formercoder

6 ms·

391.
by formercoder 7y ago
Lehman was a pure investment bank and therefore the government refused to bail them out - they did not want to be the lender of last resort to an entity they could not regulate strongly. Once everyone saw this almost all of them converted t
392.
by formercoder 7y ago
This is simply a fixed cost vs variable cost decision. Fixed costs give you operating leverage which amplified your earnings in good times and bad. Variable costs don’t have the downside, but impact your margins.
393.
by formercoder 7y ago
It’s easy to get rose tinted glasses and call a firm a “tech company” when it has the growth profile that wework did. What everyone forgot is that the other thing “tech multiples” require is high margins.
394.
by formercoder 7y ago
So the government is incredibly inefficient at everything... except health insurance?
395.
by formercoder 7y ago
I don’t know about social security but the claim that Medicare is more efficient than private insurers is not correct. It only appears to be so due to accounting procedures that do not expense services from other govt agencies on Medicare’s
396.
by formercoder 7y ago
This is a pretty grey area. Would not recommend trading on the info.
397.
by formercoder 7y ago
Who cares about average salary? The two most popular post-mba paths are investment banking and consulting, I know exactly what the post-mba IB comp is: 1st full year associate: 150k base, 70-100% bonus VP comp is easily above 400k Consultan
398.
by formercoder 7y ago
Cost cutting is one view, increased efficiency is another.
399.
by formercoder 7y ago
Isn't it great to make claims about entire industries based on single data points?
400.
by formercoder 7y ago
Only because they can't. Leverage requires steady cash flows, fixed assets, etc. If VCs could increase their potential return while also increasing financial risk to their portfolio, they absolutely would. Across private equity there i
401.
by formercoder 7y ago
Is it biased in a bad way? It’s really hard to measure someone’s ability to do a job, especially for a more senior role. Therefore, I feel comfortable hiring people recommended to me by others that I trust.
402.
by formercoder 7y ago
Corporate governance is just as important as financials. There is no point investing in something that is out of control.
403.
by formercoder 7y ago
In reality by keeping their price flat for a decade they’ve lowered their price every year in real terms.
404.
by formercoder 7y ago
ROIC is effectively useless for tech companies because they do not capitalize nearly enough R&D.
405.
by formercoder 7y ago
What does “don't just rely on a fixed rate of return for capital spent” mean precisely?
406.
by formercoder 7y ago
Arguably a lot of that R&D should be capitalized and not be on the I/S. Investments like that shouldn’t impact net income. I’m more concerned with G&A going up 500%.
407.
by formercoder 7y ago
There is record private equity dry powder right now. Money is on the sidelines waiting for asset prices to come down and investors are only buying recession safe assets.
408.
by formercoder 7y ago
Also the stock based comp is non cash so it impacts net income but not cash from operations. CFO - Capex is a better measure of a companies cash flow.
409.
by formercoder 7y ago
In what way is verifying the service animal is legitimate discrimination by any metric? Said person has already announced their disability by bringing the animal, the business is clearly willing to serve them, I don’t see a remote argument
410.
by formercoder 7y ago
Could anyone who is more informed comment on this WSJ article discussing climate change media coverage? https://www.wsj.com/articles/how-the-media-corrupted-climate...
411.
by formercoder 7y ago
It takes human cognition to understand the degree of independence. A machine could not have figured out the broader macroeconomic forces at play that led to mass defaults.
412.
by formercoder 7y ago
Tricky problem to solve. Maybe we don’t need ratings at all. Investors should simply perform their own DD on any deal as they naturally would. We can still rank companies on factors like leverage and coverage ratios for comparison purposes.
413.
by formercoder 7y ago
Very interesting article on the economics of MoviePass [1] [1] http://aswathdamodaran.blogspot.com/2018/05/user-and-subscri...
414.
by formercoder 7y ago
Luckily there is massive domestic demand for US corporate debt.
415.
by formercoder 7y ago
One pulls levers on the market, the other sets the market.
416.
by formercoder 7y ago
Assuming a recession is definitely coming, soon, buy triple levered S&P 500 shorts. You better know exactly when "soon" is though.
417.
by formercoder 7y ago
I'm worried about a self fulfilling prophecy. Keep in mind the yield curve represents how the market prices US treasury bonds at differing maturities. When the LT bond yields drop, it's because everyone is buying them. That could
418.
by formercoder 7y ago
I've joined a small company who, upon my request, scoped the non-compete very specifically and added a clause stating that work I produce that did not compete belonged to me. I've joined a big company who said "this is the co
419.
by formercoder 7y ago
WSJ is the master of anecdata
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by formercoder 7y ago
Presumably because making that product available in your region is not an NPV positive investment.

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