About a year ago Warren Buffett paid $37 billion for Precision CastParts (PCP) Corporation, a highly successful company that makes complex parts primarily for the aircraft engine industry. Buffett praised and celebrated the CEO of this company at his recent annual meeting in Omaha. This generated a lot of press articles about the controversial nature of that CEO who has generated a culture at PCP that’s best described by one of the employees as “in your face, full body contact.”
Bob's Gutsy Leadership Blog
Archive for August, 2016
The financial results which Twitter just released for its most recent quarter were characterized by weak user growth, weak revenue and a disappointing outlook. This caused an immediate -10% decline in the company’s stock price as investors continued to lose faith in the company’s ability to turn it around. For perspective, while Twitter’s stock price ranged between $35 and $55 during the period of January 2014 to July of 2015, in the most recent six months it has been in the $15-$20 range.
IBM’s revenue declined by 2.8% in the most recent quarter. The gains it made in its new businesses of cloud computing and data analytics were more than offset by the continued declines in its established businesses. IBM has posted revenue declines in seventeen straight quarters.