Musings on Markets

OCTOBER 4, 2023

Looking across the risk capital metrics, notwithstanding the recovery we have seen in equities this year, it looks like risk capital is still on the side lines, perhaps because that recovery is concentrated in large and money-making companies. YouTube Video Spreadsheets Intrinsic Valuation of the S&P 500 Spreadsheet

Marketing 123

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Global Finance

JUNE 9, 2025

Areas of concentration are determined in part by the lab’s “innovation radar,” a proprietary trend-indexing framework that systematically searches for potentially game-changing innovations. Independent Fintech Labs Some innovation centers are unaligned with banks, VC firms, or economic development organizations.

Startups 52

Startups Banking Compliance Investments 52

Musings on Markets

JULY 17, 2023

It is true that economic activity has leveled off and housing prices have declined a little, relative to a year ago, but given the rise in rates in 2022, those changes are mild. If anything, the economy seems to have settled into a stable pattern, albeit at the high levels that it reached in the second half of 2021.

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Musings on Markets

JANUARY 12, 2021

I end the class with a corporate finance version of valuation, where I tie inputs into value (cash flows, growth and risk) to investment, financing and dividend decisions. Valuation : It is unfortunate, but for most people, the vision that comes to mind when I say that I teach valuation is excel spreadsheets and high profile company names.

Valuation 52

Valuation Corporate Finance Finance Investments 52

Musings on Markets

AUGUST 15, 2023

After the rating downgrade, my mailbox was inundated with questions of what this action meant for investing, in general, and for corporate finance and valuation practice, in particular, and this post is my attempt to answer them all with one post.

Investments 98

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Barry Ritholtz

SEPTEMBER 3, 2024

A bachelor’s in economics from Northwestern and then an MBA from University of Chicago. And so I kind of leveraged that when I went to Morningstar because they’re very focused on quality, the whole concept of economic moats, but also about buying companies when they’re trading at a discount to intrinsic value.

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Investments Valuation Concentration Marketing 59

Musings on Markets

DECEMBER 2, 2020

Setting the Table As with any valuation, the first step in valuing Airbnb is trying to understand its history and its business model, including how it has navigated the economic consequences of the COVID. It’s relative: The first is that it was not just Airbnb that felt the pain from the economic shut down.

Profit and Loss 52

Profit and Loss Valuation Numbers Marketing 52

Barry Ritholtz

AUGUST 16, 2022

TROPIN: I mean, you know, there were equity hedge funds that were pretty levered, that had pretty highly concentrated, you know, growth bets, and a lot of technology companies and so on. How do you contextualize the economic data and the broad stamp recession when you’re thinking about managing risk? But we’re not there.

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Musings on Markets

JANUARY 9, 2021

To illustrate, consider a practice in valuation, where analysts are trained to add a small cap premium to discount rates for smaller companies, on the intuition that they are riskier than larger companies. It is very likely that these rules of thumb were developed from data and observation, but at a different point in time.

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Barry Ritholtz

FEBRUARY 6, 2024

There’s also quantitative metrics that we look at Those have evolved, but always within that capa, that cluster of high returns on investment stability across the economic cycle are consistent and strong balance sheets. Going back to the eighties and nineties, I told you kind of the fundamental definition. It was over 50 right?

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PYMNTS

AUGUST 13, 2018

This ignores the fact that the processing rails for this system — bitcoin — is concentrated in a handful of miners in China and the exchanges used to turn bitcoin into the real money that people can spend are routinely hacked. Uber invested in Lime in July as part of a $335 million capital raise that valued the company at $1.1 billion.

Banking 44

Banking Transportation Investments Accounting 44

Barry Ritholtz

DECEMBER 19, 2023

And when they look at a sector, they want to be long, the very best stocks at the best valuations they can, and short the worst stocks at the worst valuations. 00:21:47 [Speaker Changed] And a lot of funds that have found success seem to have run some pretty concentrated portfolios. You don’t take that approach.

Healthcare 64

Healthcare Investments Construction Concentration 64

Barry Ritholtz

FEBRUARY 12, 2024

And at that point, I decided what I really wanted to do was be a PhD in economics. And since we’re looking for narratives as opposed, and then do valuation work second as opposed to cheap, we don’t screen. I just figured if I do well, I would be able to be presented with, with good options. Real really interesting.

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Investments Marketing Numbers Entertainment 117

CFO News Room

JANUARY 17, 2023

As the world’s attention is focused on the war in the Ukraine, it is the human toll, in death and injury, that should get our immediate attention, and you may find a focus on economics and markets to be callous. Ukraine, a part of the Soviet Union, has had its shares of ups and downs, and its economic footprint is even smaller.

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Musings on Markets

MARCH 19, 2022

As the world's attention is focused on the war in the Ukraine, it is the human toll, in death and injury, that should get our immediate attention, and you may find a focus on economics and markets to be callous. Ukraine, a part of the Soviet Union, has had its shares of ups and downs, and its economic footprint is even smaller.

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Economics Valuation Treasury Forecasting 100

Musings on Markets

SEPTEMBER 9, 2024

In parallel, I also noted that investors have to change the way they value and price companies, to reflect where they are in the life cycle, and how different investment philosophies lead you to concentrated picks in different phases of the life cycle.

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Valuation Construction Manufacturing Marketing 135

Barry Ritholtz

AUGUST 15, 2023

SEIDES: Yeah, I wouldn’t measure it in terms of economic returns. What’s the valuation? So that comes out in position sizing and conviction and just making sure that you’re thinking about all the things that could go wrong if you’re taking a more concentrated position in something. RITHOLTZ: Right.

Investments 52

Investments Benchmarking Marketing Treasury 52

Barry Ritholtz

AUGUST 20, 2024

And so in the 1990s, I developed the, the late 1980s, early 1990s, I developed a skillset around valuation, in particular discounted cash flow or residual income type models, along with a couple of peers out of the consulting industry. It’s, it’s double concentrated risk. 00:18:19 [Speaker Changed] Right?

Concentration 69

Concentration Marketing Valuation Investments 69

Barry Ritholtz

SEPTEMBER 10, 2024

He has a very interesting approach to thinking about market valuations and strategies and when to deploy capital, when to go with the crowd, when to lean against the crowd, and has amassed and excellent track record. But generally starts with the economic cycle. Where are you in the economic cycle? I, I love that area.

Valuation 64

Valuation Investments Economics Marketing 64

Barry Ritholtz

OCTOBER 24, 2022

So I leave the Bureau of Labor Statistics and I move into economic consulting. And how do we think about them from a valuation perspective? NORTON: Within Morningstar Investment Management, we are very much high conviction investors probably — RITHOLTZ: Meaning concentrated portfolio? That’s very funny.

Investments 52

Investments Valuation Benchmarking Marketing 52

PYMNTS

SEPTEMBER 10, 2018

Uber Eats users concentrate 53.6 In addition to offering users a one-stop shop for Uber credits and rewards, Uber says that it’s getting a nice economic bump from having access to the float that these balances generate — more material now as interest rates inch up. It’s been reported that Uber Eats’ users spend , on average, $220.37

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Transportation Concentration Leverage Accounting 58

CFO News Room

NOVEMBER 8, 2022

Because the economics of profitability start showing up particularly when you’re starting to hire other advisors and staff and team. So, last year, valuations were high, interest rates were low. You really have to start crystalizing an org chart and who does what, and clarifying roles and responsibilities. Is it at 1.5%?

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Barry Ritholtz

DECEMBER 12, 2023

Low price stock has historically had some very large concentrated positions. And those concentrated positions happen because they have high conviction that they’re in that group where it’s not stupid to think about where earnings will be 10 years out. This is what’s wrong with concentrating in the wrong stocks.

Benchmarking 105

Benchmarking Concentration Investments Profit and Loss 105

Barry Ritholtz

JUNE 13, 2023

And so we go back to the basics of what our job should be, risk underwriting, risk assessment, asset prices are different from asset valuation. I mean the valuation is the future cash flow discounted at a risk-free rate plus a risk premium. RITHOLTZ: So let’s talk a little bit about valuations relative to risk and reward.

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Investments Banking Entertainment Marketing 59

Barry Ritholtz

APRIL 11, 2023

 The transcript from this week’s, MiB: Aswath Damodaran: Valuations, Narratives & Academia , is below. You’re known as the dean of valuation. He said, oh, dean of valuation, it’s easier to say. So let’s start with the question, what led you to focus on valuation? RITHOLTZ: Right. And I said, why?

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Valuation Education Numbers Finance 119

Barry Ritholtz

DECEMBER 14, 2022

MCCARTHY: I’d back up actually a little bit further in thinking about how did I get there, because I don’t think it was very obvious actually that I would come out of Yale with an ethics, politics and economics degree — RITHOLTZ: Perfect really, right? MCCARTHY: — and end up in M&A on Wall Street. Cambridge U.K.,

Mergers and Acquisitions (M&A) 64

Mergers and Acquisitions (M&A) Investments Construction Concentration 64

Musings on Markets

FEBRUARY 4, 2023

There is another seam or weakness in the global economic setting that Adani Enterprises exploited, and that is ESG, an acronym far more deserving of the "biggest con" label than Adani, since it is threatening to lay waster to trillions of dollars, not billions.

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Musings on Markets

MARCH 15, 2025

That said, to value companies today, I have no choice but to bring in the economics and politics of the world that these companies inhabit. China : The biggest winner from globalization has been China, which has seen its economic and political power surge over the last four decades.

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Investments Profit and Loss Valuation Economics 132

CFO News Room

FEBRUARY 5, 2023

Valuation and Investment Judgment I know that your intent in reading this thesis might be a more pragmatic one, where you wonder whether the Adani companies were over valued at the start of this year, when they hit their all time high, and whether they are a bargain, at half that price today.

Marketing 130

Marketing Investments Auditing Profit and Loss 130

Barry Ritholtz

MARCH 26, 2024

You get a BA in economics and poli sci from the University of Delaware. And it had to do with the discipline of the models that he used and how he segmented economic liquidity, investor liquidity, and then technicals and and breath conditions and understood how they melded together. What was the original career plan?

Investments 59

Investments Marketing Concentration Economics 59

Musings on Markets

JANUARY 26, 2025

That "small cap premium" has found its way into valuation practitioners playbooks, manifesting as an augmentation (of between 3-5%) on the cost of equity of small companies. This is not a passing phase, and reflects the market coming to terms with a changed economic order and investor behavior.

Investments 78

Investments Marketing Economics Concentration 78

Barry Ritholtz

APRIL 6, 2023

Jason Zweig ) • ‘Pessimism of Disbelief,’ Illustrated : Sour sentiment and better-than-expected economic results are a normal bull market backdrop. Known as the Dean of Valuation, he teaches Corporate Finance and Valuation to the MBA students at Stern where he has been voted “Professor of the Year” by the graduating M.B.A.

Valuation 115

Valuation Profit and Loss Financial Analyst Concentration 115

Barry Ritholtz

DECEMBER 10, 2024

And it, you know, it was a very challenging economic environment. These 10% are what’s driving the entire valuation. 00:16:27 [Speaker Changed] How much of what’s been going on in the 2020s has been a focus on that same top 10% of tech companies as being overly concentrated and wildly expensive.

Technology 52

Technology Manufacturing Investments Education 52

Barry Ritholtz

FEBRUARY 20, 2024

You get an economics PhD from California, Berkeley in 82, and around the same time you become an economist at the Federal Reserve Board from 81 to 83. And so that can cause the impulse of the economic news to be filtered into financial conditions much more, more quickly. Let, let’s talk a little bit about your background.

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Treasury Marketing Banking Economics 59

CFO News Room

DECEMBER 12, 2022

December 5: • California data point (1): 1/ SARS-CoV-2 concentrations are skyrocketing in wastewater across California. It’s counterintuitive, but when valuations are high, it is the worst time to retire,’ said Morningstar personal finance director Christine Benz.” • What an insane system. Stay safe when travelling.

Accounting 130

Accounting Concentration Numbers Healthcare 130

Barry Ritholtz

FEBRUARY 4, 2025

WA was the career plan, always economics and finance. And I studied economics in university. And I spent a year in Princeton in the economics department in 95, 96 when Ben Panke was the chairman of the economics department. I’m curious how different studying economics is in Denmark versus United States.

Economics 103

Economics Finance Manufacturing Banking 103

Barry Ritholtz

JUNE 30, 2024

She leads the company’s 50-person team of engineers, attorneys, and analysts, and is a member of the firm’s valuation & investment committees and board of directors. Before co-founding Legalist at 20, Eva studied economics at Harvard College.

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Math Concentration Benchmarking Valuation 59