All posts by largecaptrader

Systematic hedge fund trader

Legal Insider Trading Biotech

Let’s say a biotech CEO learns that, in two days, her company is going to announce clinical results that will surely boost its stock price. She can’t legally buy up a bunch of the company’s shares right then — that would be the bad kind of insider trading — but she can cancel a scheduled 10b5-1 sale to avoid dumping stock just before its price soars.

https://www.statnews.com/2016/08/08/insider-trading-biotech/

Management Consulting

Former Management Consultant describes the management consultants. I had an experience early on in my career where someone describes consulting as a process of telling you what you already know and then charging a lot of money for it.

http://www.theatlantic.com/magazine/archive/2006/06/the-management-myth/304883/

I think it is still an excellent early career choice for most people, the individuals who went into consulting seem to have the most ‘exit’ opportunities and most diverse networks, which is ultimately more important than skill or aptitude, even in trading.

And if anyone remembers the EPICLY timed Bankers vs Consultants rap battle:

Soon after, the global economy collapsed. #Shocker

Tax Tips

When you get rich you’re going to need these tips. Than you can donate to the site!

http://www.bloomberg.com/news/articles/2012-04-17/how-to-pay-no-taxes-10-strategies-used-by-the-rich

Edit: Related to taxes, an impressive example of the power of compounding and deferred taxes:

Imagine that Berkshire had only $1, which we put in a security that doubled by year-end and was then sold. Imagine further that we used the after-tax proceeds to repeat this process in each of the next 19 years, scoring a double each time. At the end of the 20 years, the 34% capital gains tax that we would have paid on the profits from each sale would have delivered about $13,000 to the government and we would be left with about $25,250. Not bad. If, however, we made a single fantastic investment that itself doubled 20 times during the 20 years, our dollar would grow to $1,048,576. Were we then to cash out, we would pay a 34% tax of roughly $356,500 and be left with about $692,000.

Source: http://seekingalpha.com/article/3438006-berkshire-hathaway-importance-deferred-taxes