KramerInvests

We are a week into the Fall Semester at Auburn. I have been asked to teach one section of the Principles of Finance class I last taught 13 years ago. To add a bit of the “real world” to the class I have decided to illustrate many of the Finance concepts we talk about in class with short clips from Seinfeld. Think episodes like Elaine purchasing items on the Peterman credit card for her and her friends own use for the Agency problem and Leo owing Helen $50 from 53 years ago and determining how much that is worth in today dollars if invested at 5% compounded quarterly. There are many more. Kramer is quite the investor, always hatching get rich schemes—we call the process of analyzing these investments Capital Budgeting. I am sure Kramer never once calculated NPV or IRR. Here is a short montage of Kramer’s investments.