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So you can understand what’s happening in your business and communicate effectively with your board members, donors, and financial team. You can grasp nonprofit accounting basics in just a few minutes, even if you’ve never taken an accounting course (and even if you hated math in high school). It’s a necessity. Start right here (??)
Michael: So, it sounds like part of the challenge was, you live in a large company environment where, as is common for a lot of them, they organized study groups of top advisors, of top producers, of those that are doing well and growing well, and driving the business profitably. ” It’s constant communication through the year.
I — I loved math, but really, I was going to go down that literature route more than anything else and — and study Spanish literature. The next question that you alluded to, which is really interesting about revenue and profits, how solid in inflation hedge are equities? BITTERLY MICHELL: … was — no, no.
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. And they go on longer and longer and obviously more profitable for the states that run the lottery. And then I was looking for something more applied.
But as a private equity owner, again, first of all, you do invest heavily of your own money in the transactions, plus you have additional ownership through, you know, the carried interest, the profits interests. There was XO Communication and McLeod. You got 60 percent of losses ahead of you. RITHOLTZ: I recall. KLINSKY: Right.
And I, and I really like the application of math and statistics and computer science to markets. You learn the math that can help you with, with market making operations. It’s just not smart on a math basis to do that. 01:02:36 All the math tells us we should not buy high dividend yield stocks.
And so, so we sort of felt pretty stupid for a while because we did a lot of losing trades in 2006 that were the, you know, that obviously didn’t come to fruition until the actual people could see the losses. So in mortgages, the borrower can stop paying maybe a year to two years before the lenders actually book a loss.
Colin Camerer : So I, some of it was when I was in college at Johns Hopkins, I, I studied physics and math. And there was people, Physics didn’t have, people, psychology didn’t have math, economics was kind of the right mix. The math doesn’t math. That was too abstract. Yeah, I’m gonna vote.
Ends up turning about $27 million of swap premiums into 2 billion plus in profit. I mean, you’re talking about, I don’t, I could do the math, it’s like a 10,000% return in like three weeks. RITHOLTZ: The communication was bad also. And that’s sort of the math. What led to that approach?
You’re doing a lot of math in your head on the Fly. I’m doing, I’m doing an awful lot of math in my head on the fly. He knows how to manage risk, and he knows how to trade for a profit for a p and l. And occasionally people are gonna argue about, Hey, who has this loss? Or who has this profit?
So, I did the math, 20 million times a hundred. So, let me just repeat the math. And so, again, I went through this simple math. BROWDER: And I’ll just point out that this was back in the days when $100 million profit is real money. How many do you have in your fleet? It is $2 billion on the ship. RITHOLTZ: Wow.
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