Microsoft’s recent announcement to invest $10 billion into OpenAI is a significant move that demonstrates the company’s commitment to advancing artificial intelligence (AI) research and development. This move highlights the growing importance of AI in the business world and its potential to drive innovation and growth. At the same time, the investment is not without its risks. […]
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Steve Ballmer’s 3 Tips for Start Ups
Ideas matter, stick with it, and figure out the right measure of success (Source: Youtube) STEVE Ballmer spoke today at Oxford’s Said Business School, the world’s leading business community creating ideas with global impact. A few hours later, he spoke at the Oxford Union, the world’s most prestigious debating society. We were fortunate to attend the […]
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Balancing the Scale
Scale improves productivity but also increases bureaucracy Scale can help a company to produce more output at lower average costs. However, production at scale also leads to unhelpful bureaucracy. As production rises, more employees are needed and executives implement more rules to keep things under control. Increasing production tends to lead to higher cash flows, and managers […]
ONE of the take away lessons from the CFA curriculum is that the conventional method of valuing an investment is to determine the present value of expected future cashflows. One way of doing this would be to use the constant growth dividend discount model, which estimates the value of a stock by assuming that dividends […]