New York, London and Paris remain the world’s most competitive cities — but perhaps not for long

New York, London and Paris continue to dominate as the world’s top three most competitive cities. That’s the conclusion of the 2019 Global Cities Report from management consulting company A.T. Kearney, which ranks the world’s major cities on their attractiveness for businesses and employees. For the tenth year in a row, New York (1st), London (2nd) and Paris (3rd) retained their titles as the world’s three most competitive cities based on a variety of factors including business activity and cult


New York, London and Paris continue to dominate as the world’s top three most competitive cities. That’s the conclusion of the 2019 Global Cities Report from management consulting company A.T. Kearney, which ranks the world’s major cities on their attractiveness for businesses and employees. For the tenth year in a row, New York (1st), London (2nd) and Paris (3rd) retained their titles as the world’s three most competitive cities based on a variety of factors including business activity and cult
New York, London and Paris remain the world’s most competitive cities — but perhaps not for long Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: karen gilchrist
Keywords: news, cnbc, companies, cities, york, competitive, human, long, capital, london, worlds, information, paris, global, remain


New York, London and Paris remain the world's most competitive cities — but perhaps not for long

New York, London and Paris continue to dominate as the world’s top three most competitive cities.

But their prime positions could be up for contention as progress across Europe, Asia and the Middle East shows signs of disrupting the status quo.

That’s the conclusion of the 2019 Global Cities Report from management consulting company A.T. Kearney, which ranks the world’s major cities on their attractiveness for businesses and employees.

For the tenth year in a row, New York (1st), London (2nd) and Paris (3rd) retained their titles as the world’s three most competitive cities based on a variety of factors including business activity and culture, human capital, political engagement and information exchange.

New York ranked especially highly for business activity and human capital, while Paris performed well for information exchange and London for culture.

The leading trio were joined in the top 10 of the “Global Cities Index” by Tokyo (4th), Hong Kong (5th), Singapore (6th), Los Angeles (7th), Chicago (8th), Beijing (9th) and Washington D.C. (10th).


Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: karen gilchrist
Keywords: news, cnbc, companies, cities, york, competitive, human, long, capital, london, worlds, information, paris, global, remain


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Bill Gates: A key to Warren Buffett’s success is ‘something anyone could do’

Warren Buffett is anything but average: The legendary investor has an approximate net worth of $82 billion, making him the third richest person in the world. A key to Buffett’s extraordinary success, though, is a refreshingly simple habit and “something anyone can do,” his longtime friend Bill Gates pointed out in a recent blog post: He reads every day. Buffett, who spends between five and six hours a day paging through books and newspapers, finds it “enjoyable to think about business and invest


Warren Buffett is anything but average: The legendary investor has an approximate net worth of $82 billion, making him the third richest person in the world. A key to Buffett’s extraordinary success, though, is a refreshingly simple habit and “something anyone can do,” his longtime friend Bill Gates pointed out in a recent blog post: He reads every day. Buffett, who spends between five and six hours a day paging through books and newspapers, finds it “enjoyable to think about business and invest
Bill Gates: A key to Warren Buffett’s success is ‘something anyone could do’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-03  Authors: kathleen elkins, daniel acker, bloomberg, getty images, gp images, getty image
Keywords: news, cnbc, companies, buffetts, susan, loves, warren, simple, everybody, gates, buffett, business, worth, competitive, success, bill, read, key


Bill Gates: A key to Warren Buffett's success is 'something anyone could do'

Warren Buffett is anything but average: The legendary investor has an approximate net worth of $82 billion, making him the third richest person in the world. At 88, he still runs Berkshire Hathaway, his holding company that owns businesses like Geico, Dairy Queen and See’s Candies.

A key to Buffett’s extraordinary success, though, is a refreshingly simple habit and “something anyone can do,” his longtime friend Bill Gates pointed out in a recent blog post: He reads every day.

Buffett, who spends between five and six hours a day paging through books and newspapers, finds it “enjoyable to think about business and investment problems,” he says in HBO’s documentary “Becoming Warren Buffett.”

Plus, staying up to date on business news and current events is a relatively simple way to gain a competitive advantage. “Everybody can read what I read. It is a level playing field,” Buffett used to tell his late wife, Susan Buffett, according to the HBO documentary.

“And he loves that because he is competitive,” Susan said of Buffett. “He’s sitting there all by himself in his office, reading these things that everybody else can read, but he loves the idea that he is going to win.”


Company: cnbc, Activity: cnbc, Date: 2019-06-03  Authors: kathleen elkins, daniel acker, bloomberg, getty images, gp images, getty image
Keywords: news, cnbc, companies, buffetts, susan, loves, warren, simple, everybody, gates, buffett, business, worth, competitive, success, bill, read, key


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MIT, Harvard study: Want your kids to be successful? Do this 1 thing

Every parent knows that raising a child can feel tantamount to a competitive sport. And while competitive parenting is widely condemned, we ultimately just want our children to live happy and successful lives. Thanks to modern science, there are a number of effective — yet obvious — strategies to smart parenting. One study from Harvard even suggested that skilled communicators typically turn out to be great negotiators. In turn, they “recognize the importance of expanding the pie of value for al


Every parent knows that raising a child can feel tantamount to a competitive sport. And while competitive parenting is widely condemned, we ultimately just want our children to live happy and successful lives. Thanks to modern science, there are a number of effective — yet obvious — strategies to smart parenting. One study from Harvard even suggested that skilled communicators typically turn out to be great negotiators. In turn, they “recognize the importance of expanding the pie of value for al
MIT, Harvard study: Want your kids to be successful? Do this 1 thing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-05  Authors: tom popomaronis, amy aldrete
Keywords: news, cnbc, companies, parenting, widely, harvard, kids, typically, value, turn, mit, successful, skills, number, children, study, competitive, thing


MIT, Harvard study: Want your kids to be successful? Do this 1 thing

Every parent knows that raising a child can feel tantamount to a competitive sport. And while competitive parenting is widely condemned, we ultimately just want our children to live happy and successful lives.

Thanks to modern science, there are a number of effective — yet obvious — strategies to smart parenting. But last year, a group of researchers at MIT, Harvard and the University of Pennsylvania found that one of the best things parents can do for their children is to have frequent back-and-forth exchanges with them.

The findings suggest that doing this at an early age (typically between ages 4 to 6) will help develop, foster and improve what is perhaps one of the most important skills that contribute to success in life: Communication.

What’s more, a number of studies have supported the idea that children with stronger communication skills are more likely to have healthier relationships, longer marriages, higher self-esteem and overall satisfaction in life.

One study from Harvard even suggested that skilled communicators typically turn out to be great negotiators. In turn, they “recognize the importance of expanding the pie of value for all parties at the table. In the process, they claim more money for themselves.”


Company: cnbc, Activity: cnbc, Date: 2019-04-05  Authors: tom popomaronis, amy aldrete
Keywords: news, cnbc, companies, parenting, widely, harvard, kids, typically, value, turn, mit, successful, skills, number, children, study, competitive, thing


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It will take China more than 10 years to compete with Boeing, Airbus, says CEO of Dassault Systemes

It will take China more than a decade to create a globally competitive, homegrown airplane maker that can go head-to-head with the likes of Boeing and Airbus, according to an industry veteran. Aerospace is a complex industry and it takes time, even for well-established companies, to accumulate knowledge and know-hows to build reliable commercial aircraft, Bernard Charles, vice chairman and CEO of Dassault Systemes, said Thursday. “I think it will take China one or two generations of airplanes to


It will take China more than a decade to create a globally competitive, homegrown airplane maker that can go head-to-head with the likes of Boeing and Airbus, according to an industry veteran. Aerospace is a complex industry and it takes time, even for well-established companies, to accumulate knowledge and know-hows to build reliable commercial aircraft, Bernard Charles, vice chairman and CEO of Dassault Systemes, said Thursday. “I think it will take China one or two generations of airplanes to
It will take China more than 10 years to compete with Boeing, Airbus, says CEO of Dassault Systemes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-28  Authors: saheli roy choudhury, simon dawson, bloomberg, getty images
Keywords: news, cnbc, companies, worldwide, dassault, systemes, vice, airbus, veteranaerospace, truly, ceo, competitive, china, wellestablished, told, compete, boeing, industry


It will take China more than 10 years to compete with Boeing, Airbus, says CEO of Dassault Systemes

It will take China more than a decade to create a globally competitive, homegrown airplane maker that can go head-to-head with the likes of Boeing and Airbus, according to an industry veteran.

Aerospace is a complex industry and it takes time, even for well-established companies, to accumulate knowledge and know-hows to build reliable commercial aircraft, Bernard Charles, vice chairman and CEO of Dassault Systemes, said Thursday.

“I think it will take China one or two generations of airplanes to have a truly worldwide competitive product but it’s a logical evolution, provided the market size of the country,” he told CNBC’s Martin Soong at the Boao Forum in China.

Dassault Systemes sells software to plane makers that help them digitalize their businesses. The idea is that by embracing more technology into daily operations, those manufacturers can bring down the cost of the jets, use resources more efficiently and ramp up production to meet demand.


Company: cnbc, Activity: cnbc, Date: 2019-03-28  Authors: saheli roy choudhury, simon dawson, bloomberg, getty images
Keywords: news, cnbc, companies, worldwide, dassault, systemes, vice, airbus, veteranaerospace, truly, ceo, competitive, china, wellestablished, told, compete, boeing, industry


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NASA and the White House want billions so companies will compete to build human moon landers

This year’s introduction of a competitive bidding process means that companies would build their own spacecraft, with help from competitive NASA funding awards, rather than build a NASA-specific spacecraft. Recently appointed NASA administrator Jim Bridenstine supported a White House plan last year to make ACSC a competitive process between companies, two people familiar with the matter told CNBC. The agency has spoken to companies about enabling “regular access to the lunar surface,” NASA said


This year’s introduction of a competitive bidding process means that companies would build their own spacecraft, with help from competitive NASA funding awards, rather than build a NASA-specific spacecraft. Recently appointed NASA administrator Jim Bridenstine supported a White House plan last year to make ACSC a competitive process between companies, two people familiar with the matter told CNBC. The agency has spoken to companies about enabling “regular access to the lunar surface,” NASA said
NASA and the White House want billions so companies will compete to build human moon landers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-26  Authors: michael sheetz, bettmann, getty images
Keywords: news, cnbc, companies, space, pence, human, house, lunar, white, competitive, landers, surface, moon, companies, build, sls, billions, compete, nasa


NASA and the White House want billions so companies will compete to build human moon landers

The huge increase in this year’s budget request for ACSC is the result of an internal battle at NASA, a person familiar with the situation told CNBC on Monday. This year’s introduction of a competitive bidding process means that companies would build their own spacecraft, with help from competitive NASA funding awards, rather than build a NASA-specific spacecraft.

NASA didn’t respond to CNBC requests for comment.

After the establishment of the National Space Council, President Donald Trump’s administration looked to work with the growing private space sector on multiple NASA programs. A main directive was to create a sustained U.S. presence on the moon. NASA would first send robots to the surface without crews, later following up with astronauts.

Recently appointed NASA administrator Jim Bridenstine supported a White House plan last year to make ACSC a competitive process between companies, two people familiar with the matter told CNBC. But some NASA leaders rejected the idea, wanting to stick with the development of an in-house lunar lander project, one of the people said.

Known as the “Flexible Lunar Explorer” (or FLEx) lander concept, some at NASA wanted a system built for the agency, rather than according to the companies building the spacecraft. This is NASA’s traditional method of awarding contracts, exemplified by the Boeing-built Space Launch System (SLS) rocket – which is now years behind and racking up billions of dollars in cost overruns.

With delays in the SLS program, privately-built rockets are being increasingly considered to launch NASA missions. And now, despite internal hesitancy, NASA is considering commercial alternatives for getting astronauts to the moon’s surface. The agency has spoken to companies about enabling “regular access to the lunar surface,” NASA said in its budget request earlier this month.

The increased funding for ACSC also matches with statements Vice President Mike Pence made on Tuesday at a National Space Council meeting. Pence said it is the White House policy “to return American astronauts to the moon within the next five years.” Although he said the SLS rocket must be accelerated to do so, he urged NASA to reach the moon “by any means necessary.”

“We’re not committed to any one contractor. If our current contractors can’t meet this objective, then we’ll find ones that will,” Pence said. “If American industry can provide critical commercial services without government development then we’ll buy them.”

Musk welcomed Pence’s comments, saying in a tweet that “it would be so inspiring for humanity to see humanity return to the moon!”


Company: cnbc, Activity: cnbc, Date: 2019-03-26  Authors: michael sheetz, bettmann, getty images
Keywords: news, cnbc, companies, space, pence, human, house, lunar, white, competitive, landers, surface, moon, companies, build, sls, billions, compete, nasa


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Roku plunges the most in over a year on concern of competitive threat from Disney, AT&T and others

Roku shares had their worst day in over a year Wednesday after analysts at Macquarie Research said the stock’s 2019 rally isn’t justified given the threat of competition from a host of larger media companies. Roku plunged more than 14 percent to $60.74, the steepest drop since February 2018, and the third-biggest decline since the company went public in 2017. Even after the slump, Roku shares have almost doubled this year. Analysts at Macquarie downgraded the stock Wednesday to neutral, saying i


Roku shares had their worst day in over a year Wednesday after analysts at Macquarie Research said the stock’s 2019 rally isn’t justified given the threat of competition from a host of larger media companies. Roku plunged more than 14 percent to $60.74, the steepest drop since February 2018, and the third-biggest decline since the company went public in 2017. Even after the slump, Roku shares have almost doubled this year. Analysts at Macquarie downgraded the stock Wednesday to neutral, saying i
Roku plunges the most in over a year on concern of competitive threat from Disney, AT&T and others Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: lauren feiner, stephen desaulniers, source
Keywords: news, cnbc, companies, video, macquarie, plunges, thirdbiggest, worst, roku, analysts, valuation, att, went, shares, threat, concern, competitive, disney


Roku plunges the most in over a year on concern of competitive threat from Disney, AT&T and others

Roku shares had their worst day in over a year Wednesday after analysts at Macquarie Research said the stock’s 2019 rally isn’t justified given the threat of competition from a host of larger media companies.

Roku plunged more than 14 percent to $60.74, the steepest drop since February 2018, and the third-biggest decline since the company went public in 2017.

Even after the slump, Roku shares have almost doubled this year. Analysts at Macquarie downgraded the stock Wednesday to neutral, saying it’s at “a full valuation,” and that the ad-supported video on demand (AVOD) space is becoming intensely competitive.


Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: lauren feiner, stephen desaulniers, source
Keywords: news, cnbc, companies, video, macquarie, plunges, thirdbiggest, worst, roku, analysts, valuation, att, went, shares, threat, concern, competitive, disney


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Roku plunges the most in over a year on concern of competitive threat from Disney, AT&T and others

Roku shares had their worst day in over a year Wednesday after analysts at Macquarie Research said the stock’s 2019 rally isn’t justified given the threat of competition from a host of larger media companies. Roku plunged more than 14 percent to $60.74, the steepest drop since February 2018, and the third-biggest decline since the company went public in 2017. Even after the slump, Roku shares have almost doubled this year. Analysts at Macquarie downgraded the stock Wednesday to neutral, saying i


Roku shares had their worst day in over a year Wednesday after analysts at Macquarie Research said the stock’s 2019 rally isn’t justified given the threat of competition from a host of larger media companies. Roku plunged more than 14 percent to $60.74, the steepest drop since February 2018, and the third-biggest decline since the company went public in 2017. Even after the slump, Roku shares have almost doubled this year. Analysts at Macquarie downgraded the stock Wednesday to neutral, saying i
Roku plunges the most in over a year on concern of competitive threat from Disney, AT&T and others Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: lauren feiner, stephen desaulniers, source
Keywords: news, cnbc, companies, video, macquarie, plunges, thirdbiggest, worst, roku, analysts, valuation, att, went, shares, threat, concern, competitive, disney


Roku plunges the most in over a year on concern of competitive threat from Disney, AT&T and others

Roku shares had their worst day in over a year Wednesday after analysts at Macquarie Research said the stock’s 2019 rally isn’t justified given the threat of competition from a host of larger media companies.

Roku plunged more than 14 percent to $60.74, the steepest drop since February 2018, and the third-biggest decline since the company went public in 2017.

Even after the slump, Roku shares have almost doubled this year. Analysts at Macquarie downgraded the stock Wednesday to neutral, saying it’s at “a full valuation,” and that the ad-supported video on demand (AVOD) space is becoming intensely competitive.


Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: lauren feiner, stephen desaulniers, source
Keywords: news, cnbc, companies, video, macquarie, plunges, thirdbiggest, worst, roku, analysts, valuation, att, went, shares, threat, concern, competitive, disney


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Tesla’s charging stations are a massive ‘competitive moat,’ Morgan Stanley says

Tesla has built up a global network of charging stations, which Morgan Stanley analyst Adam Jonas pointed to as a possible “competitive moat” that offers protection from other electric vehicle makers. “We estimate Tesla’s chargers may account for 30 percent to 40 percent of total US charging outlets counted by the US Dept. Jonas is widely followed on Wall Street for his thoughts on Tesla and electric vehicles. Tesla upped its network of global “supercharger” stations to nearly 13,000 by the end


Tesla has built up a global network of charging stations, which Morgan Stanley analyst Adam Jonas pointed to as a possible “competitive moat” that offers protection from other electric vehicle makers. “We estimate Tesla’s chargers may account for 30 percent to 40 percent of total US charging outlets counted by the US Dept. Jonas is widely followed on Wall Street for his thoughts on Tesla and electric vehicles. Tesla upped its network of global “supercharger” stations to nearly 13,000 by the end
Tesla’s charging stations are a massive ‘competitive moat,’ Morgan Stanley says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: michael sheetz, source, andrew evers cnbc, vcg vcg, getty images
Keywords: news, cnbc, companies, global, massive, total, electric, destination, chargers, morgan, charging, stations, teslas, jonas, competitive, stanley, tesla, network, moat


Tesla's charging stations are a massive 'competitive moat,' Morgan Stanley says

Tesla has built up a global network of charging stations, which Morgan Stanley analyst Adam Jonas pointed to as a possible “competitive moat” that offers protection from other electric vehicle makers.

“We estimate Tesla’s chargers may account for 30 percent to 40 percent of total US charging outlets counted by the US Dept. of Energy,” Jonas said in a note to investors on Tuesday. Jonas is widely followed on Wall Street for his thoughts on Tesla and electric vehicles.

Tesla upped its network of global “supercharger” stations to nearly 13,000 by the end of last year, while also increasing its total “destination chargers” to more than 21,000. Superchargers refuel most Tesla batteries in about an hour, whereas destination charging stations provide longer charging times more suited for long stays at malls or overnights at hotels.


Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: michael sheetz, source, andrew evers cnbc, vcg vcg, getty images
Keywords: news, cnbc, companies, global, massive, total, electric, destination, chargers, morgan, charging, stations, teslas, jonas, competitive, stanley, tesla, network, moat


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Hong Kong’s port has fallen behind rivals. Industry experts say it needs to be more competitive

Hong Kong’s once world-beating port needs to raise its game or risk falling further behind competitors in Shanghai, Singapore and elsewhere, industry experts said. Since 2004, Hong Kong has gone from being the biggest port in the world in shipping containers processed to a ranking, according to Lloyd’s List, of fifth in 2017. According to Lloyd’s List, Shanghai handled just over 40 million containers in 2017, which was nearly double Hong Kong’s total of less than 21 million. Peter Levesque, grou


Hong Kong’s once world-beating port needs to raise its game or risk falling further behind competitors in Shanghai, Singapore and elsewhere, industry experts said. Since 2004, Hong Kong has gone from being the biggest port in the world in shipping containers processed to a ranking, according to Lloyd’s List, of fifth in 2017. According to Lloyd’s List, Shanghai handled just over 40 million containers in 2017, which was nearly double Hong Kong’s total of less than 21 million. Peter Levesque, grou
Hong Kong’s port has fallen behind rivals. Industry experts say it needs to be more competitive Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: kelly olsen, paul yeung, bloomberg, getty images
Keywords: news, cnbc, companies, lloyds, fallen, trend, rivals, region, stop, port, say, shipping, competitive, experts, kongs, industry, list, needs, shanghai, hong


Hong Kong's port has fallen behind rivals. Industry experts say it needs to be more competitive

Hong Kong’s once world-beating port needs to raise its game or risk falling further behind competitors in Shanghai, Singapore and elsewhere, industry experts said.

The city’s massive container facility has seen rivals, especially in mainland China, expand and improve at a faster pace, air and rail options for shipping goods increase and, more recently, uncertainty resulting from the ongoing Washington-Beijing trade war.

Since 2004, Hong Kong has gone from being the biggest port in the world in shipping containers processed to a ranking, according to Lloyd’s List, of fifth in 2017. Industry expectations are for further declines.

According to Lloyd’s List, Shanghai handled just over 40 million containers in 2017, which was nearly double Hong Kong’s total of less than 21 million.

Peter Levesque, group managing director at Modern Terminals, a container terminal operator, told CNBC’s Emily Tan on Monday that Chinese and other ports in the region have become more competitive and that has put pressure on Hong Kong.

“So we need to do something to stop that trend, to stop the downward trend, and to maintain Hong Kong’s competitiveness in the region,” Levesque said.


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: kelly olsen, paul yeung, bloomberg, getty images
Keywords: news, cnbc, companies, lloyds, fallen, trend, rivals, region, stop, port, say, shipping, competitive, experts, kongs, industry, list, needs, shanghai, hong


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Good companies often make bad investments, study shows

“Despite these concerns, the market has rewarded value investing and other strategies … that rely on buying what other investors are avoiding.” For instance, hordes of investors may find equity of larger companies more attractive than that of smaller companies because of risk and liquidity concerns. But all of that information is public: Great companies are often overvalued simply because they are great companies. The researchers studied a number of factors that make stocks popular, including


“Despite these concerns, the market has rewarded value investing and other strategies … that rely on buying what other investors are avoiding.” For instance, hordes of investors may find equity of larger companies more attractive than that of smaller companies because of risk and liquidity concerns. But all of that information is public: Great companies are often overvalued simply because they are great companies. The researchers studied a number of factors that make stocks popular, including
Good companies often make bad investments, study shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: thomas franck, adam jeffery
Keywords: news, cnbc, companies, investments, companies, researchers, investors, reputation, shows, competitive, stocks, brand, value, market, bad, advantage, study, good


Good companies often make bad investments, study shows

A good reputation, strong competitive advantage and popular brands may not only be hallmarks of any healthy Wall Street company, but also a sign of a poor investment idea, researchers at CFA Institute and Morningstar found.

Securities with popular, desirable traits generate lower expected returns, while those with more unpopular, undesirable traits receive higher expected returns, the study found. While that may sound counterintuitive to many investors, the stock market often assumes that any effect from a stellar reputation or large market capitalization has already occurred and is valued to reflect such characteristics.

“Assets are priced not only by their expected cash flows but also by the popularity of the other characteristics associated with the company or security,” wrote Yale finance professor Roger Ibbotson and Morningstar researchers Thomas Idzorek, Paul Kaplan and James Xiong. “Despite these concerns, the market has rewarded value investing and other strategies … that rely on buying what other investors are avoiding.”

For instance, hordes of investors may find equity of larger companies more attractive than that of smaller companies because of risk and liquidity concerns. Some may be drawn to companies with excellent reputations or brands. But all of that information is public: Great companies are often overvalued simply because they are great companies.

The researchers studied a number of factors that make stocks popular, including perceived brand value, competitive advantage and reputation.

Of the 75 to 100 stocks studied based on brand value (as determined by third-party consultancy Interbrand), the those in the lowest 25 percent greatly outperform those stocks in the highest 25 percent between April 2000 and August 2017. The top companies by brand value in 2000 — including household names like Coca-Cola, Microsoft, IBM Intel, Nokia, GE and Ford — all fell in rating by 2017, with new leaders like Apple, Google and Amazon making the list.

Source: “Popularity: A Bridge between Classical and Behavioral Finance;” Ibbotson, Idzorek, Kaplan & Xiong .

Of the brands studied, those in the lowest brand value quartile over those years returned 13.5 percent annually versus 7.3 percent for the top 25 percent of brands (with monthly rebalancing back to equal weights).

The researchers found similar results based on competitive advantage, or “economic moat,” which estimates a company’s advantages based on intangible assets, cost cutting and networking effects.

Starting in July 2002, the researchers placed each stock in Morningstar’s universe of 1,039 with moat ratings. Noting that many investors prefer companies they consider to exhibit strong competitive advantage, the researchers found that these stocks tend to be some of the most popular.

Despite that popularity, they found that the companies with zero- or near-zero competitive moat produced the “most superior” mean returns, albeit with more risk.

“Competitive sustainable advantage, brand power, and company reputation should already be baked into the price in a rationally efficient market and, therefore, should not be important to a rational investor who only cares about risk and return,” Ibbotson and his colleagues wrote.

“Assuming that a powerful brand, a sustainable competitive advantage, and a good reputation are characteristics that investors like or admire, from the popularity perspective, some investors (the willing or unknowing losers) are simply willing to give up some level of return or overpay for a characteristic they like,” they added.

The researchers also tested stock returns based on popular opinion, or how members of the general public rank U.S. companies with the best and worst reputations. Again, stocks with the lowest reputation rankings (i.e., least popular) outperformed those ranked higher, with statistically significant returns.

Of the companies studied, those that ranked in the bottom quartile of reputation between 2000 and 2017 returned a mean of 14 percent versus a mean return of 8.4 percent for the companies in the top reputation quartile.

“Investing in unpopular assets is hard. First, they are typically unpopular for a reason. Mounting losses instead of bountiful profits, declining market share or a shrinking market for one’s product, an unusual loading of debt, and other characteristics that drive investors away are often indicators of continued poor performance rather than of what one value manager optimistically calls ‘troubles that are temporary,'” the researchers concluded. “Any strategy or factor that is widely enough used will fail.”


Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: thomas franck, adam jeffery
Keywords: news, cnbc, companies, investments, companies, researchers, investors, reputation, shows, competitive, stocks, brand, value, market, bad, advantage, study, good


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