Nature abhors a profit

by Jeff Moskovitz on September 3, 2011

One of the earliest cavemen "sold" a crudely fashioned, oddly-shaped wheel to his cave-dwelling neighbor for two stone clubs and a chunk of an unknown game animal.  As this trade occurred, a cave dweller from a neighboring village happened to pass by, becoming a witness to mankind's first business transaction. The neighboring cave dweller, intrigued [...]

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What is my company worth? – part 2

by Jeff Moskovitz on June 24, 2011

Part 2 of 2 – Read part 1 here. (Continued from part 1) What is the value of my company today? Present value and the time value of money By using various methods, the value of a company's future cash flows is translated into their value as of today.  Today's value is often referred to [...]

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How to understand the Great Recession in 60 seconds or less

May 8, 2011

In hindsight, it almost seems comical. Anyone who could sign their name (and most likely some who couldn’t) qualified for a mortgage loan. That mortgage loan was doomed even before the ink on the signature line was dry. If he dressed appropriately that day, my dog could have purchased and financed a $500,000 home in the suburbs – with cable.

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Non-profit is a tax status, not an operational goal

March 27, 2011

To an NPO, as well as any organization, profits and cash flows are the fuel that keeps the organization running. If you drive around with your tank near empty, eventually you’re going to run out of gas – and it will most likely be on a dark, deserted road in the middle of the night.

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Is the almighty dollar as almighty as we like to think it is?

March 16, 2011

If this all sounds like a business model doomed for peril, I submit to you, my friends, that it is. Unfortunately, it’s all too real, and the government I refer to is the United States of America. Despite the fact that the government, politicians and the press generally don’t talk about it in these terms, the scenario I just described is factual. If you owned the “business” I just described, you’d most certainly file for bankruptcy protection.

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