Weekly Articles by Osbon Capital Management:
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When You Are Acquired: The 3 R’s
More than 35 Boston area companies have been acquired so far this year. Almost all were privately held. When you are acquired, it’s not just a life-changing liquidity event, it’s validation of your business model and a hard-earned reward for your ideas and long hours. In the big deal, you’ll receive cash, stock and/or incentives to continue working. Then what? Based on my 30 years working with fortunate business sellers, here are three capital R’s to help you get the right kind of guidance from the right kind of advisor.
5 News Events to Wrap Up 2018
The final nine weeks of the calendar year have already started. While we can’t predict prices over the short term we can pick out the news stories that will impact markets worldwide until year end and into 2019. Here are our top five picks, listed in order of importance.
Win with Small Firms — 6 Big Ways
The story of small versus big is as enduring as the David and Goliath legend. Investors who are thinking about changing advisors or picking an advisor for the first time can choose from dozens of big firms and thousands of small firms. So, which is best for you…small or big? Several years ago, Malcolm Gladwell floated the idea that small firms have a real business advantage over larger competitors. We agreed then and feel even more strongly that way now. Here are six reasons why.
Stay with International
US-based investors holding international investments are sorely tested these days. Stock markets outside the US have not been generous in returns recently, certainly not as good as US stocks. Furthermore, the dollar is up 9% this year, wiping out what gains are available overseas. Headlines aren’t helping. Brexit talk, regime change and America First have contributed to the concern for international investors. Have we reached a point where the reasons to abandon international investments outweigh all possible benefits? Here are the reasons to stay with international investments.
Less Gold. More Yield.
Gold remains an important asset class in global investment markets. With 190,000 tons mined and a market price of $1200 an ounce, the market value of gold is over $7 trillion dollars. While gold is a meaningful asset class, it has become smaller compared to the rest of the market because its price has been going down since 2011. Is it time to give up on gold? We say no, and here’s why.
Ten Years Post-Crisis, What Have We Learned?
September 2018 is the month to mark – not celebrate – the ten-year anniversary of the financial crisis. The crisis started on three specific days. First, Fannie Mae and Freddie Mac were put into government conservatorship on September 6th. Next, Lehman Brothers filed for bankruptcy on September 15th. Finally, AIG was bailed out by the government on September 16. Just recalling these events can give you the chills. What have we learned since then?
Price Targets Are Obsolete: Why are they still a thing?
Apple is in the news again this week because of its Gathering Round conference where the company announces new products and upgrades. With every event like this comes a new round of price targets and buy/hold/sell recommendations from Wall Street analysts. Our question is why do they bother? Individual price targets are notoriously unreliable and can be dangerously wrong.
The Case For India
India has been getting favorable headlines this year because its prime minister is considered progressive and because its stock market is doing well. The Indian Sensex is up 430% since 2008. India is not exactly a favorite market yet but it has been doing better than many markets in the world. Is it time to invest? Time to hold on for the long term? Let’s look at some basic investment facts about India.
How Big is Too Big?
Apple made headlines around the world last week when it crossed the $1 trillion dollar market value level. Apple’s value now begs the question, how much higher can it go? Is $2 trillion feasible? How about $4 trillion? Or has Apple grown so large it will begin to fade? Is the trillion dollar mark a limit or a launchpad?
