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People today … it seems they are good, or sometimes evil, mostly by inertia, not by choice. They act as their surroundings prepare them to act.
“The damage caused by overconfident CEOs is compounded when the business press anoints them as celebrities; the evidence indicates that prestigious press awards to the CEO are costly to stockholders. The authors write, “We find that firms with award-winning CEOs subsequently underperform, in terms both of stock and of operating performance. At the same time, CEO compensation increases, CEOs spend more time on activities outside the company such as writing books and sitting on outside boards, and they are more likely to engage in earnings management.”
― Thinking, Fast and Slow
― Thinking, Fast and Slow
“Around this time, McDonald’s had conceived of a new product, the Chicken McNugget, but they were reluctant to bring it to market because of their concern that chicken prices might rise and squeeze their profit margins. Chicken producers like Lane wouldn’t agree to sell to them at a fixed price because they were worried that their costs would go up and they would be squeezed. As I thought about the problem, it occurred to me that in economic terms a chicken can be seen as a simple machine consisting of a chick plus its feed. The most volatile cost that the chicken producer needed to worry about was feed prices. I showed Lane how to use a mix of corn and soymeal futures to lock in costs so they could quote a fixed price to McDonald’s. Having greatly reduced its price risk, McDonald’s introduced the McNugget in 1983. I felt great about helping make that happen.”
― Principles: Life and Work
― Principles: Life and Work
Rick’s 2025 Year in Books
Take a look at Rick’s Year in Books, including some fun facts about their reading.
686 books
|
144 friends
181 books
|
72 friends
1,023 books
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88 friends
94 books
|
14 friends
1,137 books
|
132 friends
2,218 books
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78 friends
645 books
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94 friends
198 books
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196 friends
More friends…
Favorite Genres
Biography, Business, Fantasy, Fiction, Food, Non-fiction, Psychology, Science, Science fiction, and Self help
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