HELP ME WITH THIS FINANCE QUESTION

[Anonymous No.29414099]

This stuff is usually pretty easy for me but my prof is a literal nigger who can't articulate questions properly. What in the actual fuck is a "valuation rate" (I'm assuming he means discount rate...?) Usually I would expect to get the dividend at 15 years -- 3000*(1+0.25%)^180 = 4702 and then divide it by (1+discount rate)^180 but the answer I'm getting does not seem right at all.

[Anonymous No.29414361]

This is the average biz poster, a retarded zoomer. No one on this board knows actual finance.

[Anonymous No.29414736]

>>29414099
this shit is painful to read
college is such a fucking scam lmfao

[Anonymous No.29414956]

>>29414099
"Provides your with cash"
"You intent..."

[Anonymous No.29415970]

Apply the gordon growth formula

[Anonymous No.29416280]

>>29414099
It’s compounded on a monthly basis. You assume semi-annual compounding by taking ^180.

Try it with ^(1/12). This is like 1st year business school. How old are you?

[Anonymous No.29416356]

>>29415970
Expected dividend, divided by growth minus discount rate

[Anonymous No.29416884]

>>29414099
Is this really the level of instruction one receives while pursuing a finance degree? This has to be an intro class, right, anon?

[Anonymous No.29417421]

>>29416280
this is the formula I was using. The discount rate given already takes the monthly compounding into account =NOMINAL(6%,12), and the t is 15 years * 12 months a year = 180
>>29415970
doesn't take the holding period into account

I ended up drawing a timeline on excel and using the NPV formula to get 434k, was just looking to see if there was a way to do it with one formula

[Anonymous No.29417610]

>>29417421
forgot pic rel
>>29416884
nah, its actually a 4th year class, the prof is just a non english speaking nigger. also its a financial intermediation where simple valuations isn't really the focus of the class. its more based on economic theory and whatnot. for some reason he decided to include a first year difficulty valuation question with nigger language

[Anonymous No.29417753]

>>29414099
Going to college for business and finance is a meme. I make more money than any of your professors and I'm self-taught. Also I don't mean that in the sense that "my shitfolio mooned in this bullrun and I made money". I mean it consistently for multiple years. Tell your professor to kill himself.

[Anonymous No.29417884]

Hes trying to say the value of the underlying securities increases an aggregate of .5% a month, so you have to adjust for higher dividends and security price

[Anonymous No.29418116]

>>29417753
agreed, most of it is unironically very gay. I'm learning VBA and modelling which is a pretty cool skill though. you're self taught in what exactly? teach me so I can ditch this faggy shit for good

[Anonymous No.29418199]

>>29417610
I'm just breaking your balls. My degree was in history so I mock others to mask my regret.

[Anonymous No.29418341]

>>29414099
The answer is 0.

[Anonymous No.29418857]

>>29418116
>you're self taught in what exactly?
I basically spent a couple of years analyzing all the investment strategies of the best investors in the world, extracted everything I considered important from them, compared the info between each other to find common points but also to see where they diverge and why. I then used that information and developed an investment strategy suitable for me. It's not complete yet cause I have yet to understand Soros and his strategy. I mean I understand self-reflexivity, but that's not enough. This kike is on to something and I need to integrate his knowledge into my strategy.

Today what I do could be best described as a global macro investing strategy, combined with some significant growth investing + some capital for speculation (shitcoins). As I grow older I'll be more conservative with the speculation part of my portfolio.

[Anonymous No.29419119]

>>29418857
so are you a trader or an accumulator? how much was your starting capital at the beginning of your journey and where did you get it from? I currently have 15k in crypto although I'm getting weary of a market crash. If it happens I'm planning on just accumulating as much as possible over the next few years

[Anonymous No.29419450]

>>29414099
>AYO
>AYO HOL UP
>VALUATION N SHEEEEIT
Imagine paying for this.

[Anonymous No.29419889]

>>29419119
>so are you a trader?
fuck no. I'm building generational wealth and teaching my kids to continue this shit. I have everything written down and I will teach them this shit as soon as they are able to read.

I don't think there was ever "starting" capital. I always had money cause I saved money. As I became more confident I started to invest more. At some point the line blurred between my investments and my savings and everything became fair game. I literally don't have cash right now. Once my wife and my mother saw that this shit works they literally said "take our money and do whatever you think it's best". I'm practically managing a pool of money for 3 people (me, wife and mother) and they are ok with what I'm doing cause they have consistently seen the gains. They also adhere to this generational wealth philosophy and understand compound interest and long term investing.

[Anonymous No.29420193]

>>29419889
that sounds really good anon, I hope I'll be able to find a similar path someday

[Anonymous No.29420894]

>>29420193
Just look into global macro investing and understand it. Once you understand that, it's like getting super powers. You stop thinking about shitcoins and the next moon mission and you start thinking about cycles and asset classes. Start by listening and reading everything you can about Ray Dalio and Chris Cole from Artemis Capital. Then learn about all the types of financial assets/instruments and how they work. For example commodities are cyclical. That's a fact. You don't invest in them by buying and holding but by spotting the trends. This is useful information even if you don't plan on investing in commodities because the crypto market behaves almost identically except that the trends are much stronger as well as the downtrends. You then stop concerning yourself with what shitcoin to buy and you just buy to ride the trends. That's just one example how global macro can open your mind to new perspectives.

You'll then start looking at spending, gdp, inflation, fed interest rate, yield curves etc. The entire economy is driven by spending. You need to know when the spending accelerates and when it slows down cause that influences the fuck out of the markets. You'll understand that regression to the mean is king and it's everywhere, so you'll be more aware of abnormal growth rates in certain assets. You'll get a feeling of when to fuck off from a certain investment.

If you want to go crazy you might even look into sentiment analysis cause even though this is hard to quantify, it plays a very big role in how the markets move.

There's a lot of things, but it all starts with understanding global macro and then moving down from there. You don't even have to invest globally cause everything is correlated anyway, but you need to understand it on a macro level.

[Anonymous No.29421068]

>>29418857
>basically spent a couple of years analyzing all the investment strategies of the best investors in the world, extracted everything I considered important from them, compared the info between each other to find common points but also to see where they diverge and why.
So you fucking got all bent on adderal and read a bunch of Wikipedia pages

[Anonymous No.29421234]

>>29420894
I copied that into a notebook, will get on it as soon as I'm done with midterm exams. One thing though
>The entire economy is driven by spending
wouldn't the macro perspective suggest that financial markets should have been bearish due to the lack of spending from coof? How is that production is at an all time low but the stock market and crypto exploded in that time period?

[Anonymous No.29421295]

>>29421068
You can't find that information on Wikipedia. Trust me, it was the first place I tried. Stitching that shit together, understanding it and deconstructing it was gruesome. I'm still not done with it.

[Anonymous No.29421434]

>>29421234
because money printer go brrr

[Anonymous No.29421571]

>>29414361
>buy low cap shitcoin
>make 1000x
>come to /biz/ to laugh at redditors crying about how smart they think they are on (((finance)))
>they brag about making 2x
>i laugh and sip some scotch
>i buy some more shitcoins that inevitably 1000x again

[Anonymous No.29421708]

>>29421434
thats such an obvious answer i feel retarded for even asking. what happens when thing start to re-open, the money printer stops and people want to take their paper gains to spend again?

[Anonymous No.29421820]

>>29421571
unironically the reason why I'm still here even though my normal investing strategy is boomer tier. If you see asymmetric opportunities but don't act on them because you are too "educated", you're just dumb.

[Anonymous No.29422140]

>>29421708
the economy right now is stuck in that area between the asshole and the cock.
If they money printer stops and the interest rates go up, the economy crashes.
If they money printer doesn't stop and interest rates stay down, we'll see hyperinflation.

The best way to play this is to bet on both sides. A simple example would be to own some stocks, but also own gold and silver. I won't even mention crypto in this scenario cause crypto will do it's own thing and it has it's own cycle. Mayne in 2030 crypto will act predictable and be correlated to something in the real economy. Until then it's hurr durr and ride the cycles.

[Anonymous No.29422398]

>>29422140
>Until then it's hurr durr and ride the cycles
based

[Anonymous No.29422541]

>>29420894
Aside from Ray Dalio and Chris Cole like you mentioned, do you have any specific reading suggestions? Thx for posting anon

[Anonymous No.29422589]

>>29421708
I just now realized that you might also be thinking about a deleveraging. A good deleveraging is hard to pull off and it almost always ends up in a recession or depression (some more severe than others). It would take an act of god to unfuck the economy in a way that doesn't have severe consequences. Realistically speaking I don't think they even think about this, because they would have acted on it if they did. In a deleveraging you try to reduce the debt, not increase it.

[Anonymous No.29423085]

>>29422541
Peter Lynch was a god-tier investor and I still consider him a legend even though he retired a long time ago. If you manage to set up a good stock screener to emulate his stock picking strategy you can find some gems that few people pay attention to.

desu, if you just understand Chris Cole and Ray Dalio, everything will flow from there. You'll then start looking for information on a need to know basis. For example Cole recommends 24% stocks in a portfolio. How do you choose what stocks to pick? You might buy the S&P500 and be done with it. You might buy stocks selected using Peter Lynch's strategy. You might buy boomer stocks by using Warren Buffet's criteria for picking value stocks. There's a lot of ways you can approach it and these ways will unfold once you get the big picture.

Another example. You need to go long volatility. Wtf is that? You spend 2 days trying to understand it and another 2 days trying to figure out how to invest in that. You realize that it's too complicated and you don't have access to all the financial instruments that hedge funds have. You then decide to buy Virtu Financial cause it's the closest thing to investing in volatility and you also get a good dividend from them. Why Virtu? Cause they are a MARKET MAKER and they make money from the SPREAD. The spread is high in periods of volatility = virtu makes more money.

You get my point.

[Anonymous No.29423433]

also dropping this here from Ray Dalio.
What to invest in depending on the economic scenario. Ideally you'd find investments from all over the world that fit in each quadrant. That doesn't really work anymore cause if the GDP goes down in the US, it will go down in China and Europe and all over the world. At least you'll know wtf to buy when the economy turns to shit, the gdp goes down and inflation also goes down

[Anonymous No.29423634]

>>29423085
thank u fren

[Anonymous No.29424102]

>>29414099
jesus fucking christ open google sheets takes 90 sec done

[Anonymous No.29424754]

>>29423433
one last thing. since I only have a small amount rn, wouldn't be wiser to risk it all on shitcoins until I get to 6 figs or atleast 50k? and in the meantime start studying the things you mentioned, and maybe practice those ideas with simulated investments? I'm OP btw had to switch ID's

[Anonymous No.29425707]

>>29424754
I would say yes, but only if you have an exit strategy. When the dumb money stops flowing into crypto, everything crashes. Don't get married to your shitcoins and hold them in a downtrend, thinking that your shitcoins are the exception.

"until I get 6 figs or at least 50k" is not a good exit strategy because you might not get there and you'll start finding reasons why you need to hold on just a bit longer until you get there. Consider using NUPL (net unrealized profits/loses) and Bitcoin doubling time to get an idea about when to fuck off. You can find these metrics on Glassnode. Now that I mentioned them more people will know about them and they will not be so effective as in the last bullruns. I can only hope that there are like 5 people reading this and not 50k that will tell others.

[Anonymous No.29425870]

>>29425707
wow, thanks alot man. now DELET!!