What is the GDPR?
- The GDPR refers to regulation concerning privacy and security of user data in EU-operating businesses. It stands for the General Data Protection Regulation.
- For now, detailed standards for company policy and systems regarding the use and protection of user data remains loosely-defined, however will be a key consideration for any company seeking to continue or build operations in EU-member states.
- An Ovum report suggests that the majority of U.S. companies surveyed will need to rethink their digital strategies and believe they will be at a competitive disadvantage as a result of GDPR.
- Data protection will include basic ID information, web data (location, IP address, cookie information), biometric, health and genetic data, racial data, and more.
How Operations Research and Artificial Intelligence Overlap
- Operations Research draws on math, CS and business to make decisions, and was proliferated during WWII to solve high-cost, high-risk problems.
- The article posits that OR and AI are incredibly similar: they are centered upon the automation of decisions through the codification of decision making.
When Dividends are a Problem
- Dividends allow companies to redistribute capital to investors; however, since the early 2000s, dynamics of the financial markets should be taken into account when choosing so-called “dividend stocks.”
- The ’08 crisis saw many dividends sharply cut, including many that were once considered sacred
- Increasing pace of innovation and technological disruption continues to spread across industries, challenging legacy moats, and by extension, dividends
- Boards and management teams are looking to share buybacks for capital redistribution as a preferred alternative to cash dividends
- Ensemble Capital uses FCF Payout Ratio (I’ve usually seen Dividend Payout as a % of Earnings, though the FCF metric might be more telling) to demonstrate that CPG Dividend Aristocrats like Colgate, Kimberly Clark and P&G are constrained by their legacy of dividend growth and therefore are left with little cash available for acquisitions and innovations.