Beware of overvalued equity–it can kill your company
In writing about McKinsey alum Jeff Skilling and his tenure as the CEO of Enron, Duff McDonald (The Firm, p. 247) draws an interesting comparison between Enron and Goldman Sachs in discussing Enron’s elevated share price: Goldman Sachs, the longtime darling of the financial services community, usually traded for sixteen or seventeen times earnings. At […]