Prof Lowell

Professor & Consultant. Simplifying and Democratizing the World of Finance.

[Prof Lowell @ProfLowell]

@Fall21TSLACFO 42K Bitcoin X current bitcoin value of $45K = WOW. Word is this transaction actually saw TSLA see some serious profits. How are the real businesses doing - solar, giga factory, cars?

[Prof Lowell @ProfLowell]

@FALL21PFIZERCFO smh in amazement. 1 billion doses of vaccines distributed!! How much of this did Pfizer make themselves and how much of this production did they outsource? Did their R&D costs in Q2 and past quarters increase substantially?

[Prof Lowell @ProfLowell]

@Fall21LOWCFO #Fin2209. Agreed. for too long, Lowes has remained #2. Can you show us what % market share Lowes has? That would be interesting to see. This statistic is a starting point for Lowes to decide what strategic changes it needs to make to increase market share.

[Prof Lowell @ProfLowell]

@Sum20BRKACFO #Fin2209. Agreed. This example is a good way to apply it on a personal level to set up your own savings goal. Simply have the bank set apart a fixed amount of $$ every month in a savings account.

[Prof Lowell @ProfLowell]

A 20-year-old student wants to save $3 a day for her retirement. Every day she keeps $3 aside. At the end of the year, she invests the accumulated savings ($1,095) in a brokerage account with an expected
annual return of 12%.
How much money will she have when she is 65 years
old?

[Prof Lowell @ProfLowell]

@palakty24602401 Agreed. With such a low return, a higher amount will need to be invested to get to a savings goal at a point of time.

[Prof Lowell @ProfLowell]

If the rate of return is just 4%, this changes everything since she only has $132K saved. This means that she has to save more to get to $1.4M

[Prof Lowell @ProfLowell]

@SUM20TJXCFO #Fin2209 - I like the reasoning. Perhaps, even more reason to invest in index based funds.

[Prof Lowell @ProfLowell]

#fin2209. Let’s delve a little deeper into the TVM problem. Think of ways she could make more $$ and have a bigger retirement savings at 65. Is it realistic that one can get a 12% return in today’s investment climate or is 5-7% more realistic?

[Prof Lowell @ProfLowell]

@Sum20G @cityoftoronto @Google @sidewalklabs #Fin2209. That was unexpected and not the best news. This would have been an excellent experiment to see how a truly smart city powered by AI would work. Too many hindrances - privacy concerns, smaller footprint to experiment in etc. etc.

[Prof Lowell @ProfLowell]

@Sum20VZCFO #Fin2209. Agreed. If she saves a higher amount per day even with a low return, she will be able to get to her goal of $1.4M, Note that her expected returns goal of 4% is also conservative.

[Prof Lowell @ProfLowell]

@Sum20CVSCFO1 #Fin2209. Agreed. She could take advantage of compounding the returns she would get on a monthly basis.

[Prof Lowell @ProfLowell]

eToys - contd. This day in Fin History - May 20 - Just 19 months later, on Feb 26, 2001, the company announces that it will file bankruptcy.

Benjamin Graham (with Jason Zweig), The Intelligent Investor (HarperBusiness, New York, 2003), pp. 443-444; https://t.co/ATmDOtf1GI

[Prof Lowell @ProfLowell]

This day in Financial History - May 20,1999: eToys Inc., a startup Internet retailer, goes public on NASDAQ. Initially expected to be priced at $10-$12 per share, the first trade is at an astonishing $83 9/16. The shares close the day at $76 9/16, a one-day return of 282.8%.

[Prof Lowell @ProfLowell]

TVM Problem solved. #Fin2209.

[Prof Lowell @ProfLowell]

@Sum20SPOTCFO #Fin2209. Would like to understand how Spotify generates revenue. right now, it seems like a mix of advertising on the free model and subscriptions for the paid model. Any other revenue streams. Good choce!

[Prof Lowell @ProfLowell]

#Fin2209. For this week's (05/11/2020) tweets around TVM, please write about your understanding of TVM. I'll be tweeting some examples - use those examples to further your understanding and then tweet about it.

[Prof Lowell @ProfLowell]

#Fin2209. Using Excel for all Time Value of money (TVM) calculations. See example below:

[Prof Lowell @ProfLowell]

#Fin2209. Profitability ratios are like Key Performance Indicators (KPIs) that a company can use at any point in time to evaluate performance. If a KPI is not in sync with expected results, then there are actions that can be taken to improve it.

[Prof Lowell @ProfLowell]

#Fin 2209. A liquidity ratio is about how liquid (or easily convertible into cash) a company's assets are. Cash is the most liquid asset. Accounts receivables are the next - this is money that is owed to you from customers. Inventory is the least liquid asset.