1. Thanks. Do you know an example of a company that this happened to?

  2. ROE is return on equity and ROIC is invested capital, its only possible if you ROIC is calculated in a way where it’s a calculation of tangible capital instead of total capital.

  3. This is not true, because the denominator could be biggger in the case of ROIC but the numerator could be larger in the case of ROE (because it is after paying interests).

  4. I've never considered EV when looking at companies. It's a finance gimmick for private equity dudes.

  5. Why do you think it is used so much in private equity?

  6. Very good question. Would love a Buffett watcher to answer this. I don't think I've ever heard him talk about enterprise value at all, which is interesting, considering that I've heard him in a few videos talk about how his approach to equity investing is to imagine himself buying the entire business and then just dividing down all the aspects to his future fractional ownership.

  7. IMO it has to do with him analyzing an investment as if he was buying the whole business, but from an equity standpoint, not the debt. If he bought an entire business he would pay for the equity of it, the debt would have to be paid down over time by the business, not himself.

  8. Under Settings > Podcasts do you have Remove Played Downloads or Hide Played Episodes flipped on? If your device is running low on storage it will start to make room however it can.

  9. I think his question relates more to how fed funds rates translates into bond yields. Im not exactly sure but I think it first influences the interest rates for bank loans and if bank loans become cheaper (lower yield), corporations will follow by issuing bonds with lower yields (because both are competing forms of borrowing).

  10. It’s assumed that the TV is the value on Dec 31 end of year 10, along with the CF of year 10. So both are discounted the same way.

  11. Thank you. And why when the exit multiple method is used the terminal value after year 10 is discounted from year 10?

  12. I made some edits to original comment.

  13. If you are standing at time 0 and finding the present value of a growing perpetuity, you are assuming the first payment comes one period from now, at time 1.

  14. Implants are different from natural teeth. If you can floss it properly then you should be good.

  15. Thanks, but my question is: is this what tends to happen with implants and crowns or is it caused by for example the crown being smaller than it should be?

  16. Thank you. That was without even basically biting from that side, so I will pay attention to what happens when it bite from it.

  17. You can calculate value based on terminal multiple and then do a calculation to determine what that multiple equates to in terms of perpetuity growth rate. Either one works, but Buffett is definitely a perpetuity guy.

  18. What do you think are the pros of the perpetuity method?

  19. When you use the perpetuity method, you're actually calculating the value of the cash flows. When you use a terminal multiple, you're technically not calculating the actual value of the cash flows. You're calculating what someone else would possibly be willing to pay for those cash flows. So basically, perpetuity method equals actual value and terminal multiple method equals relative value. If that makes sense. If not let me know and I'll try to explain it differently.

  20. My best understanding is that it's a set of rules which defines a system.

  21. And how would that make, say, Uniswap a protocol?

  22. I'm not sure how that would work, actually

  23. What I thought was that because the frequency of compounding would be annual, I would have to use the annual interest rate and as a result I would have to multiply the monthly one by 12 to obtain the annualized one.

  24. First off, let's keep "t" as the time in years for all of the below

  25. Yes, thank you. And if I’m given the monthly interest rate and compounding happens annually, is it ok to multiply the r (which is the monthly interest and let’s say it is 10%) by 12 to obtain the annual interest rate?In this case multiplication would be needed instead of dividing.

  26. Yes this. Walmart pays almost all their vendors at 120 days.

  27. But per its cash conversion cycle which is of two days, it on average pays suppliers 2 days before selling a product and also receiving the cash for it.

  28. Working capital = current assets - current liabilities….in other words liquid cash… measured in cash Cash conversion cycle = measured in days Negative working capital means vendor supplied credit paid slower than your customers paid you. Positive cash conversion cycle means how often your working capital is being turned owner into sales. So Walmart starts with $1. Working capital = $1 They get vendor credit for another $5 which they owe in 120 days. Working capital now = $-4 They sell the product for $6 and get paid in day 3. Working capital = $2 They get second round of vendor credit for $10 Working capital now -$7. They sell product 3 days later for $11 working capital now $4 They get third round of vendor credit for $15 working capital now -$11

  29. Reading its balance sheet I have identified the issue. A company can have a positive CCC but still have negative WC as the CCC is only about cash, receivables, inventory and payables and doesn’t contemplate things such as accrued liabilities (e.g. deferred revenue), accrued income taxes and so on. In the case of Walmart, it has a lot of accrued liabilities and they end up causing the working capital to be negative. If you contemplate only account payables (what is financed by suppliers), the working capital would be positive.

  30. OP, any update on this? I started school last Wednesday and I have been using mask for approximately 6 hours a day since then (previously I wasn’t using mask basically at all). Might be a case of correlation and no causation, but on Monday I have noticed that a relatively significant patch appeared on the area of my moustache and my chin. Don’t know what to think about it.

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