Why Apple and Disney Pursue Subscription Services

In 1981, Michael Bloomberg (the former NYC mayor) was laid off as a partner at the Salomon Brothers subsidiary, Phibro Corporation. Armed with several million dollars from the buyout of his equity position in PhiBro, Bloomberg launched a financial services firm called Innovative Market Systems (now Bloomberg L.P.) 

Bloomberg knew that the investor community would pay for well-organized, quickly updated business information and launched his Bloomberg terminals that would provide the type of information that you want to know if you were making an investment (specifically the type of financial data that would be useful in making a short-term investment).

Since the payoff for financial information is so high (imagine you find an … Read the rest of this article!

When Dividends Are Used As A Don’t Look Behind The Curtain Technique

This week, I’ve been working my way through Forrest McDonald’s 1962 book Insull about Samuel Insull, the man who worked as secretary and financial manager under Thomas Edison but also was associated with large wealth destruction that resulted from centralizing electricity—one of his famous techniques was helping companies create large amounts of new issuances in stock to bring new shareholders, saying “if everybody owns the company, nobody owns the company.”

His lack of concern about regulated monopolistic powers meant that he frequently gave advice on how corporate management teams could avoid being hassled by shareholders, and he recommended annual but modest dividend increases and the issuance of new debt or bonds to fund … Read the rest of this article!