Michael Milken on risk and time value, the (non)utility of hindsight, and discounting the future.
“The past is always triple-A. We can all remember what the past was. But if we try to make the future triple-A, we have no future. The future is always single-B.”
– Michael Milken
PAST – AAA
FUTURE – B
Me – ???
Gotta raise my junk bond ratings. Need to make at least BBB- to be investment grade. Then again, I’m supposed to be returning speculative ten-baggers anyway. … … My BVI master/feeder fund and PPM-placement prospectus will be ready soon. Managed accounts also offered. Anyone?
[Apart from those amazing rough-and-tumble traders who pioneered MBS/CMBS (mortgaged backed securities) in ML’s Liar’s Poker like Lew Ranieri in Salomon Brothers, there was of course also Mike Milken and his junk/high yield bond saga at Drexel. Guess reading about these much-storied (and pilloried) characters and their trading exploits in my teens during the 1990’s already planted the (greed) seed in my mind, and was a natural (to me, at least) extension of my interested subject matters for study and possible future craft and vocation – architecture, law, philosophy, math, science, computational finance… Somehow, it all fit and made perfect sense to me.