Posts filed under “Apprenticed Investor”

A $325 Million Deal Still Needs a Plan

>

 

My Sunday Washington Post Business Section column is out. This morning, we look at Giancarlo Stanton’s enormous a 13-year, $325 million contract with the Miami Marlins.

The print version had the full headline A $325 million deal still needs a plan, while the online version was Congratulations! You just signed a $325 million deal. Now what?.

Here’s an excerpt from the column:

“Professional athletes have been going bankrupt with alarming regularity for decades. . . . Shortly after they retire, nearly four of five NFL players are bankrupt or under financial stress, according to Sports Illustrated. . . . It’s marginally better in the National Basketball Association, where after retirement nearly two of three players are broke within five years.”

To avoid that fate, Stanton need only do a few things right and avoid the common errors. Before we get to that, let’s drill into the specifics of his contract. That $10 million a year we discussed was an average across the 13 years. In actuality, the contract is “backloaded” — meaning, the richest payouts are in the latter years. According to ESPN, “Stanton’s salaries over those first three seasons will be “only” $6.5 million in 2015, $9 million in 2016 and $14.5 million in 2017.”

So in actuality, Stanton will likely take home about $2.2 million, $3.1 million and $4.9 million over the next three seasons. Objectively, that is still a lot of income, but it sure is a lot less than the $325 million the headlines are trumpeting.

The differences between the headline and take home number is what gets so many young athletes in a fix.”

The rest of the column follows with some common sense advice for athletes.

I like the table the Post used in the dead tree version of the paper:
>
click for ginormous version of print edition

baseball salary

 

 

Source:
Congratulations! You just signed a $325 million deal. Now what?
Barry Ritholtz
Washington Post, November 23, 2015
http://wapo.st/1td6w2u

Category: Apprenticed Investor, Asset Allocation, Investing

Tony Robbin’s Recent Weather Portfolio

Jim O’Shaugnessy took a closer look at what I am now dubbing the Tony Robbin’s Recent Weather portfolio. It is akin to taking an umbrella today because it rained yesterday. Jim is a quant extraordinaire, and his analysis confirms what I wrote earlier this morning: This is a biased sample, form fitted to have done…Read More

Category: Apprenticed Investor, Asset Allocation, Quantitative, Really, really bad calls

Tony Robbins is a self-help genius. He has sold millions of books that many people believe helped them realize their full potential. He understands the human psyche. As a motivational speaker, he knows what a person must do to overcome everyday struggles to “self-actualize,” and awaken the giant within. People love his seminars (although I…Read More

Category: Apprenticed Investor, Asset Allocation, Investing, Really, really bad calls

Significance of secular market should not be underestimated Barry Ritholtz November 9 2015     People who work in specialized fields seem to have their own language. Practitioners develop a shorthand to communicate among themselves. The jargon can almost sound like a foreign language. Finance is filled with colorful phrases such as “Spoos,” “Vol,” “Monte…Read More

Category: Apprenticed Investor, Cycles, Investing

Despite Abysmal Track Records, Forecasters Keep Forecasting

On this day in 1993, the Wall Street Journal published a survey of 10 market pundits. They had been asked when the bull market that started in 1982 would end. Most of the forecasters predicted a 10 percent market decline — hardly a bold position because 10 percent declines occur fairly often, about once a…Read More

Category: Apprenticed Investor, Investing, Really, really bad calls

Is it a secular bull market? What it means for investors

>   My Sunday Washington Post Business Section column is out. This morning, we look at secular markets, and what they mean to investors. The print version had the full headline (Page G1) Is it a secular bull market? What it means for investors while the online version sported the headline Significance of secular market…Read More

Category: Apprenticed Investor, Cycles

Find a financial adviser who will put your interests first

Find a financial adviser who will put your interests first Barry Ritholtz Washington Post, October 26 2014       Today’s column is going to be on the wonky side, but stay with me — it is very important stuff. For investors seeking some help, it can be crucial. If you want financial advice, there…Read More

Category: Apprenticed Investor, Investing, Legal

Successful Investors *Adapt (*or go Extinct)

Dave Nadig of ETF.com has some very kind things to say about our latest project: “Right now, on our home page, we have evidence of what I think is the most important trend we’re seeing in financial services. It’s not a product launch, or a clever structure or a brilliant way to make money now….Read More

Category: Apprenticed Investor, Asset Allocation, Investing

What If You Were the World’s Greatest Stock Picker® ?

Even if you could pick huge winners, could you hold them? Barry Ritholtz Washington Post, October 5, 2014       Let’s imagine for the moment that you are the World’s Greatest Stock Picker®. You have an uncanny talent for ferreting out “the next Microsoft” — companies that are on the sharpest edge of what’s…Read More

Category: Apprenticed Investor, Investing, Psychology

World’s Greatest Stock Picker®

> My Sunday Washington Post Business Section column is out. This morning, we look at The world’s greatest stock picker? Bet you sold Apple and Google a long time ago. (Thats the print headline; online it was Why the world’s greatest stock picker would’ve ditched Apple). This is the third (and likely final) installment of…Read More

Category: Apprenticed Investor, Investing, Trading