Musings on Markets

FEBRUARY 8, 2022

In fact, almost every investment scam in history, from the South Sea Bubble to Bernie Madoff, has offered investors the alluring combination of great opportunities with no or low danger, and induced by sweet talk, but made blind by greed, thousands have fallen prey. Let me use two illustrations to bring this home.

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Musings on Markets

JANUARY 12, 2021

Thus, you and I can disagree about whether beta is a good measure of risk, but not on the principle that no matter what definition of risk you ultimately choose, riskier investments need higher hurdles than safer investments. That tells me three things.

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Musings on Markets

JANUARY 27, 2021

In my last post , I described the wild ride that the price of risk took in 2020, with equity risk premiums and default spreads initially sky rocketing, as the virus led to global economic shutdowns, and then just as abruptly dropping back to pre-crisis levels over the course of the year.

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Musings on Markets

MARCH 8, 2023

In the second, Warren Buffet used some heated language to describe those who opposed buybacks, calling them “economic illiterates” and “silver tongued demagogues “. Viewed in that context, dividends as just as integral to a business, as the investing and financing decisions.

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Musings on Markets

FEBRUARY 27, 2023

Debt's place in business To understand debt's role in a business, I will start with a big picture perspective, where you break a business down into assets-in-place, i.e., the value of investments it has already made and growth assets, the value of investments you expect it to make in the future. Do companies optimize financing mix?

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Musings on Markets

JANUARY 9, 2021

Put simply, I possess no exclusivity here, and staying consistent with my thesis, I don't expect to expect to make money by investing based upon this data. So, why bother? You would like those answers now, but stay tuned to the rest of my data updates and the data will speak for itself.)

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CFO News Room

JANUARY 7, 2023

That said, to use mean reversion in analysis or investing, you need to know what these averages are, either over time or across companies, and data can help in that pursuit. . Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing.

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Musings on Markets

JANUARY 6, 2023

That said, to use mean reversion in analysis or investing, you need to know what these averages are, either over time or across companies, and data can help in that pursuit. Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. Return on Invested Capital 2. Return on Equity 1.

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Musings on Markets

JANUARY 20, 2021

The Price of Risk The price of risk is what investors demand as a premium, an extra return over and above what they can make on a guaranteed investment (risk free), to invest in a risky asset. Intuitively, if you want to earn a higher risk premium on an investment, holding cash flows fixed, you will pay less for that investment today.

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Barry Ritholtz

NOVEMBER 8, 2022

His latest book could not be more timely, “The Price of Time: The Real Story of Interest,” it’s all about the history of interest rates, money lending, investing speculation, funded by banks and loans and credit. You can imagine, you give a bearish message at a bullish investment conference, and no one listens to you.

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Musings on Markets

JULY 25, 2023

One is curiosity , as political and economic crises roll through regions of the world, roiling long-held beliefs about safe and risky countries. My suggestion is that for countries where recent political or economic events would lead you to believe that sovereign rating is dated, you should switch to using sovereign CDS spreads.

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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. ” look at the Monte Carlo simulations, look at what is the hurdle rate. Cean: I think I can remember back to when we had to make some investments in some software.

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Barry Ritholtz

DECEMBER 26, 2023

You work at Capital Growth Financial and in former global markets before you join investing Giant Merrill Lynch in 2007, what was that transition like from smaller shops to a really, really big one? So it’s gonna take a little more confidence, you know, and equities to, because you get your, your hurdle rates higher, you know?

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