The Babe and Management; Power or Empathy; Four Horsemen; Econ Recon: Wise Investing

The Babe, Baseball and Business

One popular definition of good management is “consistent pressure, relentlessly applied.”  As we head into the World Series, employee engagement expert Les Landes looks at the truth of this adage in the context of America’s Pastime. Mr. Landes examines what Babe Ruth and truly well-played baseball can teach us about business in his short blog posting “The Truth about Baseball and Business.” 

Power or Empathy: Pick One?

The British historian Lord Acton once remarked that “power tends to corrupt and absolute power corrupts absolutely.” One form that such corruption takes, according to new research, is an inverse relationship between power enjoyed by someone and his or her corresponding level of empathy. 

This one page article from HBR summarizes some research findings of what happens when C-level and other people cross a certain threshold of power. The tips for self-diagnosis of this condition and some prescriptions are also included. Find out why “Becoming More Powerful Makes You Less Empathetic.”

The New Four Horsemen

NYU professor and marketing guru Scott Galloway has penned a book that explores the current and future impact of a group of companies that many call the “new four horsemen of the apocalypse” because of the cataclysmic effect they are having on many industries and many business models.

Galloway’s book The Four: The Hidden DNA of Apple, Amazon, Facebook and Google is a well-researched, well written and well thought out book about the impact of these four players on the current and future economy and upon both B2C and B2B companies. This book is a good read for everyone because your business and personal lives will both surely be affected by the new Four Horsemen even more than they already have.

If you prefer movie to a book, this 48 minute video made by Mr. Galloway just before the book was published will convey much of its major points.

Required reading and required viewing!

Econ Recon:

A Taxing Matter: Much ado about proposed tax reform, but does it really make a difference to the economy? Alan and Brian Beaulieu of ITR Economics look at the reality of past tax reform efforts and wonder how much it really matters. Check out their recent blog entry on the matter. 

Just a Blip: It’s been 30 years since the market meltdown of October 19, 1987 when the Dow lost 23 % of its value in a single day (that would be like drop of almost 5,400 points in one trading session today).

It seemed like the end of the world at the time, but what a difference three decades makes! Economist Brian Wesbury was interviewed on Fox Business about the lessons to be learned about that “cataclysmic” event that he says in the context of the long term, is “just a blip.” This short video has some useful lessons from the crash of 1987 regarding the time frame of the wise investor.

With the Dow at all-time highs, this might be a timely lesson for you and your portfolio.