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Alex Edmans

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Alex Edmans

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Alex Edmans I started "Grow the Pie" in early 2018, prompted by concern for the polarisation between business and society that existed back then (and still exists…moreI started "Grow the Pie" in early 2018, prompted by concern for the polarisation between business and society that existed back then (and still exists today). Some businesses see exploiting society as the best route to increasing profits – cutting worker wages, hiking prices for customers, or polluting the environment. But equally, some reformers see businesses as the enemy of society and attempt to straitjacket them through regulation – when business can be a force for good, and profits are critical to provide returns to savers.

This polarisation is an example of the "pie-splitting mentality". Under this view, the value generated by capitalism is a fixed pie. Any slice given to stakeholders is at the expense of profits (and so some CEOs minimise society’s share); any profits are viewed as extracting from society.

I wanted to write a book about the "pie-growing mentality". This view stresses that the pie is not fixed. By investing in stakeholders, a company doesn’t reduce investors’ slice of the pie – it grows the pie, ultimately benefiting investors. A company may improve working conditions out of genuine concern for its employees, yet these employees become more motivated and productive. A company may develop a new drug to solve a public health crisis, without considering whether those affected are able to pay for it, yet end up successfully commercialising it. A company may reduce its emissions far beyond the level that would lead to a fine, yet benefit because customers, employees, and investors are attracted to a firm with such values.

So in the face of the conflict between business and society, this is a fundamentally optimistic book. Yet this optimism is not based on blind hope, but on rigorous evidence that this approach to business works for both investors and stakeholders, real-life examples spanning industries and countries, and an actionable framework to turn it into reality.(less)
Average rating: 4.07 · 1,426 ratings · 200 reviews · 15 distinct works • Similar authors
May Contain Lies: How Stori...

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Principles of Corporate Fin...

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Grow the Pie: How Great Com...

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The Madness of Markets: Why...

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More books by Alex Edmans…

New Book: May Contain Lies

I'm delighted to announce my new book, "May Contain Lies: How Stories, Statistics, and Studies Exploit Our Biases – And What We Can Do About It", which Penguin Random House will be publishing in April. Here's the blurb:

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Our lives are minefields of misinformation. It ripples through our social media feeds, our daily headlines, and the pronouncements of politicians, business leaders, and best-sell Read more of this blog post »
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Published on February 18, 2024 14:53 • Tags: critical-thinking, misinformation, smart-thinking

Alex’s Recent Updates

Principles of Corporate Finance by Richard A. Brealey
"Introduction

Principles of Corporate Finance by Richard A. Brealey and Stewart C. Myers, with subsequent editions incorporating contributions from Franklin Allen and, in more recent editions, Alex Edmans, is widely regarded as one of the leading textb" Read more of this review »
The Madness of Markets by Alex Edmans
"Filled with fascinating insights on everything from the impact of sunlight on home loan approval rates to the benefits of adding “.com” to a business’s stock performance in the 90s, The Madness of Markets is a joy to read. While the book is about fin" Read more of this review »
The Madness of Markets by Alex Edmans
"I'm sure this book will help with a personal investment strategy. But for me, it reads more like a whodunnit: who killed the sanity of markets? The conclusion, after pages of evidence, brilliant anecdotes and analogies worthy of a stand-up comedian, " Read more of this review »
The Madness of Markets by Alex Edmans
"Edmans turns behavioral finance into a gripping tour of why even sophisticated investors make irrational decisions, and how to think more clearly when markets get noisy. Rigorous without feeling academic, practical without being simplistic. I’ll be t" Read more of this review »
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The Madness of Markets by Alex Edmans
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Loose-leaf for Principles of Corporate Finance by Richard A. Brealey
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The Art of Racing in the Rain by Garth Stein
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Concussed by Sam Peters
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I have no interest in rugby. I barely played it (despite playing a ton of sports) and haven't watched a single game. I only heard about this book because I bumped into Sam - two years above me at a school that had 160 boys in each year - at the Strat ...more
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Man's Search for Meaning by Viktor E. Frankl
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Getting Things Done by David    Allen
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Quotes by Alex Edmans  (?)
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“citizens and junior employees can grow the pie, whereas only senior management controls the purse strings and can decide where to spend a company’s cash.”
― Alex Edmans, Grow the Pie: How Great Companies Deliver Both Purpose and Profit – Updated and Revised

“But 25 August 2015 was no ordinary day. A patient in Mount Sinai was being given Daraprim to treat toxoplasmosis, a parasitic infection that leads to fever, aching muscles and fatigue.”
― Alex Edmans, Grow the Pie: How Great Companies Deliver Both Purpose and Profit – Updated and Revised

“excellence in your core business, or using your comparative advantage to solve social problems, typically doesn’t involve major financial expenditure. It only needs an attitudinal shift – to be driven by the hunger to create value for society even if the immediate benefit to profit is unclear.”
― Alex Edmans, Grow the Pie: How Great Companies Deliver Both Purpose and Profit – Updated and Revised

Topics Mentioning This Author

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A Million More Pages: Word of the Month - August 2025 18 36 Aug 30, 2025 06:50AM  
“To reach the land of profit, follow the road of purpose.”
― Alex Edmans, Grow the Pie: How Great Companies Deliver Both Purpose and Profit

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