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Changing market conditions (and some higher-than-expected default rates) have changed the math and softened investor interest some. billion in it last fundraising round last year, as of yet, the firm has not actually been profitable. And though Prosper was valued at $1.9 billion to $6.1 that online lenders don’t have by design.
Now why, you might ask, would the biggest retailer in the world buy an eCommerce site that was facing a mega cash crunch in December and had to raise a whopping $550M just to keep the lights on? It wasn’t because it has the secret to running a profitable eCommerce site or success in monetizing memberships a la its CEO’s alma mater, Amazon.
And so, with this gave me exposure to everything from investment banking to retail, looking at like checking account campaigns, like how do you get more assets in the door to credit risk. I — I loved math, but really, I was going to go down that literature route more than anything else and — and study Spanish literature.
Coupons were retail’s low-tech discounting solution in a world with Groupon, promo codes and Prime Day. In a retail reality where everything is always on sale, coupons were the clever method by which brick-and-mortar shops drew in customers with deals. This is the conventional wisdom.
The company plans to focus on its other retailers, including Victoria’s Secret and Bath & Body Works. “We Once it was taken over by L Brands in 1985, the retailer began focusing solely on handbags and accessories. The MATH doesn’t add up,” Jefferies analyst Randal Konik wrote in a note to clients. L Brands reported $12.6
By ’08 and ’09, look, there were bankruptcies everywhere in every industry from retail to telecom. 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: Yeah, that kept — RITHOLTZ: Which is crazy.
00:03:14 [Mike Greene] So that was actually an outgrowth from my experience coming out of Wharton and you mentioned the, the, you know, the transition of people who tended to be skilled at math or physics into finance. So the actual source of profitability in that trade is not the level of the vix, but the shape of the vol surface.
Kount’s latest report “Calculating The 9 Deadly Costs Of Fraud,” does the math – and emphasizes how not managing fraud digs heavily into profits. In fact, fraud losses as an overall percentage of revenue nearly doubled in 2015 as a result of lost or stolen products, according to Kount.
Because then I knew what the wholesale rate was and the retail rate. 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. BRYANT: So money, unlike math, money is highly emotional. RITHOLTZ: Yes.
And I was a math nerd as a kid. They announced a $640 million loss and ouch. ’cause bad things can happen to undifferentiated retailers. It’s what the much maligned retail investor was doing. But if, if it has a history of not being profitable, you you really want to exclude that. So I took that.
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?
The ability to use an anonymous single currency to power a decentralized, permissionless distributed ledger operating over the public internet where miners compete to solve the math problems that enable the processing of transactions is a remarkable innovation. They buy tokens at a discount and resell them for big profits almost immediately.
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.
Because he was all sure he was a totally isolated math. So, so he’s brilliant at math. He goes to m i t to study, study physics and math. So brilliant enough so that sure, he goes to math camp in the summer and find, kind of finds his tribe. But in math camp, he’s not the best. And the Undoing project.
Ends up turning about $27 million of swap premiums into 2 billion plus in profit. RITHOLTZ: Retail just is nothing at all. hey, there’s no retail, order online. 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. What led to that approach?
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.
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. It had gone from a fairly, fairly heavy retail business to a very institutional business. He knows how to manage risk, and he knows how to trade for a profit for a p and l. Yeah, exactly.
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. Am I getting right?
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