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(capitalspectator.com) The credit markets are very different than they were in 2009. institutionalinvestor.com) Putting a valuation on Instacart ($CART). aswathdamodaran.blogspot.com) How to make the math behind home ownership work (or not). aswathdamodaran.blogspot.com) How to make the math behind home ownership work (or not).
But the numbers you can’t argue with, I mean, we all know that the brutal math of investing before costs investors collectively will earn the market return after costs. And then on top of that, of course we ran straight into the 2008, 2009 great recession. They will earn that market return less, whatever they’re paying.
I’d say management consulting is any of the other thing that least at that time was the other career trajectory, just my personality, more of a math oriented introvert. I could maybe flip that around a little bit since I think particularly post 2008, 2009, the quality style of investing has become a lot more popular.
He has a very interesting approach to thinking about market valuations and strategies and when to deploy capital, when to go with the crowd, when to lean against the crowd, and has amassed and excellent track record. 2009, 10 in that role. Second part of our framework is valuation fundamental work.
I’m good at math and science and you know, I always had an idea what go into business, but I felt that electrical engineering would be a good foundation. You know, I, it always, I I see different numbers all the time, so it’s always kinda like, who’s math if you will? 00:02:16 [Speaker Changed] Me too.
So I, I did a math degree at Oxford, which is more pure math. You know, pure math can be very theoretical and detached from the real world, and it’s getting worse. It’s just math stick to it over long periods of time. Then the volatility and, and the valuation makes an enormous difference.
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.). It’d be like retiring at the bottom of 2009 with still-decent numbers. the current blowup) -20% so far What’s your guess?
And I did the math, and I think at that point in time, roughly speaking, assets in ETS were roughly just 10 percent, 12 percent of assets in mutual funds and I was pretty convinced that that number was to increase significantly. I mean, one of our first ETF was our China Consumer ETF that we launched in 2009. Wait, markets go down?
So I think that argument is very valid in those couple of years, 2009, 2010 probably, maybe 2011, which was a tough year for hedge funds. RITHOLTZ: So hold the duration risk aside with those two, but just for an investor in treasuries, I know you’ve done the math before. What’s the valuation? RITHOLTZ: Right.
ILMANEN: It’s always good to think of starting yields and valuation sort of two sides of the same coin. But in conclusions, I did put there that it just seems that stars are aligning for some fast pain and it wasn’t just high valuations but there was a catalyst. Explain that. Bonds are the most expensive. Stocks are pricey.
But plenty of valuation measures, it has no applicability for price-to-sales. ASNESS: Well, first of all, I’m going to somewhat disappoint you saying we do not take very big bets on views like timing asset classes based on valuation. My mom was a math teacher so — RITHOLTZ: Okay. It can apply to earnings.
And what we figured out in 2009, really when we started buying homes is that we made the bet that it, I mean, it wasn’t a very exotic bet, but we made the bet that the subprime mortgage market wasn’t coming back at all. And so, so starting in 2009, we, we, there was no flip market. So I had real support around Wall Street.
And I did a lot of options math, which I thought was interesting. 00:10:08 [Speaker Changed] Yeah, so I graduated from HBS in summer of 2009 and I was fortunate enough to join the Grassroots Business Fund, which had been a division of the International Finance Corporation and literally spun out first half of 2008. 00:35:18 Right.
And I, and I really like the application of math and statistics and computer science to markets. And so graduating right into 2009, right out of the financial crisis, I said, I don’t think I’m gonna get a job. You learn the math that can help you with, with market making operations. And I just caught the bug.
Jeffrey Sherman : Well, what it was was, so I, as I said, with applications, there’s many applications of math, and the usually obvious one is physics. Barry Ritholtz : It seems that some people are math people and some people are not. The, the math came easier. And I really hated physics, really. It’s so true.
So moved over to London back in 2009 and the rest is history. 00:24:49 [Speaker Changed] So let’s talk a little bit about valuation in the public markets. Does that valuation difference in the public markets extend to private markets as well? Hence the valuation gap. Have been a resident of London.
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