Experience Stern | News & Events

Excerpt from USA Today -- "'There's no policeman, really,' said Marti Subrahmanyam, a finance and economics professor at New York University's Stern School of Business. 'These things have sort of fallen through the cracks. Foreign exchange is really nobody's kind of baby.'"

Excerpt from The New Yorker -- "Why do investors, many of whom painstakingly dissect reams of data to understand companies’ finances, also base their decisions in part on a stock’s ticker symbol? The answer is that reading pronounceable ticker symbols is slightly less mentally taxing; people generally prefer objects and events that are more 'cognitively fluent,' or easier to process."

Excerpt from CNBC -- "'Investors need to be asking themselves, can all these companies coexist at the same time and make as much money as they are making now?' Damodaran said. 'There will be winners and losers. It could be Twitter, Facebook, Google or someone we haven't heard of yet.'"

Excerpt from Bloomberg -- “'The mandate is just a mistake,' Lawrence White, a professor at New York University’s Leonard N. Stern School of Business, who has testified before Congress on ratings companies, said in a telephone interview. 'It generates a check-the-box-type process, which can lead to major mistakes and unfortunately that’s what happened' in the last crisis."

Excerpt from Yahoo News -- "Nominated for the 2013 Thinkers50 Global Solutions Award for his Global Connectedness Index, Ghemawat (11) is based at New York's Stern school and IESE Business School in Spain. Prior to that he was the youngest full professor at Harvard Business School. His 2011 book 'World 3.0' won the Thinkers50 Book Award."

Excerpt from Marketplace -- "In monetary policy, hawks have a laser-like focus on inflation. Keeping that under control is one of the Fed’s two mandates. And doves? They’re concerned with the other mandate. 'The dove, being a little bit softer, might be more concerned about what is going on in labor markets, the rate of growth, and the unemployment rate,' says Paul Wachtel, a professor of economics at NYU’s Stern School of Business. Doves are not happy, because unemployment is at 7.3 percent. And hawks? As Wachtel puts it, 'there aren’t too many hawks out there nowadays.'”

Excerpt from Xinhua -- "Joe Foudy, a business professor at New York University, said China's economic reforms would be 'quite transformative' for the country. 'These reforms are really the most important reforms that we've seen since the 1990s... This is a real opportunity to try to move China decisively towards markets,' he said."

Excerpt from Forbes -- "Galloway, who is also clinical professor of marketing at the NYU Stern School of Business, where he teaches brand strategy and luxury marketing, said he expects Apple to expand into product categories such as apparel, handbags, jewelry, sunglasses, watches and even luggage."

Excerpt from CNBC -- "'There can be no way that you can tell me from a valuation perspective that it's worth what it's trading for. Having said that, I would disagree with the statement that growth stocks can never be good investments because I think there will be a point in time where Twitter will become a good investment,' said New York University professor Aswath Damodaran. 'It might not be that far in the future. All you need is a couple of bad earnings reports, and the same crowd that's buying in now will be out of the stock as quick as can be.'"

Excerpt from Bloomberg TV -- "I think they could be profitable now. A lot of people have said this is a company losing a lot of money and they kind of slam their organization for it, but this is a great business model. You come up with great technology, and you get a sales force, and then you and me provide the content for free, so I think they could be doing 30 or 40% EBITDA right now, but they are plowing a ton of money back into the business to try and grow the same way LinkedIn was when it went public."

Excerpt from The Wall Street Journal -- "Nouriel Roubini, an economics professor at New York University who achieved a high profile globally for forecasting the financial crisis, sketched the dilemma starkly in an opinion piece recently. '[P]olicymakers will eventually face an ugly trade-off: kill the recovery to avoid risky bubbles, or go for growth at the risk of fueling the next financial crisis,' Mr. Roubini said."

Excerpt from Big Think -- "If you look across the world, the color blue is the world's favorite color. And that's a very powerful thing to know if you're going to color products, and almost all products now have colors, that almost everywhere in the world, in extensive interviews, people prefer the color blue to other colors."

Excerpt from The Baltimore Sun -- "Luke Williams, executive director of the Berkley Center for Entrepreneurship & Innovation at New York University's Stern School of Business, figures a lot of people buy certain razors out of habit. He's used Gillette's Mach3 for a long time. But he said 'little tension points,' like customers annoyed about the price of something they use every day, can be fruitful for businesses to exploit. Established players ignore such competition at their own peril, he said. 'Every business is a Kodak, I like to say,' he said, referring to the film and camera pioneer that had to restructure itself in bankruptcy court after the digital revolution. 'And Gillette is no different.'"

Excerpt from Associated Press -- "I think they have a timetable in the spring they're looking at. And they're very aware that the numbers next month may be a bit weaker because of the shutdown, so I don't think this is going to change their course of monetary policy."

Excerpt from New York Business Journal -- "We’re not a typical academic department. We’re aiming not just for relevance but impact. Universities have an obligation to step up and solve some of the problems that cities have. Many problems are very complicated and require solutions that join academics with the private sector and government."

Excerpt from Luxury Daily -- “'Apple is about to crash the party,' Mr. Galloway said. 'Why wouldn’t [Apple] migrate to [luxury]?...The move gives consumers a chance to express their affinity for Apple with something other than [technology],' he said."

Excerpt from MSN -- "In 'The Talent Equation,' a new book by Matt Ferguson (CEO of CareerBuilder), Lorin Hitt (Wharton School, University of Pennsylvania) and Prasanna Tambe (Stern School, New York University), issues such as the labor market's skills gap challenge are explored, as well as how big data has the potential to transform human resources."

Excerpt from Bloomberg TV -- "[The Chinese] realized they have to rebalance the economy because they have too much fixed investment at 50% of the GDP, too much savings and too little private consumption and that model of growth of doubling down on credit-fueled fixed investment is going to lead to a hard landing. The trouble is that I'm sure they're going to do reforms, but those reforms are going to occur only slowly, gradually, incrementally, because plenty of forces are resisting reforms."

Excerpt from TechCrunch -- "My valuation of Twitter yields a value of $18 per share and assumes that revenues will climb to about $11.5 billion in 2023 (giving Twitter about 5 percent to 5.5 percent of the online advertising market then), that the pre-tax operating margin will increase over time to 25 percent (about 5 percent lower than Facebook but about 5 percent higher than Google) and that a dollar in additional capital invested will generate $1.50 in incremental revenues."

Excerpt from The New York Times -- "The study, whose other authors are Sumit Agarwal of the National University of Singapore, Souphala Chomsisengphet of the Office of the Comptroller of the Currency and Johannes Stroebel of New York University’s Stern School of Business, estimates that the law is saving American consumers $20.8 billion a year."

Excerpt from CCTV -- "I think we are at the point in which the Greek budget has been balanced and in fact there is a surplus, so... a primary surplus if you exclude interest, so Greece is in pretty good shape financially at this point. In fact, it doesn't need any money right now from the European Union and this negotiation that is happening right now is unique because it's the first time in years that Greece doesn't need the money right away. So what Greece needs is to do more reforms: open closed professions, allow for more competition in labor markets, allow for things that should have happened even if Greece had not borrowed too much. So the structural reform should be the first priority of the government and not cutting expenditures."

Excerpt from Associated Press -- "Aswath Damodaran, a professor of finance at New York University, says the trend is a global one. Many Indian companies have fared well even as India’s economy has slowed. The French luxury goods company LVMH did only a tenth of its sales in France in 2013. 'It used to be that US companies lived off the US economy and French stocks lived off the French economy,' Damodaran said. 'Now, stock markets are more reflections of the global economy.'"

Excerpt from BBC -- "There are two ways to think about valuation. One is to think about what you're buying, which is a set of cash flows with a lot of risk and growth associated with them, and try to value it, which is the way people have always valued businesses. The other is to price it, which is to look at what other people are paying for something a little bit like what you're buying. Think of buying a house...the realtor tells you it's worth $1 million or $2 million. The way he or she is coming up with that number is by looking at other houses in the neighborhood and what they sold for. So the first thing you have to think about when you think about valuing something like this: are you going to price it or are you going to value it?"

Excerpt from MIT Technology Review -- "Research shows that people weigh these disadvantages [of online shopping] against the benefits of buying online. Along with colleagues Chris Forman and Anindya Ghose, I examined what happened to Amazon’s book sales at 1,497 U.S. locations when a Walmart or Barnes & Noble opened nearby. We found that customers who lived near the newly opened stores bought many fewer best-sellers from Amazon."

Excerpt from WIRED Italy -- (Translated from Italian using Google Translate) "It's a process that starts with what I call disruptive hypothesis. Taking a question that nobody gets in your industry. Innovation is asking the right questions. If you ask an obvious question, you will have an obvious answer. Usually companies seek opportunities and only then formulate hypotheses about how to reach them... They need to reverse the process and start with a hypothesis that is unpredictable and then find the unexpected benefits that can bring. We must not think of solutions as predictable, but rather of unreasonable provocations."