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Writing buys Conviction
Talk to get information. Write to clear up information. Write to live in the moment. I find it easy to live life just doing. Going through the motions. Day by day. I don’t like this. I figure you don’t either. Yet, it happens to me all the time. One thing that helped me to be…
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Seek Rejection to Reframe Rejection.
Seek rejection to reframe rejection. Do it in small ways. And, do it consistently. This is a skill that I am building. Yes. It is a skill. Though it may not sound like one. The skill is indifference. Indifference – lack of concern or interest in the opinions or judgments of others. Yesterday, I was…
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4/4/24 Minute Markets
Markets Key Events U.S. equities finished down Thursday. 👉 Initial jobless claims at 221K – above consensus of 213K. Feds are looking for inflation to come down and employment to fall to cut rates by year end. Watching for nonfarm payrolls, released tomorrow. 👉 Ford to delay production of its electric SUV and pickup. 3-row SUV…
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Good advice is boring. Bad advice is not.
Good advice is boring. Bad advice is entertaining. It captivates our attention. Good advice for 99% of people… Invest 20% of your income in the S&P 500. And, hold. Bad advice for 99% of people… 3 Secret Strategies to Beat the Markets. Which would you rather choose? Wow. See. The second one really is all…
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4/3/23 Minute Markets
Markets Key Events U.S. stocks traded up on Wednesday. 👉 March ISM Services at 51.4%, a 1.2% decrease compared to the February below consensus of 52.7% A reading above 50 percent indicates the services sector economy is generally expanding; below 50 percent indicates it is generally contracting. The Prices Index at lowest level since March 2020,…
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Can you Calculate IRR on Paper?
Can you calculate IRR on paper? No. Well, that is unless you are a mathematical wizard with 200+ IQ. Well, even then, it’s really not possible. While the steps can be understood, the mathematical computations are nearly impossible to do on paper. Maybe you could take the 9th root of a cash flow in year…
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Compounding. Discounting. What’s the difference?
Compounding is to multiplication as discounting is to division. It’s just going one way or the other. Compounding is going from value of money today (present value) to value of money some years from now (future value). Discounting is going from value of money today (present value) to value of money some years from now…
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Mindset Buys Skill Set.
Mindset can give you skill set – skill set does not give you mindset. There are two types of people. 1. Skilled people 2. Driven people Yes, they’re not mutually exclusive. But, it’s easy to get highly skilled and lose the mindset. It’s easier to be driven and open-minded to then go and build skills. …
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Minute Markets 4/2/24
Markets Key Events 👉 February JOLTS job openings down month over month but in line with consensus. Strong job market with inflation reduction is ideal. Market is awaiting Non-farm Payroll (NFP) this Friday on March employment numbers. Consensus +200k increase. Still more data is needed to convince fed officials of the timing of the rate drop.…
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Arithmetic versus Geometric Returns?
What’s the difference between arithmetic and geometric returns? Arithmetic returns are straightforward to calculate. Add up the returns for each period and divide by the number of periods. They are commonly used for simple return calculations. In case 1 and case 2, we can see the arithmetic mean under constant 10% returns and 25% over…
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Why is my IRR calculation calculation off?
Why is my IRR calculation outputting a different number than expected? In simple terms, IRR is the average return over a period of time on an investment. Say the value of our investment increases by exactly 10% each year for 5 years. In this case, the average return is fairly straightforward. It averages to 10%. …
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Time flies doing hard stuff.
When I work with deadlines, I get lost in my work. When I have other people relying on my work, I feel a sense of responsibility. Putting two and two together is my winning combo to get stuff done. Urgency + accountability = Quality, timely work. These past few days have been busy business wise.…
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4/2 Question of the Day
How does the market typically value companies? A) Based on near-term earnings B) Based on long-term earnings C) Based on near-term cash flows D) Based on long-term cash flows Check Answer
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Agency Theory
Your management is not working in your favor. Say you’re the CFO. First, congratulations. You made it! Investment Banking. Business school. Private Equity. All paid off. Call your parents, they will be proud. Next, what do you care about? Your new pay package. Those sweet bonuses are hard to take your eyes off. Millions of…
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Premium Bonds
Would you lend more than you are paid back? Probably not. But investors do this often. If a bond returns $1,000 to their bond investors, why would investors purchase the bond for more than $1,000. Doesn’t that mean that the investor is guaranteed to lose money. Not exactly. So, why exactly do a company’s bonds…
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Being naive is our superpower (as young people)
Being naive might be our superpower (as young people). Whenever we want to start anything, we probably want to do that thing well. Being experienced means that we need to find all the answers to start our business. But, being naive means that we overlook the struggles and pains. We get started. The starting helps…
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Zero-Coupon Bonds? Count me out…
Would you ever lend me money for free? And charge no interest. Probably not. Well, maybe, if you are my friend. But, it’s unlikely that you would lend money for nothing in return. Why? Well there is risk that stems from the uncertainty on whether you will get your money back. For that risk, you…
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Don’t skip to skip. Skip to win.
Don’t skip to skip. Skip to win. Yesterday, one of my buddies told me to show up to class while another one of my buddies joked about having to show up to class. Winning is all about showing up, right? Not exactly. You’re missing the point. Skipping things may seem bad. Oh, you skipped the…
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How I Landed 30 Investment Banking Interviews in College.
In this guide, I will provide you with the strategy that helped me land 8 internship offers in college, including F500 corporate finance, investment banking, private equity, and hedge fund roles. Here’s my background. In high school, I wanted to be a doctor. My whole family knew that I wanted to be…
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Finance Internship Recruiting Secrets
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Internship Recruiting Strategies
