Definition A computer simulation technique used to test the resilience of institutions and investment portfolios against possible future financial situations. Helping gauge investment risk and the adequacy of assets, as well as to help evaluate internal processes and controls. E.g: What happens if unemployment rate rises to v% in a specific year? What happens if…
Category: Journal Report
Journal Report 12: Today-I-Learn about M&A
The M&A Takeover tactics Although there are many facets to M&A and the industry is constantly evolving, it is important to understand the possible steps an acquirer would take in order to pursue a target business. The early stages are considered friendly, and the latter hostile. Donald DePamphilis, Mergers, Acquisitions, and Other Restructuring Activities. Available…
Journal Report 11: The Best Acquisitions of All Time
Methodology The list is ranked by the estimate of the absolute dollar return to the acquirer. Acquisitions must be at least a majority stake in the target company. Revenue multiples are used to estimate the current value of the acquired company, equal its current estimated revenue x the market cap-to-revenue multiple of the parent company’s…
Journal Report 10: The big picture of the Rise and Decline of the Economy
Introduction This post gives a description of the cause-effect relationships behind the rise and decline of the most powerful empires. It is the author’s distillation of the dynamics he saw in studying the 3 reserve currency empires (the Dutch, the British, and the American), the 6 other significant empires (Germany, France, Russia, India, Japan, and China), and…
Journal Report 9: COVID-19 – McKinsey Briefing note
Epidemiological swing factors for COVID-19 Growth of new transmission complexes and evidence of seasonality; Impact of physical-distancing measures; The readiness of the health system to navigate recurrence; The emergence of herd immunity. Two new insights Beyond coronavirus: The path to the next normal; Safeguarding our lives and our livelihoods: The imperative of our time. Image…
Journal Report 8: Private Equity
What is private equity? PE firms are part of the fabled ‘buy-side’ PE is one of the most praised types of work in finance. The typical route into private equity is after having spent 2 years at a top IB and/or completing an MBA at a top business school. For an excellent insight into the…
Journal Report 7: Investment Banking
What is Investment Banking? 5 Steps to Understand the Industry An IB is comprised of three main areas: investment banking division (IBD), sales and trading (S&T), Asset Management. The large global banks typically offer all 3, with smaller banks usually focusing more on the IBD side covering advisory and M&A. Define IBD IBD is sometimes…
Journal Report 6: SoftBank Is Funding Every Side of a Bruising Startup Battle
Introduction In Mexico, for two years, the legendary late-night snack spot El Moro relied on Uber Eats to deliver its churros and hot cocoa to takeout customers across the capital. Then, in late 2018, it dumped Uber for an exclusive deal with rival delivery startup Rappi. The Colombian company offered to make deliveries for 10%…
Journal Report 5: Better Buy: Procter & Gamble vs. Coca-Cola
Introduction Procter & Gamble and Coca-Cola have more in common than just age. Both are part of one of the most elite clubs in the stock market: the Dividend Aristocrats. The 57 companies in this group have not only paid out dividends without fail for 25 years, but also increased the dividend payout every year over that span….
Journal Report 4: The British Pound As Brexit Approaches
What’s going on here? When it came to the switch from currencies to the euro, the Germans gave up their Deutsche mark, the French franc disappeared, and the Dutch guilder was no more, the Greeks gave up their drachma, and the Italians retired the lira. However, the British pound remained the currency of choice for…
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