MGT 103 Lecture Notes - Lecture 7: Warren Buffett, Blaze Pizza, Pareto Principle

• School: UCSD
• Department: Rady School of Management
• Course: MGT 103
• Professor: Craig Eberhard

Document Summary

Watch the netflix documentary on warren buffet. Don"t actually provide a product, but instead buy other companies. 80/20 rule - pareto noticed that 20% of the italians owned 80% of the land in italy. The principle states that 80% of the effects come from 20% of\ the cause. Uber has way more revenue than all cabs and taxis combined. Market cap : value of the company : stock price x number of value shares. Investors want to make sure the company won"t run out of money. Compound interest - main topic of the day. Principle : the money you start with. Avg rate of return : interest percentage. 80% of the sales come from 20% of the customers. Rule of 72 - time for investment to double! 72 divided by avg rate of return = time for investment to double. Don"t divide by the decimal but use the percent as an actual $