Continuing our Financial Acronym of the Week series, I’d like to remind you that Pete the Cooler enjoys using financial acronyms to shorten very complicated financial terms, just like the masters of the universe of the financial world do. It sounds so slick, suave, and sophisticated to rattle off a bunch of terms to show your superior financial intellect. So today, you will learn the meaning of DIVE.
You’ve likely heard traditional terms like: ACE, EBIT, EBITDA (just add DA), AAGR, CAGR, NPV, MBS, MIV, ROI, CFCT, CDS. And of course you’ve learned PtC’s signature term, Devastating Asset Decline (DeAD) to describe significant declines in value of an investment over a given period of time. You can find all of Pete the Cooler’s Financial Acronyms in the glossary.
As always, while using this terminology to show dominance, maintain a forced power pose while talking to ensure that others submit to your prowess or mistakenly assume you are a maniacal overlord scheming for world domination, before they return to Facebook and Twitter to their own future detriment.
Financial Acronyms – DIVE
For this week, I’ve coined the term: Depression from Investing in Volatile Equities (DIVE) to describe the feeling you get from owning equities, particularly those for which people develop strong affinities, that have frequent and significant fluctuations in price.
For example, Li Hejun, one of China’s richest men wanted to go for a DIVE after he lost $14 billion during a half-hour period in May 2015. According to Money, the losses came when his stock in Hanergy Thin Film Power Group Ltd. lost 47% of its value before trading was suspended on the Hong Kong exchange. (The article doesn’t mention that Pete the Cooler was in China in April 2010 negotiating the purchase of preferred shares of Hanergy stock, but that’s probably just a coincidence, right?)
In case you missed it, you can read about my previously coined and closely related term: Depression from Investing in Volatile Assets (DIVA).
There are a few of those shiny-shoe guys each year in the NY, Chicago, London, and Singapore skyscrapers who DIVE. Pete the Cooler certainly knowns how to DIVE, and the many of you will feel it at some point. Don’t be surprised if you hear guys in suits talk about going for a DIVE.
And, there are a lot more jewels where this came from. I’ll keep rolling out financial acronyms weekly (or so) as we go down this PtC rabbit hole together.
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