When does an item show up on the income statement? A) The revenue or expense recognized or incurred in the period listed on the statement. B) When the cash is transferred from one party to another. C) Earnings to equity investors are affected. D) When cash is expected to be transferred from one party to another. Answer Answer: A and
Key Events 👉 March Non-farm Payroll (NFP) ahead of expectations +300k jobs added and unemployment rate falling. Labor market is strong, and we see Fed is comfortable remaining patient before pulling back rates. They need more confidence that inflation will ease. 2 rate cuts are now priced for 2024, down from 3 cuts. 👉 Blackstone is in talks to buyout Jersey Mike’s
Life is totally unfair. And, that’s perfectly fine. Those that accept it win. I was in Chicago this weekend. And, spent a decent amount of time walking around the city and thinking. Just looking around you see people from all-walks of life. One thing that is clear is that everyone goes about their own life. But, it was not easy
Can the value of shareholder equity be negative? Not really. But, it depends. It depends on how we define shareholder equity. First, equity refers to residual ownership in a company. Similar to your net worth. It’s the assets net the liabilities. It’s what you own less what you owe. The value that is left over is by definition that value
Are there antitrust concerns that arise from index fund managers? There are the big three. Vanguard State Street BlackRock They are by far the largest passive investors. Look, they own almost 5-15% in every public company through the indices they provide investors. It’s simple. They create indices. These indices are passive funds, meaning that they are not actively involved in
If capitalism is great… Why does the government have a vested interest in limiting it? Specifically, when it comes to monopolistic behaviors amongst firms. What defines this behavior? Any attempt to establish or maintain monopoly power within a certain market. Monopoly power exists when a single company controls a significant portion of the market, allowing it to … (i) Set
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 more mindful of the present…
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 in Chicago, and trying to
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 that more interesting. Why? Simple.
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 9. OK, very impressive, but
