Professor Elam

Thursday January 17 2013

As Jim Rogers observes most acquisitions do not work out. Rio Tinto has taken a $14 B writedown over its disastrous acquisitions prior tothe crash of 2008.  We study accounting to learn about impairment tests and charges. Here is an example of someone doing something just to do something, never a good strategy. But ask FEd EX about Kinko's or HPQ about Autonomy or Daimler about Chrysler, so it goes.