Innovate@UCLA

Introduction

Headed Back to Office? Test Your Business Acumen

Headed Back to Office? Test Your Business Acumen

Daydreaming and poverty, stock traders who divorce, and crowdfunding strategies

  • True or false: The poor, though suffering many burdens, are at least more able than the wealthy to take time to daydream about a better life.

  • Individual investors who’re heading toward divorce:
    • Significantly underperform fellow stock traders not involved in divorce.
    • Inexplicably outperform them.
    • Perform no better or worse than traders not involved in divorce.

  • Some 200,000 projects have raised nearly $6 billion on Kickstarter. When crowdfunding, is it better to offer a fully developed product or one that can accommodate funders’ suggestions?
    • Fully developed — nobody wants to fund something still in development.
    • One without the finishing touches, inviting involvement of funders.
    • It doesn’t matter.

  • Tesla’s market capitalization — bigger than the combined values of Ford, General Motors, Toyota and Volkswagen — suggests some investors think Tesla will one day account for the entire U.S. car market, yet competitors are introducing their own electric vehicle models rapidly. An explanation might be:
    • Those investors are certain that other carmakers will go bankrupt.
    • They’re certain overall car sales will triple.
    • During periods of innovation and speculation, investors choose winners and are reluctant to adjust their beliefs.

  • Politicians and labor unions typically love reshoring — bringing manufacturing and other jobs, which had been offshored, back to the U.S. Investors didn’t favor:
    • Tech companies moving research and development back home.
    • Companies that reshored operations from China.
    • Outsourcing, or bringing in house, operations as part of a reshoring.
    • All of the above.

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