Tag Archives: Incentive

Finding value when the market misbehaves

By John Wasik – If you can find managers focused on buying and holding the best stocks – no matter how the rest of the market is behaving – you might reap higher gains over time.

“Perverse industry incentives and emotional investors combine to incent funds to invest in other than best idea stocks and so performance declines accordingly,” C. Thomas Howard, professor emeritus at the University of Denver told me in an email. “Funds underperform not because of the lack of skill, but because of the incentives they face.” more> http://tinyurl.com/m7g8qd4

Fundamental Economic Requirements For Our Next President

By Charles R. Schwab – The answer to that question is a simple test: can they ignite economic growth?

Economic growth is the only ingredient that will help pull the country out of its present funk and allow us to solve our pressing issues.

Growth is not complicated. It is a force of nature. But when it stalls, as it has for the last four years, it will not return without effective leadership. A great leader understands and applies the power of incentives to encourage growth. Incentives appeal to a basic human instinct and motivate productive choices. They are used throughout our lives from grades in school that encourage learning and higher performance, to the incentives we use at work through pay, bonuses and promotions to recognize and encourage accomplishment. Incentives are the most powerful tool a government and its leaders have to spur economic growth. more> http://tinyurl.com/97zw5yd

Rebuilding Manufacturing: Fixing the Dysfunctional R&D Tax Credit

BOOK REVIEW

The Practical Guide to Research and Development Tax Incentives, Author: Michael Rashkin.

By George Leopold – Rashkin argues that the R&D tax credit in its current form isn’t working. Created in 1981, the provision gives US companies a tax break on R&D expenses. Other R&D incentives include faster writeoffs of equipment and favorable tax treatment for stock option costs.

According to Rashkin, the current tax structure works like this: Government agencies like the National Science Foundation fund basic research; then tax incentives and other subsidies are used to encourage product development, often based on federally funded basic research. Rather than investing in US manufacturing of new products, Rashkin told Congress that the structure encourages US companies to “park the resulting intellectual property in tax havens.” more> http://tinyurl.com/7lhazbo