Business risk and moral hazard The relationship between insurance and moral hazard is a classic issue. For example, insurance that pays for failing an exam induces moral hazard by i… 2021-02-08 Noriyuki Morimoto Negligence in the name of long-term management Under the name of long-term investment, corporate pension funds often have the policy of maintaining a certain allocation of assets regardless of chan… 2021-01-25 Noriyuki Morimoto Cash is king When a financial crisis hits, real estate companies suffer slower sales, and their cash flow quickly deteriorates due to the difficulty of raising fun… 2021-01-12 Noriyuki Morimoto If you catch a cold, do you eat less and work more? The key to treating a cold is to treat it early. Take a rest and eat nutritious food so it doesn't get worse. By contrast, if you catch a cold and dec… 2020-12-21 Noriyuki Morimoto Students are the products of universities If the function of a university is to supply human resources to society, the university's customers are not students, but the society that needs human… 2020-12-07 Noriyuki Morimoto Cows over pigs One maxim that expresses the basics of investment is “cows over pigs.” Cows here are not cattle for meat, but dairy cows for milking. Pigs, on the oth… 2020-11-24 Noriyuki Morimoto Theoretical price of dairy cows and the essence of investment The theoretical price of a dairy cow is the present value of net cash flow it generates. This can be calculated by estimating the total sales price of… 2020-11-09 Noriyuki Morimoto How the Japanese corporate compensation system made some sense The corporate compensation system is not piecework payment based on already delivered performance. That the compensation is decided in advance means t… 2020-10-26 Noriyuki Morimoto Future of the Japanese insurance industry What is fundamental risk-taking in insurance? One approach is to regard the risks unique to insurance as the subject of fundamental risk-taking, while… 2020-10-12 Noriyuki Morimoto What makes a stock worth investing in A stock is the first thing that absorbs the uncertainties of a business, so a reasonable measurement of such uncertainties has to be possible for a st… 2020-09-28 Noriyuki Morimoto «1…7891011…23»