Ethics
  • Aspiration statements
  • Work vs. family
  • CEO must be role model of values; CEO who would put his own stamps on personal mail sent from the company.
  • Environmental regulation/company stance issues
  • TV/advertising/press ethical issues
Behavioral finance
  • Moods affect stock market (clouds, weather, lunar phases, festive occasions, degree of coldness)
  • Cloudy days, cold days, DST transition and coming back to dark house all give negative results
  • Weekend effect (markets down Monday; people upset coming in to work after weekend)
  • People behave weird around full moon days (lunatic): negative effect across all international exchanges
  • Reversal of large stock price decreases over next 3-4 days
  • Sell in may and go away; Halloween indicator; November to May has stronger growth; huge discrepancy between winter and summer months returns; upward momentum starts in October (Winter bonuses; gone fishing/summer vacation/kids distracting)
  • If a nation loses World Cup game, the day after the stock market goes down.
  • Content analysis for investor mood; investor overreaction and rebound
  • Zero predictive content in Cramer's recommendations; his role in society: validates people's opinions; people like to think their environment is predictable.
  • Bad ticker symbol or name (.com in name increased market cap when was in fashion; if take out of name when out of fashion, market cap goes up); names matter (in efficient market, shouldn't matter).
  • Wrong/right MCI/MCIC; wrong MCI moving with right MCI
  • Socionomics: social mood determines social events (not other way around)
  • Correlation between stock market and fashion (hemline indicator, music genres moving stock market up)
Doing deals
  • Joint venture deals
  • Equal footing important
  • Trust but verify
  • Use milestones
  • Non-competition clauses
  • Negotiate buy-sell, default provisions up front
  • Information rights
 


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