Discount Rate Quotes

We're guessing at our future opportunity cost. Warrenis guessing that he'll have the opportunity to put capital out at high rates of return, so he's not willing to put it out at less than 10% now. But if we knew interest rates would stay at 1%, we'd change. Our hurdles reflect our estimate of future opportunity costs.

I do tend to think that things that have incredibly long time horizons often do involve market failures.

It all comes down to interest rates. As an investor, all you're doing is putting up a lump-sump payment for a future cash flow.

Almost every aspect of its (Federal Reserve) history should be approached with a discriminating disregard for what is commonly taught or believed.

When they so-called 'target the interest rate', what they're doing is controlling the money supply via the interest rate. The interest rate is only an intermediary instrument.

The Federal Reserve system obviously doesn't work anymore - they keep lowering the federal discount rate, and all that happens is that the banks are making a fortune, and the old folks' CDs are getting chewed up.

A real capitalist knows that $10 given today does a lot more good than $100 given 10 years from now.

There are philosophical issues involved in that about choosing the right discount rate, the value, the future, and things like that which drive it. But its start with the premise that global warming is real and if you're a denier of that fact, then you're not going to find climate change mitigation policies to have particular appeal.

The discounting presumably is to be done for each period of time at that rate of interest which represents the alternative cost of employing capital in the occupation in question; that is, at the rate which the entrepreneur could obtain in other investments

Groupon's model: Getting the group discount rate first, finding the group second. The daily deal goes out and, if a minimum number of people sign up, they can all share in the group rate. Vendor gets customers, customers get a discount, Groupon gets a cut.

Stock price multiples are negatively correlated with real interest rates. As interest rates rise, the market multiple will fall.