Business Articles, Hedge Fund Articles

Bill Ackman’s Eight Investing Principals That Make It Rain!

If your a serious Speculative Investor? You will definitely want to read todays post on the Eight Investing Principals Wall Street Hedge Fund Manager Bill Ackman uses as a foundational Business strategy.

Most Wall Street Investors do lack depth of strategy and emotional Temperament. So it’s vital you study successful Fund Managers and reengineer or use their strategies. Mohnish Pabrai is always laughing while saying “He is a Shameless Copier in Business.”LOL I admit that’s insightful.

Members of Congress has a incredible investing Track Record. Is it because they have inside knowledge? Or are their Advisors doing shady business on the side? Who knows? However If you haven’t been paying attention to their investments that are publicly listed? You maybe in for a surprise. Be sure to check them out here! If you haven’t know about ValueInvesting.IO? You may want to go check them out. They keep up to date with Congressional Members Investments. And you may reach the conclusion that I have. Something just doesn’t add up. If they are using Material Inside information? That’s highly illegal.

If you think about the members trading strategies? It’s a great example of missed opportunity and I see many people on Twitter copying their trades. It’s surprising how incredible how they often receive above 20 to 30, to 50 percent returns annually. Its almost too good to be true. However I digress. Today I am sharing amazing value. From the Mr. Baby Buffett of Wall Street and the King of Activists Investors, The talented and always respectful Mr. BIll Ackman.

Before I continue, I should share: Even though my name is not known in hardly any Wall Street Investment Firms? My crazy entrepreneurship story is certainly gaining traction. It certainly is unique. How many entrepreneurs do you know who just said screw it and began studying the moves and strategies of Fund Managers like Bill Ackam? After all Professional Investing is something one can learn from just reading and being in the Market. Passion and grit are absolutely required. Most Big Firm Partners value a young guys working incredibly hard and demonstrating results that benefit their future success at the firm. Meritocracy comes to mind. When you put others interests and success first? You make friends an alliances quickly. But sometimes you can make enemies fast and jealous. That’s a Fact.

The basis of most value investors I know? Is to be curious and keep asking questions. If you just keep asking questions a someone who doesn’t know a subject or topic? Your curiosity takes you on a journey of discovery. And sometimes that journey of discovery? Is extremely profitable. Just keep asking questions. And learning as you move forward as a Value Investor. Benjamin Ghraham is a Man you should research if your interested in learning to become the next Bill Ackman. Watching everything Warren Buffett and Charlie Munger has said on video helps as well. The intrinsic value of being among Value Investors does pay massive dividends. But its all up to you! Do the work. And your do your Due Diligence.

So what are the Eight principals Ackman and follow when targeting companies?

Simple Predictable, Free cash flow regenerative dominant companies, With large barriers to entry That earns high returns on capital, With limited exposure to intrinsic risk we can’t control? 
Strong Balance Sheets Don’t need access to capital to survive, Excellent Management, and Good Governance 

Pershing Square Capital Management

– Bill Ackman

What are Bill Ackman's Eight Investing Principals?

Simple Predictable, Free cash flow regenerative dominant companies, With large barriers to entry That earns high returns on capital, With limited exposure to intrinsic risk we can’t control? Strong Balance Sheets Don’t need access to capital to survive, Excellent Management, and Good Governance 

In conclusion for today’s post? It’s very sensible to believe that if you adhere to and strictly follow these basic guidelines and principals while investing? You are surely going to be in great shape. If you go back in time and look at the trades or positions Bill and his team has made in the past that failed to perform or wiped out half his Hedge Fund? The principals were not followed. Leaving them exposed. And that is a lesson on keeping true to your education as a Value Investor.

Thank you for reading and I do wish you all Investment success.
Godspeed

JS

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Business Articles, Mergers and Acquisitions

Does a increase in Money supply mean Businesses are ripe for consolidation?

I received a question directly from the awesome searching entrepreneurs on Google Search today, So its with great privilege I get to share, explain, and answer this fragmented question to help all the future professional Entrepreneurs, Bankers, Accountants, and Corporate Attorneys out there. At the risk of sounding insensitive this question is slightly off base. So let’s dissect the elements and answer some facts.

“Who controls the United States Money Supply?”

The United States Treasury manages all of the money coming into the government and paid out by it. The Federal Reserve’s primary responsibility is to keep the economy stable by managing the supply of money in circulation. The Department of the Treasury manages federal spending.

So since we go this out of the way. Let’s move on to another question that creates value. Natuarlly we are going to want to ask the Question, “What makes the money valuable in business?”

“What makes the Money Supply valuable in Business.”

The value of any good is determined by its supply and demand and the supply and demand for other goods in the economy. A price for any good is the amount of money it takes to get that good. Inflation occurs when the price of goods increases—in other words when money becomes less valuable relative to those other goods.

If you have never watched the 2007 Business Movie that won all kinds of awards please watch this evil cruel film. It tells a disturbing story about a Oil Magnate mad man willing to go extreme lengths to use, abuse, and use dishonesty measures in business strategy in California in the early 1900’s.

There will be Blood “MOVIE”

“How does money get it’s value?”

The value of money is determined by the demand for it, just like the value of goods and services.

Business Landscape & Business Environment

Take a look at the volatility of the current Business market? It’s constantly changing second by second. It’s been my experience that in order to really look at company’s worth an acquisition development effort you must look at the long term future. Several questions come to mind. “Is the company easy and simple to understand?” “Does the business have a bright future because of the products it sells?”

Warren Buffett is always sharing that the business he looks for are the products and companies we love like Coca Cola. It’s the most recognizable brand in the world. And its future is certainly guaranteed to dominate most beverage shelves in nearly all stores and restaurants. So we can be pretty certain that investing in Coca Cola will be fruitful for investors. Coke is always looking at competition and alway’s buying up the best performing brands. If you did not catch the Coca Cola Acquisition of Body Armor last October? Please read about this Acquisition here. I mention this because I was contacted by a International Business News TV Station in Asia to comment on the transaction.

Acquisition Strategy in the Market

I would love to share a interesting view from the one and Only Mr. Bill Ackman who is the CEO and Founder of New York City powerhouse Activist Investment Firm Pershing Square Capital. At the expense of sounding like a Fanboy of Bill’s investment career? Which I am by the way. Bill personally is a sincere and just all around great guy. I really look up to his career as an example of where I am headed. He too was a Entrepreneur with a really tough road filled with hardship, adversity and impossible rejection. So I take comfort in his story that I am where I need to be.

This may sound ridiculous and surprising to some people who read this. But I am good with criticism I will receive sharing this next bit. Interestingly I will be going fly fishing with him sometime in the near future. But that is another story for another time. Let’s get back to business.

Research The Market For Acquisition Target Opportunities

Bill always said that when a downturn in the Market happens. He and his team of Analysts and researchers at Pershing look for opportunities by looking at Companies stock price that are trading for values lower than it should be. Meaning its undervalued stock price is an opportunity.

Activist Investing Strategy

Bill and his team shocked the Investment world during a market downturn when they made a trade off four hours of research making the Investment Fund Four Billion dollars in profit. Here is the short story.

If Wachovia wealth management company was trading at $1.84 and we look at the annual reports and the Debt on the books, and all the financials during a Due Diligence research session? And we decide the company is undervalued from the free cash flow and then look at the Stock price? We know there is opportunity for profit on this trade.

In doing this we look at the stock price and over all company valuation and decide is the company undervalued? Bill Ackman and his team mate Mick made a trade after 4 hours of research. And bought the Stock at $1.84 and later sold at around $9-$10 dollars a share. They bought 42 percent of the Company stock volume over 4 days. And made 4 billion dollars in profit just days after. Anyways all things considered? Bill’s Pershing Square Investment Fund made out like Bandits into the night. LOL Just incredible story.

Acquisition Consolidation

Before we move on? We must define Consolidation in Business Acquisition strategy? Consolidation in the most simplest of terms? “Is when a entity or a group of Investors Buys one Holding company, then buys other smaller companies or its competitive companies and folds these companies into it’s portfolio of companies creating value plus synergistic dominance in the selected industry.”

Professional Advisory Services with a proven track record to keep you safe during Acquisitions

I sincerely hope this complex post has given you a huge bang for your buck by clicking on my blog post on Google Search? This took me some time to write and rewrite. I won’t be winning any awards with my business blog. But at least I am able to share some basics in finance, business strategy, M&A and Entrepreneurship. If you would like to personally pick my brain and save time and weeks of research time? And if your a Senior Executive who would like a value based second opinion before accepting someones opinion you don’t value or trust? Myself and my team of Professional Advisors would be happy to Schedule a sit down and learn more about your mission.

If your team decides you would like to work with us? We can do the heavy lifting for you. We are also professionals for Executives and Business owners who require sensitive private secure services to protect all your teams professional reputations, leadership positions, and keep your Shareholders happy with your decisions and Job performance. My partners have built and operate company’s you see in the Wall Street Journal. I am lucky to have such wonderful mentors and partner advisors. And they can be yours as well.

Let’s Work Together

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