Microsoft Continues Its Long History of Destroying Shareholder Value

For Microsoft, I recommend the same strategic advice Carl Icahn once gave to the Blockbuster board. Mr. Icahn realized that Blockbuster was in a dying market segment, soon to be displaced by streaming video. What the company did have was a large cash flow. Mr. Icahn wanted Blockbuster to begin a program of paying large dividends to stockholders. The board decided against this. And another large chunk of stockholder wealth went up in smoke. Microsoft would do well to consider a similar strategy. If Office isn’t a cash cow, then I’ve never seen one. And shut down mobile, online, and all the other divisions not paying their way. That means matching the Windows and Office segment returns on investment. Continue Reading →

San Francisco Muni Will Not Achieve Its Goal

How do hybrid buses equal zero emissions? The answer is, “They don’t.” Hybrid buses, by definition, run on their gas engines at least part of the time. Getting to zero emissions by using hybrids violates at least one of the laws of thermodynamics. Continue Reading →