@@5yf7ibgyg7u3 if they had proper mike,it wont have been the problem,but thing is this lecture was mainly for offline only so they might not hve kept that facility
At 1:01:17, the professor encouraged us to apply the equation in the real stock trading , but how can we actually identify the growth rate g here in a practical sense?
He said assume g or figure it out and that an analyst job isn't easy. But I have heard that you can use estimated industry growth rate obtained from market prices growth or earnings growth of similar companies in industry. I think mathematically you can find r using a different model if you like such as CAPM and then this can help to find g
Nobody will ever care about us. The only person everyone knows is donald trump and he'll be forgotten not unlike a fart in the wind in the cosmos of time.
Fantastic - I had never previously known the importance of short selling in price discovery. Simply put, if short selling is not possible or not allowed, then the market price is only getting half the information. I still need to think about the ethics and incentives of short selling though.
Has AAPL and AMZN ever issued dividends or indicated that they plan on issuing dividends ever? I think for a lot of stocks these days their values are derived mostly by the expected increase in value of the company rather than potentiel dividends
Apple does issue dividends. When you’re talking about increase in value, what do you mean?if you mean market cap then the increase is value is determined by the market which is further derived by the set of potential cash flows (dividends) this company provides till perpetuity(according to this theory at least).
Is there a course similar to this but gets more mathematically involved? Like how expected values are calculated. How can we forcast yeilds of the bonds etc?
what about political scenarios, which inturn going to change the economics and which inturn the earnings and dividend. so how can the dividends or earnings be right so much in to the future?
It makes perfect sense to me. Would you be willing and able to pay for an investment that never pays back anything? No, you'd just be throwing away your money. So if a company never pays dividends, no one would buy the stock, and the price would be zero.
Limited liability is associated with a sale or marketing not the patent process, the research and development of a deemed "common stock" line item. We cant sell non tangible equities or the common market stock. The going tax rate for new manufacturing includes a 40% + tax rate as well as paying out the entirety of a non crowd funded venture no loans either? At that point were relying on sweat equity which is what does an individual have when their bill goes unpaid or financing was never liable
7:40 describes the way it is in AUSTRALIA, australia is terrible and it is a ruiner of free spirit and development, take this from me, i am born , bred here, its terrible , they destroy your life here. !
Min 21:40....hmmm I could think of a whole bunch of companies that never paid anything to shareholders, at least not publicly, and yet their values went down.
@@tiagogomes1079 Exactly - I'm shocked no one in class mentioned Berkshire-Hathaway. Buffet thinks he can intelligently invest all the case they keep on the books.
IF the company is growing and not paying a dividend you should have bought preferred stock, or sold options on the stock ....if the options are worth anything.
It's money retard. This is about equity valuations, but currencies are compared by markets as reliable stores of value based on their status as universally marketable goods within a market.
Another funny joke about if China GDP keeps on 10%, then we all will speak Mandarin... HAHAHA.... LAUGHING LOUD IN THIS SILENT CLASS ROOM AND MYSELF....... Happy Halloween, Dude..........STF
What about private bank Federal reserve creating debt and currency handing it to corporations they choose at 0% while the poor opening business pay anywhere from 17% to 2,000% on loan's, yet everything is even crazy bootlickers
Time value of money approaches zero and negatives. Eventually this is unsustainable and the FED is forced to reduce rates to curb inflation. This causes massive price shocks and the markets begin to clear. With MMT they lower rates again and try to continue inflating. At some point growth nears zero and all stocks collapse since g
How fortunate we can be, having such important information given to us for free ❤
The "cc" button under right side of the screen is gorgeous. The translation is so accurate.
Except the questions of the students which can be usefull sometimes.
Ya actually ☺
@@5yf7ibgyg7u3 if they had proper mike,it wont have been the problem,but thing is this lecture was mainly for offline only so they might not hve kept that facility
Thank MIT&prof. Andrew Lo for the opportunity of enjoying high quality finance theory overseas!TOP.
Dr.Andrew lo is exceptional .
Chewing every equation like gum and gets every possible taste out of it, very inspiring!
ㅋㅋㅋ 좀
got me through my finance class back in college and back here again for a refresher! thank you so much.
You are such a great teacher. *RESPECT*
Ono nnnnoo nnpnononoonnnnonoonnnnonnnonnopn o
This is fantastic. Extremely informative videos.
Lies again? Drink coffee with equal
At 1:01:17, the professor encouraged us to apply the equation in the real stock trading , but how can we actually identify the growth rate g here in a practical sense?
He said assume g or figure it out and that an analyst job isn't easy. But I have heard that you can use estimated industry growth rate obtained from market prices growth or earnings growth of similar companies in industry. I think mathematically you can find r using a different model if you like such as CAPM and then this can help to find g
6:30 The man he is referring to here is Tom Monaghan.
Nobody will ever care about us. The only person everyone knows is donald trump and he'll be forgotten not unlike a fart in the wind in the cosmos of time.
"by now you should have an appreciation for the importance of short sale"
Then i realized this was recorded in 2008
You gave me new insights Dr Lo 🙏🏼
He has amazing teaching skills !
you don't lose your pinky, haha hilarious. Such a great teacher.
1:01:30 , how to get growth rate ??
Look at income statement
That lecture would be great for J. Powell to listen to.
Fantastic - I had never previously known the importance of short selling in price discovery. Simply put, if short selling is not possible or not allowed, then the market price is only getting half the information. I still need to think about the ethics and incentives of short selling though.
thanks Professor Lo!
Domino’s success story is inspirational
Has AAPL and AMZN ever issued dividends or indicated that they plan on issuing dividends ever? I think for a lot of stocks these days their values are derived mostly by the expected increase in value of the company rather than potentiel dividends
Apple does issue dividends. When you’re talking about increase in value, what do you mean?if you mean market cap then the increase is value is determined by the market which is further derived by the set of potential cash flows (dividends) this company provides till perpetuity(according to this theory at least).
With low intrest rates, the discount value of money over time approaches zero and negatives. Money has been free for years due to the FED.
Where can I find the solutions of Brealy Myres and Allen 10th edition?
If you got to ask for the Solution you are part of the problem
Chat gpt
Is there a course similar to this but gets more mathematically involved? Like how expected values are calculated. How can we forcast yeilds of the bonds etc?
most fornulas are worth shit in real world. You dont need that
It could even be transferred into preffered stock as a new ipo or subcontract venture
This lecture was so intellectually satisfying
21:12
He literally described Berkshire Hathaway...
Could someone guide where to find the second half lecture , thanks.
Exactly! The price to earnings topic is missing in this video.
what about political scenarios, which inturn going to change the economics and which inturn the earnings and dividend. so how can the dividends or earnings be right so much in to the future?
uncertainty and chaos theory
53:06 Deja Vu (if you've been following these lectures)
Ponge scheme 21:38
You can send spaceships to them moon with those formulas!
I love when my words explode on contact!
If D = 0, then stock price = 0 ? That's what the formula is saying. I don't get it. Something's wrong.
Use FCF instead of D
It makes perfect sense to me. Would you be willing and able to pay for an investment that never pays back anything? No, you'd just be throwing away your money. So if a company never pays dividends, no one would buy the stock, and the price would be zero.
@@ezekielanderson9055 The vast majority of stocks do not pay a dividend.
Limited liability is associated with a sale or marketing not the patent process, the research and development of a deemed "common stock" line item. We cant sell non tangible equities or the common market stock. The going tax rate for new manufacturing includes a 40% + tax rate as well as paying out the entirety of a non crowd funded venture no loans either? At that point were relying on sweat equity which is what does an individual have when their bill goes unpaid or financing was never liable
is it fraud if you sell covered options/derivatives on the stock that you suspect to be becoming worthless right before you dump it?
Continue watching 30:41
that was a good class!
14:30 just before the global economic crisis of 2008. Poor fellow was so optimistic 😂
"Revenge of the nerds" :)
I never had a piece of paper in place of a stock. Isn't everything electronic now?
What is the P sub t again?
Ask chat gpt
superb
7:40 describes the way it is in AUSTRALIA, australia is terrible and it is a ruiner of free spirit and development, take this from me, i am born , bred here, its terrible , they destroy your life here. !
RETVRN
36:23
College ed is so Costly, Common sense is shared and genius is lonely.
Ty
Min 21:40....hmmm I could think of a whole bunch of companies that never paid anything to shareholders, at least not publicly, and yet their values went down.
My thought went quickly to Berkshire Hathaway, even if they have bought buyback stocks, never pay any dividend.
@@tiagogomes1079 Exactly - I'm shocked no one in class mentioned Berkshire-Hathaway. Buffet thinks he can intelligently invest all the case they keep on the books.
IF the company is growing and not paying a dividend you should have bought preferred stock, or sold options on the stock ....if the options are worth anything.
I watched them land on the moon..It didn't mean I was there..
What about cryptos? They don't pay dividends yet one can reasonably expect to get capital gains on them. Can this be called a free lunch?
"Crypto is a limited supply of nothing" - John Paulson (hedge fund manager, billionaire)
No. You can’t “reasonably expect” capital gains. It doesn’t produce any cash flow
@@JustinIm27 So if I sell crypto I dont get cash? Go look up the meaning of capital gains
@@nissar-ali no because you can also “reasonably expect” a capital loss
@@JustinIm27 if I reasonable expect a "capital loss" then I'd be buying futures betting against cryptos...
We aren't going to MIT, are we bros...
BTC pays no dividends and never will, so how can it be valued?
DDM model doesn't work for cryptocurrencies, instead you should determine the value of a chain's blockspace
It's money retard. This is about equity valuations, but currencies are compared by markets as reliable stores of value based on their status as universally marketable goods within a market.
cool
I don't understand lol
Alan Wasson me neither
1:09:03 Argy accent plus some Argy arrogance as well
Another funny joke about if China GDP keeps on 10%, then we all will speak Mandarin... HAHAHA.... LAUGHING LOUD IN THIS SILENT CLASS ROOM AND MYSELF....... Happy Halloween, Dude..........STF
The reason you take extra fees for riskier investments is because that's one of the pillars of finance .... you learn that in intro to finance
1:06:47 lol
Spoiler Alert! Black Schole Formula
End the federal reserve
I like my nachos hot
What about private bank Federal reserve creating debt and currency handing it to corporations they choose at 0% while the poor opening business pay anywhere from 17% to 2,000% on loan's, yet everything is even crazy bootlickers
Time value of money approaches zero and negatives. Eventually this is unsustainable and the FED is forced to reduce rates to curb inflation. This causes massive price shocks and the markets begin to clear. With MMT they lower rates again and try to continue inflating. At some point growth nears zero and all stocks collapse since g
Watching this while some bunch of Redditors are taking the Wall Street pros for a ride! GameStop to the moon! Unreal times!
This is great,but i prefer physics In MIT.
The master has spoken.
🇮🇳🇮🇳🙏🙏👍👍