Getting to that time when need to start memorizing formula.
Anyone got any good Mnemonics to make them a bit stickier?
ifeat = roe
interest expense, fin. leverage, ebit margin , asset turnover, tax burden
Portfolio Management is straight maths and formulas!! My least favorite section by far and formulas are really something…
4 Attributes of good corp governance = RRDD - Rights of shareholders, Responsibilities of Board and Management, fairness in Dealings and transparent Disclosure
PS PC IE IC- Product segmentation, Price change of supply inputs, Ease of industry of the industries, Industry concentration–>Four factors of industry pricing.
VSML–>Value, Size, Market, (Liquidity) Fama Franch(Pastor samburgh)
PRRL–>Pure, risk, recapture and liquidity–>build up method Alternate investments
Here is some more I found in old posts:
5 external forces
Technology, Government, Social changes, Demographics, foreign influences.
Thank god some day for me.
Factors that make investors not want to invest abroad (Portfolio Mgt)
Psychological barriers, legal restrictions, transaction costs, foreign currency risks, discriminatory taxation, political risks
Please Let The F*ckers Die Peacefully
for P/B and RI methods:
I think “rogue” and “roar”
Both of these use ROE in the numerator, but one uses “g” and the other uses “r”. The denominator is, of course, the ubiquitous Dr. Caprate (r-g).
So it’s ROE - g, as in “rogue”, and ROE - r, as in “roar”. Since Residual income starts with “r”, that’s how I remember which is which. Maybe the moniker P. B. Rogue is useful.
porter’s 5 forces
Every Stock Buyer Sells Rights:
Entry barriers, Suppliers power, Buyers power, substitute products threat, Rivalry of competitors
corp finance, core attributes of effective corporate governance:
Rights of shareholders
Fairness and equitable treatment
For the Prudent Investor Rule:
Trustees must exercise Care, Loyalty, Impartiality, Caution, and Skill
Sherlock Holmes, detective, had a nice pal named Watson with who he was chasing serial killers
So Durbin WATSON helps to track and correct SERIAL correlation
Being a hetero myself, when I see the word hetero, what do I think of? Sex.
What does sex do? Gets my heart pumping.
What does that do? Affects my Blood Pressure. = BP
heterodastictiy - detect with bush pagan, correct with white
h bp w = high blood pressure in white men
Multicollineality - detect f test significant, t test insignificant - correct with drop X variable
mc fs ti drop x = mc hammer’s fist dropping X (that’s a bit strained but the best i could come up with.
Level 1 concepts
French immigrants like crepes.
FIFO - Inventory, LIFO - COGS.
Type I Error - RTN (Reject True Null)
Type II Error - FRFN (Fail to Reject False Null)
“For those experiencing difficulty correctly identifying the two error types, the following mnemonic is based on the fact that (a) an “error” is false, and (b) the Initial letters of “Positive” and “Negative” are written with a different number of vertical lines:
* A Type I error is a false POSITIVE; and P has a single vertical line.
* A Type II error is a false NEGATIVE; and N has two vertical lines.”
thank ph4t, saving post :)
Here’s my favs:
Dicky Fuller Test
- tests for a unit root problem -> unit ->penis ->Dick -> Dicky Fuller
- symbol for persistence factor looks like boobies -> when my boobies are high there is a residual amount of boob spilling out of my bra -> high persistence factor goes with high residual income
Dividend Preference Theory
- a bird in the hand is worth two in the bush
You could argue two in the bush is better than one in the hand haha, and hence Dividend Preference Theory doesn’t have to be right.
wow where do you people come up with this??
econgirl- i think i will remember persistence factor for life now. hahahaha
One of my profs actually said during lecture…”Dickey Fuller Test - now that’s a mouthful”
Some good stuff there!
Any more final mnemonics?
I posted this somewhere else too, but for put-call parity:
C-P=S-X: Camp Sex.
ha I like the BP one. Won’t forget that on Saturday.
wow, I got Breusch Pagan and now I have Dickey Fuller.
Not quite a mnemonic, but this helps me differentiate the growth theories:
Classical: “In general, we’re f*cked.”
Neoclassical: “If we get lucky here and there, we might not be f*cked.”
New Growth: “Prosperity forever!”
This is a great thread for last minute sticking of concepts that wouldn’t stick before. Keep posting here if you have more of them.
Companies that are in CONTROL use the CURRENT rate method. (control = independent, both start with C)
DIRECT Quote = DOMESTIC currency in numerator (both start with D)
Anybody have more??
Co = pss
Covariance = correlation * std * std
yes, correlation of stds…
PBO = C*mming In P*ssy is Actually Less Beneficial
LESS Benefits paid
I AM A CHAMPION!!!
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