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PDF Editor FAQ

Do dogs really love you, or are they just in it for food?

It's always tempting to be anthropomorphic when trying to understand our dogs. Science has indeed discovered the love hormone Oxytocin released in dogs that stare longingly at their human owners or professional handlers. However, the truth to the question is not as simple as discovering which hormones are in play during intimate bonding events.We must first understand that dogs are a separate species with their own evolutionary survival requirements. Just as you wouldn't necessarily look at a wild tiger and think that they may love you, so too is it implausible in the extreme that dogs interpret Oxytocin in the same way as humans interpret “Love”. Wild Dogs are Alpha Class predators, possibly the most successful hunters ever to grace the planet. Like it or lump it, your fluff ball is descended from the Wolf. Now the point about the wild tiger becomes clear. Deep inside your domesticated wolf is the gene-code of a remarkable hunter. Deep inside the gene-code of WHY wolves are such successful predators lies the answer to the question.Dogs interpret Oxycotin as a deep bonding experience essential for their survival. The more hunters that can be relied upon to work as one for the common good, the more successful each individual within the pack will become — Thus ensuring their survival.In domesticated breeds, over time human behaviour that had pattern was recognised and over multiple generations such recognition of human pattern behaviour became instinctual and passed down to future generations. That cut both ways. We understand some canine body language inately (wagging tail = happy dog), they understand ours too (Human point = focus attention in that direction). Furthermore, dogs can correctly identify 1 scent particle in a minimum of 4,000. Over time our symbiosis has gifted our dogs an understanding that we humans consistently release Oxytocin, dopamine and other pleasure hormones at certain times. Human reproduction and the joy of a successful hunt (for example) for which events our dogs would no doubt have been present; assisting the hunt and while lying in and around our camps. The CONSISTENCY of such human pleasure chemical release is what eventually handed down a basic understanding of environmental triggers resulting in pleasurable behaviour to our dogs. Now, a dog is the only animal to inately understand a human point, so too are they the only animal to inately understand a “loving” (human interpretation) / “bonding” (canine interpretation) gaze.

How does Credit Suisse determine discount rate when valuing equities?

Oh this is where the wonderful world of finance meets the black arts.I’m so happy someone has asked a question like this given the usual state of finance questions lately.So talking about your CAMP/WACC, I’m not sure if you’re aware; but, the biggest variable in those models is choosing your market. If you chose the wrong market the model is basically worthless (although it’s better than nothing). There isn’t really any real rhyme or reason as to how to chose a market, everyone has their own ideas, theories, and methods and the good modellers are those that just have some inate God given ability to chose the right market.I really cant stress how important choosing the right market is anymore than that.I’ve never worked at Credit Suisse, or have had friends who have, so I’m not sure if they have their own brand of dark magic over there but I’m sure they might.The other thing you do when choosing a discount number is after you’ve determined your WACC (if you’re deciding to value based on that) you check it for reasonability. If choosing your market in WACC was important then this is even more-so. This is where you do your analysis and you get a gut feeling telling you “No. That’s wrong. Fix it, if you know why its wrong then say it, otherwise figure it out”. For all you know (and I do not know this particular example at all) the analysts at Credit Suisse utilised WACC and got 12% then one of the analysts, or their associate, looked at it and said that’s too high for xyz reason.Choosing discount numbers, regardless of what anyone tells you, is more art than science and there will never be a single best way to determine it. Maybe, just maybe if you had a supercomputer compile all material information you could get close but even then you’d still have to apply weightings to each variable. I guess you’d just be running a ridiculously long Monte-Carlo simulation.This issue isn’t pedestrian either. Discount rates can have HUGE impacts on the prices Private Equity firms pay for their companies and work their way into hedge fund models across the value investing spectrum. The discount rates also have a large impact in the realm of corporate finance, although from the business perspective it’s much harder to see & feel the impact - I’m talking about the impact the discount rate has on companies like Celgene and their management & shareholders.For anyone curious, this is once of the places where Alpha is generated.I hope that answers the question.

Why do civilians believe that the average Marine is on par with the US Army combat arms soldiers, and their infantry is on par with the Rangers?

Because Marines propagate that nonsense. They really prioritize their marketing and PR over everything else. Usually, they attribute it to an extra week or so of basic training.They don't just do this with their infantry, I've seen it with their engineers and tankers too -- the funny part of that is that Marines use the Army schools for those MOSes, they don't have their own. Somehow, after getting the exact same training, their inate nature as Marines makes them better trained.I currently live in Columbus, Ga, where we have a battalion of "scroll" Rangers from the 75th as well as the Ranger training that produces "tab" Rangers. Occasionally, you will see some Marine trainees here for tank school or something else out and about in the pubs telling Rangers they are "just like Rangers because they have been to boot camp". Hilarity ensues.TL;DR Don't believe the USMC bullshit.

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