{"id":17483,"date":"2013-01-28T09:04:34","date_gmt":"2013-01-28T14:04:34","guid":{"rendered":"http:\/\/www.technologyinvestor.com\/?p=17483"},"modified":"2013-01-28T13:42:21","modified_gmt":"2013-01-28T18:42:21","slug":"rebalancing-makes-sense-selling-your-company-things-to-watch-for","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=17483","title":{"rendered":"Rebalancing is good. Selling your company: What to watch for"},"content":{"rendered":"
<\/div>\n
<\/div>\n

It’s called rebalancing. Let’s say you $100,000 to invest. You put it in ten diverse ETFs or mutual funds. At the end of the year you sell the bits over $10,000 and invest the money in the funds which are below $10,000. You rebalance your portfolio. This works because you can’t predict.<\/p>\n

Here are two charts. The first shows Vanguarad ETFs over one year — ranked by performance.<\/p>\n

\"\"<\/a><\/p>\n

The second chart shows average returns over 5 years. Interesting?<\/p>\n

\"\"<\/a><\/p>\n

Note: The funds are almost all different. Mull on this. More tomorrow.<\/p>\n

When you sell your company, don’t be stupid.<\/strong><\/span> Check. check. check. The story: James and Janet Baker sold their voice recognition company called Dragon to Lernout & Hauspie for $580 million in stock. They used Goldman Sachs as their i-banker. It turned out Lenout was a fraud and the stock went down the gurgler. It went bankrupt. The Bakers sued Goldman for negligence. The court sided with Goldman, saying they weren’t hired for that purpose. The court\u00a0 was right. You can read the entire gruesome story here.<\/strong><\/a><\/p>\n

There’s a huge lesson. You hire an i-banker to get you the highest price. That’s their job. You don’t hire them …<\/p>\n

+ To check out your buyer.<\/p>\n

+ To give you tax advice.<\/p>\n

+ To give you advice on how to invest your proceeds.<\/p>\n

+ To decide whether you take cash or shares.<\/p>\n

These are all your<\/strong> decisions. You need to take care of them.<\/p>\n

I speak from experience. I opted for cash, not shares — though the share deal was worth 23% more. That was good. But we should have employed a separate tax attorney, but didn’t. Mistake #1. We should have employed a financial advisor on what to do with the money. We didn’t. Mistake #2.<\/p>\n

The fact that I’m still liquid is a testimony to good luck.<\/p>\n

In short, selling your company needs real. thought and planning. There’s no one around who will tell you what I just told you. Clip these words and keep them handy.<\/p>\n

Update mid morning.<\/strong> My friend the retired investment banker writes:<\/p>\n

When you hire an investment banker you should negotiate obtaining a fairness opinion on what the buyer’s shares are worth. This opinion will give you a better idea as to whether you should accept cash or stock in that a stock sale can have the benefit of deferring capital gains taxes. However, it is the seller’s assessment of the stock market outlook that can be the determining factor.<\/p>\n

I love crowdfunding.<\/strong> <\/span>You get your money and you don’t have to give up 1% of equity. You typically deliver product you will make once you get the funding. If you get too much funding you don’t have to give it back. Here’s an email I received this morning.<\/p>\n

\"\"<\/a><\/p>\n

Hello Harry45,<\/p>\n

We want to let you know that the funding campaign, StickNFind- Bluetooth Powered ultra small Location Stickers<\/a><\/strong> has completed funding. They raised $930,995 of their $70,000 goal, thanks to your contribution.<\/p>\n

StickNFind Technologies<\/a><\/strong> should be in touch shortly with an update on the campaign and to fulfill any perks you are owed. As always, if you have any questions about your contribution or perks, check out our Contributor Happiness page here<\/a>.<\/strong><\/p>\n

Cheers,
\nThe Indiegogo Team<\/p>\n

Not finding what you need? Visit our Help Center<\/a>.<\/strong><\/div>\n
<\/div>\n
The five best overall online brokers are:<\/strong><\/span><\/div>\n
<\/div>\n
+ USAA Brokerage<\/div>\n
+ harles Schwab<\/div>\n
+ Thingorswim<\/div>\n
+ Fidelity<\/div>\n
+ TradeStation<\/div>\n
<\/div>\n
This according to a survey in today’s issue of Investor’s Business Daily.<\/em> For specifics, the best are:<\/div>\n
<\/div>\n
+ Low commissions and fees — Interactive Brokers<\/div>\n
+ Options trading platform — Thinkorswim<\/div>\n
+ Research tools — Charles Schwab<\/div>\n
+ Educational resources — Thnkorswm<\/div>\n
+ Tax preparation tools — USAA Brokerage<\/div>\n
+ Trade reliability — USAA Brokerage<\/div>\n
+ Equity trading tools — TradeStation<\/div>\n
+ Customer service — USAA brokerage<\/div>\n
+ Mobile platform\/trading — Thinkorswim<\/div>\n
<\/div>\n
I love my new Slingbox.<\/span> <\/strong>This magical little (7″ wide x 2″ high x 5″ deep) box lets you watch your home TV from anywhere in the world.<\/div>\n
<\/div>\n
\u00a0\"\"<\/a><\/div>\n
That means you can watch channels your hotel room doesn’t get You can also watch programs that you recorded on your home DVR (digital video recorder). And you can also tell your DVR which programs to record. How good your reception will be depends on the quality of your Internet connection.<\/div>\n
<\/div>\n
My Slingbox was a bitch to install because some moron had forgotten to include an installation manual in my box. You can get the instruction manual (such as it is)\u00a0 online. Click here.<\/strong><\/a> You connect:<\/div>\n
<\/div>\n
+ The component cables to “IN” on your Slingbox and “OUT” on your cable box.<\/div>\n
+ The Ethernet cable to your Slingbox and your router.<\/div>\n
+ You don’t need the IR cable or the yellow video cable.<\/div>\n
<\/div>\n
You go to Slingbox.com\/getstarted<\/a><\/strong>. This tells your Slingbox what type of cable box you have. If\u00a0 Slingbox doesn’t have your model, choose the closest one. The big key here is finding an image of your remote on their screen. Hint: One of the teeny-tiny buttons on the top right will bring it up. click all until you find the right one.<\/div>\n
<\/div>\n
Once you have Slingbox connected and working — you can see and hear your TV on your laptop — you’ll need to configure the remote part. That’s the easy part. Go to www.newwatch.slingbox.com<\/strong><\/a>. This is link you give to your distant kids.<\/div>\n
<\/div>\n
If you get confused the nice people at Slingbox’s call center will walk you through the installation. Call during the week. Otherwise you’ll wait half an hour on hold, as I did yesterday.<\/div>\n
<\/div>\n
The Slingbox is $178. Click here.<\/strong><\/a><\/div>\n
<\/div>\n
Do not use Zicam Cold Remedy Nasal Gel.<\/strong><\/span> Or Zicam Cold Remedy Nasal Swabs. If you do, could permanently lose your sense of smell and taste. Yes, it’s that bad. Want more? Read the FDA’s recommendation to consumers to stop using these products. Click here.<\/strong><\/a> The products are now off the market. If you see them in your medicine cabinet, throw them out.<\/div>\n

Be careful with those high-caffeine energy drinks. <\/strong>Caffeine is not good for you in large doses. A bunch people have died after drinking them. The FDA is investigating 13 deaths. Do not drink 5-hour Energy:<\/span><\/span><\/p>\n

\"\"<\/a><\/p>\n

In 2011, more than 13,000 emergency room visits in 2009 were associated with energy drinks. Yes, it’s that bad. For more, click here. <\/strong><\/a><\/span>See also the latest issue of Wired Magazine.<\/span>
\n<\/strong><\/a><\/span><\/span><\/p>\n

If you don’t get enough sleep, your memory worsens. <\/strong>Especially as you get older., I believe in napping — at least twice a day. Twenty minutes make a huge difference. When I had a real office, I used to keep two pillows in my desk’s filing drawer and crawl under my desk to sleep. Muriel used to tell callers “He’s in a meeting.” All of them knew that meant I was sleeping and would call back them in 20 minutes.<\/span> <\/strong><\/span>
\n<\/span><\/span><\/p>\n

Great quotes:<\/strong><\/span><\/p>\n

If you want a friend (on Wall Street), get a dog. — Carl Icahn<\/em><\/p>\n

Carl Icahn does not have a good reputation. He’s not a handshake guy. Bill Ackman<\/em><\/p>\n

Ackman is a liar. — Carl Icahn<\/em><\/p>\n

It takes being a billionaire to have no dignity. Jim Cramer<\/em><\/p>\n

\u00a0\"\"<\/a>
\nHarry Newton, who will record favorite author Nassim Taleb who’ll be on CNBC at 1 PM today. Taleb is famous for the black swan and his latest book, Fooled by Randomness.<\/em> Click here.<\/strong><\/a> He’s one of the brightest people on the planet. His books are not easy to read.<\/p>\n

Secret Lives of the Super Rich<\/em> is on CNBC tonight 9 PM. Here are some of the most expensive, ugliest apartments you ever saw. There’s one for $95 million. The furniture gives bad taste a whole new meaning.<\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

It’s called rebalancing. Let’s say you $100,000 to invest. You put it in ten diverse ETFs or mutual funds. At the end of the year you sell the bits over $10,000 and invest the money in the funds which are below $10,000. You rebalance your portfolio. This works because you can’t predict. Here are two […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-17483","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/17483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17483"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/17483\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}