In the News
Dean Steven Currall and Bill Jesse, the vice chairman of the Wine Group, the second largest wine company in the world, offer a model for focusing executives on creating long-term sustainable value vs. other “toxic” compensation plans that focus on short-term rewards.
“Wineries have come off the [social media] sidelines in 2011,” says Jeremy Benson, president of the Napa- and New York City-based Benson Marketing Group. “We’ve added eight brands to our new Mission Control social media service.” Benson will be an expert guest speaker at the UC Davis Wine Executive Program in March.
This article reports Professor Brad Barber’s latest research, conducted with Terrance Odean of UC Berkeley’s Haas School of Business, which finds that individual investors do not behave rationally, as economic theory would suggest. The bottom line: “Investors who don’t know they perform poorly end up believing that they’re doing well — the incompetent are unaware.”
Day traders generally trade too much and take too many risks.
This article cites a 2006 study led by Professor Brad Barber that analyzed the trading record for Taiwan’s stock exchange for four years in the 1990s. They found that, in a typical six-month period, “more than eight out of 10 day traders lose money” and that total losses were staggering: 2.2 percent of Taiwanese GDP annually.
GSM alumni Jake Taylor and Lonnie Rush, lecturers who teach Value Investing, had students wrap up the course by submitting their top investment picks to a year-long portfolio contest. They found 512 stocks selling for less than net current asset value and 212 selling below ⅔ of net current asset value. Read more about this investing approach.
The UC Davis MBA program was again ranked among top 10 percent worldwide for commitment to social, ethical and environmental issues in curriculum. Check out the Aspen Institute Center for Business Education’s Beyond Grey Pinstripes rankings.
Professor Emeritus Robert Smiley comments on his annual state of the wine business: “Going forward, consumers will likely see fewer wine discounts” on California wines because of the shortage in the crop. “If you don’t have enough product to meet demand, why cut price? You’re going to see the industry’s pricing tighten up.
In the rush to politicize the bankruptcy of Solyndra, potentially valuable lessons are being ignored. When the dust settles, says Professor Andrew Hargadon, we are left with the original challenge of how to best pursue innovative solutions to climate change and energy security.
Alumnus Tim Keller’s high-tech wine cap start-up is featured in this Sacramento Bee column. Keller founded the company while MBA student; it won the 2008 Big Bang! Business Plan Competition as Advance Enological Enclosures.
The sluggish economy and unusually cool weather have dramatically tightened the supply of wine grapes, a situation that will likely continue for several years, reports Professor Emeritus Robert Smiley. He presented findings from two recent surveys of wine industry professionals and executives at the 20th annual Wine Industry Financial Symposium in Napa, Calif.
This Motley Fool article mentions research by Professor Brad Barber and Terrance Odean of UC Berkeley that concludes that “trading is hazardous to your wealth.”
Sandra Kurtzig founded ASK Corp. almost 40 years ago. Now she’s taking the helm of a new start-up — and is amazed how few women leaders she sees in Silicon Valley. ”We tend to hire people like us,” explains Wendy Beecham, managing director of executive education at the Graduate School of Management, which publishes an annual Census of California Women Business Leaders. “If you’re a 50-year-old white guy, you tend to be more comfortable with 50-year-old white guys.”
Sierra magazine’s fifth annual ranking places UC Davis among the Top 10 of “the nation’s most planet-minded universities.”
Dean Steven Currall led a panel of experts on emerging economic opportunities at the Sacramento Metropolitan Chamber of Commerce’s State-of-the-Region forum.
Professor Andrew Hargadon notes that Steve Jobs’ brilliance lay in keeping Apple “from doing all the possible things out there to do.”
At the Sacramento Metro Chamber’s annual State of the Region Forum, Dean Steven Currall will guide an industry panel looking at key industry sectors that can lead the way in a regional economic recovery. Currall’s insight into innovation and emerging technologies has been quoted in the New York Times, Wall Street Journal, Washington Post and The Economist.
Bloo Solar, which took second place in the 2005 Big Bang! Business Plan Competition, has closed an $8 mil. round of VC financing as it prepares to start manufacturing “third-generation” solar panels based on UC Davis nanotechnology.
For many investors watching their retirement accounts, it’s nerve-wracking. Many are bailing out of stocks and into bonds. Some are grasping for gold as a tangible nugget of safety. Others are wondering if they’re better off in CDs and money-market funds. Regardless, the advice from most investment advisers is consistently the same: Don’t panic. Hang in there. Brad Barber is cited in this article discussing why the long-term view is most important when it comes to investment planning.
Roger Edelen, finance professor at UC Davis, is quoted in this story about low-turnover mutual funds, noting that frequent trading can be a big — and largely invisible — drag on returns.
The notion that investing can make you rich looks laughable when you see stock markets tank as they have in the past two sessions. And for the youngest of investors, who have already experienced the tech bubble burst in 2000 and the 2008 market crash, bewilderment and anxiety has become more the norm than the exception. Professor Brad Barber is cited, explaining the fears and motivations behind young investors.