Possibly, it’s a pity even so

Richard Murphy says:
September 3 2018 at 8:59 am
Is there money to be made?

TRhat is the only question they’ll ask

Sam says:
September 3 2018 at 10:14 am
I think you’ll find that after-tax return on invested capital is what dictates where companies do and do not invest.

Richard Murphy says:
September 3 2018 at 10:29 am
Warren Buffet has suggested otherwise

Julia Gibb says:
September 3 2018 at 10:52 am
If it was as simple as return on invested capital then why do people not put their savings into high risk deals in unstable countries rather than the FSA protected saving accounts?


Start an Oil company and rush Ito Iran and let me know how it goes.

Richard Murphy says:
September 3 2018 at 11:44 am
I am an FCA

I have managed many companies

I might know just a little bit about this

And I also know how tax works in such things too

Sam says:
September 3 2018 at 6:31 pm
Julia: the greater the risk, the greater the cost of capital, and the one thing a company should never do is invest money where the return on capital is below the cost of capital (which, if risk is very high, might well be the case even if the potential return is also very high).

Richard: Buffett has certainly criticised companies that pay insufficient attention to after-tax return on capital, but are you suggesting the UK government should incentivise those bad companies? Do your companies ignore after-tax return on capital?

Richard Murphy says:
September 3 2018 at 6:41 pm
Buffet said no one turned down making profit because they had to pay tax on it

And given no one has a clue what profit will be nor do they much care about tax

The reality is the theories are bullshit: no one is clairvoyant and they demand that business people are

I’d suggest you drop the pretence

Sam says:
September 3 2018 at 7:09 pm
If the businesses you managed had an insatiable appetite for ploughing capital into projects with meagre after-tax returns on capital, it’s probably for the best that you are devoting yourself to blogging these days.

Richard Murphy says:
September 3 2018 at 8:48 pm
I assure you, I knew how to make money

Sam says:
September 4 2018 at 9:17 am
People who don’t understand the difference between an accounting profit and an economic profit are very dangerous in business. I’d stick with the blogging from now on.

Richard Murphy says:
September 4 2018 at 9:57 am
As far as I know I am the only chartered accountant who is a professor with economics in their job title

Would help if he’d an inkling more about either.

25 thoughts on “Possibly, it’s a pity even so”

  1. So instead of engaging with the argument and showing his expertise in either field he resorts to showing off his titles. He truly is a magnificent mind and credit to the academy.

    If he were any good at either he’d at least be working at City’s business school, Cass, rather than in the Corbynite Department of International Politics as a pretend professor.

    I wonder if it bugs him that he’s the only one there without a PhD?

  2. I’ll repost what I posted elsewhere:

    Murphy’s view of investment strategy is what is sometimes described as “contrarian”.

    However, Murphy’s contrarianism is extreme given that he accepts none of the conventional and accepted investment logic such as DCF etc. The fact that he can hold several different incompatible beliefs and positions at the same time and consider himself to be correct in each case suggests a sort of Murphy quantum logic, which the rest of us may be are simply too stupid to comprehend.

    Maybe when we have a grand unified theory of everything Murphy will be vindicated, but I suspect not. I think the man is merely an incarnation of Humpty Dumpty.

  3. Like a Caveman confronted by an Ipad. He is so far out of his depth its embarrassing. My daughter has moire understanding of basic taxation than him – and she’s three,

    Could any of the accountants on the blog clarify if there is a way to appeal to the ICAEW to get someone’s membership annulled on grounds of incompetence or misrepresentation?
    I’d be willing to put some money towards such a petititon.

  4. Just a theory why he is the only chartered accountant who is a professor with economics in their title: most economics professors spend their time as economists, not in another career.

    It’s not like he’s had to progress through the ranks to become a professor.

  5. MikeL, it is merely a job title (probably at his own vain insistence). He isn’t a Professor in any meaningful sense of the word.

    V-P, that’s one crowdfund I’d be happy to put money in.

  6. I think you’ll find the ICAEW subs department has over-ruled the disciplinary department from taking action against unhinged morons.

  7. Henry, that’s the point, he didn’t climb the pole to get the professorship like others.

    Was the position advertised? Did he compete with others for the role? Or was it just handed to him?

    Would be a fun lark for Noel Scoper or Murphy Richards or the FCA Blog bloke to do an FOI of the university to see what happened. The advertisement, any board minutes etc. relating to the appointment.

  8. I’ve asked this before but I don’t think it was answered.

    As Ritchie isn’t a “Professor Murphy” but “Richard Murphy, Professor of blah blah blah”, does he lose that title when his funding ends and he loses his post at City?

  9. Even if he does lose the title, he’ll still revel in it. “Richard Murphy, retired professor of economics in the City…”. We’ll never hear the end of it.

    The only way he’d shut up is if he was kicked out for feeling up a student. They won’t kick him out for just being rubbish at economics, as that would reflect badly on City for having appointed him in the first place.

  10. Ducky McDuckface

    “I have managed many companies”

    How long did they survive? How many are still going?

    Good grief.

    My sentiments exactly – again I would need to look at the Companies House register to provide evidence of this but I would suggest HMRC ensure the accounts for all these are in order. Otherwise it’s on a par with his reminiscences about Dachau where he realised ‘people like him’ could have been there. A rare moment of self-awareness, in fairness.


  11. I made a complaint to ICAEW about his arrogance, ignorance and general defamation of the ICAEW. They wrote back asking for specific details of the address of his practice and failures. In other words, the complaint process is specifically about failure to respond to letters or perform tasks rather than, say public displays of ignorance and intolerance that bring a profession into disrepute.

    My brush-off from City technical college was similarly narrowly based. I suggest that Murphy candid tax should use a hashtag such as #City the university for morons, in order to expose the fraud going on. How can they charge students to be taught by a semi-functional moron?

  12. Isn’t he still a Professor of Practice which is a lesser title indicating the holder has real world experience rather than technical academic expertise.
    Likely how City got around his lack of qualifications

  13. I read the disciplinaries every month in economia (the ICAEW magazine) – that is if they don’t forget to include them.

    It is staggeringly difficult to be excluded from membership. Apart from actual convictions for fraud and/or doing time they will just give a reprimand (or a severe reprimand if you’ve been very naughty – such as signing off audits when you knew you shouldn’t and had been told to stop but didn’t – true story). The cynic in me views these as another way to raise money for the institute, as they will always slap a fine on you; but why not continue to fleece you for annual subs too?

    So appealing to the accountants to kick him out is a fool’s errand.

  14. BH’s comment introduces an interesting concept.
    Schrodinger’s Spud.
    He exists in a quantum super-position of all opinions until he commences hammering at the keyboard. At which point the waveform collapses to whatever he batters out & his other opinions are relegated to the alternative trouserlegs of spacetime. It explains much

  15. Bloke in North Dorset

    Another Paul,

    “I wonder if it bugs him that he’s the only one there without a PhD?”

    I refer you to messers Dunning & Kruger.

  16. Diogenes/Jim 2

    Sounds similar to ‘professional’ bodies in other industries. I Guess we’ll have to wait for some age related medical scenario more’s the pity, thanks to both of you for the information as ever!

  17. Professor of practice (I.e. not real professor) in international political economy (I.e. not real economics).

    Quite an achievement to have two academic euphemisms in one job title. He’s a stain on the reputation of City (if it ever had much of one)

  18. “Van_patten

    “I have managed many companies”

    I would need to look at the Companies House register to provide evidence of this”

    Murphy’s Companies House history shows;


    Director – Cambridge Econometrics Limited
    Member – Finance for the Future LLP
    Member – Tax Research LLP


    Director – Fair Tax Campaign (dissolved July 2016)
    Secretary – Tax Justice Network Limited (resigned 6 May 2009)

    I’m not sure if all records are available but I know that the on-line records stretch back to the early 1990s

    So however many companies he claims to have ‘managed’ none of them have seen fit to appoint him to a position of influence.

  19. AndrewC/VP

    Note also Progressive Pulse Limited.

    Companies House aren’t always that good at joining dots on their new service (some of the older commercial outfits used to do it more effectively).

  20. @PF

    Nice spot.

    A real rag-tag bag. A couple of trading companies worth maybe something but Murphy owns no shares except a c2% shareholding in one.

    Hardly indicative of the great Entrepreneur he claims to be.

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