Business Articles, Hedge Fund Articles

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

If you’re a serious about Investing, you will want to read today’s post on the Eight Investing Principals Wall Street Hedge Fund Manager, Bill Ackman uses as a foundational business strategy.

Most Retail and some Institutional Investors lack basics related to Investing and lack control of emotional temperament. So this is why you must study successful fund managers and re-engineer or use their strategies. Mohnish Pabrai is always laughing while saying, “He is a Shameless Copier in Business.” I admit that’s insightful.

Members of Congress have an 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 the Members of Congress’s investments that are listed publicly? You will likely be in for a surprise. Be sure to check them out here on Capital Trades! If you don’t know about ValueInvesting.IO you may want to check them out. They keep up to date with Congressional Members Investments. While I am on this subject?

Paul Pelosi or Congresswoman Nancy Pelosi’s Husband is a formidable Investor and has beat the Market with incredible accuracy over the years. And you may reach the conclusion that I have. Something just doesn’t add up when looking at the results and Data. However if they are using material inside information to trade by being close to Congress? I would like to think that’s highly illegal. But from my investigation it is not considered by Congressional Investigators that anything below board could be happening. Huh! That is strange. If your an Activists like most of us? You will like to keep tabs on Political Events. That’s wise.

Today I am strictly focusing on the Investing Principles from the Mr Baby Buffett of Wall Street and the King of activist investors, the talented and always respectful Mr Bill Ackman

If I could share some of the value principles Mr. Ackman and other Prominent investors have shared online? I think if you just keep being curious. And keep being a investigator? You will eventually arrive at the inescapable truth. Most value investors find from their Due Diligence Checklists. Just keep asking questions and learning as you go as a value investor. This makes the most sense. And something I learned from watching all of Bill’s Videos.

The Father of Value Investing
“Bill shared with me that Investing is something you can learn by reading.” Benjamin Graham is a man you should research if you’re interested in becoming the next Bill Ackman. Read the Intelligent Investor. I promise you will thank me later. Watching everything Warren Buffett and Charlie Munger have said on video also helps the intrinsic value of being among value investors pay massive dividends. But it’s all up to you! Do the work and do your due diligence.

What Is Bill Ackman’s Eight Investing Principals?

  • Simple.
  • Predictable.
  • Free cash flow regenerative dominant companies with large barriers to entry that earn 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. 
  • Good Governance. 
  • Pershing Square Capital Management.

– Bill Ackman

In conclusion for today’s post, it’s very sensible to believe that if you adhere to and strictly follow these basic principles while investing you will be in great shape. If you go back in time and look at the trades or positions Bill and his team have made that failed to perform, the principles were not followed. And this has left them exposed. So if you look at everything mentioned above and read the Intelligent Investor or even Bill’s friend Seth Klarman’s book “Margin of Safety“. You will be well on your way to outperforming average traders with the right long term horizon.

One final thought: Warren Buffett likes to remind us as Value Investors to Invest into people. This means you must look at the Person or Management your investing into. Their Character, life achievements, and the culture they have built within their company. They must have integrity and honor and leadership. And when we stop to think about all these qualities? They add up! And that is why I have personally always been “ALL-IN with Bill and the Team at Pershing Square.”

Thank you for reading and I do wish you all Success in your steps learning about Investing.
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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Business Articles

Doing Due Diligence On Wall Street Media

Have you ever got the feeling your missing something critical before moving forward with a Position on Wall Street? I had that feeling as well. And since I did I did some basic research on the Media reports on TV. And what I found was interesting and concerning. I found the Media Wall Street rely’s on is incorrect most of the time. So we need to do some Due Diligence on Wall Streets Media Machine. And I can share with certainty. Those who are Hedge Fund managers and Active Traders will find these resources very useful. Check out this amazing little research group. Muddy Waters Research.

HEDGE FUND MANAGERS & DAY TRADERS RESOURCES

If your like most Day Traders and Hedge Fund Managers or Analysts you don’t have time to monkey around. Time is money, money is time. So you get busy! LOOK Before you stop and take that TV Report on a Public Company serious? I would stop and do some basic research. And this research group I was introduced to by Mr. Bill Ackman at Pershing Square Management is complete and utter gold. Link Below.

https://www.muddywatersresearch.com/

Did you catch the Article I wrote previously Here on the Types of Accredited Investors

Market Research Firm

Ok, here is another resource for you guys that need it. Check out these guys as Wolfe Research Group.

Wether you need Research and Market Insights or Intelligence? This firm won’t disappoint. If they do? Well nothing is without risk. But we would highly suggest looking and meeting Market Research Teams.

If you found value on my little corner on the Web?

All I ask from you is to copy a link and paste it onto your blog or website or social media directing visitors my way as a thank you for the value listed here.

If your interested? Why is Wall Street losing traders? Watch the report or story on CNBC Youtube below.


Thank you and Godspeed to you all who trade.
JS

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