Musings on Markets

FEBRUARY 8, 2025

I spend most of my time in the far less rarefied air of corporate finance and valuation, where businesses try to decide what projects to invest in, and investors attempt to estimate business value. A key tool in both endeavors is a hurdle rate a rate of return that you determine as your required return for business and investment decisions.

Hurdle Rate

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. and the reverse will occur, when risk-free rates drop.

Investments

Barry Ritholtz

MAY 21, 2024

And so I went to business school, I decided to go to business school, get that formal education. And one of the worst performing factors has been valuation. And I think that’s wrong because valuation does matter. But now we’re back to a more normal hurdle rate. 5% interest rates is not super high.

Finance

Barry Ritholtz

NOVEMBER 25, 2024

Let me see if I can go to grad school, continue this education. 00:21:21 [Speaker Changed] So this story came out that, oh, value is defensive because it has this valuation buffer to it 00:21:28 [Speaker Changed] In that one example. Let me, let me educate you as to why you’re wrong. The second is behavioral.

Leverage