Category Archives: Investments
Business Valuation by Rand Gambrell
The value of a business depends on what the purpose of the valuation exercise is aimed for. Is it for raising new investment via minority share sale, or majority stake sale, or for bankruptcy? State/country specific laws also plays a role in valuation. Investors may still attach a positive value to a company undergoing bankruptcy proceedings, like in the case of United Airlines. Under what standard of valuation are we doing this valuation: Fair market value vs Investment value?
Paul Singer on Financial Markets 2014
Paul Singer has survived in the financial markets for 40 years, and that means a lot. He has seen almost every kind of event and volatility, and that kind of experience brings valuable insights for all of us. His cautious view for 2014 given the steep run up in stock markets with easy money from the US Fed Quantitative Easing (QE) over last 5 years since 2008. Here’s a brief interview with him at Davos in Jan 2014.
Franchise Business Buying Checklist
Franchise businesses such as Wendy’s, McDonald’s and Burger King and many other food and clothing items are booming. The people setting up franchise ideas and businesses know a good thing, and are really promoting this idea. Franchises for just about every conceivable kind of business are being sold in ever increasing numbers. Some franchises are good. They treat both the franchisor and the franchisee very well. Others are very one-sided. Still others are almost total rip-offs that trap one into paying 10 to 50 times the actual value of the business idea, equipment, or whatever it is they are trying to get you to buy. Here’s a checklist of questions before you buy any Franchise Business. Continue reading
Why Land Often Beats Stocks And Bonds
As investors look for ways to ensure a good return on their money, land sales are increasing in popularity. Profits, whilst not guaranteed, are often better than those from the stock market, for several reasons:
Less risk, more profit: While some investors have a significant investment in the stock market, often with a comprehensive, well-managed portfolio, for most smaller investors, their experience of the market is limited to one or two companies and they are therefore more open to stock market fluctuations and risks. Company share prices can be affected by many external factors, often beyond the companys control and, unless you are watching the market carefully day by day, you usually have to hold onto your shares for many years in order to turn a good profit. By contrast, if you select the right land, or take the advice of a reliable land agent, you can realise potentially fantastic profits in a much shorter space of time. This is because the land thats normally made available to smaller investors has been carefully chosen. Big land investors buy and then bank land that they think will be ear-marked for development in the future, and then either hold onto it, or parcel it up and sell it to private investors, who reap the benefits if planning permission is granted at a later date. Continue reading