Warren Buffett & Bill Gates on Measuring Performance, Wealth, Billionaires, Financial Crisis
Performance measurement is the process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component. It can involve studying processes/strategies within organizations, or studying engineering processes/parameters/phenomena, to see whether output are in line with what was intended or should have been achieved.
Performance measurement has been defined by Neely as “the process of quantifying the efficiency and effectiveness of past actions”, while Moullin defines it as “the process of evaluating how well organisations are managed and the value they deliver for customers and other stakeholders”. Discussion on the relative merits of these definitions appeared in several articles in the newsletter of the Performance Management Association.
Wikipedia – Performance Measurement
The wealth effect is an economic term, referring to an increase (decrease) in spending that accompanies an increase (decrease) in perceived wealth.
The effect would cause changes in the amounts and distribution of consumer consumption caused by changes in consumer wealth. People should spend more when one of two things is true: when people actually are richer, objectively, or when people perceive themselves to be richer—for example, the assessed value of their home increases, or a stock they own goes up in price.
Demand for some goods (especially Inferior goods) typically decreases with increasing wealth. For example, consider consumption of cheap fast food versus steak. As someone becomes wealthier, their demand for cheap fast food is likely to decrease, and their demand for more expensive steak may increase.
Consumption may be tied to relative wealth. Particularly when supply is highly inelastic – or in the case of monopoly – one’s ability to purchase a good may be highly related to one’s relative wealth in the economy. Consider for example the cost of real estate in a city with high average wealth (for example New York or London), in comparison to a city with a low average wealth. Supply is fairly inelastic, so if a helicopter drop (or gold rush) were to suddenly create large amounts of wealth in the low wealth city, those who did not receive this new wealth would rapidly find themselves crowded out of such markets, and materially worse off in terms of their ability to consume/purchase real estate (despite having participated in a weak Pareto improvement). In such situations, one cannot dismiss the relative effect of wealth on demand and supply, and cannot assume that these are static. (see also General equilibrium).
However, according to David Backus, an NYU economist, the wealth effect is not observable in economic data, at least in regards to increases or decreases in home or stock equity. For example, while the stock market boom in the late 1990s (q.v. dot-com bubble) increased the wealth of Americans, it did not produce a significant change in consumption, and after the crash, consumption did not decrease.
Economist Dean Baker disagrees and says that “housing wealth effect” is well-known and is a standard part of economic theory and modeling, and that economists expect households to consume based on their wealth. He cites approvingly research done by Carroll and Zhou that estimates that households increase their annual consumption by 6 cents for every additional dollar of home equity.
The wealth effect and the Paradox of Thrift are contradictory. The paradox assumes, incorrectly, that people will spend when they feel wealthy, based on the wealth effect, but not when they are actually more wealthy.
Wikipedia – The Wealth Effect
Bill Gates On His New Idea: Catalytic Giving
Bill Gates Biography
Bill Gates Biography. Documentary on the legendary Bill Gates – founder of Microsoft, one of the most powerful and richest companies in the world.
William Henry “Bill” Gates III (born October 28, 1955) is an American business magnate, investor, programmer, inventor and philanthropist. Gates is the former chief executive and current chairman of Microsoft, the world’s largest personal-computer software company, which he co-founded with Paul Allen.
He is consistently ranked among the world’s wealthiest people and was the wealthiest overall from 1995 to 2009, excluding 2008, when he was ranked third; in 2011 he was the wealthiest American and the second wealthiest person. During his career at Microsoft, Gates held the positions of CEO and chief software architect, and remains the largest individual shareholder, with 6.4 percent of the common stock. He has also authored and co-authored several books.
Gates is one of the best-known entrepreneurs of the personal computer revolution. Gates has been criticized for his business tactics, which have been considered anti-competitive, an opinion which has in some cases been upheld by the courts. In the later stages of his career, Gates has pursued a number of philanthropic endeavors, donating large amounts of money to various charitable organizations and scientific research programs through the Bill & Melinda Gates Foundation, established in 2000.
Gates stepped down as chief executive officer of Microsoft in January 2000. He remained as chairman and created the position of chief software architect. In June 2006, Gates announced that he would be transitioning from full-time work at Microsoft to part-time work, and full-time work at the Bill & Melinda Gates Foundation. He gradually transferred his duties to Ray Ozzie, chief software architect, and Craig Mundie, chief research and strategy officer. Gates’s last full-time day at Microsoft was June 27, 2008. He remains at Microsoft as non-executive chairman.
Advice From Bill Gates And Bono On How To Be A Rock Star Philanthropist
Part 1 from the Forbes 400 Philanthropy Summit 2013: Two of the planet’s most influential people explain how together they’re finding solutions to the world’s biggest problems.
Part 2: Bill Gates and Bono answer questions during their panel at the 2013 Forbes 400 Philanthropy Summit.
A Q&A Audience With Bill Gates
Bill Gates, Microsoft founder and co-chair of the Bill & Melinda Gates Foundation, joins ABC’s Q&A to face questions from the audience. He answers across a range of topics including global health, corporate tax evasion, robot warfare, philanthropy and social media.
Bill Gates Speech at Harvard University
Be inspired by Bill Gates – the most successful and the richest dropout in the world!
Bill Gates Aspirational Entrepreneur
Shenandoah University Mind of the Entrepreneur final project
Bill Gates on GM foods, vaccines and Monsanto Nwo Puppet
Bill Gates responds to Malcolm Gladwell‘s theory that it takes 10,000 hours of deliberate practice to master a skill. Apart from acknowledging luck, timing and an open mind, Gates suggests that a successful person survives many cycles of attrition to make it to 10,000 hours of experience. “You do have to be lucky enough, but also fanatical enough to keep going,” explains Gates.
Microsoft founder Bill Gates leads a conversation with his father Bill Gates Senior, titled “A Conversation with My Father,” in which the pair talk about parenting, philanthropy, commerce and citizenship.
Bill Gates Sr. was an attorney who co-founded his own firm and was on the board of Planned Parenthood. Since retiring from law in 1998, he has served as the co-chair of the Bill and Melinda Gates Foundation and as director for Costco Wholesale. He’s also the author of Showing Up for Life: Thoughts on the Gifts of a Lifetime as well as Wealth and Commonwealth: Why America Should Tax Accumulated Fortunes.
Bill Gates III is chairman of Microsoft Corporation, the worldwide leader in software, services and solutions that help people and businesses realize their full potential. In July 2008, Gates transitioned out of a day-to-day role in the company to spend more time on his global health and education work at the Bill and Melinda Gates Foundation. Gates continues to serve as Microsoft’s chairman and an advisor on key development projects.
Bill Gates unveils his vision for the world’s energy future, describing the need for “miracles” to avoid planetary catastrophe and explaining why he’s backing a dramatically different type of nuclear reactor. The necessary goal? Zero carbon emissions globally by 2050. A passionate techie and a shrewd businessman, Bill Gates changed the world once, while leading Microsoft to dizzying success. Now he’s set to do it again with his own style of philanthropy and passion for innovation.
Why you should listen to him:
Bill Gates is founder and former CEO of Microsoft. A geek icon, tech visionary and business trailblazer, Gates’ leadership — fueled by his long-held dream that millions might realize their potential through great software — made Microsoft a personal computing powerhouse and a trendsetter in the Internet dawn. Whether you’re a suit, chef, quant, artist, media maven, nurse or gamer, you’ve probably used a Microsoft product today.
In summer of 2008, Gates left his day-to-day role with Microsoft to focus on philanthropy. Holding that all lives have equal value (no matter where they’re being lived), the Bill and Melinda Gates Foundation has now donated staggering sums to HIV/AIDS programs, libraries, agriculture research and disaster relief — and offered vital guidance and creative funding to programs in global health and education. Gates believes his tech-centric strategy for giving will prove the killer app of planet Earth‘s next big upgrade.
In his second annual letter, released in late January 2010, Gates takes stock of his first full year with the Gates Foundation.
“When Gates looks at the world, a world in which millions of preventable deaths occur each year, he sees an irrational, inefficient, broken system, an application that needs to be debugged. It shocks him — his word — that people don’t see this, the same way it shocked him that nobody but he and [Paul] Allen saw the microchip for what it was.” Time
We now know that today a high school diploma is not enough for our students, or for our country, to compete in the global economy. In a study of 34 countries, the U.S. ranked 18th in student math scores. Find out why shared academic standards for all states can make a difference.
Part of the American Graduate project addressing the country’s high school dropout crisis, teachers across the nation have weighed in at town halls on what’s working and what’s not. Hari Sreenivasan and Melinda Gates discuss how the Bill & Melinda Gates Foundation hopes to best tackle education reform.
In her talk, Melinda Gates makes a provocative case for nonprofits taking a cue from corporations such as Coca-Cola, whose plugged-in, global network of marketers and distributors ensures that every remote village wants — and can get — a Coke. Why shouldn’t this work for condoms, sanitation, vaccinations too?
Melinda French Gates is co-chair of the Bill & Melinda Gates Foundation.
Why you should listen to her:
As co-chair of the Bill & Melinda Gates Foundation, Melinda French Gates helps shape and approve foundation strategies, review results, advocate for foundation issues and set the overall direction of the organization.
Guided by the belief that every life has equal value, the Bill & Melinda Gates Foundation works to help all people lead healthy, productive lives. In developing countries, it focuses on improving people’s health with vaccines and other life-saving tools and giving them a chance to lift themselves out of hunger and extreme poverty. In the United States, it seeks to dramatically improve education so that all young people have the opportunity to reach their full potential. Based in Seattle, Washington, the foundation is led by CEO Jeff Raikes and co-chair William H. Gates Sr., under the direction of Bill and Melinda Gates and Warren Buffett.
Business advice from Sheldon Adelson, Bill Gates, Steve Jobs, Richard Branson, Charlie Munger, Donald Trump, Warren Buffet, Jim Pattison, Charles Koch and Sunil Mittal