While regular people stumble around brainwashed with the "you can't time markets" mantra, many private equity managers capitalized famously in the late bull market ending 2007--by timing their own exits perfectly.
This morning's Wall Street Journal points out the painful truth for unsuspecting and now decimated investors. See Private Equity's Ultimate Buyout:
"Two years ago the founders of Blackstone, Fortress Investment Group and Apollo Management were the toast of Wall Street. Now investors who bought into their vision know what getting toasted really means: Their shareholdings in the listed vehicles are down between 85% and 95%.
But not everyone is in the dumps. In 2007, the firms' key principals -- comprising just 11 men -- took $6 billion in cash off the table. The combined market value of those three firms today? Roughly $6 billion."
...there is more if you care to read the whole list of examples.
Lest US stars get in our eyes. Canada also had some bull market heroes who sold their companies at peak cycle to hoards of greedy buyers. The Sprott Inc. IPO in May of 2008 was an incredible feat of timing for its founding principals. See Does Sportt's IPO signal end of rally? We now know the answer to this article's rhetorical question was a resounding "YES"... more »
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Press Release Praise for Juggling Dynamite “An explosive critique about the investment industry: provocative and well worth reading.” “Juggling Dynamite, #1 pick for best new books about money and markets.” “Park manages to not only explain finances well for the average person, she also manages to entertain and educate, while cutting through the clutter of information she knows every investor faces.” |
Friday, January 23
by
daniellepark
on Fri 23 Jan 2009 12:35 PM EST
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Key Interview
Danielle speaks with Jonathan Chevreau on the Financial Post's blog Wealthy Boomer.
Part 1 Part 2 Recent Multimedia
Audio and Video Interviews“Dear Ms. Park, I watched your appearance on BNN today, and I just have to leave you a message saying 'Thank you' for giving viewers your very frank opinions about how things are going and certain industry practices. I appreciated you trying to give as much information as you could during that (too) short segment. Thank you for what you are doing for all investors!” “Each time I see Danielle Park on BNN, I am impressed with her comments and insights. Other than Rick Santelli on CNBC, she is the only commentator that I feel is completely honest and trustworthy.” Search
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