Books Recommended by Morgan Stanley

Morgan Stanley recommends the following books to young employees, interns, and job candidates for their continued education of the financial industry. History Tidbit: The Founding of Morgan Stanley In 1933, the Glass-Steagall Act, and the broader U.S. Banking Act of 1933, mandated that commercial banking and investment banking operations could not function under a single […]

Creating a Winning Corporate Strategy: Jack Welch’s 5 Key Strategy Questions

During his adored tenure as Chairman and CEO of General Electric, Jack Welch created a strategy development framework that was implemented across the vast organization. managers across General Electric used the winning corporate strategy model to gauge their businesses and make decisions about where to go next. Jack Welch advocated that strategy is not something […]

Strategic Success in Joint Venture Management

A joint venture represents the prospect of two businesses that believe that they can collaborate to accomplish marketplace goals that neither could achieve single-handedly. Joint venture partnerships are essential to how multinational companies can best achieve their global business objectives and improve top-line and bottom-line growths. Alliances and joint ventures provide many benefits, including filling […]

Warren Buffett’s Opening Statement at Salomon Brothers Testimony

In 1991, Wall Street investment bank Salomon Brothers was embroiled in a bond-rigging scandal. U.S. Treasury Deputy Assistant Secretary Mike Basham ascertained that, between December 1990 and May 1991, Salomon Brothers’ trader Paul Mozer had dishonestly been submitting false bids to purchase more Treasury bonds than a limit imposed per buyer. Salomon was fined $290 […]

Difference between Bottom-Line and Top-Line Growth

Bottom line refers to a company’s net income — the “bottom” number on a company’s income statements. Therefore, bottom line is a company’s income after all expenses, charges, costs, and are subtracted from its revenues. A company’s bottom line is the same as its net earnings or net profits. Top line refers to a company’s […]

Apple’s Double Irish Scheme for Tax Avoidance

Turns out that Apple might be paying about 10% of its pre-tax income in taxes as compared to a 35 percent federal corporate tax rate. However, details of Apple’s tax practices indicate that there Apple engages in merely tax avoidance. Tax avoidance is not quite unlawful. There seems to be no evidence that Apple engaged […]

Bladder Theory of Corporate Finance

Apple has $137 billion of cash on its balance sheet (as of 12-Feb-2013.) Microsoft has $68 billion, Google $48 billion, Cisco $45 billion, and Oracle has $34 billion. Too much cash on a company’s balance sheet is not necessarily a good thing. Large cash balances reduce shareholder value because they produce lower returns on invested […]