Musings on Markets

JANUARY 31, 2024

In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.

Hurdle Rate 79

Hurdle Rate Profit and Loss Investments Accounting 79

Musings on Markets

JANUARY 12, 2021

Last week, was my data week, where I download and analyze data on all publicly traded companies, listed anywhere in the world, and I will post extensively on what the numbers look like after a most tumultuous year. Face up to uncertainty, rather than avoid or deny it : Uncertainty is a feature of investing/ business, not a bug.

Valuation 52

Valuation Corporate Finance Finance Investments 52

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.

Hurdle Rate 67

Hurdle Rate Currencies Investments Corporate Finance 67

Musings on Markets

JANUARY 27, 2021

In this post, I will take a look at these other markets, starting with a way of dividing investments into assets, commodities, currencies and collectibles that I find useful in thinking about what I can (and cannot) do in those markets, and then reviewing how these markets performed during 2020.

Currencies 52

Currencies Investments Marketing Treasury 52

Barry Ritholtz

FEBRUARY 21, 2023

We have lowered the cost of investing, and we have improved the quality of those funds. It forced us to make some tough choices in that time in some big investments, whether we were building out our advice capabilities and building virtual teams to do it, or you know, tough choices in our retirement business. BUCKLEY: Yeah.

Leadership 107

Leadership Investments Profit and Loss Technology 107

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. In closing, I also want to dispense with the notion that data is objective and that numbers-focused people have no bias. So, why bother?

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Musings on Markets

JANUARY 5, 2024

In pursuit of an answer to that question, I used company-specific data from Value Line, one of the earliest entrants into the investment data business, to compute an industry average. Aggregate operating numbers 3. Insider, CEO & Institutional holdings 2.

Valuation 98

Valuation Financial Analysis Analyzing Data Profit and Loss 98

Musings on Markets

MARCH 8, 2023

The dividend principle, which is the focus of this post is built on a very simple principle, which is that if a company is unable to find investments that make returns that meet its hurdle rate thresholds, it should return cash back to the owners in that business.

Hurdle Rate 91

Hurdle Rate Corporate Finance Investments Finance 91

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?

Corporate Finance 52

Corporate Finance Finance Marketing Leverage 52

CFO News Room

JANUARY 7, 2023

Mean reversion : I am not a knee-jerk believer in mean reversion, but the tendency for numbers to move back towards averages is a strong one. 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. .

Marketing 130

Marketing Valuation Corporate Finance Financial Analysis 130

Barry Ritholtz

MAY 9, 2023

He is the Chief Investment Officer of Asset and Wealth Management at Goldman Sachs. He co-chairs a number of the asset management investment committees. I thought this was an absolutely fascinating way to see the world of investment management. Investment banks were not really a known concept in the area where I grew up.

Investments 114

Investments Banking Advertising Finance 114

Musings on Markets

JANUARY 6, 2023

Mean reversion : I am not a knee-jerk believer in mean reversion, but the tendency for numbers to move back towards averages is a strong one. 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.

Valuation 52

Valuation Corporate Finance Financial Analysis Leverage 52

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.

Treasury 52

Treasury Investments Valuation Hurdle Rate 52

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.

Valuation 56

Valuation Finance Investments Banking 56

CFO News Room

NOVEMBER 8, 2022

” look at the Monte Carlo simulations, look at what is the hurdle rate. The plan update process for you, it’s not just that the numbers move because a year has gone by and the markets did what they did and you saved what you saved, you withdrew whatever you were going to withdraw. Cean: We actually use J.P.

Restructuring 130

Restructuring Planning Accounting Marketing 130

Musings on Markets

JULY 25, 2023

To the extent that divide is not just descriptive, but also drives real world investment, both companies and investors may be misallocating their capital, and I will argue for finer delineations of risk.

Hurdle Rate 52

Hurdle Rate Currencies Valuation Marketing 52

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? And 00:06:38 [Speaker Changed] Door number one was much better than door number three in, in the circumstances. That’s right.

Marketing 60

Marketing Leadership Finance Investments 60