The Canada Pension Plan Investment Board (CPPIB) and Onex Corp are working together to propose a takeover of UK-based car parts maker, Tomkins Plc, just as the weakening British pound attracts more North American investors eager to take assets off of UK companies’ hands.
While the CPPIB and Toronto-based Onex have not released a formal bid, the companies have proposed a deal, which is worth over $4 billion.
After Tomkins reported receiving the proposal on July 19, 2010, the possible takeover lifted the car parts manufacturer’s shares 33.1% to 306.6 pence by mid-morning in London, thereby valuing Tomkins at approximately £2.7 billion ($4.1 billion).
The stock reached 314 pence - the highest Tomkins has obtained since 2006. However, it didn’t make it to the 325 pence cash offer that potential buyers considered.
In May 2010, Onex CEO Gerard Schwartz expected the current economic situation to create investment opportunities for Canada’s largest private equity firm. At that time, the company possessed about C$1 billion ($950 million) in cash, as well as third party uncalled capital worth C$3.9 billion ($3.8 billion) for acquisitions.
The CPPIB is Canada’s second largest pension fund manager and oversees assets worth C$127 billion. It is also one of the top private equity investors in the world.
Wednesday, September 8, 2010
Thursday, August 26, 2010
Survey: SMEs of Middle East Report High Business Confidence Level
Even in the midst of a global economic crisis, small businesses continue to exude confidence, especially those in Turkey and the Middle East. A recent survey revealed that Middle Eastern small and medium enterprises (SMEs) are planning to hire more people and boost investment.
HSBC’s semi-annual monitor on global small business confidence showed that 49% of SMEs in these areas keep a positive perspective of the next six months, while 50% are looking forward to increasing capital expenditure by the end of the year.
The data, which included results from UAE for the first time, suggested a positive outlook among many businesses in all Middle Eastern countries. Saudi Arabia ranked second (after Vietnam) in the global rankings, and for the second time, the Middle East scored higher compared to developing and emerging markets.
HSBC’s bi-annual Small Business Confidence Monitor looks at the outlook of SMEs regarding capital investment plans, local economic growth and recruitment. The latest monitoring session covered more than 6,300 SMEs in North America, Europe, Latin America, the Middle East and the rest of Asia.
Saudi Arabia scored 145, the highest among all Middle Eastern countries. While Qatar’s score dropped from 159 in 2009 to 137 in 2010, it’s still well above the regional average (132) and the global average (118).
HSBC’s semi-annual monitor on global small business confidence showed that 49% of SMEs in these areas keep a positive perspective of the next six months, while 50% are looking forward to increasing capital expenditure by the end of the year.
The data, which included results from UAE for the first time, suggested a positive outlook among many businesses in all Middle Eastern countries. Saudi Arabia ranked second (after Vietnam) in the global rankings, and for the second time, the Middle East scored higher compared to developing and emerging markets.
HSBC’s bi-annual Small Business Confidence Monitor looks at the outlook of SMEs regarding capital investment plans, local economic growth and recruitment. The latest monitoring session covered more than 6,300 SMEs in North America, Europe, Latin America, the Middle East and the rest of Asia.
Saudi Arabia scored 145, the highest among all Middle Eastern countries. While Qatar’s score dropped from 159 in 2009 to 137 in 2010, it’s still well above the regional average (132) and the global average (118).
Friday, August 20, 2010
UK Falling Behind in Energy Industry Investment
A government advisory organization said that the UK is falling behind other wealthy countries in terms of developing new technologies for energy, and this hampers the creation of green jobs in the country.
The Committee on Climate Change, a statutory body that provides emission reduction advice, said that the UK used up only 0.01% of GDP on energy in 2007, which is the latest year wherein comparative data is available, whereas Japan spent 0.09%, France 0.05%, and the US 0.03%
In 2009, the government spent about £550 million of public money for low carbon technologies. Only about £260 million of this money was used on energy.
The committee also quoted the International Energy Agency, saying that investment on energy should be two to five times more than the current levels so that climate targets can be met.
Furthermore, the committee called on UK’s government to focus on six areas, namely: wave and tidal power, offshore wind, carbon capture and storage, electric vehicles, smart grids and meters, and aviation.
The advisory group warned that without support from the government, an array of low carbon technologies will be trapped in a point termed as “valley of death,” a situation that the private sector isn’t willing to take the risk of investing in.
The Committee on Climate Change, a statutory body that provides emission reduction advice, said that the UK used up only 0.01% of GDP on energy in 2007, which is the latest year wherein comparative data is available, whereas Japan spent 0.09%, France 0.05%, and the US 0.03%
In 2009, the government spent about £550 million of public money for low carbon technologies. Only about £260 million of this money was used on energy.
The committee also quoted the International Energy Agency, saying that investment on energy should be two to five times more than the current levels so that climate targets can be met.
Furthermore, the committee called on UK’s government to focus on six areas, namely: wave and tidal power, offshore wind, carbon capture and storage, electric vehicles, smart grids and meters, and aviation.
The advisory group warned that without support from the government, an array of low carbon technologies will be trapped in a point termed as “valley of death,” a situation that the private sector isn’t willing to take the risk of investing in.
Tuesday, August 10, 2010
Sara Lee to Sell Bakery Unit
In line with Sara Lee’s plan of revamping the company, it is currently looking at selling its struggling North American bakery and bread business. Sara Lee, famous for producing Jimmy Dean foods, hopes that this move would bring about a broader change for the company.
Sara Lee, a major player in the food industry, has been courting possible buyers of the bread unit, which has been seeing dwindling sales throughout the recession, according to sources that refused to be mentioned, for this matter isn’t public. The company has obtained the services of Bank of America, Corp to get financial advice on the bakery unit, which includes one of the largest fresh bread brands in the country.
The formal transaction process hasn’t started and advisers have only begun to focus on interest from private equity funds.
Over the last decade, Sara Lee has been constantly developing the expansion of the unit. The company started with closing a $2.8 billion deal to acquire Earthgrains in 2001, and then a $72 million deal to obtain Butter Krust Baking in 2006. However, due to tighter competition, the bakery division encountered challenging times. Eventually, its profit and sales significantly dropped. In February 2010, company CEO Marcel Smits announced to investors that the bakery business isn’t the company’s main source of profit.
More info:
http://www.thestreet.com/story/10812216/1/sara-lee-examines-sale-of-bakery-unit.html?cm_ven=GOOGLEFI
http://articles.chicagotribune.com/2010-07-20/business/ct-biz-0721-sara-lee-bread-20100720_1_bakery-sales-sara-lee-bread-business
Sara Lee, a major player in the food industry, has been courting possible buyers of the bread unit, which has been seeing dwindling sales throughout the recession, according to sources that refused to be mentioned, for this matter isn’t public. The company has obtained the services of Bank of America, Corp to get financial advice on the bakery unit, which includes one of the largest fresh bread brands in the country.
The formal transaction process hasn’t started and advisers have only begun to focus on interest from private equity funds.
Over the last decade, Sara Lee has been constantly developing the expansion of the unit. The company started with closing a $2.8 billion deal to acquire Earthgrains in 2001, and then a $72 million deal to obtain Butter Krust Baking in 2006. However, due to tighter competition, the bakery division encountered challenging times. Eventually, its profit and sales significantly dropped. In February 2010, company CEO Marcel Smits announced to investors that the bakery business isn’t the company’s main source of profit.
More info:
http://www.thestreet.com/story/10812216/1/sara-lee-examines-sale-of-bakery-unit.html?cm_ven=GOOGLEFI
http://articles.chicagotribune.com/2010-07-20/business/ct-biz-0721-sara-lee-bread-20100720_1_bakery-sales-sara-lee-bread-business
Thursday, August 5, 2010
Apple’s Revenue Lifted Thanks to iPad, Mac Sales
The iPad’s strong debut and the new iPhone’s popularity helped gadget manufacturer Apple achieve its best quarter ever, the company reported.
Apple’s sales soared to an astonishing $15.7 billion, which is 61% greater compared to the same period last year. Net income increased up to $3.25 billion, which is higher by 78% from last year.
In the second quarter, the electronics company sold 3.47 million Mac computers - more computers than it has ever sold in a three-month span. Apple also sold 3.27 million iPad tablet computers, which was released into the market on April 3, 2010.
The iPad returned $2.17 billion in revenues, which represents about 14% of the California-based company’s total income for the second quarter.
As stated by Apple CEO Steve Jobs, users love the revolutionary iPad and the company has more products up its sleeves to hit the market this year. The CEO added that more people are purchasing Macs than ever before.
As for the iPhone, 8.4 million units were sold during the quarter, which is up by 61% from more than a year ago. The latest version of the touch screen smartphone, the iPhone 4, went on sale on June 24, 2010 in five countries, although Apple has been receiving complains about poor reception because of the mobile device’s unusual antenna styling.
Apple’s sales soared to an astonishing $15.7 billion, which is 61% greater compared to the same period last year. Net income increased up to $3.25 billion, which is higher by 78% from last year.
In the second quarter, the electronics company sold 3.47 million Mac computers - more computers than it has ever sold in a three-month span. Apple also sold 3.27 million iPad tablet computers, which was released into the market on April 3, 2010.
The iPad returned $2.17 billion in revenues, which represents about 14% of the California-based company’s total income for the second quarter.
As stated by Apple CEO Steve Jobs, users love the revolutionary iPad and the company has more products up its sleeves to hit the market this year. The CEO added that more people are purchasing Macs than ever before.
As for the iPhone, 8.4 million units were sold during the quarter, which is up by 61% from more than a year ago. The latest version of the touch screen smartphone, the iPhone 4, went on sale on June 24, 2010 in five countries, although Apple has been receiving complains about poor reception because of the mobile device’s unusual antenna styling.
Tuesday, August 3, 2010
BP to Sell Assets to Pay for Oil Leak
BP Plc, the British energy company in the midst of an oil spill crisis, agreed to sell some of its assets to Apache Corp for $7 billion to pay for one of the worst oil leaks in history. These assets include production and exploration facilities in Egypt, Canada and the US.
The $7 billion deal is part of BP’s plan of raising $10 billion by selling some of its assets. Apache will pay a cash deposit of $5 billion on July 30, 2010.
As of July 20, BP’s share price decreased 1.54% in New York. Earlier that day, the energy company reported that it would sell assets in Pakistan and Vietnam worth $1.7 billion.
The gruesome disaster in the Gulf of Mexico remains on the priority list of both British and American governments.
British Prime Minister David Cameron commended BP for its continuing efforts in plugging the leak and paying for the spill’s damages. On July 20, US officials reported BP’s latest step in stopping the spill – a cap that prevented oil from gushing out.
Fishing and tourism industries operating in the area around the Gulf have been devastated by the millions gallons of oil that hit marshes and beaches. Natural environments and habitats have been threatened and as a result, the Obama administration received negative feedback and ties with Britain were affected.
More sources:
http://finance.yahoo.com/news/BP-to-sell-assets-for-7-apf-3900764604.html?x=0&sec=topStories&pos=3&asset=&ccode=
http://www.google.com/hostednews/ap/article/ALeqM5g9wOfmmrQmVwnYqaM5OpN5B3mxXgD9H319B80
The $7 billion deal is part of BP’s plan of raising $10 billion by selling some of its assets. Apache will pay a cash deposit of $5 billion on July 30, 2010.
As of July 20, BP’s share price decreased 1.54% in New York. Earlier that day, the energy company reported that it would sell assets in Pakistan and Vietnam worth $1.7 billion.
The gruesome disaster in the Gulf of Mexico remains on the priority list of both British and American governments.
British Prime Minister David Cameron commended BP for its continuing efforts in plugging the leak and paying for the spill’s damages. On July 20, US officials reported BP’s latest step in stopping the spill – a cap that prevented oil from gushing out.
Fishing and tourism industries operating in the area around the Gulf have been devastated by the millions gallons of oil that hit marshes and beaches. Natural environments and habitats have been threatened and as a result, the Obama administration received negative feedback and ties with Britain were affected.
More sources:
http://finance.yahoo.com/news/BP-to-sell-assets-for-7-apf-3900764604.html?x=0&sec=topStories&pos=3&asset=&ccode=
http://www.google.com/hostednews/ap/article/ALeqM5g9wOfmmrQmVwnYqaM5OpN5B3mxXgD9H319B80
Thursday, July 29, 2010
Fiat Makes Second Quarter Profit
Fiat, the Italian automaker that controls Chrysler, returned to a second quarter profit due to improved sales of agricultural vehicles and equipment. The company also reported that it may raise its 2010 forecast later this year.
The carmaker reported a net income of $115.6 million (or €90 million) for the second quarter of 2010, whereas the company had a €168 million loss last year for the same period. Net revenues rose 12.5% to €14.8 billion. In addition to this, earnings before interest or trading profit, taxes, and one-time losses or gains more than doubled and reached €651 million, which significantly trumps the €359 million estimate of 11 business analyses gathered by Bloomberg.
Fiat produces cars under the Fiat, Alfa Romeo and Lancia names, as well as trucks, construction equipment and farming machines.
Revenues at agriculture and CNH construction increased 16% to €3.3 billion as improved sales in South and North America compensated for the weak markets in the former Soviet Union, Australia, and Europe, according to Fiat. Iveco trucks climbed 18.3% to €2.1 billion with the number of deliveries up 32% to 34,318 vehicles.
In a release, Fiat added that recovery in the lightweight commercial vehicle division compensated for the decrease in sales of passenger cars, especially in Germany and Italy, following a cease in European eco-incentive programs.
The carmaker reported a net income of $115.6 million (or €90 million) for the second quarter of 2010, whereas the company had a €168 million loss last year for the same period. Net revenues rose 12.5% to €14.8 billion. In addition to this, earnings before interest or trading profit, taxes, and one-time losses or gains more than doubled and reached €651 million, which significantly trumps the €359 million estimate of 11 business analyses gathered by Bloomberg.
Fiat produces cars under the Fiat, Alfa Romeo and Lancia names, as well as trucks, construction equipment and farming machines.
Revenues at agriculture and CNH construction increased 16% to €3.3 billion as improved sales in South and North America compensated for the weak markets in the former Soviet Union, Australia, and Europe, according to Fiat. Iveco trucks climbed 18.3% to €2.1 billion with the number of deliveries up 32% to 34,318 vehicles.
In a release, Fiat added that recovery in the lightweight commercial vehicle division compensated for the decrease in sales of passenger cars, especially in Germany and Italy, following a cease in European eco-incentive programs.
Monday, July 26, 2010
Nokia Rises After Report on Search for New CEO
After the Wall Street Journal reported that Nokia Oyj is planning to replace current CEO Olli-Pekka Kallasvuo, the major phone maker’s trading numbers in Helsinki rose up to 5.2% July 20, 2010.
Nokia has approached several US-based technology companies for the position of CEO and will decide by the end of July, according to the Wall Street Journal report, which mentioned unidentified people who had known about the situation. Arja Suominen, Nokia’s spokeswoman, refused to comment.
According to Ulf Moritzen, who works with Hamburg-based Aramea Asset Management and helps manage Nokia’s shares, getting a new CEO will do the company good. He added that it is important for Nokia to react quickly to economic changes.
A new chief executive officer can help in delivering products that can compete with leading portable devices, such as Research In Motion’s Blackberry and Apple’s iPhone, especially when Nokia has not been able to provide a smartphone that has all the mass appeal that the iPhone possesses.
To protect its market share, the Finnish phone manufacturer has focused on cutting prices and sacrificing profits.
Nokia’s stock increased as much as 35₵ to €7.115, which is the biggest gain ever since May 10, 2010. As of 10:23 of July 20, the stock was up 3.45%. Before this rise, shares declined by 24% this year.
Nokia has approached several US-based technology companies for the position of CEO and will decide by the end of July, according to the Wall Street Journal report, which mentioned unidentified people who had known about the situation. Arja Suominen, Nokia’s spokeswoman, refused to comment.
According to Ulf Moritzen, who works with Hamburg-based Aramea Asset Management and helps manage Nokia’s shares, getting a new CEO will do the company good. He added that it is important for Nokia to react quickly to economic changes.
A new chief executive officer can help in delivering products that can compete with leading portable devices, such as Research In Motion’s Blackberry and Apple’s iPhone, especially when Nokia has not been able to provide a smartphone that has all the mass appeal that the iPhone possesses.
To protect its market share, the Finnish phone manufacturer has focused on cutting prices and sacrificing profits.
Nokia’s stock increased as much as 35₵ to €7.115, which is the biggest gain ever since May 10, 2010. As of 10:23 of July 20, the stock was up 3.45%. Before this rise, shares declined by 24% this year.
Tuesday, April 20, 2010
KKR Green Portfolio Project
The Deal has released a video featuring KKR's Green Portfolio Project.
This video shows how KKR is realigning its investments to encourage more environmentally friendly practices while helping its portfolio companies cuts costs (not jobs). We should all definitely support this great trend!
This video shows how KKR is realigning its investments to encourage more environmentally friendly practices while helping its portfolio companies cuts costs (not jobs). We should all definitely support this great trend!
Thursday, April 15, 2010
Paul Allen
Paul Gardner Allen was born on January 21, 1953. Along with Bill Gates, he is the associate founder of Microsoft. He is one of the richest people in the world and the founder and chairman of Vulcan Incorporated, which is his private asset management company. He owns three professional sports teams: the Seattle Seahawks of the NFL, the Portland Trail Blazers of the NBA, and the Seattle Sounders FC franchise in Major League Soccer.
Raised in Seattle, Washington, Paul Allen is committed in giving back to communities in the region he still calls home. He founded the Paul Allen Institute for Brain Science and The Paul G. Allen Family Foundation, which supports the work of effective nonprofit organizations involved in arts and culture, community development and social change, economic relief, education and youth engagement, and scientific and technological innovation.
• He has donated to organizations that focus on human and health services, and toward the improvement of technology and science.
• The Paul G. Allen Family Foundation was founded in 1986 to disseminate most of his donations. Through this body, Paul Allen confers approximately $30 million in grants every year. About 60% of the organization’s finances go to non-profit organizations in Washington and Seattle; twelve percent goes to Portland, Oregon. The other 28% is disseminated to other locales within the Pacific Northwest.
• Allen has donated $900 million of his money, as of 2007. Allen also contributes through other charitable projects known as "venture philanthropy." The most famous of these projects are Experience Music Project, the Science Fiction Museum and Hall of Fame, the Flying Heritage Collection (airworthy vintage military aircraft) and the Allen Telescope Array.
• Allen has donated money in both Washington State University and University of Washington. In the late 1980s, Allen donated $18 million to construct a library named after his forebear, Kenneth S. Allen. He donated $5 million in 2003 to establish the Faye G. Allen Center for Visual Arts, named after his mother. Allen was also the top private contributor, with $14 million in donations to the "Paul G. Allen Center for Computer Science & Engineering," which was completed in 2003.
• Throughout the years, Allen has contributed millions of dollars to the University of Washington Medical School. The Foundation awarded $3.2 million for prostatitis research in 1997, followed by an additional $1 million grant in 2002. More recently, the Foundation contributed $5 million for an early cancer-detection project by the Fred Hutchinson Cancer Research Center.
• On November 19, 2008, Allen appeared at the Experience Music Project/Science Fiction Hall of Fame to present the second annual Founder's Award for musical achievement.
Raised in Seattle, Washington, Paul Allen is committed in giving back to communities in the region he still calls home. He founded the Paul Allen Institute for Brain Science and The Paul G. Allen Family Foundation, which supports the work of effective nonprofit organizations involved in arts and culture, community development and social change, economic relief, education and youth engagement, and scientific and technological innovation.
• He has donated to organizations that focus on human and health services, and toward the improvement of technology and science.
• The Paul G. Allen Family Foundation was founded in 1986 to disseminate most of his donations. Through this body, Paul Allen confers approximately $30 million in grants every year. About 60% of the organization’s finances go to non-profit organizations in Washington and Seattle; twelve percent goes to Portland, Oregon. The other 28% is disseminated to other locales within the Pacific Northwest.
• Allen has donated $900 million of his money, as of 2007. Allen also contributes through other charitable projects known as "venture philanthropy." The most famous of these projects are Experience Music Project, the Science Fiction Museum and Hall of Fame, the Flying Heritage Collection (airworthy vintage military aircraft) and the Allen Telescope Array.
• Allen has donated money in both Washington State University and University of Washington. In the late 1980s, Allen donated $18 million to construct a library named after his forebear, Kenneth S. Allen. He donated $5 million in 2003 to establish the Faye G. Allen Center for Visual Arts, named after his mother. Allen was also the top private contributor, with $14 million in donations to the "Paul G. Allen Center for Computer Science & Engineering," which was completed in 2003.
• Throughout the years, Allen has contributed millions of dollars to the University of Washington Medical School. The Foundation awarded $3.2 million for prostatitis research in 1997, followed by an additional $1 million grant in 2002. More recently, the Foundation contributed $5 million for an early cancer-detection project by the Fred Hutchinson Cancer Research Center.
• On November 19, 2008, Allen appeared at the Experience Music Project/Science Fiction Hall of Fame to present the second annual Founder's Award for musical achievement.
Wednesday, March 31, 2010
Private Equity looking ahead
As the recession enters its second year, the Private equity industry is looking to 2014 to deal with the buyout spree of the past years. In this brief but incisive article by the Wall Street Journal's Liam Denning, the situation of the private equity industry know faces solid issues, not ambiguities.
Private Equity's Problems Fade From Red to Gray
Private Equity's Problems Fade From Red to Gray
Friday, March 26, 2010
Henry Kravis Prize awarded to Pratham
KKR, led by Henry Kravis, does more than just broker some of the world's biggest deals. Every year, the Henry Kravis Prize in Leadership recognizes innovations in nonprofits. Pratham, India’s largest education nonprofit, was awarded $250,000
Pratham has reached 34 million children across India through its Read India program, which works with governments and communities to improve the reading, writing, and basic arithmetic skills of children aged 6-14.
“We are delighted that a very high profile selection committee picked us after a thorough process without involving any of the organizations in the running, Of course, the award is for what we have done in the past and there are many bigger challenges ahead,” said Madhav Chavan.
Past honorees for the Henry Kravis Prize include Roy Prosterman, founder of the Rural Development Institute; Fazle Abed, founder of BRAC, the Forum for African Women Educationalists (FAWE), and Dr. Sakena Yacoobi, founder of the Afghan Institute of Learning.
Pratham has reached 34 million children across India through its Read India program, which works with governments and communities to improve the reading, writing, and basic arithmetic skills of children aged 6-14.
“We are delighted that a very high profile selection committee picked us after a thorough process without involving any of the organizations in the running, Of course, the award is for what we have done in the past and there are many bigger challenges ahead,” said Madhav Chavan.
Past honorees for the Henry Kravis Prize include Roy Prosterman, founder of the Rural Development Institute; Fazle Abed, founder of BRAC, the Forum for African Women Educationalists (FAWE), and Dr. Sakena Yacoobi, founder of the Afghan Institute of Learning.
Wednesday, March 24, 2010
Young Turks Comment on Health Care Bill
President Barack Obama just passed a landmark healthcare bill, but most people are still in the dark about precisely what the bill entails. Cenk Uygur of the progressive internet talk show The Young Turks weighs in on the pros and cons of the health care bill, and says that supporters' celebrations are premature; there are still some serious flaws in the bill.
via videosift.com
via videosift.com
Monday, March 22, 2010
Kirk Kerkorian
Kirk Kerkorian was born on June 6, 1917, in Fresno, California. Instead of finishing high school, he chose to drop out in order to help his Armenian family. Eventually, he followed his brother’s footsteps and became a Pacific amateur welterweight boxing champion.
In 1939, he was hired to install wall furnaces for 45₵ an hour. Soon after, he developed an interest for aviation. Without having the means to pay for flight lessons, Kirk Kerkorian went to the Happy Bottom Ranch in the Mojave Desert to clean barns and milk cows in exchange for his lessons. After receiving his commercial pilot’s license six months later, Kirk Kerkorian went to Montreal, Canada to apply for the Royal Air Force. He was then hired to do the dangerous task of delivering Canadian-built bombers to Scotland. For the span of one and a half years, he successfully delivered 33 planes and traveled to four continents.
By integrating the Bellagio and Mirage properties in 1999, Kirk Kerkorian brought to life three of the most profitable gambling resorts in Las Vegas. Currently, he remains as the largest shareholder of the Los Angeles based investment company, Chrysler. He is also one of the major stockholders at the Metro-Goldwyn-Mayer Corporation.
In addition to being the richest Armenian in the world, Kirk Kerkorian is also notable for his feats in philanthropy. His charitable foundation, the Lincy foundation, was named after his daughters Linda and Tracy. So far, the organization has extended its donations to cultural center renovations, highway reconstructions, city beautification in Armenia, as well as to Armenian Churches and to the United Armenian Fund. For the past few years, the Lincy Foundation has granted a total of $165 million worth of donations to the Armenian government. The donations were used to help overcome the damage that was brought about by the earthquake in Spitak.
In 1939, he was hired to install wall furnaces for 45₵ an hour. Soon after, he developed an interest for aviation. Without having the means to pay for flight lessons, Kirk Kerkorian went to the Happy Bottom Ranch in the Mojave Desert to clean barns and milk cows in exchange for his lessons. After receiving his commercial pilot’s license six months later, Kirk Kerkorian went to Montreal, Canada to apply for the Royal Air Force. He was then hired to do the dangerous task of delivering Canadian-built bombers to Scotland. For the span of one and a half years, he successfully delivered 33 planes and traveled to four continents.
By integrating the Bellagio and Mirage properties in 1999, Kirk Kerkorian brought to life three of the most profitable gambling resorts in Las Vegas. Currently, he remains as the largest shareholder of the Los Angeles based investment company, Chrysler. He is also one of the major stockholders at the Metro-Goldwyn-Mayer Corporation.
In addition to being the richest Armenian in the world, Kirk Kerkorian is also notable for his feats in philanthropy. His charitable foundation, the Lincy foundation, was named after his daughters Linda and Tracy. So far, the organization has extended its donations to cultural center renovations, highway reconstructions, city beautification in Armenia, as well as to Armenian Churches and to the United Armenian Fund. For the past few years, the Lincy Foundation has granted a total of $165 million worth of donations to the Armenian government. The donations were used to help overcome the damage that was brought about by the earthquake in Spitak.
Monday, March 8, 2010
Avoiding Plastic Blunders
Anyone can make mistakes. Mistakes are a part of human nature and in this technology driven world of ours, some mistakes definitely have bigger repercussions than others. Making mistakes with regards to credit is more often the blunder that everyone has committed over the past couple of years. The recent global recession for example, is something that came to be from poor credit management.
But despite these, credit cards and other kinds of borrowing still fuel a lot of people’s lives nowadays. It is because of this dependence that one needs to keep a sharp eye on their credit card usage.
Some of the basic mistakes credit cardholders must avoid to avoid hurting their credit scores include:
• Asking banks or other lending institutions to lower the credit card’s limit. This is okay for people who do not have balances on their cards. In fact, lowering one’s credit limit will enable the user to be more in control of their credit spending. But when the card is full of outstanding balances, a lower limit will lessen the gap of what you owe and what you have.
• Making late payments will always be damaging to one’s credit scores. Passing out payments for a few days or worse, not making due payments at all will seem to be a sensible short term solution but will only hurt one’s scores in the future.
• Paying one credit card with another. Credit in payment for credit will always be a bad thing to do and this will reflect in the credit card scores.
• But so too is applying for a new credit card when one already possess many. More credit cards mean more temptations that will make one spend. More cards mean more rates to be handled; more balances to be paid out and more damage to one’s credit score in the future.
Avoiding all of these basic blunders is very important to be able to successfully manage credit accounts and not hurt the user’s credit score in the future.
But despite these, credit cards and other kinds of borrowing still fuel a lot of people’s lives nowadays. It is because of this dependence that one needs to keep a sharp eye on their credit card usage.
Some of the basic mistakes credit cardholders must avoid to avoid hurting their credit scores include:
• Asking banks or other lending institutions to lower the credit card’s limit. This is okay for people who do not have balances on their cards. In fact, lowering one’s credit limit will enable the user to be more in control of their credit spending. But when the card is full of outstanding balances, a lower limit will lessen the gap of what you owe and what you have.
• Making late payments will always be damaging to one’s credit scores. Passing out payments for a few days or worse, not making due payments at all will seem to be a sensible short term solution but will only hurt one’s scores in the future.
• Paying one credit card with another. Credit in payment for credit will always be a bad thing to do and this will reflect in the credit card scores.
• But so too is applying for a new credit card when one already possess many. More credit cards mean more temptations that will make one spend. More cards mean more rates to be handled; more balances to be paid out and more damage to one’s credit score in the future.
Avoiding all of these basic blunders is very important to be able to successfully manage credit accounts and not hurt the user’s credit score in the future.
Friday, March 5, 2010
Debit Cards and how to Properly Manage Their Usage
Responsible financial management is important in today’s world especially since consumers are faced with a variety of choices that they can use to go about their spending and needs. With credit cards, debit cards, and ATMs being offered by banks and financial institutions today, people need to know what to choose from these and be able to take full advantage of whatever the plastic cards offer.
Among all of these, debit cards seem to be the best avenue to take since the user is not borrowing but is rather spending money he saved for his purchases. Still, users need to be fully informed about these debit cards and should use them wisely to avoid falling into bad financial situations like large transacting fees and debts.
First thing that users need to know are the types of debit card that banks and other financial institutions might be offering. Some charge fees per transaction while others substitute their ATM cards for debit cards. Knowing the differences and fees involved will make consumers more informed on how and when it is fully advantageous to use their debit cards.
Next is to hold on to receipts from all debit card transactions. This is useful when reviewing monthly statements and making sure that charges one did not make are not included and shouldered by one’s bank account.
Other basics with debit card usage include memorizing the Personal Identification Number or PIN, and not just writing it down on a piece of paper or worse, on the card itself. Keep debit cards, or all cards for that matter, in safe places. In cases of lost and stolen cards, report immediately to your bank so that the lost card may be deactivated and a new one can be issued out. Also, make sure PINs are not basic numbers such as birthdates or telephone numbers.
Lastly, always check the balances of the cards in one’s possession. This is the very basic step for responsible financial management. Some debit cards allow you access to funds that you may have set aside to take care of a check that has not been cleared yet.
Among all of these, debit cards seem to be the best avenue to take since the user is not borrowing but is rather spending money he saved for his purchases. Still, users need to be fully informed about these debit cards and should use them wisely to avoid falling into bad financial situations like large transacting fees and debts.
First thing that users need to know are the types of debit card that banks and other financial institutions might be offering. Some charge fees per transaction while others substitute their ATM cards for debit cards. Knowing the differences and fees involved will make consumers more informed on how and when it is fully advantageous to use their debit cards.
Next is to hold on to receipts from all debit card transactions. This is useful when reviewing monthly statements and making sure that charges one did not make are not included and shouldered by one’s bank account.
Other basics with debit card usage include memorizing the Personal Identification Number or PIN, and not just writing it down on a piece of paper or worse, on the card itself. Keep debit cards, or all cards for that matter, in safe places. In cases of lost and stolen cards, report immediately to your bank so that the lost card may be deactivated and a new one can be issued out. Also, make sure PINs are not basic numbers such as birthdates or telephone numbers.
Lastly, always check the balances of the cards in one’s possession. This is the very basic step for responsible financial management. Some debit cards allow you access to funds that you may have set aside to take care of a check that has not been cleared yet.
Wednesday, March 3, 2010
Hobson’s Financial Resolutions for 2010
Saving a significant yet manageable amount of money in a savings account might be one of the most important ways to enhance our financial standing in the future. However, that is not the only way to secure a clear financial future.
Mellody Hobson, the current president of Ariel Investments and personal finance contributor of “Good Morning America,” lays out some of the most sensible finance resolutions we can make for 2010.
Hobson thinks that investing in the stock market might be a good idea to start the year. According to her, the stock market was able to recover from hitting rock bottom last March 2009. In fact, the stock market was reported to have gone up an astounding 57% earlier this year.
Apart from that, Mellody Hobson also encourages people to consider reviewing the accuracy of their credit scores. According to her, credit reports are one of the most important items in each person’s financial life. Credit scores can bring most people bigger interest payments when getting loans for homes or new cars. In addition to that, Hobson also says that a person’s credit score can either make or break his/her bid for his/her dream job. However, to achieve all those, people need to give more importance to the accuracy of their credit scores. Mellody Hobson says that around 80% of credit reports are flawed. Major credit reporting agencies including Equifax, TransUnion, and Experian are not responsible for ensuring the accuracy of each person’s credit reports. Therefore, the owner of the credit report must take the responsibility himself.
In addition to those two, Mellody Hobson also advises people to prepare themselves for the possibility of rising minimum payments. Due to the new legislation, most credit card issuers including JP Morgan, Citibank, MBNA, and the Bank of America are increasing the amount of minimum payments.
Mellody Hobson, the current president of Ariel Investments and personal finance contributor of “Good Morning America,” lays out some of the most sensible finance resolutions we can make for 2010.
Hobson thinks that investing in the stock market might be a good idea to start the year. According to her, the stock market was able to recover from hitting rock bottom last March 2009. In fact, the stock market was reported to have gone up an astounding 57% earlier this year.
Apart from that, Mellody Hobson also encourages people to consider reviewing the accuracy of their credit scores. According to her, credit reports are one of the most important items in each person’s financial life. Credit scores can bring most people bigger interest payments when getting loans for homes or new cars. In addition to that, Hobson also says that a person’s credit score can either make or break his/her bid for his/her dream job. However, to achieve all those, people need to give more importance to the accuracy of their credit scores. Mellody Hobson says that around 80% of credit reports are flawed. Major credit reporting agencies including Equifax, TransUnion, and Experian are not responsible for ensuring the accuracy of each person’s credit reports. Therefore, the owner of the credit report must take the responsibility himself.
In addition to those two, Mellody Hobson also advises people to prepare themselves for the possibility of rising minimum payments. Due to the new legislation, most credit card issuers including JP Morgan, Citibank, MBNA, and the Bank of America are increasing the amount of minimum payments.
Monday, March 1, 2010
Debit is the Way to Go
With the US and the global economy still feeling the tail-end of the recession, many consumers have kept mum with regards to their spending and have tried their hardest to keep all of their finances inside their households.
Together with frugal spending and saving, more and more people are finding the advantages of using debit cards more appealing than using their counterparts, the credit cards. It is true that debit cards offer users a more responsible way of spending and is more convenient to use than most credit cards. But when used improperly, just like credit cards, they can seriously hurt users financially. And because debit cards are more loosely protected than credit cards, as they come with schedule of fees different from that of credit cards, knowing basic information about debit cards and their usage will make for better and responsible spending. Here are some things to remember for users with debit cards and frequently use them in their transactions.
Basic in the list is to know and understand everything written in the bank’s terms and conditions with regards to their debit card services. Users should take note the schedule of fees that their banks give. They should know the important rates such as basic transaction fees, over-limit fees, and cash-withdrawal fees among others.
Also, they should carefully review every billing statement that the banks send them. They should cross-check them with the transaction receipts to make sure that no dubious transactions are being debited to one’s name.
Since a debit card is always attached to an existing bank account, debit cards should be protected with utmost care and not just placed anywhere open and unsafe. PIN numbers should also be formulated in a way that not even the smartest thief or someone the user knows can figure them out.
Also, be aware of the rewards program that banks have for using their debit cards. Using debit cards is indeed a more responsible way of financing transactions than debit cards. But like credit cards, it should also be given the proper attention and due diligence that it deserves.
Together with frugal spending and saving, more and more people are finding the advantages of using debit cards more appealing than using their counterparts, the credit cards. It is true that debit cards offer users a more responsible way of spending and is more convenient to use than most credit cards. But when used improperly, just like credit cards, they can seriously hurt users financially. And because debit cards are more loosely protected than credit cards, as they come with schedule of fees different from that of credit cards, knowing basic information about debit cards and their usage will make for better and responsible spending. Here are some things to remember for users with debit cards and frequently use them in their transactions.
Basic in the list is to know and understand everything written in the bank’s terms and conditions with regards to their debit card services. Users should take note the schedule of fees that their banks give. They should know the important rates such as basic transaction fees, over-limit fees, and cash-withdrawal fees among others.
Also, they should carefully review every billing statement that the banks send them. They should cross-check them with the transaction receipts to make sure that no dubious transactions are being debited to one’s name.
Since a debit card is always attached to an existing bank account, debit cards should be protected with utmost care and not just placed anywhere open and unsafe. PIN numbers should also be formulated in a way that not even the smartest thief or someone the user knows can figure them out.
Also, be aware of the rewards program that banks have for using their debit cards. Using debit cards is indeed a more responsible way of financing transactions than debit cards. But like credit cards, it should also be given the proper attention and due diligence that it deserves.
Friday, February 26, 2010
The Things People Should Avoid Doing During Economic Recessions
People should always be conscious of their spending habits in order to avoid making mistakes that can jeopardize their financial status. Although this should become a lifelong habit, it becomes more applicable during times of economic recessions.
Serving as a cosigner of a loan is one of the most risky things a person can do when it comes to personal finance. Becoming a cosigner entitles the person to make the schedule payments once the owner of the loan fails to do so. A cosigner may lose more than a great amount of money in order to pay the loan.
Although it might be rare for most people to purchase a home during recessions, there are some people who actually do. There are some individuals who choose to avail an adjustable rate mortgage when purchasing a home. This might make sense in some cases since most people would opt to choose mortgages that have lower interest rates. However, doing this during recessions is a financial risk. People should be aware that these interest rates are more likely to rise as the economy recovers. Homeowners might find it difficult to keep up with the increasing rates.
People are also discouraged from getting a new car loan or a new home loan or any similar obligation during recessions. Although it’s okay to avail of these loans when the economy is in a good condition, it is not advisable to do so when the economy is in the middle of turmoil. The borrower might get laid off or in some way or another might get affected by the downturn in the economy. Availing of these extra obligations might add complications to the person’s financial situation in the near future if the economy fails to recover in a long time. People should be cautious about taking on additional debts in the midst of a recessionary environment.
Serving as a cosigner of a loan is one of the most risky things a person can do when it comes to personal finance. Becoming a cosigner entitles the person to make the schedule payments once the owner of the loan fails to do so. A cosigner may lose more than a great amount of money in order to pay the loan.
Although it might be rare for most people to purchase a home during recessions, there are some people who actually do. There are some individuals who choose to avail an adjustable rate mortgage when purchasing a home. This might make sense in some cases since most people would opt to choose mortgages that have lower interest rates. However, doing this during recessions is a financial risk. People should be aware that these interest rates are more likely to rise as the economy recovers. Homeowners might find it difficult to keep up with the increasing rates.
People are also discouraged from getting a new car loan or a new home loan or any similar obligation during recessions. Although it’s okay to avail of these loans when the economy is in a good condition, it is not advisable to do so when the economy is in the middle of turmoil. The borrower might get laid off or in some way or another might get affected by the downturn in the economy. Availing of these extra obligations might add complications to the person’s financial situation in the near future if the economy fails to recover in a long time. People should be cautious about taking on additional debts in the midst of a recessionary environment.
Thursday, February 25, 2010
Spend Now, Pay Now
It is hard being levelheaded most of the time especially when being a little reckless can be more fun and enjoyable. But as much as many hate to say it, irresponsibility will soon pay back in the future and a little sacrifice now will not hurt your financial standing in any way.
The same principle also applies to credit card usage. People have the tendency to excessively indulge and overuse these plastics without knowing the long-term repercussions that await them. It will take a whole lot of discipline and presence of mind to control credit card usage especially since it offers a great many short-term rewards and satisfaction upon usage. Before being enthralled by the convenience that credit cards offer, one should always keep in mind that using them demands a huge responsibility. Here are some tips to always be on track with credit card usage.
1. Diligently settle balances monthly and avoid being tardy with them. Paying debts is not the most exciting thing to do but paying on time almost always outweighs the hassle. Creditors and banks know that by giving you credit, they are investing their money so a person can purchase what he needs. Needless to say, they will expect to be paid back in return and will take action if ever they are not.
2. Do not use one plastic to bail on another. Balances on credit cards should be paid with one’s own funds and not with another credit.
3. Don’t lend your credit card to family and friends. One balance is already something; splitting it to two or three monthly liabilities will only be a big blow to one’s credit score.
4. Keep receipts and other transaction proofs so that when billing statements arrive, cross-examining and validating them will be easier and unnecessary bills can be avoided ASAP.
5. Lastly, never borrow money that eventually cannot be paid off.
The same principle also applies to credit card usage. People have the tendency to excessively indulge and overuse these plastics without knowing the long-term repercussions that await them. It will take a whole lot of discipline and presence of mind to control credit card usage especially since it offers a great many short-term rewards and satisfaction upon usage. Before being enthralled by the convenience that credit cards offer, one should always keep in mind that using them demands a huge responsibility. Here are some tips to always be on track with credit card usage.
1. Diligently settle balances monthly and avoid being tardy with them. Paying debts is not the most exciting thing to do but paying on time almost always outweighs the hassle. Creditors and banks know that by giving you credit, they are investing their money so a person can purchase what he needs. Needless to say, they will expect to be paid back in return and will take action if ever they are not.
2. Do not use one plastic to bail on another. Balances on credit cards should be paid with one’s own funds and not with another credit.
3. Don’t lend your credit card to family and friends. One balance is already something; splitting it to two or three monthly liabilities will only be a big blow to one’s credit score.
4. Keep receipts and other transaction proofs so that when billing statements arrive, cross-examining and validating them will be easier and unnecessary bills can be avoided ASAP.
5. Lastly, never borrow money that eventually cannot be paid off.
Wednesday, February 24, 2010
Financial Tips for 20somethings
Most of the time, twenty-something people don’t see their money as resources for wealth building. Instead of saving, these people often use money to buy things or spend money to impress friends. They should know however, that the best time to start learning good money-handling habits is during their 20s. The chances are the habits they develop during these times are more likely to financially affect their future.
People in their twenties should consider developing a savings plan. Starting an emergency savings account would be a smart move for them. It is not necessary for them to place big amounts of money all at once. They can start small and set aside around 10% of their total income and deposit that amount into their savings account. So in case they experience financial crisis, they can always have their emergency savings account to fall back on.
Although they might think that it’s too early to start thinking about retirement, it might be a good idea to consider doing so. Everyone knows that having a Social Security account is important. However, not all of them know that it is not entirely advisable to depend on Social Security alone after retirement. In addition to their personal Social Security account, they might also use a portion of their salaries to contribute to their employer’s retirement savings account.
Apart from these two, twenty-something people must learn to cut down or minimize excessive spending. When it comes to practicing good spending habits, differentiating the things you need from the things you want before buying is always the golden rule. Buying tons of stuff might leave you with more liabilities than assets.
In addition to this advice, people in their twenties should develop the habit of paying their bills on time. Most of them might know by now that when bills become delinquent, will not look good on their credit reports. Apart from that, they may also pay for additional fees and higher interest rates if they fail to pay their bills before the due date.
People in their twenties should consider developing a savings plan. Starting an emergency savings account would be a smart move for them. It is not necessary for them to place big amounts of money all at once. They can start small and set aside around 10% of their total income and deposit that amount into their savings account. So in case they experience financial crisis, they can always have their emergency savings account to fall back on.
Although they might think that it’s too early to start thinking about retirement, it might be a good idea to consider doing so. Everyone knows that having a Social Security account is important. However, not all of them know that it is not entirely advisable to depend on Social Security alone after retirement. In addition to their personal Social Security account, they might also use a portion of their salaries to contribute to their employer’s retirement savings account.
Apart from these two, twenty-something people must learn to cut down or minimize excessive spending. When it comes to practicing good spending habits, differentiating the things you need from the things you want before buying is always the golden rule. Buying tons of stuff might leave you with more liabilities than assets.
In addition to this advice, people in their twenties should develop the habit of paying their bills on time. Most of them might know by now that when bills become delinquent, will not look good on their credit reports. Apart from that, they may also pay for additional fees and higher interest rates if they fail to pay their bills before the due date.
Monday, February 22, 2010
The Goldman Sachs Group
The Goldman Sachs Group operates as a major bank holding company that deals with securities services, investment banking, and investment management. The firm was established in 1869 by a German Jewish immigrant known as Marcus Goldman. A couple of years later, he was joined by his son-in-law Samuel Sachs. As a result, the firm’s name was changed to Goldman Sachs. The firm was able to make a name for itself by initiating the use of commercial paper for entrepreneurs.
In 1896, Goldman Sachs was invited to join the New York Stock Exchange.
During the preliminary years of the 20th century, the group was able to play a part in setting up the initial public offering market. It became one of the first companies to hire employees with MBA degrees from the most prestigious business schools. In addition to that, the group was also able to manage one of the biggest IPOs that still exist to date, such as the Sears, Roebuck and Company in 1906.
Nowadays, the group’s headquarters are located in New York City’s 85 Broad Street lower Manhattan area. The group also maintains a secondary office at 30 Hudson Street, Jersey City, New Jersey as well as offices in global financial centers.
Goldman Sachs provides its clients with advices regarding acquisitions and mergers as well as asset management and underwriting services. The group serves as a primary dealer in the US Treasury securities market.
Earlier this year, Goldman Sachs was able to announce strong quarterly earnings. The group’s profits was pushed forward by revenues totaling $6.56 billion in its fixed-income, currency and commodities unit. All in all, the group’s revenue was able to reach a total of $9.43 billion, showing a 13% increase from the first quarter of last year’s recorded review.
In 1896, Goldman Sachs was invited to join the New York Stock Exchange.
During the preliminary years of the 20th century, the group was able to play a part in setting up the initial public offering market. It became one of the first companies to hire employees with MBA degrees from the most prestigious business schools. In addition to that, the group was also able to manage one of the biggest IPOs that still exist to date, such as the Sears, Roebuck and Company in 1906.
Nowadays, the group’s headquarters are located in New York City’s 85 Broad Street lower Manhattan area. The group also maintains a secondary office at 30 Hudson Street, Jersey City, New Jersey as well as offices in global financial centers.
Goldman Sachs provides its clients with advices regarding acquisitions and mergers as well as asset management and underwriting services. The group serves as a primary dealer in the US Treasury securities market.
Earlier this year, Goldman Sachs was able to announce strong quarterly earnings. The group’s profits was pushed forward by revenues totaling $6.56 billion in its fixed-income, currency and commodities unit. All in all, the group’s revenue was able to reach a total of $9.43 billion, showing a 13% increase from the first quarter of last year’s recorded review.
Tuesday, February 16, 2010
Handling Your Money Wisely
The value of our money somehow depends on how it is used. Currencies may change but money’s main uses often remain constant. Money is used to purchase a house, send a child to school, as well as to save up for a comfortable life after retirement.
Seeing money only as a spending resource is one of the biggest financial mistakes people make. Although a majority of us may not be aware of this, practicing the proper way of spending money might just be as difficult as earning it.
The reason why most of us panic during difficult financial situations is because a majority of us do not have an emergency fund to fall back on. We have probably spent everything we have earned for the past few months or even years. One of the ways to guard yourself during the occurrence of depressed economies, sudden illness, and job layoffs is to set aside a certain amount of money that is sure to last between three to six months.
It is important to start an emergency fund and build up on your savings to insulate yourself from financial distress. Things like unemployment as well as home repairs and expensive car maintenance can consume a huge amount of our money and most of our monthly salaries cannot cover these additional expenses all at once. So instead of using money to buy things you don’t really need, it might be a smarter strategy to deposit that money to an emergency savings account.
Apart from saving, it is also advisable to prevent yourself from having any extra expenses by acquiring debt. Most of us find it easy to purchase thing through credit. Instead of using credit cards to buy random things we don’t need, credit cards should be used only for immediate expenses.
Seeing money only as a spending resource is one of the biggest financial mistakes people make. Although a majority of us may not be aware of this, practicing the proper way of spending money might just be as difficult as earning it.
The reason why most of us panic during difficult financial situations is because a majority of us do not have an emergency fund to fall back on. We have probably spent everything we have earned for the past few months or even years. One of the ways to guard yourself during the occurrence of depressed economies, sudden illness, and job layoffs is to set aside a certain amount of money that is sure to last between three to six months.
It is important to start an emergency fund and build up on your savings to insulate yourself from financial distress. Things like unemployment as well as home repairs and expensive car maintenance can consume a huge amount of our money and most of our monthly salaries cannot cover these additional expenses all at once. So instead of using money to buy things you don’t really need, it might be a smarter strategy to deposit that money to an emergency savings account.
Apart from saving, it is also advisable to prevent yourself from having any extra expenses by acquiring debt. Most of us find it easy to purchase thing through credit. Instead of using credit cards to buy random things we don’t need, credit cards should be used only for immediate expenses.
Friday, February 12, 2010
Achieving Long Term Financial Security
The idea of saving up for a life after retirement is an often ignored by most people under 30. People in this age bracket have this unfortunate propensity of not having this foresight. This is understandable as some are still set on saving up enough money to buy the things they need to settle down. While people are so caught up in achieving all these short term goals, it is not a smart idea to set aside plans for achieving a secure financial future especially after retirement when one can no longer work to earn a stable income.
However, young people do not need to sacrifice their dream of buying their own houses or cars in order to live comfortably after retirement. All they need to do is to practice how to handle money the right way.
Apart from gaining balance and self control, it is important for people to recognize their biggest and most important financial assets --- their abilities and skills that enable them to work and earn an income. Investing in your own self is sure to pay off in the future. And just like all financial assets, people should always seek for ways to upgrade themselves while they are still at the earliest stages of their careers. People can increase their value as an employee by constantly upgrading their knowledge and skills.
As you work your way up the career ladder, your regular income goes up with you too. When this happens, most people feel that they are obliged to live a lavish lifestyle. Instead of saving up all the extra money they earn they feel entitled to live the good life. There is nothing really wrong with that. However, they must keep in mind that they are not required to upgrade their lifestyle just become their paychecks have doubled in amount. People must consider this piece of financial information: raising the current mode of lifestyle is very easy once people start earning bigger salaries. There is a caveat though: becoming accustomed to an affluent lifestyle brings with it greater financial demands, making saving for the future a chore. It is also very difficult to lower a standard of living once someone gets accustomed to it.
However, young people do not need to sacrifice their dream of buying their own houses or cars in order to live comfortably after retirement. All they need to do is to practice how to handle money the right way.
Apart from gaining balance and self control, it is important for people to recognize their biggest and most important financial assets --- their abilities and skills that enable them to work and earn an income. Investing in your own self is sure to pay off in the future. And just like all financial assets, people should always seek for ways to upgrade themselves while they are still at the earliest stages of their careers. People can increase their value as an employee by constantly upgrading their knowledge and skills.
As you work your way up the career ladder, your regular income goes up with you too. When this happens, most people feel that they are obliged to live a lavish lifestyle. Instead of saving up all the extra money they earn they feel entitled to live the good life. There is nothing really wrong with that. However, they must keep in mind that they are not required to upgrade their lifestyle just become their paychecks have doubled in amount. People must consider this piece of financial information: raising the current mode of lifestyle is very easy once people start earning bigger salaries. There is a caveat though: becoming accustomed to an affluent lifestyle brings with it greater financial demands, making saving for the future a chore. It is also very difficult to lower a standard of living once someone gets accustomed to it.
Wednesday, February 10, 2010
The Costs of Home Equity Loans
Several homeowners might find a home-equity loan as a convenient way of borrowing money. As compared to the interest rates that are offered by most credit cards and other types of loans, the home-equity loan actually offers a more appealing interest rate. In addition, a home-equity loan also entitled the borrower to deduct the interest rate when filing their taxes.
However, people should not assume that all home-equity loans are the same. It takes time and effort to look for a home-equity loan that offers competitive rates, terms, and other extra fees. People need to keep more than a few things in mind when looking for the right home-equity loan.
Before a person goes out to buy a home-equity loan, he/she must consider that leveraging his/her home is a big decision. Knowing the different types of home equity loans is important.
Interest is the single largest cost that comes with a majority of home-equity loans. Before choosing a loan, everyone should consider first that the APR or the annual percentage rate of a traditional home-equity loan is calculated differently from a home-equity line of credit. The home-equity loan has a fixed interest rate while the home-equity line of credit has a variable interest rate. The APR for a majority of home-equity loans includes the costs of starting the loan. On the other hand, the calculation for the APR of a home-equity line of credit is based on the interest rate of the loan. People can’t make a direct comparison of the variable-rate loans and the fixed-rate loans due to these differences.
Apart from interest rates, people should also be wary of hidden fees. Borrowers should also consider the other expenses that are associated with a loan. Getting a home-equity line of credit or a home-equity loan entitles the borrower to pay the same fees that come with a mortgage. Therefore, they should also consider the closing costs apart from the interest rates.
However, people should not assume that all home-equity loans are the same. It takes time and effort to look for a home-equity loan that offers competitive rates, terms, and other extra fees. People need to keep more than a few things in mind when looking for the right home-equity loan.
Before a person goes out to buy a home-equity loan, he/she must consider that leveraging his/her home is a big decision. Knowing the different types of home equity loans is important.
Interest is the single largest cost that comes with a majority of home-equity loans. Before choosing a loan, everyone should consider first that the APR or the annual percentage rate of a traditional home-equity loan is calculated differently from a home-equity line of credit. The home-equity loan has a fixed interest rate while the home-equity line of credit has a variable interest rate. The APR for a majority of home-equity loans includes the costs of starting the loan. On the other hand, the calculation for the APR of a home-equity line of credit is based on the interest rate of the loan. People can’t make a direct comparison of the variable-rate loans and the fixed-rate loans due to these differences.
Apart from interest rates, people should also be wary of hidden fees. Borrowers should also consider the other expenses that are associated with a loan. Getting a home-equity line of credit or a home-equity loan entitles the borrower to pay the same fees that come with a mortgage. Therefore, they should also consider the closing costs apart from the interest rates.
Friday, February 5, 2010
How to Bounce Back After Losing a Job
No matter how much you hate your job, losing that job or getting fired from that job can be devastating. Given the circumstances, its okay for you to mope and wallow in your emotions for a while. But just like all things, there should be a time limit for that. You have to get back to your feet and eventually face the reality of your current financial state.
You can start by filing for unemployment as soon as you can. Then you can move on to computing how much money you have left and how much money you need to pay for certain expenses. Unlike most jobs, things like the rent, bills, and other expenses are not temporary. Employed or unemployed, you have to deal with them immediately before they start to become serious problems.
Although most people might find it sad, unemployment might only lead you to pursue the things you really want. It’s essential that you go on and look for another job or another career that actually allows you to do what you want. Pursuing a career path that compliments your inner passion motivates you to work better, thus minimizing your chances of getting fired again.
However, before you can do that, you must first take the time to think about what you really want. Once you figure that out, the only thing left for you to do is pursue it. One thing most of us fail to consider is that while you think you need a job to cover up your expenses, that job you were so passionate about might just need you as much too.
You must also reconsider your priorities once a new company hires you. You might want consider fattening up your savings account this time. A savings account will serve as your safety blanket not only after you lose a job but also during financial crisis and recessions.
You can start by filing for unemployment as soon as you can. Then you can move on to computing how much money you have left and how much money you need to pay for certain expenses. Unlike most jobs, things like the rent, bills, and other expenses are not temporary. Employed or unemployed, you have to deal with them immediately before they start to become serious problems.
Although most people might find it sad, unemployment might only lead you to pursue the things you really want. It’s essential that you go on and look for another job or another career that actually allows you to do what you want. Pursuing a career path that compliments your inner passion motivates you to work better, thus minimizing your chances of getting fired again.
However, before you can do that, you must first take the time to think about what you really want. Once you figure that out, the only thing left for you to do is pursue it. One thing most of us fail to consider is that while you think you need a job to cover up your expenses, that job you were so passionate about might just need you as much too.
You must also reconsider your priorities once a new company hires you. You might want consider fattening up your savings account this time. A savings account will serve as your safety blanket not only after you lose a job but also during financial crisis and recessions.
Monday, February 1, 2010
The Top Five Insurance Policies
It is advisable for people who want to create a solid personal financial plan to consider what their most important assets are and find ways to guard them. This is one of the most important steps in formulating a sound financial plan. Acquiring the right insurance policies is one of the most viable ways to help safeguard earnings and possessions. The five most essential insurances every person must have are a Long-Term Disability Insurance, a Life Insurance, a Health Insurance, a Home Insurance, and an Automobile Insurance.
The mere idea of having a long-term disability is in itself crippling. Most people find the prospect very frightening that they tend to ignore the idea completely. Although it is normal for people to hope that something as terrible as having a long-term disability won’t happen to them, relying entirely on hope isn’t such a good idea. For financial stability reasons, it is advisable for people to look for a disability policy and make sure they can continue to pay for their immediate needs and other expenses even if they can’t work anymore.
A Life Insurance on the other hand would benefit people who are financially dependent on the person who is getting the insurance. These people might include the person’s parents, spouse, and children. Apart from these two insurances, it is also necessary for everyone to acquire a health insurance. A health insurance can cushion them from the costs of medical care, medical bills, or even medical consultations in the future.
A Home Insurance as well as an Automobile Insurance can help people in several situations such as going though home replacements, home repairs as well as car repairs and road accidents. Acquiring an automobile liability is advisable for everyone even for folks who are driving old cars.
The mere idea of having a long-term disability is in itself crippling. Most people find the prospect very frightening that they tend to ignore the idea completely. Although it is normal for people to hope that something as terrible as having a long-term disability won’t happen to them, relying entirely on hope isn’t such a good idea. For financial stability reasons, it is advisable for people to look for a disability policy and make sure they can continue to pay for their immediate needs and other expenses even if they can’t work anymore.
A Life Insurance on the other hand would benefit people who are financially dependent on the person who is getting the insurance. These people might include the person’s parents, spouse, and children. Apart from these two insurances, it is also necessary for everyone to acquire a health insurance. A health insurance can cushion them from the costs of medical care, medical bills, or even medical consultations in the future.
A Home Insurance as well as an Automobile Insurance can help people in several situations such as going though home replacements, home repairs as well as car repairs and road accidents. Acquiring an automobile liability is advisable for everyone even for folks who are driving old cars.
Wednesday, January 27, 2010
The Berkshire Partners
During the early part of the 1980s, Berkshire Partners was established by a group of five individuals with a goal to create a private equity firm that is based on hard work, successful relationships, analysis, as well as the collective participation of all individuals involved in the dealings. This founding vision has been preserved and continues to influence the firm’s many successful operations.
Led by a set of responsible private equity investors, Berkshire Partners adheres to its mission of producing investment returns that constantly places them at the top quartile of competitive but analogous private investment firms. The group also aims to provide the management teams for several portfolio companies they handle with all the right resources necessary to grasp the business’ full potential. In line with these, Berkshire Partners consistently strives to uphold the highest of ethical standards by operating in an honest and fair manner. It formulates its decisions based upon selected critical factors like analytical thoroughness, open debate, as well as logical judgments. The firm maintains its commendable culture of teamwork, detailed and harmonized decision making while continuously supporting the development of its staff and encouraging each colleague to constantly search for balance in life with regards to their commitments and responsibilities for their families and loved ones. The firm also pushes for community service and other external interests. All these statements are symbolic of the firm’s philosophy. Holding on to these values help the firm attract and secure managers for their portfolio companies and the entire Berkshire staff.
Operating as an active investor, the Berkshire Partners firm takes on the responsibility to create well researched investment decisions that would represent their investors. The entire Berkshire team works towards attaining well grounded decisions in order to provide only the best services possible for their management teams.
http://www.berkshirepartners.com/role.shtml
Led by a set of responsible private equity investors, Berkshire Partners adheres to its mission of producing investment returns that constantly places them at the top quartile of competitive but analogous private investment firms. The group also aims to provide the management teams for several portfolio companies they handle with all the right resources necessary to grasp the business’ full potential. In line with these, Berkshire Partners consistently strives to uphold the highest of ethical standards by operating in an honest and fair manner. It formulates its decisions based upon selected critical factors like analytical thoroughness, open debate, as well as logical judgments. The firm maintains its commendable culture of teamwork, detailed and harmonized decision making while continuously supporting the development of its staff and encouraging each colleague to constantly search for balance in life with regards to their commitments and responsibilities for their families and loved ones. The firm also pushes for community service and other external interests. All these statements are symbolic of the firm’s philosophy. Holding on to these values help the firm attract and secure managers for their portfolio companies and the entire Berkshire staff.
Operating as an active investor, the Berkshire Partners firm takes on the responsibility to create well researched investment decisions that would represent their investors. The entire Berkshire team works towards attaining well grounded decisions in order to provide only the best services possible for their management teams.
http://www.berkshirepartners.com/role.shtml
Monday, January 25, 2010
Silver Lake’s Portfolio
Formed in 1999, Silver Lake Partners, a Menlo Park, California-headquartered firm, has earned a named for itself as the leading private equity resource for the technology business. The firm is continuously seeking out more mature technology companies that are able to rule over their sectors, mostly those investing between $100 and $500 million. In addition to this, the firm has operating offices in London, New York and San Francisco.
Silver Lake’s holdings involve various big-time firms in the technology industry, mostly coming from its December 2000 connection with the equity recapitalization of web-based brokerage Datek. Investing for Datek eventually resulted to a stake in Ameritrade, which merged with Datek in September of 2002 and further merged with TD Warehouse USA. As a result of this, the company became TD Ameritrade.
Silver Lake Partners’ participation in NASDAQ (also known as the National Association of Securities Dealers Automated Quotations) is likewise a result of its Datek investment. This came about when Datek’s Island ECN was put up as an independent business. By September 2002, Island was fused together with the Instinet Group’s trading network called Instinet. The network was retained when NASDAQ bought the Instinet’s sister network INET. Later, in a deal that closed in February of 2007, Nomura Holdings purchased Instinet.
A number of the many investments of Silver Lake Partners include these business leaders:
• Serena,
• Network General,
• Business Objects,
• SunGard,
• Flextronics,
• Avago,
• Seagate,
• Thomson,
• UGS (presently known as software company Siemens PLM Software),
• Gartner,
• NXP and IPC.
Through TPG Capital from Texas Pacific Group, Silver Lake just added Sabre Holdings and Avaya to its portfolio companies.
The firm employed former Compaq and MCI chief executive officer Michael Capellas in October of 2007 as one of its senior advisors.
Silver Lake’s holdings involve various big-time firms in the technology industry, mostly coming from its December 2000 connection with the equity recapitalization of web-based brokerage Datek. Investing for Datek eventually resulted to a stake in Ameritrade, which merged with Datek in September of 2002 and further merged with TD Warehouse USA. As a result of this, the company became TD Ameritrade.
Silver Lake Partners’ participation in NASDAQ (also known as the National Association of Securities Dealers Automated Quotations) is likewise a result of its Datek investment. This came about when Datek’s Island ECN was put up as an independent business. By September 2002, Island was fused together with the Instinet Group’s trading network called Instinet. The network was retained when NASDAQ bought the Instinet’s sister network INET. Later, in a deal that closed in February of 2007, Nomura Holdings purchased Instinet.
A number of the many investments of Silver Lake Partners include these business leaders:
• Serena,
• Network General,
• Business Objects,
• SunGard,
• Flextronics,
• Avago,
• Seagate,
• Thomson,
• UGS (presently known as software company Siemens PLM Software),
• Gartner,
• NXP and IPC.
Through TPG Capital from Texas Pacific Group, Silver Lake just added Sabre Holdings and Avaya to its portfolio companies.
The firm employed former Compaq and MCI chief executive officer Michael Capellas in October of 2007 as one of its senior advisors.
Friday, January 22, 2010
Meryll Lynch
Meryll Lynch & Co is an international financial services firm that provides investment banking and advisory services, asset management, wealth management, insurance as well as capital markets services. Based in the thriving city of New York, the firm has grown big enough to occupy the entire 34 stories of the Four World Financial Center in Manhattan.
The firm was founded by Charles Merrill and his friend Edmund Lynch way back in the early 1900s. During its early years, the firm made a number of successful investments, including its acquisition of the Pathé Exchange.
In 1940, the firm joined with two other firms, namely the E.A. Pierce & Co and Cassatt & Co. After the merger, the firm became known as Meryll Lynch, E.A. Pierce, and Cassatt. The following year, Meryll Lynch became the first company to ever publish an annual fiscal report on Wall Street.
The firm was officially incorporated after Edmund Lynch’s death in 1952 and a few years later, Meryll Lynch successfully turned itself into the largest securities firm in the world. In 1958, the firm’s name was changed into Merill Lynch, Pierce, Fenner & Smith and at the same time, became a significant member of the board of the New York Stock Exchange.
In 2008, the firm was acquired by the Bank of America, one of the world’s biggest financial institutions. As a result of the merger, it has become the largest brokerage firm worldwide. It has also become a leading provider of international corporate and investment banking services that includes global high yield debt, commercial lending, global equity, as well as global M&A. As a team, Meryll Lynch and the Bank of America have become a global leader in retail brokerage, wealth management, and private banking.
The firm now carries the name Bank of America Merrill Lynch.
The firm was founded by Charles Merrill and his friend Edmund Lynch way back in the early 1900s. During its early years, the firm made a number of successful investments, including its acquisition of the Pathé Exchange.
In 1940, the firm joined with two other firms, namely the E.A. Pierce & Co and Cassatt & Co. After the merger, the firm became known as Meryll Lynch, E.A. Pierce, and Cassatt. The following year, Meryll Lynch became the first company to ever publish an annual fiscal report on Wall Street.
The firm was officially incorporated after Edmund Lynch’s death in 1952 and a few years later, Meryll Lynch successfully turned itself into the largest securities firm in the world. In 1958, the firm’s name was changed into Merill Lynch, Pierce, Fenner & Smith and at the same time, became a significant member of the board of the New York Stock Exchange.
In 2008, the firm was acquired by the Bank of America, one of the world’s biggest financial institutions. As a result of the merger, it has become the largest brokerage firm worldwide. It has also become a leading provider of international corporate and investment banking services that includes global high yield debt, commercial lending, global equity, as well as global M&A. As a team, Meryll Lynch and the Bank of America have become a global leader in retail brokerage, wealth management, and private banking.
The firm now carries the name Bank of America Merrill Lynch.
Monday, January 11, 2010
Thomas H. Lee
Thomas H. Lee is a Boston, Massachusetts based private equity firm that deals with identification and acquisition of substantial ownership positions in large companies that are growth oriented. They work on these companies in the hopes of securing a venue where they can add strategic and managerial expertise that allows them to create value for their business partners. Considered one of the most successful private equity firms, Thomas Lee was able to raise an approximate of $22 billion worth of equity capital while placing investments in more than a hundred business establishments, with a cumulative purchase price of over $125 billion. In addition to that, the firm also continuously seeks to build more companies that possess a lasting value while generating superior returns for their fellow operating partners and investors.
This leading equity firm focuses on companies that are able to capitalize on certain key competitive advantages in order to boost revenue as well as to increase free cash flow by means of market growth, share gains, market consolidation and through product line expansion. A few of the targeted companies’ identifiable strengths include dominant market share positions, well recognized brand names, unique product features, manufacturing, as well as other cost advantages.
Thomas Lee emphasizes the importance of free cash flow as the main gauge of profitability and that it has a considerable capability in terms of developing the business of its portfolio companies. The group works together with its portfolio companies in order to enhance the growth of free cash flow by means of developing their market potential and product lines, as well as in establishing effective systems, increasing resources, pursuing acquisitions and changing managements. Thomas H. Lee is also in the lookout for the ability to advance core operations through increased efficiencies. The firm’s investment philosophy and growth oriented strategy underscores the general appreciation in the enterprise value of a purchased or acquired company as compared to the mere repayment of acquisition debts.
This leading equity firm focuses on companies that are able to capitalize on certain key competitive advantages in order to boost revenue as well as to increase free cash flow by means of market growth, share gains, market consolidation and through product line expansion. A few of the targeted companies’ identifiable strengths include dominant market share positions, well recognized brand names, unique product features, manufacturing, as well as other cost advantages.
Thomas Lee emphasizes the importance of free cash flow as the main gauge of profitability and that it has a considerable capability in terms of developing the business of its portfolio companies. The group works together with its portfolio companies in order to enhance the growth of free cash flow by means of developing their market potential and product lines, as well as in establishing effective systems, increasing resources, pursuing acquisitions and changing managements. Thomas H. Lee is also in the lookout for the ability to advance core operations through increased efficiencies. The firm’s investment philosophy and growth oriented strategy underscores the general appreciation in the enterprise value of a purchased or acquired company as compared to the mere repayment of acquisition debts.
Tuesday, January 5, 2010
CVC Capital Partners
CVC Capital Partners is one of today’s leading global private equity and investment advisory firms. Established way back in 1981, the firm now maintains a network of 19 offices all over Asia and Europe, as well as in certain parts of the United States, in addition to its main headquarters in Luxembourg.
CVC stands distinctively in the midst of the private equity industry. This is mainly due to the extensiveness of its office network, as well as to the length of time it has been active in several countries, combined with the depth of the knowledge of its investment professionals. CVC Capital Partners is armed with the capability to combine and deliver vast cross border resources in order to obtain high quality companies and help them realize their full potential. The firm’s local knowledge and expertise emphasizes the success that it has attained throughout the 27 years of its existence.
The firm places more of its focus towards establishing businesses over the long term, while typically holding investments for five years or more. The firm’s funds possess a variety of portfolio investments. CVC Capital Partners collaborates effectively with the management teams of their portfolio companies, as well as with industrial advisors and appointed non-executive directors, in order to develop strategies that would enhance their portfolio company’s overall performance while leaving it to realize a lasting value.
The firm believes that through an effective combination of ownership and management, the company becomes more capable of creating benefits for the whole of its stakeholders, employees, customers, suppliers, as well as to the wider community.
CVC Capital Partners’ investors receive distributions from the gains produced from the firm’s various investments that include public and corporate pension plans, insurance companies, financial institutions, university endowments, and even through investments from individuals.
CVC stands distinctively in the midst of the private equity industry. This is mainly due to the extensiveness of its office network, as well as to the length of time it has been active in several countries, combined with the depth of the knowledge of its investment professionals. CVC Capital Partners is armed with the capability to combine and deliver vast cross border resources in order to obtain high quality companies and help them realize their full potential. The firm’s local knowledge and expertise emphasizes the success that it has attained throughout the 27 years of its existence.
The firm places more of its focus towards establishing businesses over the long term, while typically holding investments for five years or more. The firm’s funds possess a variety of portfolio investments. CVC Capital Partners collaborates effectively with the management teams of their portfolio companies, as well as with industrial advisors and appointed non-executive directors, in order to develop strategies that would enhance their portfolio company’s overall performance while leaving it to realize a lasting value.
The firm believes that through an effective combination of ownership and management, the company becomes more capable of creating benefits for the whole of its stakeholders, employees, customers, suppliers, as well as to the wider community.
CVC Capital Partners’ investors receive distributions from the gains produced from the firm’s various investments that include public and corporate pension plans, insurance companies, financial institutions, university endowments, and even through investments from individuals.
Monday, January 4, 2010
The Carlyle Group
With a total of more than $84.5 billion funds under its management, the Carlyle Group has become one of the largest private equity firms worldwide. The group takes on a global vision and combines it with local insight that relies on a top-flight team of more than 495 investment executives and professionals. These personnel operate in offices scattered in over 20 countries, including Europe, North America, Asia, the Middle East, Australia, and Latin America. These placements give the Carlyle Group a greater global foothold.
The Carlyle Group focuses its investments on certain sectors. These include automotive and transportation, aerospace and defense, consumer and retail, financial services, energy and power, healthcare, infrastructure, industrial, real estate, technology and business services, as well as media and telecommunications.
In the mercurial and competitive field of the industry it specializes in, the Carlyle Group has a decisive edge over its competitors in that it can skillfully utilize the local insight of its investment executives and professionals. As a result of the Carlyle Group’s extensive collaboration with its investment disciplines that originates from deal sourcing, the firm now has a broader view of more opportunities in investments in addition to a more profound level of expertise.
The firm’s team of investment professionals and executives includes a total of 181 MBA holders, 31 JD holders, as well as six PhD/MD holders coming from the most prestigious universities around the world. The Carlyle Group stands out from other private equity firms due to its global presence and vast knowledge regarding the local market.
Headquartered in Washington, DC and having a total of more than 890 employees, the Carlyle Group manages a total of 64 funds across 20 countries. Its operations adhere to the firm’s conservative investment philosophy, which pushes the firm to strive for consistency in all its undertakings.
The Carlyle Group focuses its investments on certain sectors. These include automotive and transportation, aerospace and defense, consumer and retail, financial services, energy and power, healthcare, infrastructure, industrial, real estate, technology and business services, as well as media and telecommunications.
In the mercurial and competitive field of the industry it specializes in, the Carlyle Group has a decisive edge over its competitors in that it can skillfully utilize the local insight of its investment executives and professionals. As a result of the Carlyle Group’s extensive collaboration with its investment disciplines that originates from deal sourcing, the firm now has a broader view of more opportunities in investments in addition to a more profound level of expertise.
The firm’s team of investment professionals and executives includes a total of 181 MBA holders, 31 JD holders, as well as six PhD/MD holders coming from the most prestigious universities around the world. The Carlyle Group stands out from other private equity firms due to its global presence and vast knowledge regarding the local market.
Headquartered in Washington, DC and having a total of more than 890 employees, the Carlyle Group manages a total of 64 funds across 20 countries. Its operations adhere to the firm’s conservative investment philosophy, which pushes the firm to strive for consistency in all its undertakings.
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