formercoder

8 ms·

301.
by formercoder 7y ago
We need a way to include "black swan readiness" in corporate finance / valuation. Historically, it's not something investors have cared about, so corporations haven't done it.
302.
by formercoder 7y ago
You should at least mention the criteria for returning capital to shareholders - no NPV positive projects available. We can debate whether or not that is true but it’s not fair to just say “they should have reinvested in the business instea
303.
by formercoder 7y ago
Wish I could be doing something. I’ve just fled to Long Island and am staying in the house reading the news.
304.
by formercoder 7y ago
If you’re interested in valuation, Damodaran’s course is available for free online. Just google Damodaran.
305.
by formercoder 7y ago
There’s a certain amount of baseline knowledge in university books that is very helpful such as MPT, DDM, DCF, bond prices vs yields, theoretical relationship between rates and equities, no arbitrage pricing theory, etc.
306.
by formercoder 7y ago
This is gonna be like Python 3. There is an innumerable amount of “production” VB.
307.
by formercoder 7y ago
Agree, I’ve been on 20+ cruises. Will continue doing so after this has passed.
308.
by formercoder 7y ago
Video ads
309.
by formercoder 7y ago
When a metric becomes a target
310.
by formercoder 7y ago
That’s true if the proposed intervention is simply price caps, as opposed to rationing.
311.
by formercoder 7y ago
Resource allocation that favors public wellbeing over market efficiency.
312.
by formercoder 7y ago
I generally favor markets but one of the main reasons we have a federal government is to do everything required in this type of situation. Stay away as much as you can, but be there when we need you.
313.
by formercoder 7y ago
3) government intervenes
314.
by formercoder 7y ago
They can have change of control provisions.
315.
by formercoder 7y ago
Right, sometimes we have frameworks which are not MECE (mutually exclusive and collectively exhaustive), making them imperfect, but still useful.
316.
by formercoder 7y ago
Remember whenever you sign a contract that breach is always an option. There’s just potential litigation and reputation as downside along that road
317.
by formercoder 7y ago
Also there’s GAAP depreciation and tax depreciation, and firms will try and use different depreciation schedules between the two in order to create deferred tax liabilities which boost cash flow early on.
318.
by formercoder 7y ago
It just means you’ve internalized the concepts!
319.
by formercoder 7y ago
Low as in much cheaper than equity no matter what.
320.
by formercoder 7y ago
Many analysts will capitalize R&D spend.
321.
by formercoder 7y ago
Hence you’ve invented EBITDA and EBITDA less capex :)
322.
by formercoder 7y ago
Raising debt is a very common phrase in my world. Edit: Also debt and equity are not always that straightforward, they are shades of grey. Convertible notes are debt that look like equity.
323.
by formercoder 7y ago
20+ years ago there was much more crime and living in the city was not desirable
324.
by formercoder 7y ago
Smart is the wrong word - more like savvy googlers usually have an internal network and know what teams are hot. They move on quickly.
325.
by formercoder 7y ago
Keep in mind this is going to screw your performance rating / bonus / promotion situation. You’re incentivized to love fast.
326.
by formercoder 7y ago
There’s actually oversupply and prices are pretty good right now - relatively speaking of course.
327.
by formercoder 7y ago
Or maybe the folks who don’t want VC money don’t start businesses that require it.
328.
by formercoder 7y ago
There’s still a big spectrum. Then we can look at “tech” companies like Lime which end up being extremely capital intensive.
329.
by formercoder 7y ago
Yeah, ROIC is really tough to get right and be meaningful. NPV is less “right” but more accurate.
330.
by formercoder 7y ago
It’s also important to look at capital expenditure intensity. Spending $100k to make .01% could make sense but spending $1B to make .01% is much tougher, from an NPV perspective.

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