Short lesson in sound financial management

Credit crunch, Madoff, Lehman brothers – we are all wise after the event. But what does it take not to lose all your savings.

Leora Meridor is an experienced  banker and wife of a minister in the Israeli government. She sits on the board of many leading international companies. So what? How many others can point to similar resumes and still lost their trousers?

In March 2009, she was appointed by Tel Aviv University as head of their committee to supervise the institutions’ investments. No small matter. In Jerusalem, the Madoff crisis had wiped out a series of student grants. Tel Aviv’s portfolio had lost over US$40 million over the previous 6 months.

First of all, Meridor opened up the files to understand for herself what her portfolio contained. In other words, she got her hands dirty and did not merely rely on advisors.

She then realised who her client is – an academic institution, which should not be looking to take risks for short term gains.

The President of the university may not have liked her active intervention. Yes, as stock markets have zoomed up by tens of percentage points, the portfolio has missed out some of these gains.

As the global crisis demonstrated, Rome can be built in a day. But it can also collapse in a matter of hours. Tel Aviv University, a fine house of academia, now has a much firmer financial future to develop a path of learning for others.

Explore posts in the same categories: Business, Israel

Tags: , ,

You can comment below, or link to this permanent URL from your own site.

5 Comments on “Short lesson in sound financial management”

  1. […] This post was Twitted by michaelhoresh […]

  2. […] the original post:  Short lesson in sound financial management « Afternoon Tea In … By admin | category: afternoon tea | tags: afternoon tea, commercial-life, israeli, […]

  3. […] This post was Twitted by michaelhoresh […]
    BTW I love your blog!

  4. Tnelson Says:

    I usually don’t post on Blogs but ya forced me to, great info.. excellent! … I’ll add a backlink and bookmark your site.

  5. JimmyBean Says:

    I don’t know If I said it already but …Great site…keep up the good work. 🙂 I read a lot of blogs on a daily basis and for the most part, people lack substance but, I just wanted to make a quick comment to say I’m glad I found your blog. Thanks, 🙂

    A definite great read..Jim Bean

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: