Steven G. Blum

Insights and Methods to enhance your Financial Life

On Being a Negotiation Teacher

By

I’ve been teaching negotiation at the Wharton School of Business of the University of Pennsylvania for more than 20 years. Time flies when you are doing something rewarding and fun. This week I learned that I have again won the William G. Whitney Award for Distinguished Teaching. … [Read more...]

Strong Alternatives Give You Power

By

In negotiation, as in all areas of life, having a strong best alternative gives you great power.  Alternatively, the lack of a good alternative results in relative weakness. Negotiators speak frequently about BATNA – the Best Alternative to a Negotiated Agreement.  In plain … [Read more...]

Let’s Get Rid of “Carried Interest”

By

In July I wrote a piece criticizing the tax break for what is referred to as “carried interest.” That topic is back in the news because President Obama’s proposed budget suggests we might eliminate it. Why does our tax code include this tax preference? What purpose does it … [Read more...]

Compounding as a Practical Matter

By

Last week, in order to demonstrate the power of compound interest most dramatically, I wrote about compounding at 100% per period. The huge numbers that result can really get one’s attention. Today let’s consider compound returns using rates that are very realistic. In doing so, … [Read more...]

Fun With Compounding

By

Among the most important concepts an investor must comprehend is compound interest. While the idea is simple, the math can get complicated. The concept is straightforward, though, even though it is definitely not intuitive.  In the end, the compounding of returns means that there … [Read more...]