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Tom Au, CFA
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In the early 1990s, during the middle of a secular bull market, I began work on "A Modern Approach To Graham and Dodd Investing," that was not particularly suited for the decade of the 1990s, but was ideally suited for the following "Lost Decade" of the 2000s.
My book:
A Modern Approach to Graham and Dodd Investing
  • Are Corporations Too Powerful? Or Is It Something Else? 0 comments
    Jul 14, 2009 3:50 PM

    Some people, pointing to the growing inequality, opine that corporations are taking up larger and larger shares of income. A study of returns to labor and capital over the past century show that this is not the case. The shares have been remarkably constant over time.The share going to corporations (capital) are not rising.

    And at the office, workers have been increasingly assertive about their prerogatives, like casual Fridays. A generation or two ago, workers used to cringe when their bosses walked into their offices. Not today. Bosses are going out of their way to preach the virtures of a "flat" hierrachy, even as they collect much larger paychecks than not only workers, but their predecessors (adjusted for inflation).

    There is, however, something going on that is producing inequality. People at the top of corporations are "taking" these companies for much more than former top managers. In a sense, that accounts for the weakness of corporations. Top managements "go light" on workers in small matters in order to prevent the growth of corporate structures that would check their privileges at a higher level. "Bureaucracies" are much weaker today than 20-30 years ago, but so are checks to executive greed. One group of (well-placed) laborers has been benefitng at the expense ot the rest of the labor force.

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