Bill Ackman recorded this talk called, “Everything You Need to Know About Finance and Investing in Under an Hour”. Ackman runs Pershing Square Capital Management, which is a hedge fund that he started in 2003. Ackman is an activist investor, which means he takes large positions in publicly-traded companies and then tries to influence management in a way that benefits his partners’ interests.
He recorded this video for The Floating University, which is:
“a joint venture between The Jack Parker Corporation and Big Think, a knowledge forum that engages with top experts and the public about the critical issues of our time.”
You may want to check out some of their other lectures. I thought they seemed very interesting.
For the purposes of this assignment, you only have to watch the first ten minutes of the video. After that, the subject turns away from lemonade, though he remains interesting, engaging, and persuasive.
Your assignment is to build a financial model of his lemonade stand. Structure the model into three sections (Assumptions, Calculations, and Results). In the Assumptions section, show all the key assumptions that he is making. The Income Statement, Balance Sheet, and Cash Flow Statements belong in the Results section.
Identify any mistakes that might have been made in the first ten minutes.