Ranking companies

Technology companies continue to hold most of the top spots in the annual Management Top 250 ranking of America’s best-run companies, with Apple unseating Microsoft at No. 1. The Management Top 250 ranking compares companies using the late management guru Peter Drucker’s principles to identify the most effectively managed businesses. This year, 842 companies were graded in five categories (customer satisfaction, innovation, social responsibility, employee engagement and development, and financial strength) based on 35 indicators supplied by third-party data providers. Companies that are in the top 15pc in each of the components of the ranking are designated “all-stars,” and those that score in the bottom 25pc in any category are tagged with “red flags.” The ranking captures the year that ended in June — a year of rising interest rates, cooling inflation yet persistent consumer perceptions that prices are still too high, tension ahead of the November election, continued debates about returning to the office, and increased employee dissatisfaction.

(Adapted from “Apple Tops The List Of Best-Managed Companies Of 2024,” by Ray A Smith, published on December 8, 2024, by the Wall Street Journal)

Risky gambles

Young men hold a disproportionate share of the kinds of risky and volatile investments that financial professionals tend to warn against. Right now, they are hitting pay dirt. A hypothetical portfolio holding equal amounts of bitcoin, gold, the meme stock GameStop and the sports-betting stock DraftKings returned 62pc in the first 11 months of this year. That is more than triple the returns of a traditional portfolio of 60pc stocks and 40pc bonds, according to an analysis by the financial firm Leuthold Group. Some of these investors say they are laying a foundation, however risky, to attain traditional goals, such as saving for retirement or a home, survey data from financial education company Noyack shows. Speculative investing doubles as a form of entertainment, thanks to smartphone trading and online forums of bootstrap investors. Users flaunt big wins, teasing financial prosperity that otherwise seems unreachable, especially for the growing number of young men who believe they face economic barriers.

(Adapted from “Young Men Are Making Risky Bets On Crypto And Politics — And Raking It In Right Now,” by Katherine Hamilton, published on December 7, 2024, by the Wall Street Journal)

Losing the chip war

Intel CEO Pat Gelsinger championed a comeback strategy for the semiconductor industry goliath that involved both designing and manufacturing chips. The strategy that he articulated to restore Intel’s swagger ran utterly counter to the direction the industry had taken over the previous several decades. In that time, the chip business had evolved and basically split in two. Most chip companies have come to specialise in either designing chips (like Nvidia) or making chips (like Taiwan Semiconductor Manufacturing). Because those businesses are radically different, only a handful of large chip companies still do both — like Intel. When he was named CEO nearly four years ago, Nvidia and Intel had similar stock-market values. Since then, Nvidia gained $3 trillion and was crowned the most valuable company in the world, while Intel lost $150 billion and is no longer one of the 10 most valuable companies in the world of chips.

(Adapted from “He Was Going To Save Intel. He Destroyed $150 Billion Of Value Instead,” by Asa Fitch and Ben Cohen, published on December 5, 2024, by the Wall Street Journal)

Millennial millionaires

Saving $1 million for retirement used to be considered the gold standard, although these days financial advisors may recommend putting away even more. Millennial workers are still the most common generation to say they’ll need at least $1m to retire comfortably, according to a recent report by Bankrate, and, for the first time, a larger share of younger retirement savers are reaching that key savings threshold. The number of millennials with seven-figure balances has jumped 400pc from one year ago, according to the data from Fidelity Investments prepared for CNBC. Positive market conditions helped boost account balances to new highs in 2024 as the Nasdaq is up 29pc year to date, as of December 19, while the S&P 500 notched a 23pc gain and the Dow Jones Industrial Average rose more than 12pc.

(Adapted from “Number Of Millennial 401(K) Millionaires Jumps 400%: Here’s What It Takes To Reach Seven-Figure Status,” by Jessica Dickler, published on December 20, 2024, by CNBC)

Published in Dawn, The Business and Finance Weekly, December 23rd, 2024