Tag: private equity

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Today’s 3 Things III – Tech Layoffs, Employer Spyware, Private Market Valuations

  1. Tech companies doing mass layoffs is no longer surprising, but it is jarring to see employers resort to the axe when there is so much evidence out that that points to massive erosion in goodwill, trust and morale when employees are summarily dismissed. And the human cost of it, is so painful and unnecessary. There is always a better way to do this – but too many employers are too scared, or too lazy, to do the right thing.
  2. So… there’s this thing called employer spyware now, where employers would install software of company computers that would monitor your work activities, figure out if you’ve been spending too much time on Twitter (or, like in my case right now, blogging haha), even monitor your keystrokes. You can even get dismissed from work, with Big Brother software bearing witness against you and lazy-ass ways. Creepy. Should we all be worried now?
  3. In Warren Buffett’s memorable phrasing, when the tide finally goes out is when you know who has been swimming naked. This has certainly been the case in the past few months, as central banks ratchet up interest rates and companies find it increasingly harder to raise funds. More scrutiny is now being brought to bear in private markets, especially when it comes to asset valuations in PE and VC portfolios. This is not new, of course, but the “funding winter” is certainly shining a light on how real the purported overperformance in private markets really is.
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Today’s 3 Things – SingTel, Nurul Izzah, Zahid Hamidi

  1. I was reading this news report about SingTel being recently majority-controlled by private equity firms, and thought, oh wow, a positive piece on PE ownership that does not demonise private equity ownership as heartless asset-stripping capitalists! Then I realised – oh, it’s a news report from a stock investing app. Figures hahah.
  2. So, prominent economist Jomo Kwame Sundaram says, on the issue of Anwar’s daughter being appointed as an advisor to the Finance Minister: “I am also not keen on the prime minister being the finance minister. I am also not keen on this (Nurul Izzah’s) appointment. But all things considered the reaction to her appointment is unwarranted.” And then goes on to enumerate the ways in which appointed the PM’s daughter as an advisor might bring advantages. Fair enough. Nuanced, right? But then, you will notice that the headline simply says: “Jomo: Nurul Izzah’s new appointment not a liability”. Nice.
  3. “Saya mesti berusaha bukan saya benci, tidak ada satu zarah, satu molekul rasa benci kepada mana-mana individu, tetapi parti mesti diselamatkan,” kata seorang Presiden parti politik yang memalitkan najis rasuah pada wajah partinya sendiri, mencantas pemimpin tempatan yang membawa kepada kekalahan partinya dalam negeri-negeri yang sebelum ini menjadi kubu kuat partinya, menjadi bebanan utama bagi para pemimpin muda parti beliau sendiri, membelakangkan keputusan partinya sendiri untuk tidak bersama pemimpin dan parti lawan tertentu, dan menyanggupi parti tunjang negara menjadi pelakon tambahan dalam pentas politik tanahair. Siapa yang perlu diselamatkan, ya?

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Today’s Reads II

  1. Paul Krugman: “There are always a number of people out there who just can’t accept the idea of fiat money as a technocratic tool of economic management.” #tweet #money #economics
  2. Why regulations are ‘sticky’ and hard to unwind: “Firms typically resist new regulation attempts in order to avoid the corresponding compliance costs. However, once regulations are implemented, compliance costs are often sunk and cannot be recouped. Therefore, existing firms will often resist efforts to remove the very rules they initially fought against, since these regulations become barriers that stand between them and potential competitors who haven’t yet paid the compliance costs. These dynamics all but ensure that there is no influential constituency to support removing regulations once they are enacted.” #regulations #reform #economics #publicinterest
  3. David Rubenstein’s 10 rules for investing in #privateequity funds: “Look at the organisation’s ability to keep people. If… people are always leaving an organisation that is an important indicator.”