04/25/2021: Weekly Newsletter
Hi All - I stayed up late watching the Oscars, which was…um… interesting? The way the show ended was pretty unexpected… (Maybe this Economist article from earlier in the week about award shows becoming less relevant rings even more true after some of what happened last night…) But at least there were some very pretty dresses, which I always enjoy looking at.
Money & Crypto
Growing valuation multiples in private equity (PE) deals over the decade - this chart above really illustrates how much PE firms are paying for acquisitions. What is a PE multiple you might ask? It's basically a way to measure how much you value a company relative to how much that company makes. In other words, if a company made $100 per year, and you bought the company for $1,200, then you would be paying a valuation multiple of 12 times what the company makes ($1,200 / $100 = 12). The chart above shows that in the past few years PE firms have been buying companies at higher multiples. Going back to our example of a company that makes $100 per year, a PE firm, might pay $2,000 for that company, which is 20 times their earnings of $100 per year ($2,000 / $100 = 20).
European asset manager Amundi’s growth over recent years
How sponsors of SPACs can make returns when company is not
JPMorgan and European Super League that fell apart
FASB accouting rule update on leases
Regulators looking at Binance stock tokens
Paxos receives conditional approval for bank charter from OCC
Bitcoin falls to ~$52K
Bitwise Crypto Index Fund applies to SEC
Tech & Science
Malaria vaccine making progress in clinical trials
Ingenuity helicopter flies on Mars
Athletic performance improves over time
Apple execs on the new iPad
Chuck Geschke, who helped create the pdf, passed away
Etc.
The eroding influence of awards shows
The best NYT Magazine articles from the past year
DMX passes away
Disclaimer: All opinions are my own. The content on this site and on the podcast does not constitute financial, legal, accounting, tax, or investment advice.
