Investing Caffeine
FEBRUARY 1, 2022
T he stock market has been like a rocket ship over the last three years 2019/2020/2021, advancing +90% as measured by the S&P 500 index, and +136% for the NASDAQ. Math Matters. I did okay in school and was educated on many different topics, including the basic principle that math matters. Source: Calafia Beach Pundit.
The Big Picture
SEPTEMBER 19, 2022
So along those lines, there are some venture firms that don’t really seem to care a lot about valuations and others seem to focus on a little bit. Is valuation significant, or is it, hey, we’re going to make 100 investments and if two or three workout, the valuations are irrelevant? How do you fall in that spectrum?
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Brown Advisory
JANUARY 17, 2024
We all know that a 55% hit rate is the top decile across the industry, and the maths above demonstrates why. Both types of error are due to a combination of either mis-assessing the business quality or its valuation (or both). nor on valuation and IRR in order to avoid type 1 errors of inclusion. Good process, bad outcome.
Mr. Money Mustache
MAY 20, 2022
But in the Mustachian Era (the years since 2011 when I started writing this blog ), there has only been one: the 2020 Covid Crash which only lasted about a month. It’s fun math – a 20% drop in prices means you get 25% more shares for your dollar, and a 50% drop means twice as many , or 100% more shares per dollar invested.).
Trade Brains
DECEMBER 16, 2022
They use several valuation metrics to know more about the company. And when used for ROE, as per the basic rule of math, if the denominator decreases, the fraction as whole increases i.e, Company 2018 2019 2020 2021 2022 Average 5 yr. Company 2018 2019 2020 2021 2022 Average 5 yr. higher ROE. Nestle India Ltd.
Brown Advisory
JUNE 16, 2022
We discount each year at our 10% minimum weighted average cost of capital (WACC) and some infinite series maths gives us the basis for some rough approximations 2. By this valuation method, the portfolio cashflow duration is in the 16 to 17-years range. Maths has a long half-life and a DCF correctly done accounts for inflation.
The Big Picture
AUGUST 29, 2023
DAVIS: Where international equities, because of valuations, probably 7% to 7.5%. RITHOLTZ: So let’s talk about that, because that gap in valuation has persisted for a long time. How durable is that shift, given how large that gap has gotten in valuation between US stocks and the rest of the developed world?
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