No, the only thing that matters is if the portfolio delivers returns in excess of your cost of capital.
If your portfolio is green, you can still be a poor performer.
687 karma · joined April 18, 2022
If your portfolio is green, you can still be a poor performer.
The rate of ML progress is spectacularly compute constrained today. Every step in today’s scaling program is setup to de-risked the next scale up, because the opportunity cost of compute is so high. If the opportunity cost of compute is not so high, you can skip the 1B to 8B scale ups and grid search data mixes and hyperparameters.
The market/concentration risk premium drove most of the volatility today. If it was truly value driven, then this should have happened 6 months ago when DeepSeek released V2 that had the vast majority of cost optimizations.
Cloud data center CapEx is backstopped by their growth outlook driven by the technology, not by GPU manufacturers. Dollars will shift just as quickly (like how Meta literally teared down a half built data center in 2023 to restart it to meet new designs).
Bryan is in his last year of high school.
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A 10min walk/transit window can span 20-40 city blocks depending on the location and transit options.
All of your assertions are plain wrong.
Dufry existed prior to the invention of the airplane…
If you run a penetration test, asking an individual to run a red light. You will achieve near 100% success.
However, when the traffic lights change actors’ behaviors to stop (at some probability such that it results in less collisions), most actors will stop according to the traffic lights.
This is the very fundamentals of mixed strategy calculations in game theory.
Or even like some junior dev removed an index
https://www.bloomberg.com/news/articles/2022-09-27/wall-stre...
See this movie's footage for Afghan Army usage: https://www.rottentomatoes.com/m/retrograde_2022_2
He then extrapolates a median price change on the entire market to calculate the “$260B” change in asset valuations. That is dubious at best for a monthly volume of ~500 sales…
On average, an investment from purchase to exit may take ~5 years.
Whereas a public company with large institutional owners will have to respond to market feedback in real-time, i.e they are more likely to follow the herd if institutions (pension funds) demand a shift in industry trends (ie ESG). Whereas, private equity have no such concerns.
This HN headline is editorialized… The article mostly explains the difference in loss absorbing debt regulators for banks with $100B+ in assets.
Separately, it is a false premise to argue that the median retail banking customer is not “safe”.
The US banking system is incredibly safe for the vast majority of its customers. Those customers with uninsured deposits are not in the majority.
> access to capital at cheaper rates than most countries due to their position as a stock market darling
Last I recall, AMZ uses an internal WACC of 8-9%. That's really only marginally "cheaper" cost of capital than most other mega-cap firms, it's not really a big advantage.
Its cost of capital advantage mostly comes from its access to cheap short-term credit in its retail cash cycle, not the equity market (like you suggest).
> "reinvesting in the business" to bleed competitors dry. Few other companies on the planet have the ability to run negative or break-even margins the way Amazon does.
Costco regularly runs negative or break-even margins in its merchandising. Its language for this is "reinvesting in value" or "reinvesting in price". It can do this, similar to Amazon, because of their membership business.
Walmart also regularly runs break-evens/negative margins in select merchandising lines depending on geography and competition.
“As a result of this transaction, JPMorgan Chase expects to:
Recognize an upfront, one-time, post-tax gain of approximately $2.6 billion, which does not reflect the approximately $2.0 billion dollars of post-tax restructuring costs anticipated over the next 18 months
[…]
The transaction is expected to be modestly EPS accretive and generate more than $500 million of incremental net income per year, not including the approximately $2.6 billion one-time post-tax gain or approximately $2.0 billion of post-tax restructuring costs expected over the course of 2023 and 2024.”
https://www.jpmorganchase.com/ir/news/2023/jpmc-acquires-sub...
Also, FDIC bridge banks are not eligible for BTFP, because they are not eligible for the primary discount window. They are banks in default…
H.4.1: https://www.federalreserve.gov/releases/h41/20230427/
50B term loan to JPM: https://www.jpmorganchase.com/ir/news/2023/jpmc-acquires-sub...
If you look at the Fed’s weekly lending (H.4.1), you can see the FDIC has borrowed upwards of 170B in the last 2 months, not including FRC deal. In the FRC deal, FDIC is giving JPM a 50B term loan, which is most likely again borrowed from the Fed.
There’s some speculation why this had to happen, ie the Treasury cannot provide the liquidity due to debt limit, etc…
https://bpi.com/the-mysterious-footnote-7-to-whom-and-on-wha...
If your savings are on Apple Wallet, you will be not switch away from an iPhone for many years. The average deposit duration is 7 years, used by banks to manage risk. This “lock” is better than any carrier 24-36mo agreement.
Healthcare obviously would be groundbreaking, if you depend on your phone for healthcare (it would be potentially life long…).
So regardless if they make money on these services, they’ll continue to make more money on devices.
It’s not criticized broadly by the entire energy industry…
LCOE is an input to deciding whether to build a new power plant in a market. The market’s LBMP is another input. Super simplified, if the market’s average LBMP is lower than LCOE for the plant, the plant shouldn’t be built…
These 2 factors also make it more difficult to commercialize frontier renewables like green hydrogen.
It's not free to calculate marketing pricing you know... Pay for it...
A better explanation would be:
A pension funds needs to achieve long term nominal returns of 5% to meet liabilities.
Fed funds rate is suddenly set to 0%, and treasury curve peaks at 2%.
Market risk premium is 5% for public equities.
Market risk premium is 10 % for private equities.
To reach target returns while anticipating volatilities, it must allocate capital towards both public and private equities. This is the “sloshing”. Simple mathematics.
Side note: any retail investor can access the risk-free rate (very close to it, minus transaction costs/expenses) through large money market funds. ie. https://investor.vanguard.com/investment-products/mutual-fun...
The DHS notice refers to the CISA notification: https://www.cisa.gov/uscert/ncas/current-activity/2023/02/14...