Not Another Investment Podcast

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Ever wondered how the seemingly complex world of financial markets and investing works? Brace yourself as we, led by yours truly, Edward Finley, seasoned Wall Street investor and sometime Professor at the University of Virginia, embark on an enlightening journey together to unravel these mysteries. Drawing from my popular course taught at the McIntire School of Commerce, we'll begin by stripping down the complex veneer of financial markets, exploring their origins, their functionality and participants, and the role of trading and innovation therein.
Venturing forward, we'll simplify the daunting elements of finance theory such as the efficient market hypothesis and the role heuristics play in market behavior. We'll traverse through the world of equities, private equity, bonds, hedge funds, and real assets while juxtaposing theories with observed data. You'll gain insights into the art of portfolio construction and how investors amalgamate risks to meet their goals. As we go along, expect riveting interviews, deep dives into current events, and comprehensible reviews of scholarly papers. By the end, you'll be well-equipped to discern what the press talks about, making finance less intimidating. So, buckle up and join me on this exciting venture into the world of finance!

Thanks for listening! Please be sure to review the podcast or send your comments to me by email at [email protected]. And tell your friends!

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Prepare to have your perspective on the U.S. capital markets revolutionized as I, Edward Finley, sometime professor and Wall Street investor, unveil the misconceptions and truths behind our economic engine and those who drive it. In addition to the three common participants in our economy, we'll add financial intermediaries, who play a key role in how markets work.
In understanding the role of firms in the economy, we'll challenge the notion that small businesses are the bedrock of the US economy, and instead, shine a light on the might of large firms—the real heroes in job creation and business revenue. As we dissect the life cycles of firms, you'll understand why young startups bet on equity to drive growth, but as they mature, they pivot to using retained earnings or debt to fuel growth. The fierce competition among firms doesn't stop when they reach that level of maturity, and we'll discuss the risks to mature firms.
You'll also gain insights into perhaps the most important participant in our economy: households. The odyssey of that journey -- from borrowing in our youth to saving for the golden years -- we'll see how our spending habits ultimately fuel capital markets.
Government, the third player in the economy, ever the voracious consumer of capital, orchestrates funding for ambitious long-term goals, and uses capital markets to skillfully redistributing resources for the public good.
Finally, we'll explore the fourth participant in financial markets -- intermediaries -- and discuss the important distinction between the buy-side and sell-side.
It's a thrilling expedition into the intricate ecosystem of our financial markets, and you're invited to join the voyage.
Notes - https://1drv.ms/p/s!AqjfuX3WVgp8uGa7L0VEg_eXnxlG?e=yvfnsh

Thanks for listening! Please be sure to review the podcast or send your comments to me by email at [email protected]. And tell your friends!

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Buckle up for a thrilling foray into the world of equities, where we try to understand the risks we own when we invest in equities.
We dissect the mean-variance theory, which predicts that greater volatility should fetch higher rewards, and we scrutinize the empirical data that puts this financial cornerstone to the test.
We navigate the intricacies of the Capital Asset Pricing Model (CAPM), an alternative framework for evaluating equity investments. However, it's not just a love story; we also cast a critical eye on the CAPM, exposing its shortcomings amidst real-world complexity.
Then, we shift gears to dissect the Arbitrage Pricing Theory (APT), decoding the nuance of factors like size and value in stock returns. As we peel back the layers of these financial models, we reveal how they can both enlighten investors and, at times, lead them astray.
The final act of our financial drama puts passive and active investment strategies center stage. Witness the tug-of-war between the two as we scrutinize Warren Buffett's legendary tactics with Berkshire Hathaway through the lens of APT. Does Buffett's alchemy in outmaneuvering market expectations prove the superiority of active management? Or does it highlight an anomaly in an otherwise efficient market? Join us for a riveting dialogue that not only challenges what you think you know about investing but also aims to elevate your market acumen to the next level.
Notes - https://1drv.ms/p/s!AqjfuX3WVgp8uWo1lG57LUc15OlX?e=jnZf77

Thanks for listening! Please be sure to review the podcast or send your comments to me by email at [email protected]. And tell your friends!

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Discover the hidden complexities of private equity and the factors that can make or break your investment portfolio. Edward Finley guides you through the labyrinth of risk factors inherent in private equity, drawing on the analytical work of the economists L'Her, Jenkinson, Kaplan, and many others to dissect the performance of buyout, venture capital and growth equity strategy under the microscope of risk.
We unravel the myth that larger firms are always the prime targets for buyouts, exposing a surprising tilt toward smaller companies and their associated size premiums. As we navigate the murky waters of measuring value in private equity, where market prices don't exist, we find that buyout almost certainly buys value firms but it's impossible to observe; while venture capital and growth equity likely have the opposite. We also shed light on the impact of leverage in the strategies and its double-edged sword in shaping returns.
Come further into the realm of private equity with me as we evaluate the performance of buyout and venture capital. Through the lens of recent scholarly work by luminaries like Harris, Jenkinson, and Kaplan, we uncover that the modest outperformance of buyout since the turn of the century is really the result of only top quartile managers...and, sadly, there seems to be no way to know which managers will be at the top. In contrast, we discover that the top quartile venture capital managers earn whopping excess return, even more than the already impressive median manager. What's more, it seems like top managers tend to be top managers. So what's the catch? Listen and fined out!!
Our conversation is a clarion call to investors, emphasizing the pitfalls of investing in the private equity landscape. Stay tuned as we pivot from equity to the world of bonds in our next episode, promising to enrich your finance knowledge journey with each step we take together.
Notes - https://1drv.ms/p/s!AqjfuX3WVgp8uXbQAMablbPWeFl6?e=hhPBhc

Thanks for listening! Please be sure to review the podcast or send your comments to me by email at [email protected]. And tell your friends!

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Unlock the mysteries of real assets and their touted powers as inflation hedges with me, Edward Finley, on Not Another Investment Podcast. Together we explore the role of real assets in a portfolio. We develop three categories of real assets, like commodities, production means, and infrastructure. By breaking down these complex relationships, we find that some "real" assets are more real than others. You'll gain insight into not only the potential safeguards against inflation they offer but also the intricacies of investing in assets with their unique risks and liquidity challenges.
Venture into the fascinating realm of commodity futures, there typical way investors gain exposure to commodities, and understand how the dance between futures prices and spot prices reveals much about the health of our economy. We'll clarify the concepts of backwardation and contango, where the roles of hedgers and speculators pull the strings behind the scenes, crafting the market's momentum and influencing the all-important roll yield. This nuanced understanding is key for those looking to tap into commodity spot returns without the hassle of physical inventories, and I promise, it's a topic that will sharpen your investment acumen.
We'll put theory into practice by analyzing how commodity futures, particularly corn and oil, have performed through the lens of historical data. From the shockwaves sent through oil markets during COVID-19 to the long-term perspective on its efficacy as an inflation hedge from 1997 to 2023, this episode is a goldmine for enthusiasts and experts alike. And remember, for more in-depth resources, charts, and a chance to continue the conversation, visit Not-Another-Investment-Podcast.com. Your engagement is not just welcomed—it's essential in fueling our journey to demystify the investment world.
Episode Notes: https://1drv.ms/p/s!AqjfuX3WVgp8unnB8BqkHQD1_6HG

Thanks for listening! Please be sure to review the podcast or send your comments to me by email at [email protected]. And tell your friends!