Tuesday, December 23, 2014

Beethoven's 32 Sonatas: Ranked from easiest to hardest

  1.  op.49 no.2
  2.  op.49 no.1
  3.  op.79
  4.  op.14 no.2
  5.  op.14 no.1
  6.  op.2 no.1
  7.  op.10 no.1
  8.  op.10 no.2
  9.  op.2 no.2
  10.  op.2 no.3
  11.  op.10 no.3
  12.  op.12 (Pathetique)
  13.  op.22
  14.  op.28 (Pastorale)
  15.  op.7
  16.  op.78

Tuesday, December 16, 2014

Valuation of Young Firms

 Young companies share some common attributes:
  • No historical performance data.
  • Small or no revenues with probable operating losses.
  • High failure rate. Many don't survive.
  • Investments are illiquid. A significant portion of the equity is usually held by the founders.
Thus, there are no easy valuation solutions to the young firm problem. However here are some value drivers to look for when investing in young firms:
Revenue growth: This show how much growth potential the firm has.

Reinvestment for growth: A young company can (or even should) lose money in order to make money in the future. The managers / owners / founders should aim for long-term goals.

Survival skills: For young firms to become valuable, they simply need to survive. This requires talented management.

Key people: Young companies, especially in service business, are often dependent upon the owner or a few key people for their success. Focus on firms that have built up a solid bench to back up key personnel.

Corporate success: Sometimes success in one business or market can be a stepping-stone to success in other businesses or markets.

Exclusivity: Success attracts competition. You want young firms that have products that are difficult for others to imitate (patents, technology, or brand name).

Sunday, December 7, 2014

Business Jargon

5,000 mile view: a phrase used to describe a high-level, summary view of the situation. 5,000 can be replaced by any large number to indicate the same thing

80/20 rule: belief that 80% of the effects come from 20% of the causes; in consulting, this term is used to imply that 80% of an assignment can be finished in 20% of the time

adding value: quite simply, that value is being added. See also “value-add”

AOB: Any other business – Term generally used in developing a meeting agenda. Denotes time scheduled to discuss miscellaneous topics in a meeting.

at the end of the day: a phrase used to attempt summarization, introduce an air of finality and perhaps close off certain avenues of discussion; since most consultants’ days do not end with the setting of the sun, at the end of the day most of them are still working