Investment Bodie Kane Notes

Brazos’ investment strategy emphasizes buyouts of mid-size companies that show predictable cash flows, have good management teams in place, have well-developed niche markets, and are located in Texas and the Southwest. This strategy suits its position as a first-time fund because this geographic area is underserved by LBO firms. Additionally, the existence of dependable cash flow and management make it easier to acquire debt financing and increase leverage. GTT offered merits for both sellers and Brazos. It gave sellers a way to cash out if they desired, while allowing them to

The Yale Endowment is known in the financial industry as a pioneer in using a combination of innovative asset allocation and active management to produce impressive long-term performance. In fact, the Endowment produced a 17.8% average annual return, net of fees, in the ten-year period ending June 30, 2007.1 This performance is particularly impressive given that, in recent years, the Endowment portfolio has carried less than a 40% weighting in equities. Instead, under the leadership of Chief Investment Officer Dave Swensen, the Yale Investments Office

Although stock implies ownership, few equity investors expect to play a role in running the companies whose shares they buy. Such firms are widely held, and few stockholders have large enough blocks of stock to influence management decisions. In small business, of course, owners usually run their companies.

Managers and shareholders are the utmost contributors of these conflicts, hence affecting the entire structural organization of a company, its managerial system and eventually to the company's societal responsibility. A corporation is well organized with stipulated division of responsibilities among the arms of the organizational structure, shareholders, directors, managers and corporate officers. However, conflicts between managers in most firms and shareholders have brought about agency problems. Shares and their trade have seen many companies rise to big investments. Shareholders keep the companies running

CONTROL- Shareholders do not typically manage the company’s business. Instead a board of directors is elected. The board of directors has direct control over the company. A board member can also be a shareholder.

The stakeholders are the shareholders, managers, and employees. The current situation has caused a dilemma that affects all stakeholders equally. When the business is at risk, everyone involved should be concerned about the future of the organization. However, the responsibility falls to the senior leaders of the organization to solve the current issues. However, holding 80% of the company’s stocks is concerned not only about the organizations current issues but also with the value of his investment, as he gets closer to retirement. This creates an ethical dilemma due to his personal finances and retirement being directly affected by the company’s performance. In addition, the CEO believes that the status of the organization is not as bad as some of the senior leadership team would say. The shareholders interest is purely profit. The impact of how Huffman Trucking runs the business and implements change has a direct reflection on the company’s image.

The stakeholders and investors because the stocks may drop and otherwise profit have to be invested to fix the company created problem. Civic institutions, media and academic commentators, Government and regulators and social pressure groups are all effect because they are all drawn to resolve the issue.

The company believes that the executives and directors should own the stocks. In order to be a stockholder,

Several key elements of Miller’s contrarian strategy included: 1) buy low-price, high intrinsic-value stocks; 2) take heart in pessimistic markets; 3) remember that the lowest average cost wins; 4) be wary of valuation illusions; 5) take the long view; 6) look for cyclical and secular underpricing; 7) buy low-expectation stocks; 8) take risks.

These individuals must scrutinize the business ongoing to ensure that it is operating efficiently. Any shortfalls with the company will affect the stock prices and will not be beneficial to the shareholders. While they may not have the ability to make any changes directly to the company themselves, they do have the capacity to limit the number of shares that they purchase. This industry will never be eradicated, and although inundated with several issues they will be around forever. The longevity of the sector may be enticing to the shareholders, and even with occasional shortcomings, they will continue to invest in this market.

In 2002 the Hershey trust company board decided to sell school shares from Hershey stock. The board wanted to sell the 33% of Hershey shares at premium and reinvest the money in another company to make profit for the school. The board was responsible to oversees the investment and make sure the school was doing fine. Looking on this issue as financial personnel the board decision was better to sell stocks at premium and reinvest in another company.

Due to internationalization these companies have been able to spread their risk. Therefore, if one market is not performing they can rely on the other (diversification)

Many Americans are taught that investing is the avenue to wealth and financial independence in retirement. However, the questions: where should I invest, how much should I invest, or is my money safe precludes some from entering the investment arena. While this paper is not meant to answer those question, the first half will compare the daily performance of three well known stocks: Microsoft, Apple and Staples based on the probability of a daily loss and the probability of closing above the mean value, the second half will explore the probability of winning a game of chance.

Stockholders expect dividend but it is not promised (Gittman, 2004). Common stocks are hold by true owners of the business. Sometimes they are known as ‘residual owners’ as they receive whatever left after winding up of the company (Gittman, 2004; Higgins 1995). Another type of stock is known as publicly owned stock. Common stock owned by a broad group of unrelated investors or institutional investors is called as publicly owned stock. However, all common stock of a

The majority shareholder is often the Based on a study commissioned in April 2004 by Jardine Lloyd Thompson Pte Ltd, there were a total of 19 cases