The USA “Fierce Five” Gymnastics team won Olympic Gold in 2012 with a score of 183.596, +5.066 to Russia, +7.182 to Romania. The commanding first place finish was due in large part to the fact that all three USA gymnasts performed the “Amanar” Vault, compared to one competitor from Russian, and none from Romania. This vault, AKA the Yurchenko 2 1/2, has a difficulty value of 6.5, +0.7 to a Yurchenko double. The USA Women achieved remarkable success in London, winning 5 out of a possible 6 medals, 3 Gold, 1 Silver, and 1 Bronze. The drive and determination of these 5 teenage athletes closed the deal.
Gabrielle Douglas left home in Virginia Beach and moved to Iowa with a host family to train with legendary coach Liang Chow; her parents were divorcing and dad was serving in Afghanistan. She realized her life long dream to become USA’s 4th Olympic All Around Champion!
Jordan Wieber, 2011 World Champion and long expected to be an All Around contender in London, but failed to qualify in a 2 person per country rule, certainly had some business to finish in the Team All Around. She delivered with an invincible 15.933 on Vault and 15.0 on Floor!
Alexandra Raisman, who trained many years in the shadow of America’s most decorated US Gymnast Alicia Sacramone, was ready to make her case! She did not disappoint, earning the most Olympic medals of the team, 2 Gold & 1 Bronze, and becoming USA’s First Olympic Floor Exercise Champion!
Kyla Ross, a first year senior in 2012, finishing 5th in the Olympic Trials and known for her artistic elegance and long clean lines, sealed the deal with her strength on bars 14.933 and beam 15.133!
McKayla Maroney, a formidable floor & balance beam competitor, widely recognized as the greatest vaulter in the history of the sport, arrived in London with a healing broken toe, only to break it further during training. Now with one job to do in the team competition, foot heavily taped, she thundered down the vault runway and soared into the air! She stuck the landing with exquisite perfection to earn a 16.233 in one of Gymnastics’ greatest Olympic moments! McKayla Maroney Vault
To deliver long term capital appreciation to investors, companies need extraordinary leadership, a long term growth strategy, employees determined to deliver that strategy, and the right balance of long term investment and short term profit allocation.
In recent years, the debate has intensified on the short term approach. Dominic Barton, Global Managing Director McKinsey & Company and Mark Wiseman, CEO Canada Pension Plan Investment Board make their case in a June 2015 op-ed “Focusing Capital on the Long Term”. CPPIB and McKinsey & Company launched the same named initiative in 2014 to develop practical metrics and approaches to promote a longer term focus in business. In 2013, a survey of 1,000+ C level execs & board members found 79% feel pressure to deliver financial results in a two year time frame while 73% said their strategic planning outlook should be a minimum of three years. Read more here.
The authors believe this ongoing short-termism in the business world is a serious concern because it undermines the ability of companies to invest and grow. Missed investment opportunities result in slower economic growth, higher levels of unemployment and lower returns for savers. They’re not alone in their thinking. Laurence Fink, CEO of BlackRock, recently sent a letter to the CEO of every S&P 500 company urging corporate leaders to ‘play their part by persuasively communicating their company’s long-term strategy for growth’.
Bill Budinger, inventor, entrepreneur, founder & CEO Rodel, Inc. has penned some interesting perspective where he sees activist investors who “harvest internal wealth and in so doing, cripple or kill the golden goose.” He sees growing pressure on public companies to act short-term and distribute rather than reinvest. “Today far more capital flows out of public corporations than flows in. Corporate profits, once a source of growth, are instead being dispensed to shareholders. In the last 10 years, the companies in the S&P 500 have distributed 91% of their profits to shareholders. In effect, planting has been replaced by harvesting.” He believes we need to stop robbing our nation of its future prosperity and return to planting instead of just harvesting. Are American Investors Killing Their Golden Geese?
I’ve been forecasting business results for global financial services firms for 20+ years. Of course, there is always focus on the upcoming quarter and current budget year. With a solid understanding of revenue & expense drivers combined with realistic operating assumptions, the short term modeling exercise is relatively simple. In the longer term, keen understanding of true product margins and industry outlook, combined with spirited innovation and operational discipline, are critical to success and managing investor expectations. At the top, you need a visionary leader with passion and integrity! A select few come to mind.
Warren Buffett, considered one of the World’s most influential people, has grown Berkshire Hathaway to $300B+ market capitalization and is leading a global philanthropic cause with Bill Gates, “The Giving Pledge”.
Allen Mulally, former CEO of Boeing and Ford Motor Co., was largely credited with Boeing’s resurgence in the mid 2000’s over Airbus, and Ford’s return to profitability, and the only US car manufacturer to avoid government bailout.
Jamie Dimon, 2011 CEO of the year, has led JP Morgan Chase to become the leading U.S. bank in domestic assets under management $2.5B+, market capitalization $250B+, and publicly traded stock value $67.
Mark Zuckerberg, 31 with a net worth of $36 Billion, also considered one of the World’s most influential, he started Facebook in his Harvard dorm and has grown the platform to more than 1 Billion users worldwide and $240B+ market capitalization. He has joined Buffett’s and Gate’s “The Giving Pledge”.
The Heart Of A Champion The only way you’re going down is in history. Let’s go!
