The Primary Source of Business Capital
The Primary Source of Business CapitalBy July 2004[http://home.earthlink.net/~beowulfinvestments/][http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]It's OPM. Banks don't have any money. They lend OPM. Brokerage Firms rarely risk their money; they rely on OPM to trade the Market. Venture Capitalists, Hedge Fund Managers, Pension Funds and Insurance Companies are constantly searching for more OPM.
Governments rely upon OPM to run the country. So what's OPM? It's Other People's Money.Understanding OPM is the Key to Raising Risk CapitalThe suppliers of OPM expect to be rewarded for their money. That reward is a combination of acceptable risk and profit. Often these investors don't fully understand the Risk/Reward Ratio of their investment. To have any chance of succeeding over time, they should reduce investment proposals to a simple Risk/Reward ratio to determine their willingness to risk their money.American Banks borrow money from their depositors and leverage it with tax dollars.
The Depositors believe there is very little risk in loaning money to an American Bank and since 1934, no American bank depositor has lost their money in a bank failure, thanks to the American taxpayer.Losing At the BankHowever, what bank depositors fail to realize is their 3% interest rate reward is inadequate to allow them to breakeven over time. They are taxed on their interest income at about 40%, thus their after tax income is about 1.8%. The current inflation rate is about 6%. Bank savings depositors are steadily losing money every year. To break even against inflation on a taxable investment requires a 10% interest rate.
Thus, their Risk/Reward ratio is certain loss over time against a 0.03 annual reward. That's a Risk/Reward ratio of 100/0.03 over time. You would probably do far better in Las Vegas or Atlantic City!Losing in the Stock MarketsBrokerage Firm clients supply the money (OPM) to play the Stock Market. The public company failure rate on the volatile end (Over-the-Counter and Over-the-Counter Bulletin Board) of the U.S. Public Market is over 98%.
To breakeven, the client needs to sell their stock at a share price 98 times their investment. And that figure doesn't factor in taxes and inflation. It's rare that shareholders sell when the share price doubles. Thus, their Risk/Reward ratio is 98% odds of loss over time against a twofold potential reward. The Risk/Reward ration is about 98/2.At the conservative end of the U.S.
stock market (the New York Stock Exchange), most share prices have traded within a narrow range of about 20%, for the past couple of years. Thus, the OPM investor's Risk/Reward ratio is even over the past few years against a 0.02 reward. The shareholders reward isn't justified by the fact that the inflation rate is 6% and capital gains taxes of 23%. The Risk/Reward ratio is about 1/0.005Why Most Venture Capitalists FailVenture Capitalists speculate with OPM. They wrongly believe that out of seven very high-risk investments, they will make money if two speculations are profitable, three financings breakeven and three speculations are losers.
They fail to understand the odds against them, when only one startup company in one hundred will succeed. The odds are strongly against their making a consistent profit. So assuming a fivefold return on their two winners, their Risk/Reward ratio is 99% loss over time against a 1.43 potential reward. The Risk/Reward ration is 99/1.43. My proof of this is that any comparative review of American Venture Capital Directories shows that there is a steady attrition of these firms over time.
Venture Capitalists regularly lose money because the Risk/Reward ratio is strongly against them. They are failing to do the simplest arithmetic which should be the cornerstone of their investing philosophy. I can assure you that it is the cornerstone of Beowulf Investments.Hedge Funds use OPM to speculate in derivatives, which are high-risk financial instruments. The recent failure of a growing number of Hedge Funds underscores the high-risk nature of their speculations. Insurance companies use actuaries to ensure a mathematical bias in the favor of the company.
Pension funds often take too many risks or are badly structured. The U.S. Social Security Program is a textbook example of a mathematically impossible retirement plan.Beowulf Investments Approach to OPMOur working rule that is the company(s) in which we invest must be publicly traded in the United States. The reason is that this gives Beowulf Investments access to OPM. We can sell our shares to the public.We are significantly different than other private placement merchant banks.
We will only sell sufficient shares to recover our risk capital. We are willing to defer profits for years, since we can't lose our money and see the sale of the public company in a M&A as the best way to maximize our profits. Our risk is zero. Our reward is about sixty-fold our initial investment. It's a winning bet.
The Risk Reward Ratio is 0/66.The VCP Program goes further. It advises the investors supplying the OPM to follow our example. Sell some of their shares to recover their risk capital and keep the balance until the public company is sold, which will maximize their profit. The GVIC (Global Village Investment Club) & ISI (International Stock Investors Newsletter) investment risk is zero after sixty days. Their potential profit at the time of the M&A acquisition is about twenty-two fold.
The Risk Reward Ratio is 0/22. As for the last buyers of a VCP stock, our discount benefits program should save them the cost of their 100-share investment every year. After the first year, their Risk Reward Ratio should be 0/2.To my way of thinking, the ONLY wise gamble is a Risk/Reward ratio where the reward is greater than the risk, the greater the better. Too many entrepreneurs and business owners think that the folks with OPM should accept a negative Risk/Reward ratio. In fact, too many people with money failed to take statistics and probability courses in college.Consistent WinnersThe OPM winners are the people who always want the number on the right of the Risk/Reward ratio to be far larger than the number on the left of the Risk/Reward ratio.
If you are going to design an investment to attract OPM, you should ensure that the Reward is a multiple of the risk. There's still no guarantee that the folks with OPM will win. However, the odds will be greatly in their favor.To contact the author: Visit the Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit the Global Village Investment Club Website:[http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/].
1ST DoGood T-Shirt-A-Thon - DoGoodTshirts Launches a Campaign to Fundraise U$ 5 Million in 30 Days by Selling T-shirts Online
On February 16, 2004, DoGoodTshirts launches the world's first DoGood T-shirt-a-thon.
A historic event to raise a minimum of US$5 million in 30 days, for one of the causes that DoGood T-shirts supports.: The reconstruction of a conflict torn region for the children and families of Montes de Maria in Colombia.By designing and producing fashionable quality t-shirts with high impact designs against violence, for the respect of human rights, and for the celebration of life, DoGood T-shirts shares U$20 of every U$25 t-shirt sold to invest in individuals and organizations that DO GOOD around the world. DGT is not a charity. DoGoodTshirts is a business idea set out to prove that the more you give, the more you receive. " I call this: Reverse Charity" says Felipe Herrera U.
creator of DoGoodTshirts."On September 4, 2004 about 2.5 million south Floridians evacuated and escaped hurricane Frances.
In 24 hours each one of us spent an average of US$100 dollars to save our...
Hedge funds > 1ST DoGood T-Shirt-A-Thon - DoGoodTshirts Launches a Campaign to Fundraise U$ 5 Million in 30 Days by Selling T-shirts Online
Selling Your Settlement
The sale of a settlement can take place in cases of structured settlements. Such settlements are arrangements for periodic payment of a plaintiff's claims made by financial or insurance entities. This facility of graded payments was first made available in the United States and Canada in the 70's, and it has its benefits.A plaintiff who has been awarded a structured settlement, but requires a large sum of money immediately, can sell the settlement to a financial institution that provides such services.
There are many circumstances that may lead the recipient of a structured settlement to sell it for a lump sum. For instance, there may be insupportable medical or legal bills to pay.
Or the recipient may need to make a purchase requiring substantial funds (such as a new house or other kinds of real estate). Selling a pre-existing structured settlement is a convenient recourse in cases when a person is not eligible for housing loans or further mortgages.
Selling Your Settlement
Hedge funds > Selling Your Settlement
Gingerbread Homes for Animals - December 1st-5th at the Dana Discovery Center in Central Park - A Benefit for NYC's At-Risk Animals
(ContentDesk) November 26, 2004 -- A celebrated group of New York's foremost Pastry Chefs will kick off the 2004 holiday season with GINGERBREAD HOMES FOR ANIMALS, an exhibition and fair at Central Park's Dana Discovery Center, to benefit New York's at-risk animal population. The event, set from Wednesday, December 1st through Sunday, December 5th, will feature each pastry maker's creation of a unique gingerbread house, inspired by an animal he or she loves. The one-of-a-kind edible sculptures will be sold by raffle. Admission to the exhibition and fair is free.GINGERGBREAD HOMES FOR ANIMALS is presented by Rational Animal and hosted by a list of prestigious city gourmets and animal-related organizations. Held during the holiday season, its goal is to illuminate the plight of the city's most needy four-legged inhabitants and raise awareness and funds for them.
In addition to the edible sculpture exhibit, the fair will feature a list of daily activities including animal-related...
Gingerbread Homes for Animals - December 1st-5th at the Dana Discovery Center in Central Park - A Benefit for NYC's At-Risk Animals
Hedge funds > Gingerbread Homes for Animals - December 1st-5th at the Dana Discovery Center in Central Park - A Benefit for NYC's At-Risk Animals
Student life and avoiding graduate loan debts
As a student, money is always a difficult subject.
Currently the average student leaves college with over ?13,000 in debt.
With the introduction in the autumn of top-up fees, students in England and Wales will be charged ?3,000 a year which is more than double what most pay now, things will only get worse.
Today's student needs to study hard, to stand any chance of getting one of the dwindling number of highly competitive graduate jobs that still exist.
Students also need to save what little money they have, and be extremely financially aware, if they are not going to experience lifelong crippling levels of personal debt after they graduate.
Standard student jobs such as stacking shelves in supermarkets, becoming a part-time retail sales assistant, bar work, call centre representative, data input operator, or working for the students union, are all useful tools to keep the funds coming in, but it seems that sometimes it is not always enough...
Hedge funds > Student life and avoiding graduate loan debts
Selling Your Settlement
The sale of a settlement can take place in cases of structured settlements. Such settlements are arrangements for periodic payment of a plaintiff's claims made by financial or insurance entities. This facility of graded payments was first made available in the United States and Canada in the 70's, and it has its benefits.A plaintiff who has been awarded a structured settlement, but requires a large sum of money immediately, can sell the settlement to a financial institution that provides such services.
There are many circumstances that may lead the recipient of a structured settlement to sell it for a lump sum. For instance, there may be insupportable medical or legal bills to pay.
Or the recipient may need to make a purchase requiring substantial funds (such as a new house or other kinds of real estate). Selling a pre-existing structured settlement is a convenient recourse in cases when a person is not eligible for housing loans or further mortgages.
Selling Your Settlement
Hedge funds > Selling Your Settlement
No Load Mutual Funds: Investment Hype vs. Investment Help
With the internet such a huge part of our daily lives, many investors have access to a wide range of instant investment information.Whether you're into stocks, bonds, mutual funds, futures or options, there are tons of electronic investment newsletters offering to turn your small stake into a giant fortune. All you need to do is subscribe and watch your portfolio soar. Yeah, right! As a practicing investment advisor specializing in no load mutual funds, I have received my share of e-mails from disillusioned subscribers wanting to know how to better evaluate newsletter services.
While there are no absolutes, I can give you a few pointers that might help you make a better decision:1. Stay away from the most obvious hype.
Ads promising to turn your $10,000 into $1 million in 2 years by buying this incredible stock or hot commodity are not promoting investing ? they are selling gambling. Follow the "If it sounds too good to be true, it usually is" rule.2. Most mutual fund...
No Load Mutual Funds: Investment Hype vs. Investment Help
Hedge funds > No Load Mutual Funds: Investment Hype vs. Investment Help
Colossal Central Florida Water Rates Inspires WaterRateCrisis.com
The ambitious new hosting company, HostsCom.com (www.hostscom.com), announced today that it has provided unlimited storage space and server access to a large group of Central Florida residents that are outraged by water bills that have exceeded $476 in one month. Orlando area home buyers find out after they move to the hamlet of Chuluota that Florida Public Service Commission (FPSC) allows the local water company to charge more...
Hedge funds Colossal Central Florida Water Rates Inspires WaterRateCrisis.com water The Primary Source of Business Capital
Hedge funds > Colossal Central Florida Water Rates Inspires WaterRateCrisis.com