Bad man Quote by Malcolm Forbes
“Why, just a couple of economic seasons ago, was idle cash considered an indication of bad management or lazy management? Because it meant that management didn't have this money out at work ... Now look. Presto! A new fashion! Cash is back in! Denigrating liquidity has dropped quicker than hemlines. A management is now saluted if it has some cash, some liquidity, doesn't have to go to the money market at huge interest rates to get the wherewithal to keep going and growing. Along with Ben Franklin, my father and your father would understand and applaud this new economic fashion.”
About This Quote
The quote critiques the shift in business thinking that now praises holding cash reserves, contrasting it with past views that excess liquidity signaled poor management. It suggests this change is a fashionable, perhaps superficial, response to economic uncertainty.
In simple terms: Cash hoarding is now praised as smart management.
Key Takeaway
Liquidity is treated as a status symbol rather than a strategic tool.
Themes
financial strategy
management perception
economic cycles
risk aversion
cultural shift
Mood
skeptical
analytical
cautious
Type
observation
critique
commentary
When to use this quote
- corporate treasury planning
- boardroom discussions on capital allocation
- investor relations presentations
- risk management workshops
- financial analyst reports
Key Concepts
liquidity management
cash reserves
managerial incentives
market sentiment
Practical Applications
- reassessing cash holding policies
- balancing liquidity with investment opportunities
Questions to Reflect On
- How does excessive cash affect a company's long-term value?
- What balance should firms strike between liquidity and investment?
A Different Perspective
While cash can provide flexibility, excessive hoarding may indicate missed growth opportunities and inefficient capital use.
![“I don't think anybody can be a success who doesn't like what they do. [But it's] no job if it has no challenge; there's nothing to it if there are no problems. The essential thing is liking what you're doing.” quote by Malcolm Forbes](https://sms4smile.com/quotes/img-quotes/05c/malcolm-forbes-1510_challenges_i-don-t-think-anybody-can-be-a-success-w_13342.jpg)
