Category Archives : Investment Advisor

Why Softbank Bought Fortress Investment Group

Softbank is a well known Japanese internet and telecommunication giant that as of recent has a hand in many different areas including e-commerce, finance, broadband, and marketing to name a few. As of 2017, they have switched up their game by purchasing a well known New York-based global investment manager. Why does this make sense for a company like Softbank that typically operates in the technology space, and what do they hope to accomplish?

Founded in 1998, Fortress manages assets for more than 1,750 institutional clients and private investors worldwide across credit, real estate, permanent capital and private equity investments. They bring to the table nearly 20 years experience that combined had led the company to manage $36.1 billion in assets as of September of 2017. In addition to their assets, they had 953 asset management employees, including 216 investment professionals at their New York-based headquarters as of December 2017. This easily translates into Fortress being an expert in their field of operations and a lucrative asset for anyone who has a stake in them.

Softbank, on the other hand, started in 1981 as a telecommunications company and since then has grown to become a big player themselves in the internet and technology space. They hold stakes in companies like Sprint, Yahoo Japan, Uber, and Nvidia to name a few. In 2016, they even went as far as to purchase UK-based chip manufacturer ARM for an insane £24 billion. And contact them, They did this with the goal to continue development on the Internet of Things. Later, they took that a step further and bought two robotics companies from Alphabet (i.e. Google) to further expand their portfolio. The point being, Softbank is technology first, so why were they interested in a business like Fortress that for the most part isn’t cut from the same cloth?

 

The answer is in the details

Masayoshi Son, CEO, and chairman of Softbank has made it clear that they wish to explore a variety of new areas. As part of a seemingly visionary strategy where the purchase of Fortress gives them access to world-class experts in financial management. They are virtually becoming a powerhouse in investment overnight with this purchase. Furthermore, with this in mind, it starts to make a lot of sense. What’s more interesting is that Fortress would function as a subsidiary under Softbank’s ever-growing umbrella. Their current management would stay at the helm of the firm and Fortress is allowed to function in much the same way as it has since 1998. This bodes well for everyone involved including new job seekers, Fortress current list of investment managers and Japan’s future growth economically, and https://www.wsj.com/articles/softbank-nears-deal-to-buy-fortress-investment-group-for-more-than-3-billion-1487112978.

With the purchase of Fortress, Softbank is allowed to grow even more in the future to come. This is great for all the players involved and will only aid in Masayoshi Son’s ambitions for the company. Moreover, this is great for investors across the board as technology continues to play an important role for Softbank and it’s hard to argue with that, and more information click here.

Chris Linkas & Investment Strategies

 

Millennials don’t like to invest their money in stocks. And the people who are in the Generation Z category are not crazy about investing either. There are several reasons for their aversion to investing. The obvious reason is the enormous amount of student debt they carry and will carry for years to come. But Chris Linkas, the investment entrepreneur who has a successful track record as an investor as well as an investment entrepreneur, thinks there’s no time like the present to invest. Linkas has years of experience in the financial sector of the U.S. economy as well as the European Union’s economy (CheyneCapital). Mr. Linkas is not afraid to tell it like it is when it comes to giving young investors advice. He knows only 25 percent of the people under thirty invest in the stock market. Young people lived through the 2008 financial crisis and the dot-com crash as well as the housing bust, so they don’t trust the stock market or other investment vehicles.

 

 

But Chris Linkas likes to give his young clients a brief history of the stock market, so they realize investing in stocks is a long-term game. Chris thinks trying to find the next Amazon or trying to invest in a new tech startup is not the best way to save for retirement. Staying the course, as Chris Linkas likes to say, is the key factor in successful investing. But understanding and incorporating risk tolerance when investing doesn’t come naturally for some young investors. Old investors know stocks rise and fall like the ocean tide, so they have plenty of risk tolerance. A 60-year-old investor may have a portfolio that is 80 percent stocks and 40 percent bonds. But that investment distribution may not work for Generation Z investors, according to Mr. Linkas. Since most young investors have a low-risk tolerance, Chris Linkas gives them investment options that don’t carry as much risk.

 

 

When Chris is working with a group of young investors, the first thing he always tells them is time is on their side. They may invest in assets that fall apart early in their investment career, but they have time to recover from early losses. Linkas is also a proponent of ignoring what is going on in other investors lives. Some young investors want to take risks because they see their parents or grandparents taking big investment risks. Parents and grandparents have a strong pension fund, and they have assets they can convert to cash when they need it. Older investors are not the best financial advisors for young investors, according to Chris Linkas. Mr. Linkas also reminds young investors that people who have a long history of investing don’t look at the world the way young investors look at the world. The trials and challenges in the 21st century differ from the issues those investors faced when they were in their twenties and thirties. So it’s not always prudent to listen to the so-called experts.

 

 

But in order for young investors to invest successfully, they have to stay active and engaged in the art of investing. Chris calls investing an art because people create wealth by investing. And in a capitalistic economy wealth means power. Young people must follow the ups and downs that companies experience when they own stock. They also should follow the economic trends that constantly change due to global influence and political decisions. A good example of how quickly things change is the recent decision by the Trump administration to put tariffs on steel and aluminum. Stockholders who own stock in those industries know the risk factor increases when trade wars develop.

 

 

Rumors can destroy a young investors portfolio. Listening to rumors about big mergers and acquisitions isn’t prudent, according to Linkas. Mergers happen all the time. But there are more rumors than fact floating around the investment industry for several reasons. Some of those rumors are intentional acts that some companies use to increase or decrease their stock value. Other rumors are just hearsay, but there is enough energy behind them to make young investors as well as seasoned investors nervous.

 

 

There isn’t one investor manual for young investors that gives them the information they need to assess the risk of buying stocks or other assets. But Chris Linkas thinks young investors who invest slowly even when money is tight is the best way to prepare for the future life as a retiree (http://www.spoke.com/people/christopher-linkas-fortress-3e1429c09e597c1006eb4661). Reaching the golden years may seem like it’s a long journey, but it’s not. The Baby Boomers who thought investing was crazy when they were younger regret those thoughts now. Retirement can be a difficult experience if the only investment people make is paying into the social security system every month. In order to enjoy retirement, young investors have to tolerate investment risks, do investment research, and take a chance even when taking a chance means not buying that new car or a home.

 

Madison Street Capital—Your Premiere Partners in Corporate Finance

A global investment banking company whose emphasis is on excellence, leadership, honor and providing sound financial advice to both private and publicly held businesses, Madison Street Capitol knows the ins and outs of corporate finance extremely well. The firm has a good grasp on how prompt decision-making is vital in this industry, and therefore, is well versed in bold and quick responses when opportunities arise. Madison Street Capital’s aim is to bring satisfaction to both investors and business owners through transactions that serve to benefit both parties. Through years of experience, they have become experts at matching buyers with sellers, as well as finding the right capitalization and funding for every transaction of their clients.

 

Madison Street Capital has a team of dedicated professionals in the field of finance, each one with years of experience and expertise in different areas of corporate investment banking, which truly makes the firm one of the best middle market investment companies around the globe. They’ve served clients across a wide range of industries in the US and other countries.

 

Madison Street Capital reputation includes areas of expertise all over aspects of business financing, including valuation, market pricing with due diligence, mergers and acquisitions, the structuring of deals, financing for specialized transactions and designing and implementing various exit strategies when needful.

 

In its many years of operation, Madison Street Capital has assisted hundreds of satisfied firms attain their goals promptly. Because they understand the industry so well, they have become a leader in providing financial advice, valuations and mergers and acquisitions. And, with headquarters in Chicago, Illinois, and branches in three continents—North America, Africa and Asia—Madison Street Capital has developed an international perspective that considers local businesses and networks to be equally valuable.

 

Businesses may avail of Madison Street Capital’s expertise in the following fields: Asset Management Industry Focus, Business Valuation, Corporate Advisory, Financial Options, Wealth Preservation and Tax Planning, as well as Valuation for Financial Reporting.

 

Since one of its aims is to make a difference in local communities as well as on a global scale, Madison Street Capital is also a strong supporter and generous donor of United Way, an organization dedicated to relief efforts all over the US. The company fully believes in building solid businesses all throughout the country, and is dedicated to making this a reality, and providing support whenever and wherever it’s needed.

 

Follow Madison Street Capital on Facebook.

Investment Strategies As Unveiled By The World’s Best

Which one would you deem as being more reliable: passive or active index investments? Many seem to be of the opinion that passive index returns are the safer bet for a more secure retirement but this notion has been challenged by Warren Buffet. Mr. Buffet provoked a group of hedge fund managers that he would get better returns by merely investing in an S&P 500 passive index fund, and from the looks of it, he might be on to something.

It is all a matter of the bottom-up approach to investing which essentially involves thoroughly analyzing companies and going with those that have a durable portfolio which has withstood the test of time. Essentially, simple low-priced investments are preferable to expensive funds that end up shortchanging investors in the long run. When bought and held, the former can prove to be much more profitable eventually, and this is ideally what one hopes to achieve when saving up for their golden years.

When it comes to active index investments, doing better than the market average, in the long run, is a matter of strategy rather than something which simply happens by chance. Timothy Armour – the CEO of Capital Group, seems to be of the opinion that it is up to the long term active managers to seek out value in enough places.

This is done with the aim of enabling the investors to perform better than the market average over a considerable period of time. Just as well, Mr. Armour cautions investors against settling for average returns but to instead seek market returns that are above average.

Besides having over 30 years of investment experience, Timothy is an alumnus of Middlebury College where he obtained a Bachelor’s Degree in Economics. Since 2015 when he was named the chairman of Capital Group, he has displayed remarkable enthusiasm in his leadership and his sound advice regarding investment is a clear indication of the Group’s future success.

Learn more about Capital Group: https://www.thecapitalgroup.com/us/about.html

Back to Top