European
equities have done well this year, but they are still trading at a valuation discount to U.S. peers.
And while
equities have done less well over the last decade, with a 5.5 percent annual real return, cash has shown a negative 0.8 percent annual return in the same period.
Risk adjusted returns would favor municipal bonds as
equities have done it the hard way with a standard deviation (a measure of volatility) of over 2.6 % while munis have seen a standard deviation of under 1 %.
That's not surprising: Dividend strategies tend to underperform in strong markets, and despite recent market weakness,
equities have done well over the past year.
So let's say you have a really good year in bonds but your emerging
equities have done poorly, sell some of each asset class and get back in balance and offset some of the tax liability --(see my next point!)
Historically as interest rates have risen,
equities have done well.
The Goldman Sachs Commodity Index (GSCI) is down roughly 31.2 %, which is a strong juxtaposition to how
equities have done.
European
equities have done well this year, but they are still trading at a valuation discount to U.S. peers.
Equities have done better than RE 1:1.
I am more interested in understanding exactly what
the equity I have does for me?
Not exact matches
What
has really happened in private
equity over those decades is that investors, net of fees,
did about 25 % better than the S&P up through the 2005 «vintage» year (denoting funds that first drew capital in 2005).
It's unrealistic to expect that an unsophisticated investor picking startup projects on the Internet will fare any better, and downright misleading to suggest that
equity crowd funding allows the masses to participate in the next Google or Facebook, as proponents
have done, Isenberg argues.
«I don't really trust a private company to watch out for
equity because I haven't seen it happen,» councilwoman Meghan Sahli - Wells reportedly said.
Because he
had no
equity - based compensation with Carillion, he didn't
have a non-compete clause.
«Just like you wouldn't want to overpay with cash, you certainly don't want to overpay with
equity,» says Casper CEO Philip Krim.
One, it's the same as raising capital, but you don't
have to give away
equity or decision - making control.
'» Crowdfunding
did not require the entrepreneur to sacrifice any
equity or pay any interest, and she
'd already proven her ability to use it successfully.
«I feel like from what you
've been able to
do so far on your own, I
'd count on you to keep going without
having to give up a big chunk of
equity that I
would need.»
Answer and solution: Term Sheet readers are aware that the private
equity industry is increasingly facing an inventory problem — viable targets are too expensive, activist shareholders are forcing companies to
do PE - style cost - cutting while they're public, and corporate buyers
have so much cash they can afford to pay high premiums.
Assuming you
have the right directors, this sets up a situation in which Directors are forced to engage in value creation and be rewarded for
doing so, similar to private
equity directors.
The company's model of sharing
equity with its agency partners and willingness to invest in needed technology
has made it an example of how to
do business in Adland amid the world's new economic realities.
While she
did have $ 1.6 million in freshly raised
equity capital, a cash - flow crisis that only a little more than a year before
had forced her to cut salaries and staff was still fresh in everyone's mind.
What's more, any big deal that private
equity did, particularly any
done by his old firm Bain Capital,
would likely be subject to more media attention then ever.
I
had done everything possible to convince the bank I could make the payments if they extended the
equity line.
I
have worked with several companies whose owners
had a supportive friends and family network that required very little
equity and didn't stress about the financial outlay.
For Directors»
equity to
vest (the portion they
did not purchase), hurdles
would need to be achieved that reflect personal performance and long - term value creation of the company.
Although her
equity pool currently stands at $ 4.8 million, she confides that she doesn't receive
equity payment nearly as often as she
'd like.
Airbnb doesn't need the money, Chesky said — whether for ongoing operations or for M&A (the company just completed another $ 1 billion funding round and
has reportedly spent less than 10 % of the $ 3 billion plus in
equity it
has raised), resources aren't a limitation.
«The macroeconomic environment really
has nothing to
do with what
equity markets are going to
do,» he says.
For starters, Wild Planet uses open - book management, which means that everyone
has access to all the company's financial data, except for figures on
equity ownership (though everyone
does receive stock options) and salaries.
To
do so, Fisker
has sold off large parts of the company to raise $ 1 billion of
equity investment, since it only drew down a portion of the loan.
The smaller Cboe
does have an advantage over CME Group, however, because it's a major player in stock and
equity options trading, giving it access to broker - dealers and investors who may not trade on CME.
And, he
has said, he used a home -
equity loan to finance the payment to Daniels in the final days of the 2016 campaign and
did so without Trump's knowledge.
«You don't
have to
do equity deals to make a difference,» Cherian says.
I
do think, as you put it before, that the
equity market
does rely on us
having somewhat lower rates and the Fed normalizing policy fairly gradually.
«Investors can come with demands (
equity, board seats, etc.), so a smart thing to
do is consider what you need the money for (new product, new markets, «supercharging» growth, etc.) and balance what you will get, with the trade - offs you'll
have to make.
The investors
would get this token which usually doesn't give
equity in the company, but instead promises returns in the future or
has some kind of use on the platform that is being built.
If we didn't
have to, we
would never
have done it — we
had built so much
equity in it.
Some of this
had to
do more with the market than private
equity firms.
For your personal brand to
have any
equity, it needs to be clear what you stand for, but what about what you don't want to be known for?
If I didn't
have an
equity stake,
would I take it as seriously?
Because hedge funds are not required to report their bond holdings to the SEC (although they
do have to report
equity positions), we don't know exactly who owns how much of which Puerto Rico bonds.
«In the nonprofit sector, you probably don't
have the ability to offer either the short - term big bucks or the whispered promise of future riches that
equity provides.
While private
equity and hedge funds
have built - in «gates» to prevent an overnight exit, mutual funds and ETFs
do not.
More often than you
would expect, a manager of a private
equity fund looking to raise capital tells us a story about a business that, in the words of the fund manager,
does no marketing.
For the vast majority of all other companies, however, we
do not
have (and probably
do not want the kind of) the brand
equity with our customers to allow us to wear pajamas in a professional environment, so it could greatly harm the value we are trying to convey.
Does this mean that if U.S.
equities continue running higher after their recent tumble, bitcoin will
have a chance to retest that $ 20,000 mark?
The Small Business Administration defines businesses eligible for SBA loans as those that: operate for profit; are engaged in, or propose to
do business in, the United States or its possessions;
have reasonable owner
equity to invest; and use alternative financial resources (such as personal assets) first.
The private
equity firms together with Humana
would get Kindred's home and hospice care operations, the WSJ reported, citing sources it
did not identify.
and keep in touch with them, and as
equity investors they
do have rights.