Thursday, June 18, 2015

Who Wants to be a Billionaire?


That’s a B folks, not an M! So now that we have a self professed billionaire running for President, I guess campaign finance reform is dead. Just like the governor’s race in Illinois last fall, a billionaire self-financed his campaign and bought the election. Will America allow Trump the same result?

I certainly hope not. Trump is not a normal billionaire. He’s gone bankrupt a few times and taken assets belonging to other people with those failures. He has borrowed his way to ownership of several big real estate developments, and because those properties are worth a lot of money, he claims primary ownership and asset value. Trouble is there is a left side to his right side thinking.

Debt is a leverage The Donald has used many times. Failed at, too. But yes he has succeeded. But wait!  What is the NET asset value of his holdings? That would be all the assets minus the liabilities. What’s left over is his equity in his enterprises. Is that anywhere close to a billion? I kind of doubt it. He doesn’t, after all, file financial statements to the American public. Time will tell if he is a true billionaire.  Until he comes totally clean on the details, I will count him as being a person worth less than one billion dollars.  Still not a bad position to be in.

Still the question remains: Will Trump buy the Presidency for himself? I hope not. He has very little character or personality to sustain a presidential demeanor. Besides, the last war hawk in the White House (George W) and his cohort Dick Cheney, stomped their feet in the face of the foreign community and waged war twice, at least the ones we know about! Those wars didn’t accomplish the objective. But we wasted now upwards of $3 trillion dollars. Truth be told, we could not afford the Bush/Cheney duo. Nor can we afford what would be the debacles of Trump!

So please voters, do your research and make up your own mind. But be very wary of a guy named Trump. He might just trump the elections. Woe is to us if that becomes true.

Now, what is a billionaire and how did most of these folks become so? Here are a few tips and guide stones if you are keeping track.

First, the Buffet model is a good one. Very progressive in his ideas, Warren Buffet watches market growth in various sectors of the economy. The ones that are demonstrating significant growth probabilities are the ones he pays attention to. He generally avoids fully developed market sectors and their component major companies. Those sectors are tapped out for profit growth. They will eventually deflate unless major innovations are on tap to revitalize the specific industry.

Buffet watches the ebb and flow of markets. Never buy on the high side; try to buy on the low side before the next surge in the sector’s cycle is probable. That’s a good method, eh? In the long run Buffet has won more than he has lost. And he keeps parlaying his winnings into new investments following his method.

Another side to Buffet’s investing. I’m not sure this has gone on throughout his career, but one thing evident in recent years is simply this: Warren Buffet is a well-grounded citizen of his communities and nation; he has beliefs and values he invests in.  Local newspapers are his latest gambit. And what a lovely value oriented investment this is! Yes, Mr. Buffet believes in the local press for many reasons – watchdog on local governance, pulse taking of a community’s health, social interaction of a localized region, and human caring clearly visible in the local press. Small town papers are the glue of many communities. They deserve to be saved and nurtured back to health.  Thank you Mr. Buffet!

My second example of a billionaire is Kirk Kerkorian, recently deceased from California. His real story, however, centers on Las Vegas and how he built it to what is today’s Las Vegas. He was the largest mover and shaker in that town but he never claimed the spot light. Meanwhile, Kerkorian amassed billions of dollars being a shrewd and powerful takeover artist. He was not always kind. He did not always succeed in buying his targets, but he left those industries jazzed and rethinking their potentials. Today they continue to prosper, well, with the possible exception of Chrysler!  Who knows what ignominy that company has left in its future?

Some billionaires use their wealth to do good. Others use their money as power to wrest control for themselves. Others influence outcomes with their wealth, normally for their own benefit. One can only wonder for a short time to determine what kind of billionaire Trump is, if he is one at all.

Tsk tsk! Save us from Trump. Please!


June 18, 2015

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