Posts Tagged ‘investor’

The SEC Boosts Investors’ Influence Over Management

Friday, July 30th, 2010

In the lopsided world of shareholder voting, investors have to posses incredible gumption to effect any kind of change within a company.

  • In most companies, the management owns the majority of the stock, meaning that shareholders have little influence in a company’s policies.
  • The Securities and Exchange Commission is trying to even the playing field for shareholders, making it easier for them to effect change within a company.
  • The SEC is imposing nonproxy measures – like electronic surveys – to gauge whether or not investors support management. And yet, despite these efforts, because of money and knowledge, the management still wields most of the power.

Best Quote

“Time and again, we have brought opportunities [for mergers or acquisitions] to the attention of the board. Each time, he says, the suggestion was rebuffed or ignored. It’s been a decade of complete nonaction.” – Shareholder, Cadus Corportation

Buffet Invests In American Economy

Monday, November 9th, 2009

Warren Buffet, America’s most well-known investor, has purchased the Burlington Northern Santa Fe Corporation in hopes that railroad traffic will increase in the future.

  • Burlington Northern Santa Fe is a railroad company that ships products by train all over the country.
  • Buffet believes that railroads will become increasingly popular for shipping and transportation as oil becomes more expensive.
  • Buffet’s company, Berkshire Hathaway, followed his rules of investing in this particular deal: invest in companies that people can understand, and buy quality products at discount prices.

Facts & Figures

  • Buffet will pay roughly $26 billion for the 77.4% of Burlington Northern Santa Fe that he does not already own (at $100/ share).
  • Buffet is splitting Berkshire Hathaway’s B Class stock 50 to 1 (meaning that if you owned 1 share of stock before the split, you know own 50!) in order to pay for the acquisition.
  • In an investor owned $1,000 worth of Berkshire stock in 1965, that same investor’s stock would be worth millions of dollars today!

Best Quote

“This all happened because my father didn’t buy me a train set as a kid.” – Warren Buffet, CEO and Chairman of Berkshire Hathaway

An Investor is…

Friday, August 21st, 2009

Traditionally, an investor is an individual who commits money to products with the expectation of greater financial return. It is a major goal of an investor to minimize risk and maximize profit.

Prozac, Dr. Phil, And Your Financial Advisor…

Thursday, July 2nd, 2009
Financial advisers are experimenting with new ways to talk to their clients. Some have even started running pseudo-therapy sessions.
  • Financial advisers and their clients have always talked intimately about money, but the financial crisis has inspired a new kind of dialogue: the clients’ personal issues.
  • On the one hand, this therapy-like approach elevates the goals of financial planning from purely monetary to lifestyle and values. On the other hand, there’s a certain danger in trusting one person too much (e.g. Bernie Madoff).
  • Rick Campell is an investor with exposure to this new style of financial planning. In one of his sessions for instance, he opened up about everything from the number of kids he wants, to his parents’ divorce, and even his dad’s death.

Facts & Figures

  • The advisors at Merrill Lynch have started doing “values clarification” exercises and daylong retreats with their clients.
  • Wells Fargo hired psychologists and “family dynamics” counselors to help address their wealthiest clients’ personal issues.

Best Quote

“Are we going to get Prozac at the end of this?”  –Rick Campbell, investor