ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Investing Videos 424 videos
What is Devaluation? The process by which a nation deliberately lowers the value of its currency relative to other international currencies is call...
What is the Advance Decline Ratio? The advance decline ratio is used to determine how the market performed on a given day. It does this by comparin...
What is speculation? Speculation refers to a high risk, high reward scenario in investing. When an investor engages in a speculation, they take on...
Finance: What is Sandbagging? 5 Views
Share It!
Description:
Sandbagging is the practice of keeping financial estimates conservative so that they are more likely to exceed expectations. We do a similar thing at work. Always under promise, always over deliver.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Company Valuation
- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Investing
- Terms and Concepts / IPO
- Terms and Concepts / Stocks
Transcript
- 00:00
Finance a la shmoop what is sandbagging? want Wall Street to love you madam CEO [CEO appears on a balcony]
- 00:08
well what do you do you under promise and you over deliver you conveyed to the
- 00:14
street you'd be thrilled with earning $1 a share next year and when the year is
- 00:19
done you look back and note that you printed $1.30 meaning you actually [Man dazed appears with stack of cash]
- 00:24
earned a dollar 30 what did you do you sandbagged when a flood is imminent
Full Transcript
- 00:28
people put bags of sand against the shores of rivers and lakes the idea is [A flooded living room appears]
- 00:33
that the sand absorbs the water and slows the flooding hopefully saving a
- 00:38
few basements along the way when a company sandbags they try to keep
- 00:42
estimates of financials extremely conservative they publish vastly
- 00:46
underwhelming numbers so that when the real numbers come in while the company [Newspaper of company earnings appear]
- 00:50
looks heroic by sandbagging they set the bar low like a two-foot tall hurdle so
- 00:56
that when they successfully leap over those hurdles with tons of clearance [A deer jumping over hurdles]
- 01:00
well they look like gazelles which unfortunately have been banned from
- 01:04
Olympic competition doping who would have guessed?
Related Videos
GED Social Studies 1.1 Civics and Government
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...