Barry Ritholtz

SEPTEMBER 12, 2022

BITTERLY MICHELL: Not in leveraged, no, not at all, give more …. The next question that you alluded to, which is really interesting about revenue and profits, how solid in inflation hedge are equities? It’s late in the summer in 2022, markets sold off 22, 24 percent, recovered about half of those losses …. RITHOLTZ: Right.

Investments 118

Investments Marketing Profit and Loss Banking 118

Barry Ritholtz

AUGUST 20, 2024

And so it is important that at least you’re able to entertain that. So the actual source of profitability in that trade is not the level of the vix, but the shape of the vol surface. That’s amazing leverage. You need to be of sufficient size and you need to have at least five consecutive quarters of profitability.

Concentration 68

Concentration Valuation Marketing Investments 68

Barry Ritholtz

AUGUST 29, 2022

And this is part of the story I was so fascinated with was why would someone set-up a company where they deliberately turn over all the future profits to the — to the people? I run it at a loss. Is that the market share loss Jack was talking about? It’s unique. It just — it makes no sense. RITHOLTZ: It’s Marxist.

Profit and Loss 68

Profit and Loss Marketing Investments Benchmarking 68

Barry Ritholtz

JUNE 13, 2023

The exposure you get in investment banking, I was a leveraged finance banker by background. CHABRAN: Maybe because I come from a leverage finance background, as I told you, I tend always to focus on the downside. I think it was a great training. I think we learned a lot.

Investments 58

Investments Banking Entertainment Valuation 58

Barry Ritholtz

MARCH 27, 2023

And these were real bankruptcies, led by a supply-demand imbalance, too much leverage and not enough demand for the products. It’s a matter of making better decisions and being more profitable. That’s an amazing lesson in life, right, to take failure and losses as business as usual. MIELLE: Yes. MIELLE: It is money.

Investments 113

Investments Restructuring Profit and Loss Finance 113

Barry Ritholtz

JANUARY 24, 2023

And what was interesting was the first leveraged buyout of a public company happened when I was in graduate school. KLINSKY: In 1979, it was the first leveraged buyout of a public company. We had sold the family business, maybe buy another family business one day through a leveraged buyout. RITHOLTZ: That’s pretty safe.

Mergers and Acquisitions (M&A) 104

Mergers and Acquisitions (M&A) Investments Leverage Numbers 104

Barry Ritholtz

AUGUST 16, 2022

And so, you know, it was relatively, I wouldn’t say straightforward because I don’t think generating consistent profits has ever been something that’s so straightforward or so easy. And it’s always going to expect to lose some of those profits when the trend reverses, but still end up capturing the meat of the trend.

Profit and Loss 121

Profit and Loss Foreign Exchange Valuation Investments 121

Barry Ritholtz

OCTOBER 8, 2024

I mean, you know, realistically those contracts were really only worth the profit they generate in near term and putting a multiple on them didn’t make sense because there’s no annuity value, it’s not 00:30:24 [Speaker Changed] The pandemic. 00:30:24 [Speaker Changed] Right.

Healthcare 58

Healthcare Investments Pharmaceutical Profit and Loss 58

Barry Ritholtz

DECEMBER 14, 2022

And it became the most profitable private equity investment ever made and — it is true. And Blackstone’s funds through that period, generated substantial profits because we had made those good choices, not just about the investments — RITHOLTZ: Right. RITHOLTZ: Is that true? That’s amazing.

Mergers and Acquisitions (M&A) 63

Mergers and Acquisitions (M&A) Investments Construction Concentration 63

Barry Ritholtz

MARCH 12, 2024

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.

Profit and Loss 58

Profit and Loss Investments Marketing Securities 58

Barry Ritholtz

JULY 31, 2023

Ends up turning about $27 million of swap premiums into 2 billion plus in profit. The next quarter Netflix announced it’s like first subscriber, either slowing growth or loss, I don’t remember, and sort of kicked off this now two year kind of slow bleed of peak streaming. What’s keeping you entertained?

Treasury 52

Treasury Retail Economics Entertainment 52