Experience Stern | News & Events

Excerpt from Guru Focus -- "Aswath argues that in the current environment, cash earns a low return. If you were to take cash as a standalone asset, its low return would translate into a high price-earnings (P/E) multiple. In other words, cash does increase a company’s valuation because it produces a terrible return. With this being the case, the professor argues that how the P/E multiple is used should be reconsidered in the current environment. Specifically, he believes 'we have to separate companies into their cash and operating parts, and deal with the two separately because they are so different in terms of risk and earnings power.'"
 

Excerpt from CNBC -- "'We have to be careful, very much, of overheating the economy very quickly with infrastructure financing and lower taxes,' Altman told CNBC Thursday. 'That, in many cases, could be a recipe for disaster if, in fact, the deficit financing and the amount of debt that has to be raised to finance it is excessive.'"

Excerpt from Yahoo News -- "One theory, according to Professor Justin Kruger is that people who are often late tend to grossly underestimate how long it will take them to do common tasks."

Excerpt from ICAS -- "'We may not want to dictate how people live but one consequence of stepping away is that now there’s a gap where others can step in,' added Robert Salomon, Associate Professor of Management and Organisations at New York University’s Stern School of Business. 'That’s one of the broader issues of leaving that void in Asia.'"

Excerpt from Racked -- "'Amazon’s algorithm is complicated,' says Galloway, 'but it generally favors what sells the most. So if you search booties, it’ll likely show you what’s three years old, and not the new shoes sold on Macy’s or Net-a-Porter. That’s not great for fashion labels constantly putting out new collections.'"

Excerpt from CNBC -- "The core competence now in the markets is storytelling. And it's painting a huge vision and then making progress against that vision, and you're able to establish this anti-gravity-like trajectory for your stock. And Tesla's in that anti-gravity bucket because on any rational measure, this doesn't make sense."

Excerpt from Kellogg Insight -- "Despite the fact that federal employees have relatively stable jobs and knew the situation was temporary, the shutdown led workers to reduce their spending by about 10%. Baker and his coauthor, Constantine Yannelis, an assistant professor at the New York University Stern School of Business, also found that furloughed employees cut expenses by about twice as much as employees who were required to continue going into the office, partly because the stay-at-home workers had no commuting costs and could perform some household tasks instead of paying others, such as childcare."

Excerpt from the Harvard Business Review -- "Almost all customers want their products to be as inexpensive as possible. So firms try to respond to this by delivering the value that they think their customers want. But great CEOs understand that the responsibility of defining greatness is the firm’s, not the customer’s."

Excerpt from Tell Me Something I Don't Know -- "There's actually a great deal of research in psychology that suggests that using payments or incentives to motivate certain types of behaviors can actually get you worse results. ... Why did the incentives backfire? It turns out that the incentives actually turned that altruistic act into an economic one."

Excerpt from Forbes -- "The decline in worker training is concerning, especially given that increase in automation will likely mean that workers need different skills than before. ... I recommend a new NBER working paper by NYU’s German Gutierrez and Thomas Philippon trying to explain why corporate investment is low relative to what Tobin's Q models would predict."

Excerpt from the Financial Times -- "Aswath Damodaran, a finance professor at New York University, highlights some myths about valuation. A common one is that the more quantitative or complicated a model, the more accurate the valuation. Instead, Mr Damodaran argues for keeping things simple. With Aramco, he is for the moment getting his wish: there are few reliable numbers. Nevertheless, a reasonable estimate of Aramco’s total value is possible by working through assumptions about its costs."

Excerpt from the Economic Times -- "According to experts, this private label duel between India's top two ecommerce companies has happened in step with shifting consumer behaviour. 'Consumers have gotten more comfortable with private labels and consider them as interchangeable with national brands,' says Ghose of the Stern School of Business. 'It is this change in consumer behaviour that online retailers like Amazon and Flipkart have capitalised on and are leveraging and harnessing to the full extent.'"

Excerpt from The Wall Street Journal -- "'The great majority of college students want to learn. They’re perfectly reasonable, and they’re uncomfortable with a lot of what’s going on,' Mr. Haidt, a psychologist and professor of ethical leadership at New York University’s Stern School of Business, tells me during a recent visit to his office. 'But on each campus there are some true believers who have reoriented their lives around the fight against evil.'"

Excerpt from Fox Business -- "I think that we have not had a public discussion about man-made climate change and whether carbon and other greenhouse gases are causing that man-made climate change. And we cannot have that conversation in the Congress. Obviously, that is not the right place to do it. It's become such a political discussion. The EPA, given their technical background, I think is probably the closest we will come to an organized public debate. And I think in the first year that the Endangerment Rule was rolled out and carbon dioxide was labeled a pollutant, there were a number of problems, I think, with that process. It was rushed. The actual source research that they used, we have 10 more years now of information. We have 10 more years of climate models misfiring. And I think we need to look at it with fresh eyes."

Excerpt from Reuters -- "Thomas Philippon of New York University, who has studied pay among investment banks, said they had been too slow to cut. 'They reduced the wage bill mostly by cutting staff, not by cutting wages,' he said, commenting on the sector."

Excerpt from Luxury Daily -- "The initiative simply means greater business opportunities for high-quality manufacturers and greater creative potential for designers. It is a win-win proposition with great revenues potential for both parties."

Excerpt from Newsmax -- "On average, a stock being added to the S&P 500 Index gains 9 percent, according to NYU professor of finance Jeffrey Wurgler. That means that, in an overvalued market, stocks that are also in an index are likely to be even more overvalued. It’s where money is passively going, whether it’s a good investment decision or not."

Excerpt from Forbes Poland -- "'I don't think the title of the richest man in the world is important to Zuckerberg. He's striving for long-term dominance of Facebook as a social platform, and also wants to use its position and money to influence the world,' says prof. J.P. Eggers of New York University Stern School of Business."

Excerpt from The Wall Street Journal -- "'One is for the more risk averse,' said George David Smith, a professor at New York University’s Stern School of Business, referring to the proposed GM share classes. 'The other is for those who are willing to bet on earnings.'"

Excerpt from the Los Angeles Times -- "But AI won’t just affect driving, of course, it will soon affect every worker who processes transactions, and that includes white collar jobs. Already, machines are out-performing humans at storied investment banks like Goldman Sachs, where four traders can be replaced by one computer engineer and a handful of complex trading algorithms with machine-learning capabilities."

Excerpt from MarketWatch -- "Mueller and Yannelis’ research indicates that the policies the government offers to help borrowers avoid this outcome are somewhat effective. Federal student loan borrowers have the ability to pay back their loans according to their income. These plans also offer borrowers the opportunity to discharge their loans after at least 20 years of repayment. Mueller and Yannelis’ research indicates that these plans are at least partially successful at protecting borrowers from the income and employment shocks that can come from falling home prices -- as long as borrowers sign up for them."

Excerpt from The Atlantic -- "'Every other company isn’t betting the company’s future on self-driving cars,' said Arun Sundararajan, a professor at New York University’s Stern School of Business. 'Google will be fine. Uber is the one company in the world who has really made this all-or-nothing bet.'"

Excerpt from Poets & Quants -- "Finally, as if this year’s list wasn’t epic enough, there’s one school setting a new record. 2017 marks the very first time that three professors under 40 all hail from one school. At NYU’s Stern School of Business, Lisa Leslie, Ilan Lobel, and Nathan Pettit are three truly extraordinary professors, all housed under one academic roof, each making highly recognizable names for themselves in B-school academia."

Excerpt from The New York Times -- "For Mr. Galloway at N.Y.U., the slow pace of Amazon’s rollout of stores is a sign that it has not figured out physical retail yet, and that has surprised him. Five years ago, he believed Amazon would have hundreds of stores by this time. 'What appears to be clear is they haven’t yet zeroed in on a format they’re willing to massively scale,' he said. 'This is a company that the moment it figures out something that works, it puts nuclear energy behind it.'"

Excerpt from AEI -- "Hamilton is made Secretary of the Treasury in 1789, and because he's been planning this for nearly a decade, he hits the ground running. And what he does in a very short time is introduce most of the elements of the modern financial system."