Insights

Excel: =OFFSET() vs. =CHOOSE()

  • Peter Lynch

The two most commonly used functions for scenario selection are =CHOOSE() and =OFFSET(). The =CHOOSE() function is the simpler of the two, and is sufficient for most simple scenario analysis. If, for example, you only intend to run three scenarios, then you may prefer =CHOOSE(). This function can cause frustration, however, if you are constantly adding or deleting the number of scenarios in your model. The reason is that it requires you link directly to the scenario. The image that follows demonstrates:

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Aswath Damodaran Interview

  • Peter Lynch

I generally find it difficult to listen to long interviews and podcasts. One recent exception to this is an interview with Aswath Damodaran titled “Aswath Damodaran on the Art of Corporate Valuation” (click on the link for the interview).

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Business Dashboard for Online Startup: ASimpleModel.com

  • Peter Lynch

We are making baby steps towards profitability at ASimpleModel.com! This month revenue covered all fixed expenses excluding web design / development efforts and my time. A small victory, but it was exciting nonetheless. The most recent installment walks through these updates, and demonstrates how quickly you can update a business dashboard once you have one built. For those that are interested I have included an image of the business dashboard at the bottom of this post.

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Distribution Waterfall

  • Peter Lynch

Distribution waterfalls define the economic relationship between the equity participants involved in an investment. In private equity transactions this generally focuses on the relationship between the general partner (“GP”) and limited partners (“LP”).

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What Is the Best Textbook on Investing?

  • Peter Lynch

Investing is unusual in that the greatest enjoy writing about their profession. I would skip the textbooks and read the investor letters, memos and books that these individuals write.

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