Author: Arnav

Bitcoins, Taxation and Hedges

I am referring to the two major bitcoin-related developments that happened this week of course. First, the first ever bitcoin swap agreement took place. It would work like this: An institution would ensure that a company accepting bitcoin for payment gets…

The Business School is not Dead

An article from latest Schumpeter, the Economist column on business and economics, discusses the state of business schools today. It is not pleasant. The writer says that like doctors who smoke, and dentists with rotten teeth, the business school has professors who constantly…

TSLA Valuation Blues

Predicting the future is hard enough as it is, but if you’re doing it for a well-established, large company, then your task is significantly easier. The past will be a fairly decent predictor of the future (except when it’s not).…

De Fault of the Government

Apologies for the bad pun above, but there’s a lot of talk about default, and the uncertainty has made investors sell off short-term Treasuries. From this week’s Wall Street Journal: Banks are dumping short-term government debt, usually one of the…

Having Trouble With Your Forecasts?

You are not alone. This week’s Wall Street Journal has an article on how analysts “sober up,” and bring their optimism down a notch as the actual earnings announcements from companies come due. In each quarterly earnings announcement and the associated conference…

The Paradoxical Stock Buyback

From 2004 through 2011 the S&P 500 companies spent $2.7 trillion buying back their own stock. A recent article in the WSJ discussed how companies tend to buy back their stocks when they are flush with cash, which usually happens during market boom…