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.

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

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

Transportation 58

Transportation Concentration Leverage Accounting 58

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 80

Investments Currencies Treasury Hurdle Rate 80

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.

Marketing 95

Marketing Treasury Currencies Valuation 95

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 60

Healthcare Investments Construction Concentration 60

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 111

Valuation Profit and Loss Financial Analyst Concentration 111

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) 60

Mergers and Acquisitions (M&A) Investments Construction Concentration 60

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%?

Restructuring 130

Restructuring Planning Accounting Marketing 130

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.

Investments 100

Investments Valuation Auditing Restructuring 100

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.

Investments 56

Investments Banking Entertainment Valuation 56

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.

Benchmarking 52

Benchmarking Investments Marketing Treasury 52

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 Restructuring 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 56

Investments Marketing Concentration Economics 56

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.

Profit and Loss 117

Profit and Loss Foreign Exchange Valuation Investments 117

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 Currencies 44

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 103

Benchmarking Concentration Investments Profit and Loss 103

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?

Valuation 114

Valuation Education Finance Investments 114

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.

Treasury 56

Treasury Marketing Economics Banking 56

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.

Investments 113

Investments Marketing Numbers Entertainment 113

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.

Concentration 130

Concentration Accounting Numbers Healthcare 130