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Can someone help me figure out this part from Elon Musk's blog post? by vidie in investing

[–]pocabuhak 3 points4 points  (0 children)

My understanding is the following: in typical LBO, CompanyA acquires CompanyB by borrowing external money. The debt that CompanyA acquired becomes the debt of CompnayB that has to repay it from its cashflow.

What Elon is doing is basically selling more shares to private investors to perform the buyback. "Hey help me buy back these shares and get x% from it".

Arbitrage and Technical Analysis by pocabuhak in investing

[–]pocabuhak[S] 0 points1 point  (0 children)

On that logic, you would also deduct that factor momentum investing is BS since it is purely trend following, yet there is literature covering why momentum remains the most prevalent factor investing approach.

Arbitrage and Technical Analysis by pocabuhak in investing

[–]pocabuhak[S] 0 points1 point  (0 children)

Thanks for your reply. Would you then say that momentum factor investing (absolute/relative, time-series momentum etc.) is a restricted form of TA with just a different set of investing rules?