More cyclicality – real-estate, insurance, shipping
I have blogged previously on this, and how we know the causes and some solutions. Here’s three new cases: Read more
Strategy in cyclical industries
The world’s biggest basic materials firms are suffering along with others as the world economy collapses, and the Economist points out that taking on loads of debt to grow and acquire others did not help. But these industries have always suffered cyclicality, even when not buffeted by extreme market conditions. Pity is that we have known how to steer away from these dangers for many years. Seems to me the same principles would have been useful to a great many other firms over the last 5-6 years. Here’s the essentials and an article that explains more … Read more
Profiting from the downturn – e.g. airlines
Nice example of what looks like a strategically sound business [Lufthansa] pouncing on valuable resources shaken loose when a feeble competitor [Alitalia] stumbles. The Economist reports they will be offering new services to eight other European cities from under-served Milan. Read more