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block three, 10 ways to create shareholder value - Coggle Diagram
block three, 10 ways to create shareholder value
principle 1
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if this isnt followed, the others are really hard to follow
value creating interests should instead be followed and the focus should be on what money has created the most value for the business.
principle 2
make desisions that increase strategic value even at the expense of shareholder shott term earnings. think in terms of value and long term investments.
earnings per share dont tell us anything about how good the company is doing overall or the long term potential of adding value
principle 2 make investments that maxmise expected value, even if they are at the expense of lowering near term earnings
reported earnings tell usvery little about economic performance an how the business may do in the future.
long term shareholder value is really impotant, not short term money making.
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principle 5
return cash to shareholders when their is no credibe vale creating opportunities to invest in the business
good cash disribution is important, shouln be large amounts of excess cash
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principle 6, reward CEOS and other senior executiives for creating long term value.
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