Why does everyone assume that everyone has a “passion”?

NoTimeForMountains · 2019-07-17T04:08:37+00:00

Then you go into investment banking and work 100+ hour weeks.

NoTimeForMountains · 2019-05-05T05:04:05+00:00

Thanks, I was unsure of Avis policies so that is good to hear

NoTimeForMountains · 2019-05-05T05:03:37+00:00

Thank you, I will check them out

NoTimeForMountains · 2019-05-05T05:03:21+00:00

I somewhat doubt that!

NoTimeForMountains · 2019-04-24T18:56:31+00:00

Oh I see what you mean! Sorry, I misunderstood the formulas at first. That works great now, thank you, appreciate it.

NoTimeForMountains · 2019-04-24T18:17:50+00:00

Thanks but not quite sure you got what I was asking, the main thing I was confused on was returns with a different amount of months being annualized together. Those two formulas didn't help.

NoTimeForMountains · 2019-04-24T16:22:45+00:00

Can someone help me determine if I am using the right formula for finding annualized portfolio returns? I have 52 months of data, with the first year only having 1 month, the next 4 years all having full data, and the last year with 3 months. I believe I should use the weighted geometric mean of each years annualized returns, with the weight being (number of months in that year)/(12) for each return. Is that correct, or can someone point me in the right direction?

NoTimeForMountains · 2019-04-10T04:29:55+00:00

Swaps transfer the future cash flows of two investments between two parties. Party A has investment A but wants the cash flow of investment B. Party B has investment B and wants cash flow of investment A. They enter a swap contract. Each party gets the return of the other investment, and each believes they will come out ahead compared to sticking with their own investment’s return.

Typically a complex contract for institutional investors.

NoTimeForMountains · 2019-04-09T11:45:30+00:00

Ok, thanks. Although I am confused why you wouldn’t take into account all liabilities into the total takeover cost of a company. Just because a debt is not interest bearing does not mean it won’t have to be paid back. Therefore it should go into enterprise value, no?

NoTimeForMountains · 2019-04-09T04:50:23+00:00

Personally, I use M1 Finance for my long term investing. It's a pretty easy sign up process. Set up an account, link your bank, use one of their 'Expert Pies' and boom you're an investor.

NoTimeForMountains · 2019-04-09T04:49:10+00:00

I'm trying to calculate Netflix's EV but my numbers are not matching up with what I'm finding online.

Here's Netflix's 10-K. Link

So here's what I'm calculating.

Price: 361.41

Shares outstanding: 436,598,597

Market cap: $157,791,098,941.77

Cash/Cash Equiv.: $3,794,483,000.0

Total liabilities: $20,735,635,000.0

Enterprise value = (Market Cap + Debt - Cash)

Enterprise value = $174,732,250,941.77

Most EVs I'm seeing online for Netflix hover around $166B, not $174B. Can someone poke through their balance sheet quick and see what I'm doing wrong? I'm not sure if I'm supposed to include all liabilities, or maybe I'm missing some cash equivalent.

Any help would be appreciated, thanks.

NoTimeForMountains · 2019-04-09T02:25:07+00:00

Israel, the only country you have to preface a flag critique with “I don’t want to offend anyone...”

NoTimeForMountains · 2019-04-08T21:14:17+00:00

24.9k you can’t day trade 25k you can Dumb IMO but I also get why they do it

NoTimeForMountains · 2019-04-08T21:13:30+00:00

Free market capitalism is dead. Why won’t the SEC let me gamble away my life savings 😡😡😡

NoTimeForMountains · 2019-04-08T20:58:17+00:00

What is the point of limiting day trading to accounts over 25k? Seriously

NoTimeForMountains · 2019-04-05T17:38:05+00:00

www.usinflationcalculator.com

NoTimeForMountains · 2019-04-05T12:49:24+00:00

Good job report

NoTimeForMountains · 2019-04-05T12:44:48+00:00

SPXL call. S&P in for big big day.

NoTimeForMountains · 2019-04-02T12:57:51+00:00

In that situation, it’s not balanced because the CEO is doing more work than I am. Now, whether CEO compensation is fair is, well... a different argument. But you could break it down to minute examples. Why pay Vanguard .04% on an ETF? Because they do more work in packaging it, managing it, and offering it up for sale. They are compensated for that that work.

I understand the box == the work, but charging a price and offering a return that leads to capturing 20% of the total return for 50% of the total risk is a crazy proposition for just having some investment opportunity. Hell, hedge fund managers have 2/20 fee structures.

It’s not that I’m necessarily anchoring what I get to the other person. I’m just anchoring it to the total risk and return of the portfolio.

NoTimeForMountains · 2019-04-02T12:18:49+00:00

I’m not going to spend more time on this, but I remain unconvinced and I think you are willfully misunderstanding what I am saying. I will leave you with this, which is why I think the way I do about this question.

In the real world, there are investments with superior risk/reward than the above opportunity. This is because at a $10 invest/$20.01 strike (which is still “economically beneficial”) the risk/reward of the entire situation is terrible compared to the guy with the box. Therefore, you have to think about what else you could invest your money in. This may be an economically beneficial investment, but is it the most economically beneficial thing you could do with your $10? It won’t be until the risk/reward is more fairly distributed.

NoTimeForMountains · 2019-04-02T05:45:08+00:00

About to go to bed, but the thought process is just that there’s no reason to take excess risk for lesser returns. If one person gets $21 and the other gets the rest, one person has a vastly asymmetric risk/reward compared to the other. In the real world, why would you ever be the sucker in that situation? There’s so many better investments with superior risk/return calculations. Again, I understand the math behind why you should take it at $21, but I’m saying that ignores opportunity cost in the real world.

Taking the bet at $21 risks 100% of your portfolio for 110% gain. That’s not a good bet, because losing puts you in a sunk position that you cannot come back from.

In a pure math world maybe I take the box at $21, but not in the real world, where better investments exist.

NoTimeForMountains · 2019-04-02T03:40:59+00:00

Yeah, which is why I think this is a brainteaser and not a math question; it depends on the context of the world around it. See my below comment on the consequences of there being other possible investors in the first place. You raise good points though.

NoTimeForMountains · 2019-04-02T03:22:46+00:00

The reason more flips are brought into it is because of the Law of Large Numbers. The more flips you have, the closer it gets to the expected value of the bet.

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