http://www.fool.com/investing/general/2014/10/26/warren-buffett-lost-25-billion-this-week-and-hes-t.aspx

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Recently Warren Buffett lost $2.5 billion between his positions in IBM and Coca-Cola. This article discusses how
poor earnings on their quarterly reports led to a drop in IBM’s and Coke’s stock price by 11% and 6% respectively. Buffett is undoubtedly the most famous value investor in history who follows the teachings of Ben Graham – searching for high-quality companies that tend to rise over time because of their intrinsic value. This is a strategy that was briefly touched on in our COMM 101 class about capital markets. Having an interest in equities, this is an approach that I am familiar with and is one that I often implement when evaluating various securities. Searching for undervalued companies was a focal point of discussion that the PMF guest speakers touched on when they explained how they pick stocks for their portfolio. Although this strategy has proven to be successful for many investors, it is imperative to acknowledge that the capital markets never come without risk. Warren Buffet has made a fortune investing but even he is not immune to the forces of the market. The long term success however of the PMF program and Berkshire Hathaway is evidence of the effectiveness of investing in companies with strong fundamentals. Keeping this in mind I think it is highly unlikely that Buffett will liquidate these positions or change his investment strategies.

Social Entrepreneurship Pays Off in Many Ways

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As I was scavenging through some of my classmate’s blogs, Carolina’s most recent post pertaining to social entrepreneurship caught my attention. Her discussion of Justus Uwayesu provided me with insight about a particular social issue that I believe would ideally be addressed by various social enterprises. The ever-increasing cost of attending college means that there many bright, capable, and talented young minds that miss out on this opportunity because of financial reasons.

A global issue of this magnitude cannot be fixed with just one solution, however, I do believe that the establishment of social enterprises with different business models will be instrumental into progressively bringing change. I want to relay what Carolina mentioned in her blog in terms of the fact that charities are often difficult to sustain which is why the entrepreneurial approach of social enterprises is more effective for creating viable solutions. The challenge to society in terms of bringing more of these businesses into fruition is the lack of understanding many people in the business world have about creating shared value. It then becomes the responsibility of the next generation of business leaders to broaden the scope of the professional world with the emergence of new businesses that use commerce skills to produce profits, as well as improving social and environmental wellbeing. 

http://www.businessinsider.com/goldman-sachs-critical-thinking-questions-2014-10

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The article above briefly outlines some of the questions that are asked to candidates during their interviews for employment at Goldman Sachs. The firm’s global head of recruiting, Michael Desmarais says that a common interview question would be to evaluate a company’s market valuation or to provide a stock pitch. In addition to this, the company blog indicates that it attempts to use the interview process to judge an individual’s creativity and problem-solving abilities. They do this by asking prospective employees to describe a procedure that can be used to figure out how many manhole covers there are in New York City, or similar thought provoking questions.

This evolution of this company’s interview process is indicative of the fact that they are trying to optimize their ability to find intra-preneurs. As discussed in a recent COMM 101 class, large multinational corporations are seeking employees that will be able to think quickly on their feet, and outside the box, therefore demonstrating problem solving, analytical, and critical thinking skills. Goldman Sachs has recognized the benefits of hiring corporate innovators – people who possess the creative qualities typically associated with entrepreneurship, but utilize them within a large company. Employing the skills of such individuals is imperative to the growth and success of any firm and I believe that more companies will begin to ask similar brain teasing questions during interviews in order to help them find ideal employees.

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

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The current issue concerning BC Hydro and First Nations in British Columbia is multilayered dispute. BC Hydro is working on developing a megaproject to produce a hydroelectric generating station in Native American land. The endeavor would also result in flooding of land that is deep-rooted in Aboriginal culture. First Nations are arguing against this project, referencing the Number Treaties and claiming that it would infringe upon their rights.

Undoubtedly this creates certain business problems for BC Hydro from a macro environmental perspective. The legacy of treaties with Aboriginal groups provides us with a keen understanding of how the PEST analysis is applicable to real business problems. The primary factor that is influencing this issue is political (with a legal subset). Considering that there is legislation in place to protect First Nations, a question of ethics arises in terms of whether or not BC Hydro should be allowed to continue with their efforts. This notion is further complicated when we acknowledge that BC Hydro is a crown corporation who’s actions are a direct reflection of the government. Furthermore, any potential fallout will surely test the validity of the current legislation that we have in place. All the parties involved are key stakeholders with different beliefs and values about what is in everybody’s best interest. If a resolution is to be reached, a great deal of compromise will have to take place.