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PE4FAMS Private Equity for Families Blog

The Private Equity for Families Blog

Insight for those who want to include private equity or direct investment in privately-held businesses in their portfolios. The opinions expressed in the PE4Fams blog are those of  Rob McCreary and not necessarily those of CapitalWorks or its employees.

Robert McCreary CapitalWorks private equity Cleveland

Currency Matters- Just Ask The Turks

In the US we rarely think about currency because ours is the reserve currency of the world. Oil is priced in US Dollars. Many loans to emerging countries are denominated in dollars to hedge against currency devaluations. For a long time the Chinese Yuan was pegged to the dollar.

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Moon Tides

The moon tides in Maine this summer reminded me about risk in investing. Normal tides can be 8-9 feet but a few days every several months the tides change by 12-13 feet. Your complacency spikes when almost every dangerous shoal and rocky point has 25% more water than during

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Cash On The Sidelines

In a recent article in Barrons “What To Do With Excess Cash” Abby Schultz points out there is an interesting trend among high net worth investors to hold a high percentage of their investable assets in cash or cash equivalents: “According to Federal Reserve figures, retail investors had about

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Retirees Are Broke

You don’t hear much about the financial status of the retiring baby boomers. Maybe that is because the news is pretty scary. I picked up on this by reading Ballmer’s USA Facts.  More recently the Wall Street Journal in an article by Heather Gillers, Anne  Tergesen and Leslie Scism

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Ballmer’s Antidote For Fake News

USA FACTS is a not for profit organization created by Steve Ballmer, former CEO of Microsoft. As I have written in a prior blog, this is like Joe Friday “just the facts, Maam.” Here is how Mr. Ballmer describes his efforts: “If you’re interested in gaining insight on government

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Seignorage May Be Treasury’s Next Profit Center?

Just recently I learned the $100 Bill has a new look. Series 2009A, the new look, was finally issued four years late in 2013 due to printing problems with the new security features. If you look at the new $100 bills, the left face looks like old money and

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One Toke Over The Line

While Bitcoin, Blockchain, Ether, Ripple and endless initial coin offerings dominate the imagination of retail investors, there is an equally appealing, and even more disruptive, agricultural product arriving soon from Amazon on your doorstep. Cannabis will generate EBITDA margins and cash conversion percentages that make online sports gambling paltry

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Central Bankers Don’t Get Chopped

The spring weather in Cleveland has been pretty awful and, while it is bad for your golf, tennis, biking and hiking, a cold and wet spring has been great for TV.  My wife has been hooked on “Chopped” for several years and I have to admit it is fun

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Teacher’s Pension

I have a friend who has been a teacher for more than 20 years in Cuyahoga County. She is counting on her pension to navigate post retirement living for her and her husband who has also recently retired. Given all I have read and learned about the national problem

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What’s In Your Rip Van Winkle Wallet?

I have always been intrigued with the idea of a portfolio of assets you can sleep on for twenty years. In fact, it is probably a pretty good way to think about how you should invest. To refresh memories, recall that Rip Van Winkle was the creation of Washington

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A Double Whammy For LBOs

Since the end of last year, the three-month London interbank offered rate, known as LIBOR, has increased to 2.32% from 1.69%. LIBOR measures the cost for banks to lend to one another and is used to set interest rates on roughly $200 trillion in dollar-based financial contracts globally, including

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New Variables For The Debt Debate

I have written several blogs over the last six months about the national debt and how it may challenge many assumptions about the American economy as well as the American way of life. I am writing again because those challenges just became more imminent. To refresh the facts this

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Financial Literacy And Capitalism

I am surprised  so few of the millennial generation are preparing for retirement by participating in tax deferred retirement plans. My generation was introduced to the miracle of compounding returns when the retirement system was revamped in 1976. Over 40 years later $1000 invested per year compounding at 8%

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Who Is Going To Do The Work?

A lightning rod in the political world is immigration but less so in the business world.  In the lower middle market every one of our portfolio companies is looking for qualified workers who can pass a drug test, and perform entry level work.  I am not sure why Americans

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Do Millennials Play Golf?

My only first-hand experience with Martians was “My Favorite Martian” which was a TV sitcom that aired from 1963-1966. Uncle Martin had special powers like the ability to disappear and levitate objects. While not quite as talented as Barbara Eden in “I Dream of Jeannie”, he was nonetheless my

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We used to call it Winter

January of every year is wonderful for the prediction industry. Almost everyone who made a prediction in the prior year is taking credit for the few things they got right and, conveniently forgetting or minimizing what they missed. There are only a few groups who actually score themselves like

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I Thought Medicare Was Free

One of the most anticipated dates in your golden years is the time just before you turn 65 when you are thinking about the government starting to take care of you.  You probably have already applied for your AARP card and also are getting senior discounts at the movies.

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Bitcoin Futures – The Grizzly and the Salmon

Anyone who owned Bitcoin for long enough to have experienced its wild appreciation was excited to learn in December that the Chicago Board of Options Exchange (CBOE) was authorized to permit trading in Bitcoin futures (CBOE,XBT). Somehow I knew this would not be what I expected and the game

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Wall Street Journal Innovation

For those of us who are challenged by the pace of news and information or the great majority of us who simply do not have the time to dig into anything, The Wall Street Journal has an answer. Over the last six months subscribers to The WSJ have been

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Going Home

Connected To Home As Thanksgiving approaches I notice excitement and enthusiasm everywhere for returning home. In Robert Frost’s poem, “Death of the Hired Man”, Silas, an itinerant handyman, comes home to die at Warren and Mary’s farm. Even though they are not family and he has a rich brother, home

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Death By Compounding

The Congressional Budget Office usually does a good job of predicting the financial future for our country. Its 2017 Report looks out over the next 10 years and predicts many trends that we all know: Budget deficits will grow and accelerate Interest rates on government debt will rise to

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Private Equity for Families Blog | CapitalWorks Private Equity Cleveland Ohio

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This blog represents the views of Rob McCreary and do not reflect those of CapitalWorks 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.