Help with career choice. (Corporate Raiding)

zacb · Post by **zacb** » April 18th, 2013, 8:24 am

Hello,

I was wondering how I could run a fund that takeover undervalued assets. I tried looking it up online, even aout corporate raiding, which is somewhat similar, but no go. So let's say I have found value in a public company, and I wanted to take it private, and pay off the loan with assets from the company, how could I learn about this path. I have always been interested in value investing, but I don't know what path I should take. I am getting a BA in Finance, which I know is in the right direction, but how do I pull a warren buffet and start buying out companies on leverage (which he did not do), and pay off those loans? It seems like corporate raiding and such are not the rage anymore.

Teal Lantern · Post by **Teal Lantern** » April 18th, 2013, 8:43 am

zacb wrote:Hello,

I was wondering how I could run a fund that takeover undervalued assets. I tried looking it up online, even aout corporate raiding, which is somewhat similar, but no go. So let's say I have found value in a public company, and I wanted to take it private, and pay off the loan with assets from the company, how could I learn about this path. I have always been interested in value investing, but I don't know what path I should take. I am getting a BA in Finance, which I know is in the right direction, but how do I pull a warren buffet and start buying out companies on leverage (which he did not do), and pay off those loans? It seems like corporate raiding and such are not the rage anymore.

Cash == Warren Buffet
Leverage == Michael Milken
A mix of both == Donald Trump

zacb · Post by **zacb** » April 18th, 2013, 8:56 am

Interesting. I was thinking the methadology of Warren Buffet, but the leverage of Michael Miliken, and a bank or lending institution would be more likely to lend. But it would probably be better to start in real estate, then you could build up credit. Any thoughts?

Teal Lantern · Post by **Teal Lantern** » April 18th, 2013, 9:37 am

zacb wrote:Interesting. I was thinking the methadology of Warren Buffet, but the leverage of Michael Miliken, and a bank or lending institution would be more likely to lend. But it would probably be better to start in real estate, then you could build up credit. Any thoughts?

Banks (and everyone else) are going to be skittish towards borrowers without a proven track record or cash reserves.
If you've got $500,000 in paid off commercial/residential property, yes, banks will lend money against that.
--- (Check out the end of Gerald Celente's vids on the real estate score.)

If you've just got youthful enthusiasm and a "can't fail" idea on a napkin, well, get in line with everyone else.

That said, there's family, friends, angel investors, crowd funding, and probably a half dozen other cash-raising options I'm leaving off (that don't involve securities filings.... or fraud.

).

Once you've proven yourself, (i.e. you can double your partners' money) and generate some buzz, the money for your next venture or scale-up will come find you.

Post by **fschmidt** » April 18th, 2013, 10:01 am

zacb, you are kidding? You don't start your career with corporate raiding. If you are good at valuing companies, you can start with picking stocks just like Buffett did. There are some really interesting real estate companies that will go public soon that are buying homes to rent out. I am anxiously awaiting their IPOs to see if they will be priced right so I can buy in. Here are some articles:

http://www.bloomberg.com/news/2013-02-1 ... -king.html
http://online.wsj.com/article/SB1000142 ... 40412.html

zacb · Post by **zacb** » April 18th, 2013, 10:46 am

That was kind of my point. I know you can't just go barge into a bank and demand cash. But I guess my point was more how could I get into this? I honestly don't think I could take the pressure of being a hedge fund or mutual fund manager. But I was not quite talking about 'leveraged buyouts', but more bridged buyouts, where the cash is there, just needs bought out. In others words, buy a company below book value, and then pay off the debt. Leveraging to this hilt to overpay for businesses would be a disaster. Now lets say you were to build up credit over time, but in another asset class, would that translate well into stocks? And if not, what would be the best ways to eventually get to the point of buying up undervalued companies?

Teal Lantern · Post by **Teal Lantern** » April 18th, 2013, 11:11 am

zacb wrote:That was kind of my point. I know you can't just go barge into a bank and demand cash. But I guess my point was more how could I get into this? I honestly don't think I could take the pressure of being a hedge fund or mutual fund manager. But I was not quite talking about 'leveraged buyouts', but more bridged buyouts, where the cash is there, just needs bought out. In others words, buy a company below book value, and then pay off the debt. Leveraging to this hilt to overpay for businesses would be a disaster. Now lets say you were to build up credit over time, but in another asset class, would that translate well into stocks? And if not, what would be the best ways to eventually get to the point of buying up undervalued companies?

Have a plan. Start small. Stick with it. Prove yourself.
Buffett, if you want to go WAAAAYY back -- started with buying six-packs of coke for a quarter and selling the bottles for 5 cents each -- & having a paper route.

--OR--

Another option is to get a halfway pretty girl to pitch your idea on one of the crowd-funding sites.
Manginas and their money are quick to part, for pretty girls.
One particular girl asked for $6K and eventually got nearly $160K.

So, yeah...

zacb · Post by **zacb** » April 18th, 2013, 11:45 am

lol. Yeah, I know I can't buy Halliburton and Monsanto right away lol.

Tsar · Post by **Tsar** » April 18th, 2013, 6:11 pm

Teal Lantern wrote:[
Another option is to get a halfway pretty girl to pitch your idea on one of the crowd-funding sites.
Manginas and their money are quick to part, for pretty girls.
One particular girl asked for $6K and eventually got nearly $160K. So, yeah... [/color]

Are you saying that a man couldn't do well on a crowd-funding site if he has a great, eye-catching, or heart-warming idea? Or just that girls have better odds because they're girls?

Teal Lantern · Post by **Teal Lantern** » April 18th, 2013, 7:06 pm

Tsar wrote:
Teal Lantern wrote:[
Another option is to get a halfway pretty girl to pitch your idea on one of the crowd-funding sites.
Manginas and their money are quick to part, for pretty girls.
One particular girl asked for $6K and eventually got nearly $160K. So, yeah... [/color]
Are you saying that a man couldn't do well on a crowd-funding site if he has a great, eye-catching, or heart-warming idea? Or just that girls have better odds because they're girls?

This ^^^. In places where a face can be shown, the same idea will get more attention and (possibly) funding if the face promoting it is attractive and female.

Not counting celeb promoters and STEM fields -- If a male makes a video promoting a great, eye-catching, or heart-warming idea and an attractive (or passable) female makes a vid for the same or similar project, her vid will usually get more views and her project will usually get more money.

Pick any area: homelessness, healthcare, academics, domestic violence, workplace safety, involuntary parenthood, any other "discrimination" -- if the case can be made that women are suffering, attention and cash will be forthcoming.
Men are told to go pound sand.

Zacb will need to
a) come up with a very good (and hard to steal) idea and/or
b) put a pretty girl in his video... or wear a wig.

Help with career choice. (Corporate Raiding)

Help with career choice. (Corporate Raiding)

Re: Help with career choice. (Corporate Raiding)