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Like the banks, hedge funds have been leveraging up their exposures to markets.This activity is splendidly profitable, as long as markets behave themselves.
The result was a financial industry that was hugely profitable as long as housing prices were going up — finance accounted for more than a third of total U.S. profits as the bubble was inflating — but was brought to the edge of collapse once the bubble burst.
Oliver Chang, a former Morgan Stanley housing analyst now looking to buy $1 billion in single-family homes, says residential prices do not even need to go up for the trade to be profitable, as long as the houses are selected properly and value-adding repairs are carried out.There may be even simpler ways to bet on bricks and mortar.
The sharp aggregation in the thermocline can be profitable as long as density effects are negligible.
The automobile industry was very successful at turning out big expensive cars that were profitable as long as there was no alternative.
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They almost certainly won't be as profitable for as long as they were in the early part of the decade, but they are delivering much-needed help now.
Back in the late '90s many companies rushed into public markets even when they knew they might not become profitable for as long as two years after an IPO.
This means that the project can be profitable and additional as long as developers can show that another project type was even more profitable.
The bank understands that the price cannot go up forever, but the loan will be profitable (in expectation) as long as there is a good chance of a further increase before the crash.
The ideal is to buy a few quarters after the company becomes profitable and hold as long as that rapid growth rate continues.
Then there's lifetime value reporting, which tells a developer how profitable users might be as long as they use an app.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com