Wall Street Journal (November 4)
“Humble CEOs don’t inspire much confidence among financial analysts—but that might be good news for people who invest in the CEOs’ companies.” According to a recent study, “analysts tend to significantly underestimate the earnings potential of companies run by humble chief executive officers. That leads to artificially low earnings forecasts from the analysts, which the firms can then more easily meet or beat.” On average, this “humble discount” results “in at least a 7% increase in total shareholder returns annually.”
Tags: Analysts, Beat, CEOs, Confidence, Discount, Earnings forecasts, Earnings potential, Humble, Inspire, Shareholder returns, Underestimate
Wall Street Journal (August 20)
“Mr. Modi’s plans to unleash market forces will lift millions of Indians out of poverty, but he also has ideas about how government can better meet the immediate needs of the poor.” Though some of his plans “may sound oddly simple to developed-world ears” (e.g. access to toilets and bank accounts), “the Prime Minister’s humble background gives him an understanding of what the poor need to find their own path to prosperity and the credibility to build a new consensus for those policies.”
Tags: Background, Bank accounts, Consensus, Credibility, Government, Humble, India, Modi, Policies, Poverty, Prosperity, Toilets