It seems that I have to share this Sad but Moment-us Event, I can not read minds, people must speak to me, I am unable to understand people I am connected to because I do have Aspergers, My complaint -Lawsuit against X Corporation and Elon Musk just found it’s way onto the United States District Court Docket this morning in Las Vegas. It alleges a group of people tried to force me to do unclear things that made no since to me resulting in Physical Bodily and emotional | Psych Injuries. Relief is Ten Million Dollars. Donald J. Trump filed a Complaint against X corporation for Ten Million and was not Physically Injured. And collected a Settlement. However? I was injured and for many weeks had to deal with Threats and Attacks.
However? I am smart enough to know I must defend myself from the Crazy following me around as a Entrepreneur.
So I must report I filed a Complaint in United States District Court in Las Vegas. My body has been affected by the covert campaign happening to me that resulted in Injuries and Harm by several individuals because of my Free Speech and Posts on X. The Courts will hear my Complaint.
Full Disclosure: Elon Musk is a Friend of mine. I would die to protect him and his lovely Family. I really hope Elon and his family do not mischaracterize my Federal Civil Complaint as a personal attack. It is not.
Thank you for reading, I do hope Elon knows I appreciate his support and his family’s support.
The Lawsuit is a Question about me being Injured. That is all. Linked below the actual Complaint.
Thank you with the Jury’s Voice and the evidence? I do feel I will be victorious in this sad event or maybe I won’t.
As any good Entrepreneur knows you need to have Legal Forms at the ready and especially United States Disctrict Courts Forms available at a moments notice when you find you have been wronged or are using Civil Statutes to file Civil Complaints as a Financier or Entrepreneur, these are some of thee Forms I use and may be helpful for you.
Pro Se Litigants or Entrepreneur Plantiffs
These are US District Court Forms You may find useful. More on this Website:
As any good Entrepreneur will find out you will be all on your own figuring the US Courts out as you go. I do hope you find some of this informative, but this is not in any way Legal Advice. Just forms I have used as a Entrepreneur who Forestgumps my way through the Court System successfully as a Entrepreneur and Financier.
Please feel free to visit the links. This is for other Entrepreneurs out there who do not have the luxury of using expensive Legal Counsel. And may I suggest a great way to utilize Attorneys is by signing up for LegalShield. All the Advice you can get from Attorneys during your Entrepreneur expereince. It well worth the fee’s for monthly plans.
Thank you for visiting. I do wish you well. Nothing here is Legal Advice. However just common sense I have used as a Entrepreneur. To help other Entrepreneurs out there.
TEN FACTS THAT MAKE MR. LARRY FINK THE MOST POWERFUL MAN ON WALL STREET
Capitalized
Mr. Laurence D. Fink (Larry Fink) needs no introduction he is a Founder of BlackRock a Asset Management Company with over 10 Trillion of Assets under management and has been a leader in Investments and Technology space since Founding his company in 1988. Mr. Fink’s story should be defined by his exceptional resiliency. In the early 1980’s Mr. Fink was a M&A Investment Banker at First Boston. And quickly rose to be the top of the Bond M&A Leader space. Until a loss that would ultimately change his career’s trajectory.
It is no mystery Mr. Fink and Blackstone’s Founder Mr. Stephen Schwarzman were partners during the late 1980’s and after a proposal was declined? Mr. Fink decided to sell his stake. Which led to Mr. Fink to start his own Asset Management firm. And ultimately this move led to BlackRock becoming THE Dominant name in the the Asset Management Space.
Entrepreneurs are Outcasts
Any Man of Good Courage like Mr. Fink knows you will encounter opposition to your mission. But you must over come the opposition. “With good courage.””Interestingly as a Entrepreneur like Mr. Fink? I too have had a professional brush ups with Blackstone’s Management. But all is forgiven, and I honestly do have nothing but the greatest respect for Blackstone’s leadership. Mr. Fink, Mr. Schwarzman and even Myself have all been treated as Outcasts in the Investment space. So I believe I am in good company as a fellow Entrepreneur. Smile.”
EXCEPTIONAL SUCCESS IN THE ASHES OF A 100 MILL FAILURE
In light of all the incredible success’s Mr. Larry Fink has had in becoming the most Powerful Man in Finance. It must be shared in order to build his investment success’s? He was subjected to torturous intractable failures and pain along the way.
It is said by some entrepreneurs our failures sometimes become “Badge’s of Honor Stories”. And great stories and legendary stories that circulate within the community.” Mr. Fink’s 1986 One Hundred Million Dollar trading loss has to be best described by me as a “Badge of Honor!” Not because his trading team lost 100 million. But because he did not allow this to define his future.
Even though Mr. Fink did experience a One Hundred Million Dollar Trading Failure that originated when his team was running the Bond Trading at the Investment Bank “First Boston” in the second financial quarter of 1986. Mr. Fink was not fired from First Boston Bank. But he was sidelined. This was not the end for Mr. Fink. He would move on to demonstrate exceptional resiliency moving forward. He has shown us all defeat is not the end. He quietly left First Boston Investment Bank at the age of 36. And moved on from this to Become one of the Greatest of All Time within Asset Management.
Risk is everywhere in Business
After Mr. Fink’s team failure at First Boston, suddenly other Bond Traders and other associates within the Banking space did not want to be associated with him. He was BlackBalled. Just like I have experienced in my quest as a Software M&A Investment Entrepreneur. People will throw mud at you, the groupie cowards quietly snicker and talk behind your back, sabotage you, spreading untrue rumors, and even sabotaging your prospects. All the while avoiding you.
But on any day? These same subversive types will never be able to handle open physical combat with real bone crushing consequences, or in general? Perform at your level. Mr. Fink as a fellow entrepreneur knows how to let your Investment Performance do the talking for you. We learn that the under-performers who sabotage others? They hide. But it’s not the end. Keep moving forward. Punish them with your performance. Risk will always be present.
Mr. Fink has been there done that and now? So have I! “If your not failing and fighting your way forward? Your Not Learning.” This brings me to this Posts purpose.
It’s important to point out even though Mr. Larry Fink experienced a failure and decided to leave his Investment Bank at First Boston. It was clear no one was going to give Mr. Fink access to capital to manage. Until everything changed! Mr. Fink quietly met the Legendary Blackstone Founder Mr. Stephen Schwarzman and then his professional life changed. Access to capital is everything.
Ten Facts about Mr. Larry Fink that make him Formidable
If your not “HARDCORE” about your business and life’s mission? Your not defining your legacy.
1988 Mr. Larry Fink Establishes his Investment Fund which becomes known as BlackRock
1989 Mr. Larry Fink takes BLACKROCK Public. When BlackRock goes public in 1989 it is the Fifth largest Asset Manager listed on the New York Stock Exchange.
Mr. Fink serves as interim Co-Chair of the Board of Trustees of the World Economic Forum and Co-Chair of NYU Langone Medical Center.
Mr. Fink is a current member of the board of the Museum of Modern Art and serves on the Advisory Board of the Tsinghua University School of Economics and Management in Beijing
Mr. Fink’s Duty To Preserving the Liberal Arts
On a side note: “I love that Mr. Fink loves Art like myself and is PURPLE in his political beliefs”. And this is really refreshing Mr. Fink is a staunch advocate and invests in Philanthropy and keeping the Liberal Arts Scene alive. Thank you Mr. Fink! I would like to introduce you to someone who was very kind to me when I was first starting out and who recently passed on and was a fellow Investment Professional from Kansas City. “Mr. G. Kenneth Baum.” Mr. Baum facilitated H&R Bloc Initial Public Offering during his Investment Career. Mr. Baums Son Jonathan Baum, lovely Wife Anna Baum and their entire lovely family in Kansas City would be happy to see I am keeping Mr. G. Kenneth Baums legacy alive in this post by sharing The Baum Family has contributed substantially to our local Art’s scene and the Nelson Museum of Art in Kansas City. It makes me sad I am not in Kansas City currently. However I am there in Spirit. It’s home.
If you did not know? Mr. Larry Fink is a leader on the Executive Committee of the Partnership for New York City.
Mr. Fink’s Education Success earned him an MBA from the University of California at Los Angeles (UCLA) in 1976 and a BA from UCLA in 1974.
Mr. Larry Fink is the Chairman and CEO at BlackRock: As the firm’s leader, he is responsible for senior leadership, succession planning, and client relationships
Global influence: Fink sits on the board of the World Economic Forum and is a highly influential figure in global finance, with his letters to investors often setting the agenda for major market trends and corporate social responsibility.
Mr. Larry Fink is a leader and in Good Standing as a Member of Kappa Beta Phi Fraternity
Mr. Larry Fink is a Global Leader in Finance and AI Global Influence. His professional Opinion and Influence reach all the way to the Oval Office of the United States of America, The Senate on Capitol Hill, and to Political Leaders across the globe. A Professional Man To Take Serious. Honor.
Capital, Risk, Initial Public Offering
Thank you for reading my post on the Ten Facts about BlackRocks Founder Mr. Laurence D. Fink, Mr. Larry Fink. I would like to end this post with a quote that details Mr. Finks Character and Commitment to helping his guys who are Investment Fund Managers. In a recent article Mr. Fink was heard Praising the alway’s respectable and Dominant Bond Market Analysis Voice his Chief Investment Officer Mr. Rick Reider.
In a 2018 interview, Fink expressed his admiration for Rieder’s character and passion, particularly his “headfirst approach to everything he does”.
“More than 50 percent of what attracted me to Rick in having him come to BlackRock was his personal being and his character”.
In a 2013 article, Fink praised Rieder’s work, which helped to turn around BlackRock’s active fixed-income business after years of underperformance and redemptions.
Fink referenced a “great statistic that my good friend, Rick Rieder, uses all the time” in a 2024 CNBC interview.
As a Entrepreneur I do believe soon, I too will be in a position to have serious conversations with Investment Professionals about raising my own Company from the ground up. Like Mr. Fink and Mr. Reider’s Fund has done. And I do appreciate my own moves and investment performance will dictate that opportunity.
All things Considered?
Mr. Fink has previously stated on CNBC “IPO’s are good thing!” CNBC Appearnce . Hopefully soon? Me and a Group of Investment Professionals, We can make that reality. And just like taking a page from Mr. Finks Book? I too won’t allow the failures and painful defeats I have sustained from keeping me from going public like Mr. Larry Fink has also done. Making me another Entrepreneur outcast that has reached serious success with serious minded Investment Professionals.
Even though I have also sustained embarrassing failures like Mr. Fink and other professsionals? I too won’t allow these failures to decide my future success. Keeping my integrity, and mission simple and keep moving forward. Like Mr. Larry Fink has done. Thanks for reading. And Thank You Mr. Fink and Mr. Rieder for the content. Jameson “Doc” Sharp.
Jefferson City Missouri, July 2025 Governor Mike Kehoe signs Bill to allow individuals to deduct One Hundred Percent of their capital gains from state income tax portion of their personal income. The Bill takes effect on August 28th, 2025. Just facts derived from Missouri Legislation. Im a Kansas City boy, so when I saw this legislation begin to take shape and be signed in the Missouri Governors Office, I had to dive in to the details happening back home. Let’s dive in.
I am a Kansas City boy so when something big happens in Kansas City, Missouri related to Investments for Tax and Law I have to write about it. I know what your thinking? What does this legislation have to do with me? Well if your in Kansas City or a Missouri Resident? You should be one hundred percent stay up to date with the things happening in the area.
The question is this? Do I have to wealthy to be included to benfit from this Tax Legislation? NO. Not at all. However if you are a wealthy and a affluential Business Owner or a local Investor. Just like our long time Kansas City Missouri Friend who is a Restauranteur and local Investor Michael Garrozzo’s. Their must be key points we can dive into that make this legislation make since for the community? Good Question: Here is what you should know Missouri Residents.
By the way if your in Kansas City, Missouri Please Visit Mr. Garozzo’s fantastic up scale basement Italian Restaurant. It’s a personal favorite of mine as a Kansas City Boy who grew up around these guys. You will love it.
Key points of this Missouri Legislation:
Individual tax exemption: Missouri residents will no longer pay state income tax on profits from the sale of assets such as stocks, bonds, real estate, and cryptocurrency.
Corporate tax trigger: The law contains a provision to extend a similar capital gains deduction to corporations once Missouri’s top individual income tax rate drops to 4.5% or lower.
Broader tax package: The capital gains cut is part of a larger tax reform bill that also includes other measures, such as sales tax exemptions for diapers and feminine hygiene products, and expanded property tax credits for seniors and individuals with disabilities.
Economic impact: The change is expected to result in a significant decrease in state revenue, with initial estimates suggesting a potential annual loss of over $100 million. This has led to debate over the bill’s potential impact on the state budget versus its ability to encourage investment and attract high-net-worth individuals.
Federal taxes still apply: The state-level exemption does not affect federal capital gains taxes, which taxpayers must still pay.
This Missouri’s legislation makes it the first U.S. state with an individual income tax to completely repeal its state-level capital gains tax.
Does this Legislation affect Individuals Offshore Asset Protection LLC’s and Trust’s?
Looking at the Facts in the Legislation? At this time no. However if you know your legalese on Offshore Asset Protection, you will know that if you use your own name in Offshore LLC or Trust Accounts a US Judge can order you to return the funds to US Soil. So this is why you must work with a small team of Attorneys, and Investment Adviser’s to use offshore Trust’s and LLC’s strategically. So if a US judge does try to order you to return the funds or assets to US Soil it will go no further than a Court Order being ignored by Belize, or the Cook Islands. Work with your Investment Adviser Professionals and Tax Attorneys for further information on this fascinating topic.
Questions and Facts:
How this affects Professionals? It does not. Only affects personal Missourians Tax Obligations at this time.
Please talk with your professional Accountant, Tax Attorney, or Professional Investment Adviser if you feel your Tax liabilities from Investments or Living or Irrevocable Trusts may need attention from this Missouri Legislation.
I am on the hunt for a local Tax Attorney and local Kansas City Missouri Accountant to give me a small thought piece about their experience using this new Legislation in thier Legal and Tax or Investment Practices. And how is this legislation affecting local Missourians. Full Published Article Scheduled for Tuesday.
Any good Financier has a Demand Letter ready at a moments notice to fire off to anyone or any institution or entity that requires a prerequisite to settle outside of a courtroom. In Case you are wronged and need to demand Payment for whatever legitmate claim you require? A good demand letter template is the foundation for any Advisor, Accountant or Attorney or Fianancier. Here is the one I have used.
Feel Free to copy and download. (Click on Photo for link.)
I never in my wildest dreams would think my mission and authenticity as a no name Entrepreneur would develop into a all out Billionaire Brawl with me in the middle, But here we are. I won’t be naming any of the Head’s of State’s and Prominent Billionaires across the Globe who are seeking my recruitment to keep things from escalating. However I am scared. And for good reason. I have been subjected to a encyclopedia of nasty things happening to me daily for over a year by a unnamed Business Leader. I am currently physically injured (Shoulder Needs Surgery), Physically and Emotionally hurt, and I am literally Broke. I literally do not know who to trust currently. Because of all the nasty things that have happened to me. I have all about One hundred and three dollars in my debit card account. However I do maintain a Fund/Brokerage Account that is untouched. Demonstrating my value as a Long Term Value Investor. It is compounding beautifully.
My Value Investing training as Investment Professional has proven incredibly invaluable as a Entrepreneur and Engineer. Obtaining Money is never the goal. However I am able to turn on the profit spicket when needed and let my investment performance speak for itself. The Intelligent investor and Seth Klarman’s Book Margin of Safety have really been favorites of mine. And I use the timeless lessons taught to me by my Value Investing Friends to navigate life and even the troubling times I have endured.
I should mention I do have a voice. And these Heads of State’s and Prominent Billionaires who are fighting over me are getting one thing wrong. I am not in a place of weakness as a Entrepreneur. I am on TEAM TRUMP. And President Donald J. Trump of the United States will have the final say in where he wants me to serve. President Trump spent most of his life in the streets of New York Commercial Real Estate, and found out fast it takes a fighter to rise to the top! This is a lesson I take to heart from the President. And that is one of the many reasons I stepped up to serve on TEAM TRUMP.
I am a big fan of All the Incredible names wanting to recruit me as a Startup Entrepreneur and Investment Professional. But the final say comes down to the President of The United States. I am a TEAM TRUMP member. I campaigned for Donald Trump and pounded the Pavement going door to door for Team Trump in Kansas. And did a few things in Arizona, Pennsylvania. I am a American Patriot. And I am one of the Presidents Trusted men.
I felt the need to share this because my life has been completely ground to a halt, sabotaged professionally, I have been relentlessly investigated by multiple agencies, and I have been physically injured and I am unable to access adequate medical care currently. I have even been Poisoned Friday March 21st and ended up in the Emergency Room. This is incredibly Unacceptable and I find all of the things I have endured as scary and unacceptable. Because of this unique situation happening to my life? I am living in extreme spartan conditions that are intolerable. But my toughness, grit, and prior military training are what is keeping me alive and going as a Entrepreneur. It’s true I am a bit strange and different socially. However I am unable to read certain things emotionally as a person. Yes it’s true I have a mild case of Aspergers. But I am not retarded nor am I incompetent. I am completely aware of the ridiculous fights happening in the shadows to recruit me as a Entrepreneur. I need to write a book about my experience soon.
TEAM TRUMP
I am afraid all the Heads of State and Billionaires who are trying to get me to be on their Investment Teams understand I am a American First. I plan on maintaining my position as a TEAM TRUMP member.
In the end? President Donald J. Trump will have the final say where he would like me to serve. If you don’t like that? You can take it up with the Commander and Chief President Donald J. Trump.
The Differences between Individual Margin Accounts and Revolving Credit?
It’s noon the day after Donald Trump has been victorious in his comeback cementing his Re-Election as President of the United States, and the country is electrified and the Stock Market is Roaring to all time heights today. But did you know? You can use you Securities as collateral to finance a loan? Yep! So I felt the need to share more about this today. Hmmm…It’s true!
Imagine yourself in the world of business and your a entrepreneur and all of a sudden you find yourself needing to use some debt to pay for your liquidity crisis? It happens and happened to me recently here is what I learned!
Credit Types
First before we dive into Margin Accounts that Banks Offer, we first must distinguish the two different types of Credit. The first type is Short term high interest credit. This credit type is usually one year or less and has a higher Interest rate because of the convenience it offers consumers. Just like in the Bond market the second type of credit is moderate to long term credit. Depending on the time involved with your credit needs? Moderate to long term credit is longer than one year and shorter than 10 years. This credit facility is used to offer borrowers lower interest rates.
Endowment Funds are a unique topic alone. Read all about this topic I wrote HERE!
Margin Vs. Short Term Revolving Credit
It seems I must share some quick facts and differences about Margin and Short Term Revolving Credit. Margin is credit offered by a Investment Bank that is lent to a individual who has a Brokerage Account with securities as collateral. It is usually high interest credit and short term. Margin credit works like this, Your portfolio of Securities of Stocks, Bonds, Mutual Funds and Investments held in your Brokerage account act as collateral for the Credit granted by the Bank.
It also must be pointed out that it’s highly likely you must have at least Fifty Thousand to One Hundred Thousand Dollars minimum invested in your Brokerage Account before the Bank will grant you a Securities Backed margin account. Under Finra rules a Bank is not allowed to grant credit of more than fifty percent of the total Securities held in the persons brokerage account. Example: If I have Fifty Thousand of Blackstone Stock in my Brokerage Account? The Bank can lend or extend me Fifty Thousand dollars on Margin. This credit is not to be used for purposes of Trading securities. It must be used as cash on anything else except Investments.
Revolving Credit | Credit Cards
According to Investopedia Revolving Credit is explained best by:
How Revolving Credit Works?
When a borrower is approved for revolving credit, the bank or financial institution establishes a credit limit that can be used over and over again, all or in part. A credit limit is the maximum amount of money a financial institution is willing to extend to a customer seeking funds.
Revolving credit is generally approved with no date of expiration. The bank will allow the agreement to continue as long as the account remains in good standing. Over time, the bank may raise the credit limit to encourage its most dependable customers to spend more.
Did you read my Page and Investment Portfolio? HERE.
Borrowers pay interest monthly on the current balance owed. Because of the convenience and flexibility of revolving credit, a higher interest rate typically is charged on it compared to traditional installment loans. Revolving credit can come with variable interest rates that may be adjusted. The costs of revolving credit vary widely:
So as you can see and imagine this can be a complex topic of discussion and to explain. However I like to keep thing simple and straight when I am writing. To sum up Securities Backed Lines Of Credit? It’s a Bank Loan that is deposited into your Brokerage account with the expectation that you will pay it back and use your Securities or Investments in the Account as collateral for the Loan. It’s that simple.
Larry Ellison loves his margin Account so much he uses it regularly for very large purchases. In fact if you want to read more on the topic? I would highly suggest you read this article by Forbes.
Speaking about Billions My Good Friend and Fellow Value Investor and Investment Advisor Mr. Bogumil Barnowski has built a Fantastic Podcast “Talking Billions” and Finance Professional Presence. Click on image.
Mr. Barnowski’s Podcast and Advisory Practice is incredibly interesting. Soon I will have to do a interview or post all about his Life as a Professional Advisor to High Net Worth Families.
SBLOC’s
As I conclude this Post about Margin Accounts and Securities Backed Lines Of Credit (SBLOC’s) Id like to leave you with this thought. Securities Backed Lines of Credit are more convenient than most other Lines of Credit. After all Securities are Asset’s just like a Home is a Asset to most Americans who invest into a Mortgage and store and grow their wealth using this method. However I would disagree with the thought “A Home is a Asset.”
I was taught by Investment Bankers as a Investment Advisor and as a Qualified Advisor? I do not feel a Home is a Asset. It is indeed a Liability. The upkeep and maintenance costs alone will erode and defy the mere fact your trying to create wealth for the future. I prefer my assets to be cash producing Investments. Buying Companies is a great way to build wealth as a Investor. At least you know if your wealth is increasing. Anyway’s I am getting off topic.
Using Securities Backed Lines of Credit
Securities Backed Lines of credit can incredibly useful as a Business owner or as extra source of finance when you find you need the convenience of fast money. As a Entrepreneur this can be incredibly useful and easy. The thought you can deposit income then buy stocks and bonds over time using your Income will no doubt generate wealth for you as a Entrepreneur.
Be Responsible With Debt and Credit
I would like to leave you with this one thought. What better way as a entrepreneur is there than taking the income we make from our Careers or Businesses than to deposit into a Brokerage account and buy Investments? Then when we have built up a small fortune with our stocks and bonds and investments? We can begin using them as assets to generate new strategies to building wealth.
I would argue that it could be risky if you don’t use this responsibly. However even thought with this said? If Larry Ellison and Elon Musk can use this for their convenience? To me that just seems like a convenient and winning strategy. It no doubt is bullish and capitalistic. Thank you for reading.
There are Different Capital allocation strategies for CEO’s. However this post will dive into the different ways and avenues CEO’s have for Allocating Capital and what Equity vs. Debt is used for when raising Capital for growth.
Imagine your a CEO and you growing your public company, but find that your really not prepared for the capital it takes to buy a larger company. What do you do? That is a hard question to ask. However I can go through the different options a CEO has when using finance to Buy a company. And what being smart with asset allocation looks like? And what are the different options a CEO has with Leveraged Finance? Let’s get started! Uncle John Malone the Founder of Liberty Media teaching about Structured Financing below.
There are really only five Capital Allocation moves on the chessboard as a Chief Executive. First you have the option of investing into Research and Development or the Operations of your company. The next option is for you as the CEO to Invest into and or Acquire Strategic Assets or Companies. Next you could Issue Shareholder Dividends with Cash from the Balance Sheet. Or if your Cash is beginning to pile up like Bill Ackman’s Company Pershing Square from buying all those incredible cash flowing businesses you as the CEO have the option to implement a Stock Repurchase plan. And the very last? Pay off Debt that is causing your balance sheet to be inefficient. These are your options.
The Problem Issuing Additional Shares Diluting Current Shareholders Shares
Issuing Additional Equity Shares as a Capital Raise is foolish and blatantly unfair in my opinion to Shareholders. Because this dilutes current shareholders equity shares. In other words shareholders holding shares who are not able to provide additional capital will have their shares diluted equaling a reduction in ownership. To me that’s a touchy subject. I don’t feel that is fair to shareholders.
So what are the options a CEO has for Financing? That is a loaded question. Because we have 2 Finance Topics that need more explained real fast.
Structured Finance
Structured Finance is a entire topic unto itself about Finance LAW. However for todays article or post we will keep it brief. Structured Finance Refers to financing options for Restructuring a company out of Bankruptcy. You have Structured Finance options such as?
First we can share Structured Finance. What is Structured finance is all about? Financing a Business using Securitization, Tranching, Credit Enhancements.
Leveraged Finance
Leveraged Finance on the other hand is all about the Following: CEO’s. Pay ATTENTION!
Leveraged Finance (LevFin) refers to the financing of highly levered, speculative-grade companies. Within the investment bank, the Leveraged Finance (“LevFin”) group works with corporations and private equity firms to raise debt capital by syndicating loans and underwriting bond offerings to be used in LBOs, M&A, debt refinancing and recapitalizations.
The funds raised are used primarily for: Leveraged Buy Outs of Companies, Mergers and Acquisitions, Recapitalizations, Refi Old-Debt. If your a Investment Banking Analyst or Finance Student the links will help you find more about these different options Advisors, Bankers and CEO’s use to Finance Business’s Acquisitions or Debt.
Mergers & Acquisitions: Acquirers often borrow to pay acquisitions. When a lot of debt is needed, it falls under the leveraged finance umbrella.
Recapitalizations: Companies borrow to pay dividends (“dividend recap”) or to buy back shares.
Refinancing old debt: There is an old investment banking adage that says “the best thing about bonds is that they mature.” Once a company’s debt matures, the company will need to borrow again to pay for the old debt.
One last part that is not obvious but crucial for CEO’s to understand. There is another method of Financing a Companies Sub-Division that may not correlate well with the Holding Companies niche in the Market Space. A way to keep finance separate is through the use of Tracking Stocks. Please read the Image below for more detailed description of Tracking Stocks.
Did you know? “Tracking stocks will trade in the open market separately from the parent company’s stock.” I was introduced first by and was educated about the use of Tracking Stocks by none other the Cable Cowboy CEO of TCI and Founder of Liberty Media Mr. John Malone.
Conclusion for CEO Finance Options
I do hope you found value in today’s post about Financing Options for CEO’s and hope you will use this new information to make better informed decisions as Public Company and Private Company CEO’s running and navigating finance. There are so many topics that evolve around the Finance Capital Markets that it would be impossible to include all available information on one post on my blog. But I would like to leave you with a very valuable nugget of wisdom from Mr. Warren Buffett.
Warren Buffett the CEO of Berkshire Hathaway always buys and invests into companies that gush cash flow. In turn his Company Berkshire Hathaway is always stacking cash and using the Treasury Markets to store that cash flow for the Balance Sheet. You see Mr. Buffett is smart enough to never place his companies extra cash inside a Bank Account at a Bank. That would be extremely inefficient and he would not receive hardly any long term value placing money into these facilities. Mr. Buffett would actually lose money over time. So he uses the Treasury markets to gain a positive interest on the cash Berkshire holds.
I hope you found value and wisdom from the information provided today. Nothing in this post is Personal or Business Financial Advice. And should be construed as strictly entertainment and the options a CEO has when considering all options for Financing. I hope you will take a page from Mr. Buffett’s book and Mr. John Malone’s Book and use what I have provided to make better and more informed decisions using the complex Capital Markets. Often times? Financing Business basics and using unsexy practices are all it takes to outperform the market as a informed CEO. Thank you.
What comes to our minds when I mention the name Guy Spier?
Guy Spier is a Value Investor, Fund Manager, Investment Banker, Harvard Graduate, Talented Skier, Father, Husband and also Mr. Spier is a Community leader of VALUE X.
Here are Seven lessons I have learned from Guy Spier that I would like to pass on to you. It doesn’t matter if your a Professional Investment Fund manager or Company Executive. You will find calmness and wisdom from Guy’s wisdom.
Investing Without Emotions
Guy teach’s his followers like myself that we should always invest without emotions. First we must break down what this means. 1. Breaking down what are our personal Behavior Biases truly are? 2. Be aware of common behavioral biases we may resort to without thought. 3. Defining your goals and time horizon can help you avoid emotional biases. 4. Bucketing or Achieving Milestone’s helps your clearly see your progression. Discipline can help you keep to a plan of action.
You may feel that watching CNBC or Bloomberg as a Retail Investor is good to gather the latest information on the market. It will feel like this gives you an investing edge in the market. However your are dead wrong! It’s simply a media outlet meant to deliver news and entertainment in the business world. That’s all. It’s smart not to allow this Television content to cloud your judgment and emotions while Investing. We as Value investor’s have a checklist, and a sophisticated skill set that includes Due Diligence and valuation processes before Investing in a Opportunity. We use these skills and our personal research before deciding if this would a good investment opportunity. Having the discipline to say no to things or investments does have tremendous value. Survival is everything. Protecting Capital is your duty. These are all ways to help you as a individual keep thing in focus and Invest without Emotions.
Resist Rebalancing
Many Retail Investors are being taught by the Traders on Youtube and it’s also standard practice for many Financial Advisors to Rebalance your Portfolio of securities when it looks like the market is overvalued. This looks like this. Your standard Retail investor has twenty securities positions. And if you place Five Percent of your Capital in to twenty positions this equals a hundred percent of your capital. However if history is a teacher? And if you were to just allow your portfolio grow organically? You may have a few positions see substantial growth and you will see a mixed bag of performance of mediocrity. And then you will see a few positions perform poorly earning you no returns or possibly loosing money. However with Guy’s approach of just allowing your portfolio to grow organically without rebalancing? You will see your small set of high performers account for most of your growth in your portfolio. While at the same time limiting the loss’s of the poor performers. In other words? Investing is very forgiving if you adhere to using long term time horizons as a strategy for your portfolio.
Learning From Your Mistakes Early in Your Career
This is truly a important lesson that Mr. Spier has shared publicly that I feel has a ton of merit for other Investors and Entrepreneurs like myself. Bottom line up front? You will make mistakes. You will make many mistakes. You will embarrass yourself. Making Mistakes and learning from them is just apart of the Human Experience. And if your a Entrepreneur? You will likely find that your failing your way forward. Now let’s learn about a big Mistake most Investors encounter when they begin investing as Retail Investors. You just don’t know what you don’t know. There are three different types of Entrepreneurs. Small Business Boutique Entrepreneurs, Enterprise Operator Entrepreneurs, and the Decentralized Investment Entrepreneurs. All has their own unique world. However they all encounter one mistake after another. It’s truly important to share your mistakes so that others may learn from your mistakes in business. Let’s be honest! Sometimes they make for great stories when your successful in the end. LOL
Defining Your Circle of Competence
Defining your circle of Competence means “What are you trained to do and what are you professionally knowledgeable about?” This important question can give you direction and confidence when evaluating Investment Opportunities. And if we are being honest if you can fix your Car’s Engine when it fails on you. I wouldn’t expect to see Guy Spier turning wrench’s in his Driveway in Switzerland when his car suddenly has a failure. No He would dispatch a Automotive technician or just buy a new car. Why spend the time on something of this caliber when you have options. Expert Networks operate in the same manner. There are Business professionals who do not have backgrounds in all things related to technology, manufacturing and and so many more topics of interest.
GLG Insights is a company any Investor or Business Professional can access and speak to Experts in their respective fields about a topic and answer difficult questions you may have about their respective professions and expertise. If you don’t have a Background in Softdrink manufacturing it’s likely you would seek out Softdrink Manufacturing experts. This is what we mean by saying, “Define your circle of competence.” You know what you know. And leave the hard questions to the experts of their fields.
Risk and Downside
Investing is a activity that involves Risk. Risk is the thing that acts as barrier or is the Downside of Investments. Some investments are relatively safe like Investing in US Treasuries. Then their are Investments like for example investing in to High Risk opportunities that may not return your capital and may not give you a return like New Startups and Junk Bonds. It all comes down to What is your Risk threshold. The lesson we can take from Guy’s lesson’s on Risk directly is communicated by his friend Warren Buffett. Warren spends a lot of time thinking about the Downside of an Investment. If you are comfortable investing your money into a company with a proven track record? Then it’s highly likely the downside of risk will be lower than investing into a unproven company that has not been in business for long. Your appetite for Risk is a personal comfort level. And I must mention that your comfort with risk directly correlates with what your circle of competence is!
Interestingly Mr. Guy Spier’s father was a Sapper in the Israeli Army. And the reverence and love that he speaks about his Father and how his Father is able to calm the environment with his presence and ability to listen while bringing calmness to the situation. Sounds to me like the Man you want next to you in a Fox Hole while your being bombarded with Bombs and all out War. This touches on the Topic of Risk and Downside because you want to be able to keep your cool during stressful situations. Id love to learn more about Mr. Spier’s Father. He sounds like a real Bad Ass. I can respect that.
While watching or rather Listening to Guy Spier and his fellow writer Mr. William Green it was very refreshing to hear these two community leaders speak about having the Courage to share your thoughts and feelings in real time. While filming a episode of the Podcast Surviving and Thriving recently. They were sharing a point in time when they were collaborating and writing Guy’s first Hit Book “The Education of a Value Investor”. I found it utterly Courageous that Mr. William Green had the fortitude to hone in and selectively ask hard questions and seek difficult answers to personal situations that occurred to Mr. Spier during the very stressful weekend of the Great Financial Crisis of 2008. The Video is below. Furthermore during the weekend of the Great Financial Crisis Guy’s Aquamarine Fund was hanging in the balance and held hostage during the Bankruptcy of Bear Stearns. However Jamie Dimon and JP Morgan came to his Funds rescue by making a Bid and buying Bear Stearns. It’s truly a fascinating look at how two very good friends of 30 years can open eachother up and allow mutual trust. A lesson definitely worth the watch.
Keep a Professional Journal | Annual Reports
William Green and Mr. Guy Spier touch on the very important topic of keeping and committing to writing a Professional Personal Journal or even servicing your Funds Annual Reports. Some in our space of Investing, do diligently keep Annual Reports detailing their Thoughts, Decisions, and the reasoning behind the exposures in the Market within their Portfolio’s. How many times have we as individuals forgotten why we did this or that or forgotten our split of the moment thoughts and reasoning while explaining our actions to others who were not present? Keeping track of professional actions is vital to our success as Professionals. So understandably It makes since to keep a journal. However it’s also important to keep a Personal Journal to allow the reader or you back into your Decision making process. We are all humans. We are all imperfect. So keeping a Personal and Professional Journal can make a ton of sense for Professionals like myself and Guy who do openly and admittedly have ADHD.
Mr. William Green’s advocacy of writing throughout your career stems from his professional life as a Author and writer. He is always selflessly adding value in the Investment Space. Mr. Green is a professional writer within the Value Investor community. And his speech’s and guidance and journal suggestions are always pure gold. I genuinely appreciate Mr. Green sharing thoughts publicly as it has helped me in my writing.
Annual Reports
Why keep a Journal for a Annual Report? As Professional Investment Advisors and Investment Fund Managers or Partnerships it’s not only smart to keep a Annual Report, but also it’s required by Securities Regulators. When Investors read your Annual Reports it’s wise to let them in to see how your decisions and actions led to you choosing to build a Professional Portfolio.
After all the Investment Returns or Failures need to be accounted for. An annual report is a document that public corporations must provide annually to shareholders that describes their operations and financial conditions. At the end of the year when Annual Reports are drafted and published this keeps all involved in the Profession Accountable and demonstrates Public Transparency. I hope you found something in this post useful and insightful from Mr. Spier’s content.
