Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
8:30 AM EST, Friday, October 5, 2007: My
sister is in town. She's sweet. I managed (and survived) two hours of tennis
yesterday. I fixed a friend's computer. I bounced a check for $43,000, but Sovereign
Bank covered it. Sweet of them. It's warm as toast in New York. Great biking
weather. The techie stocks I've pushed recently -- Anadigics, EMC, Shutterfly,
Synchronoss Technology -- are doing well. I'm happy.
piece comes from something call VentureBeat.
quarter coming to be biggest since dotcom boom
By Matt Marshall
may croak from the credit crunch, but public offerings and acquisition deals
are happening at the fastest pace in years. The fourth quarter is going to
Some 46 U.S.
companies backed by venture capitalist registered during the third quarter
to go public, according to research by Dow Jones VentureOne... Not all of
them will go public within the next three months, but even if half of them
do, thats way more than in any quarter in recent memory.
If you VCs have
been bullish already, these returns on their investments will make them even
full report here (downloads Excel, a large file with several tabs)
Note that only venture-backed companies are covered here in the research,
which means some companies arent included. Since the Internet bubble
burst, the most IPOs in a single quarter was 24, and that came in this years
second quarter. Any more than that during the next three months, and the fourth
quarter will be the biggest since the boom year of 2000.
the Dow Jones report shows that 90 venture-backed companies raised more than
$10.5 billion in merger and acquisition transactions in the third quarter,
a 31 percent increase over the same period last year and the highest quarterly
amount since 2000. So far this year, $28.4 billion has been raised via M&A
transactions and another $4.7 billion raised in public offerings, all but
guaranteeing that this year will be the largest year in the U.S. for venture-backed
liquidity both in terms of IPOs and M&As since the dotcom
boom, said Jessica Canning, Director of Global Research for Dow Jones VentureOne.
Yes, after several years of uncertainty, the venture capital rebound
is officially over.
Maybe its the credit crunch that has everyone in a fluster. Do the deal now,
It was a relatively
sleep summer of IPOs, with only 11 companies going public. Still, even that
was more active than last years nine IPOs.
and medical device companies have filed to go public (22) than information
technology companies (18). The number of clean-tech company IPOs in registration
(two) looks quite anemic. Internet-Web 2.0 companies arent represented
among the IPO candidates either.
The largest acquisition the $812 million purchase of interactive advertising
firm Right Media by Yahoo was more than all the capital raised via IPO
during the third quarter. The largest IPO of the quarter belonged to medical
software company Athenahealth, which raised $90 million.
The report also
shows that the time between initial venture investment and M&A-IPO also
reached its highest level ever in the third quarter at seven years for M&As,
and 8.5 years for IPOs.
pays: I have a small piece of a private equity
fund -- also called a leveraged buyout fund. Two and half years ago, my piece
was worth 48% of what I paid for it. I tried to sell it and received offers
around 25% of what I paid for it. Two and a half years later, I can sell my
piece for what I paid for it, plus 10%. And in another year or two -- based
on yesterday's partners' meeting -- I may actually receive as much as 1.7 times
my money. There is a solid argument for owning things without a public market.
That way you don't get panicked into selling -- which is my big problem.
my beloved Garmin -- one day later -- is above what I sold it for and looks
on the way back up. Another dumb panic move.
computer goes awry -- not IF, but WHEN: One
day your PC will act funny. It may lock up. It may simply stop doing things.
You need two sets of backups -- one of all your files. You need to make these
backups twice a day. And you need to make complete clone of your hard disk --
keeping at least two backups, one month apart. Cloning is critical, because
recreating a Windows disk from scratch is painful. Last night I did one for
friend, who didn't have a clone, but whose hard disk was a mess. It took me
five hours -- and I knew what I was doing, had all the original CDs and had
access to a fast line to the Internet. Apricorn
is the best place to buy hard disks to backup and hard disks to clone.
ultra-careful of sleeping pills. My friend's girlfriend took AmbienCR
and promptly started sleep-walking. Other people have driven cars while "sleepwalking"
under Ambien. IN the morning they can't remember their previous night's sleep
walking in the morning. My friend tried Xanax as a sleep aid. It made him think
of planning suicide. I am not a doctor. But all these warnings confirm my basis
belief -- get through life, if possible, without pills.
drumbeats to war with Iran are getting louder. The administration
is demonizing Iran, accusing it of all sorts of nasty things -- some of which
are undoubtedly true. So far the administration has presented little evidence,
just lots of accusations.
the stockmarket may be difficult, But you ain't seen anything until you hit
the Middle East. All through history, the place gives new meaning to "unintended
consequences." Which makes me personally very concerned about bombing,
invading, etc. Iran. For the latest on Washington's thinking, read Seymour Hersh's
latest piece in The
New Yorker magazine.
around Wall Street. This "ad" and the response to it allegedly
appeared on Craigslist. I can't find the ad or the response. Also I don't
think Rob Campbell works at JPMorgan. Irrespective, the whole thing is funny,
if totally apocyphral.
What am I
Okay, I'm tired
of beating around the bush. I'm a beautiful (spectacularly beautiful) 25 year
old girl. I'm articulate and classy. I'm not from New York. I'm looking to
get married to a guy who makes at least half a million a year. I know how
that sounds, but keep in mind that a million a year is middle class in New
York City, so I don't think I'm overreaching at all.
Are there any
guys who make 500K or more on this board? Any wives? Could you send me some
tips? I dated a business man who makes average around 200 - 250. But that's
where I seem to hit a roadblock. 250,000 won't get me to central park west.
I know a woman in my yoga class who was married to an investment banker and
lives in Tribeca, and she's not as pretty as I am, nor is she a great genius.
So what is she doing right? How do I get to her level?
Here are my
- Where do you
single rich men hang out? Give me specifics- bars, restaurants, gyms
-What are you
looking for in a mate? Be honest guys, you won't hurt my feelings
-Is there an
age range I should be targeting (I'm 25)?
- Why are some
of the women living lavish lifestyles on the upper east side so plain? I've
seen really 'plain jane' boring types who have nothing to offer married to
incredibly wealthy guys. I've seen drop dead gorgeous girls in singles bars
in the east village. What's the story there?
- Jobs I should
look out for? Everyone knows - lawyer, investment banker, doctor. How much
do those guys really make? And where do they hang out? Where do the hedge
fund guys hang out?
- How you decide
marriage vs. just a girlfriend? I am looking for MARRIAGE ONLY
your insults - I'm putting myself out there in an honest way. Most beautiful
women are superficial; at least I'm being up front about it. I wouldn't be
searching for these kind of guys if I wasn't able to match them - in looks,
culture, sophistication, and keeping a nice home and hearth.
I read your
posting with great interest and have thought meaningfully about your dilemma.
I offer the following analysis of your predicament. Firstly, I'm not wasting
your time, I qualify as a guy who fits your bill; that is I make more than
$500K per year. That said here's how I see it.
from the prospective of a guy like me, is plain and simple a crappy business
deal. Here's why. Cutting through all the B.S., what you suggest is a simple
trade: you bring your looks to the party and I bring my money. Fine, simple.
But here's the rub, your looks will fade and my money will likely continue
into perpetuity...in fact, it is very likely that my income increases but
it is an absolute certainty that you won't be getting any more beautiful!
So, in economic
terms you are a depreciating asset and I am an earning asset. Not only are
you a depreciating asset, your depreciation accelerates! Let me explain, you're
25 now and will likely stay pretty hot for the next 5 years, but less so each
year. Then the fade begins in earnest. By 35 stick a fork in you!
So in Wall Street
terms, we would call you a trading position, not a buy and hold...hence the
rub...marriage. It doesn't make good business sense to "buy you"
(which is what you're asking) so I'd rather lease. In case you think I'm being
cruel, I would say the following. If my money were to go away, so would you,
so when your beauty fades I need an out. It's as simple as that. So a deal
that makes sense is dating, not marriage.
I was taught early in my career about efficient markets. So, I wonder why
a girl as "articulate, classy and spectacularly beautiful" as you
has been unable to find your sugar daddy. I find it hard to believe that if
you are as gorgeous as you say you are that the $500K hasn't found you, if
not only for a tryout.
By the way,
you could always find a way to make your own money and then we wouldn't need
to have this difficult conversation.
With all that
said, I must say you're going about it the right way. Classic "pump and
dump." I hope this is helpful, and if you want to enter into some sort
of lease, let me know.
Diversified Industrials Investment Banking
277 Park Avenue, 16/F, New York, NY 10172
day we'll all be there.
A man is driving on the highway when his wife
calls him on his cell phone. "Honey, be careful. I heard on the news
that there is a car on the road driving the wrong way."
man replies, "One? There's millions of 'em!"
This column is about my personal search
for the perfect investment. I don't give investment advice. For that you have
to be registered with regulatory authorities, which I am not. I am a reporter
and an investor. I make my daily column -- Monday through Friday -- freely available
for three reasons: Writing is good for sorting things out in my brain. Second,
the column is research for a book I'm writing called "In Search of the
Perfect Investment." Third, I encourage my readers to send me their
ideas, concerns and experiences. That way we can all learn together. My email
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