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Prosper also spent $40 million to acquire medical loan provider American Healthcare Lending LLC and personal finance startup Billguard Inc. Changing market conditions (and some higher-than-expected default rates) have changed the math and softened investor interest some. And though Prosper was valued at $1.9 billion to $6.1
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.
So I think that resiliency piece, never giving up, never giving in, redefining, Barry, success as going from failure to failure without loss of enthusiasm, I think that’s everything. Poverty, sustenance poverty is a roof over your head, food on your table, reasonable healthcare, it’s a sustenance, the ability to sustain yourself.
00:17:16 [Speaker Changed] And, and let’s be blunt and honest, Dave Portnoy is incredibly entertaining, even if that persona is an exaggeration of who he is, but no one wants him doing the payroll or the 00:17:30 [Speaker Changed] Healthcare. 00:40:26 [Speaker Changed] They, they know, they know math, they know math.
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. You got 60 percent of losses ahead of you. RITHOLTZ: So it’s different math then I need 100x winner versus 99?
Healthcare minimum wage. So when I was at this very fancy private school that I was at as a kid, I did math because it gave me a huge amount of free time to do the things I really cared about. But when I got to Cambridge, you know, the math was sort of serious there. So, you know, I took my math into statistics and things.
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. And that’s sort of the math. What led to that approach? He was right on the thesis. RITHOLTZ: Right.
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.
So one way to think about it is that the phenomenon of power loss is highly relevant to success and failure, where we tend to think of things as linear with respect to growth, but that’s not true for video games, it’s not true for films, it’s not true for novels, it’s not true for art. SUNSTEIN: Completely.
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