Is Financial Engineering A Sucker’s Game?

Ashkan Karbasfrooshan — Tue, 16 Sep 2008 21:32:44 +0000

“I will say financial engineering is really not a way to create value for your shareholders or yourself or whoever your owners happen to be. Companies that buy or sell or spin off because they think the market doesn’t understand their multiple and so forth I think are really missing the point. I think at the end of the day, what really matters is running your company, building revenue, building cash flow, and ultimately that will create value and that value will be recognized. And spending your time getting lost in financial engineering is a real mistake.”

Who said this:

a) Steve Ballmer

b) Bill Gross

c) Henry Blodget

d) Steve Rattner

e) Warren Buffett

f) Barry Diller

g) Rupert Murdoch

h) John Malone

i) Sumner Redstone

Get the answer here or here. And see our proposal for a financial engineering deal that would triple a company’s market cap here. Mind you, that was not much of a financial engineering proposal as much as a major shift in strategy, but still.

HipMojo.com

Is Financial Engineering A Sucker’s Game?