Warren Buffett is paying a hefty price for the biggest bet of his career as his Berkshire Hathaway Inc (BRKa.N) has agreed to buy Precision Castparts Corp (PCP.N), valuing the maker of aerospace and other parts at $32.3 billion. Questions: 1. According to the article, Berkshire’s new deal joins a foray of companies within other… Read more »
Posts Tagged: Revenue Recognition
Hard Times in TeslaLand? A New Type of Company, for Sure!
The Silicon Valley automaker is losing more than $4,000 on every Model S electric sedan it sells, using its reckoning of operating losses, and it burned $359 million in cash last quarter in a bull market for luxury vehicles. The company on Wednesday cut its production targets for this year and next. (As an aside:… Read more »
A Good Thing or A Bad Thing? WOW!
Three months ago, Dan Price announced he was setting a new minimum salary of $70,000 at his Seattle credit card processing firm, Gravity Payments, and slashing his own million-dollar pay package to do it. The result has been turmoil, both internally and externally. Questions: 1. What new costs has Mr. Price faced since his announcement… Read more »
Another Bubble?
Airbnb’s latest financing round is being led by private equity firm General Atlantic, and includes Hillhouse Capital Group, a Chinese fund manager, and Tiger Global Management, which just led a big $80 million financing for Postmates. The deal is expected to be officially announced today, Monday, June 29. Questions: 1. What is a “private IPO”?… Read more »
Spies Everywhere!
A U.S. District Judge ordered Yahoo Inc to face a nationwide class-action lawsuit and accused the company of illegally intercepting email content sent to Yahoo Mail subscribers from non-Yahoo Mail accounts. Subsequently, Yahoo used the information to boost advertising revenue. Questions: 1. Which subscribers and non-subscribers does this class-action allow to file suit? 2. What… Read more »
When Will They Ever Learn?
Bank of America (BoA) is in the news again. This time, Bank of America must pay a $30 million fine after a financial regulator found numerous violations related to the accounts of 73,000 military service members. Questions: 1. What actions did the bank take against military service members that were illegal? 2. What steps did… Read more »
Severe Cuts for Higher Education in Louisiana….Who’s Next?
Governor Bobby Jindal’s new budget in Louisiana proposes off-setting declines in oil revenue by cutting $1.6 million from the budget of state higher education institutions. At the same time as it is predicted that 60% of adults in 2025 will have to have postsecondary credentials in order for the U.S. to maintain its economic edge,… Read more »
A Legalized Scam?
Most people do not shop around for title insurance when they buy a home. Instead, they usually just go to the title insurance company that the real estate agent recommends.This article highlights the problem with this model. Questions: 1. Using the fraud triangle, discuss what factors are at work in the title insurance industry. 2…. Read more »
The Hidden Costs of Beautiful Nails
Manicures were once for special occasions only. Now they have become a staple for women across the economic spectrum. With more than 17,000 nail salons in the United States, there are about 2,000 nail salons in New York City alone. This New York Times research article looks at the dirty little secret of exploitation of… Read more »
A Solution for Separation Anxiety
People feel guilty about leaving their dogs home all day alone. Now there’s a solution – DogTV. Some viewers even report that their dogs were on medication for separation anxiety, but since subscribing to the channel, the dogs no longer need the drugs. Questions: 1. What year was the channel launched and in what country?… Read more »