The Private Equity for Families Blog
Insight for those interested in private equity or direct investment in privately-held businesses. The opinions expressed in the PE4Fams blog are those of Rob McCreary and not necessarily those of CW Industrial Partners or its employees.
Are Zombie Companies At Risk?
I am always keeping an eye on a backwater of the U.S. financial system called Zombie Companies. There is a general consensus that “Zombies” are businesses that do not have the cash flow to service the interest on their debt. For example, the biggest zombies in the world right
Is It Real or Is It Ai Me?
As digital technology began to emerge in the early 1970’s Memorex entered the consumer media market with a series of legendary TV commercials featuring Ella Fitzgerald. In those commercials, she would sing a note that shattered a glass while being recorded to a Memorex cassette. The tape was played
The Hand You Hold May Be The Hand You Play
Several years ago, I was engrossed in a series of investment insights from Ray Dalio’s book “Principles For Dealing With A Changing World Order.” Mr. Dalio is the founder of Bridgewater Associates said to be the largest hedge fund in the world. In a series of monthly chapter releases,
Small Bank Deposit Woes Continue
I have been a customer of Key Bank and JP Morgan Chase for a long time and have never had a savings account with either institution. The rates were never compelling and there were always restrictions or disincentives related to withdrawals. Like many of our readers, money market products
How To Earn 21% Compounded Risk Free
I hope this blog headline got your attention because I know of only one way you can earn 21% compound interest risk free in today’s financial markets. But before I reveal this windfall for your wallet let me pick up on a blog I wrote in June of 2022 Credit
“LIV” and Let Live
The first major collision between the Professional Golf Association (“PGA”) and Saudi – owned LIV Golf (“LIV”) is unfolding in Augusta as we are graced by a trifecta of Easter Weekend, commercial – free Masters’ coverage and a full moon in Georgia. Eighteen of the LIV faithful including Phil
Instead of A Bailout, How About A Lottery?
What could possibly go wrong when the chief risk officers for the United States banking system, the Federal Reserve Bank, encourage speculation and risk taking by making it virtually impossible for any enterprise to earn a safe, respectable rate of return on assets? The questions about the failures of
How Close Can You Get To A Sure Thing?
The investment world loves acronyms especially ones that help them sell products. The great revival that began in 2010 and ran unchecked until October 2021 had some really catchy ones like “FAANG” (Facebook, Amazon, Apple, Netflix, Google) “FOMO” (Fear of Missing Out). “TINA” (There is No Alternative) and “YOLO”
MLB Spring Training Has New Rules
Usually, this time of year is exciting just because the weather is lousy and the thought of a few innings in the sun of Prescott Arizona watching the Guardians is really dreamy. This year I am really energized by changes to the rules which are intended to increase fan
Car Collecting and Car Buying Diverge in 2023
Last weekend was the Naples Car Show, formerly known as “Ferraris on Fifth”, where collectors bring their McLarens, Lamborghinis, Aston Martens, Bugatti’s, Paganis, Ferraris, Bentleys, Rolls Royce’s, and Maserati’s out of storage for a charity event that raises more than $1.0 million for a local alcohol and drug rehabilitation
There Is Nothing Artificial About This Intelligence
The hottest reservation in America is not the 2023 Superbowl. Rather it is getting time on ChatGPT to experiment with artificial intelligence. I tried and tried and even put my name on a “contact me list” but I could not get a time to experiment. Luckily, I was able to talk to Jessica Berg who is co-Dean
Howard Marks Has New Advice For Investors
Howard Marks is one of my favorite investors because he has a deep value bias and the discipline not to abandon it. Warren Buffet says he always opens any communication from Howard Marks first so why would I be different? When he writes or speaks, I listen, not so
Fairy Tale Finance: Crisis in Financial Literacy
Happy New Year. CW Industrial Partners hopes 2023 will be healthy, prosperous and enlightening. An appropriate theme for the first blog of the year is financial literacy… or maybe the frightening absence of it in America 2023. When you look at the fraud and speculation that accompanied the last
World Cup “Golden Oldies” Fade As New Order Emerges
I organized a family World Cup pool which I assumed I could win. After all I played soccer in high school and college and know all the big names like Thomas Mueller age 33 (Germany and Bayern Munich), Cristiano Ronaldo age 37 (Portugal and free agent), Kevin DeBrunye, age
Crypto’s In The Upside Down
Like the Netflix hit sci-fi series “Stranger Things” where governmental test labs inadvertently create a new volatile dimension called the “Upside Down” so, too, have crypto markets taken on paranormal proportions to become their own “Upside Down.” In a recent article for The “Wall Street Journal” on Thanksgiving Day
The 2% Titration Experiment
The 2% Titration Experiment One of our portfolio companies specialized in the remediation of chemical waste. It often received shipping manifests for liquids purporting to be a harmless mix of chemicals. Once that barrel had been accepted for processing the contents of the barrel became our portco’s environmental responsibility.
Book Review: “The Price of Time”
I have been doing some reading on what most of you would consider a boring topic- the history of interest rates. James Grant calls this book by Edward Chancellor “A masterpiece of history, analysis—and properly understated outrage.” It is called “The Price of Time.” What fascinated me was “understated
Strong Dollar Thrashes The World
After travelling to Scotland this Fall I was surprised by the conversion rates into British Pounds. Meals, lodging, beer and even golf balls were much cheaper than 2021 when this trip was first planned. Somehow this did not make sense given all our domestic problems. What about our rising
One of the challenges of having a rowboat is learning to navigate forward by constantly looking backward. This is unique. No other mode of transportation has your future course decided by a point behind you— a rock, a buoy, shoreline trees or a mooring. Unless your head can spin
Grease Is The Word
In a tribute to Olivia Newton John who died last week and who at age 29 acted as teenage Sandy to a 23 year old John Travolta in “Grease” I dedicate this timely reminder that grease is still the word. Recent discussions with several of our portfolio companies suggest
Inflation Playbook May Distort Reported Earnings
There are many lessons from the 1970’s and 80’s “Big Inflation” about interpreting reported financial results to determine if a public company is doing well or not. One of those lessons was wage inflation lagged, not led, price increases in goods and services. This stretched out the period of
This blog represents the views of Rob McCreary and do not reflect those of CW Industrial Partners or its employees. This blog is not intended as investment advice. Any discussion of a specific security is for illustrative purposes only and should not be relied upon as indicative of such security’s current or future value. Readers should consult with their own financial advisors before making an investment decision.