3 replies to this topic

[greenie]

Every decade has its own buyout specialists. There life tracks have been very similar. They come from relatively modest background, get a finance or economics degree from Harvard or Wharton, work in one of the large bond houses in Wall street for few years and (re)discover this magic concept called leveraged buyout, or stock buyout or whatever. After acquiring few small fries, they go for one or two bigshot companies. First one works, but then either old money or the market fights back. After that epochal moment, their life takes one of two paths - (i) they end up in jail due to blame for excesses of previous era, (ii) they maintain a low profile. There is another thing common between most of the LBO specialists that I will leave out here for political correctness. Saul Steinberg was one of the LBO specialists in late 60s. Here is a brief description about him from Wikipedia. You will find Maria in the last sentence. "Saul Phillip Steinberg (born Brooklyn, August 1939) is a Jewish American businessman who first became wealthy in the 1960s by leasing IBM computers. He proved so creative at the practice that his company, Leasco, became valuable enough that in 1968 he could use its stock to buy Reliance Insurance, a 150-year-old Philadelphia firm. He was just 29 years old. At the time, Forbes reported that he made more money on his own that year than anyone in America under 30. Steinberg finished a degree from Wharton at the University of Pennsylvania, graduating within two years because he could not afford the remaining years even on scholarship and while working two jobs. He graduated from the Wharton School at age 18, and has not only been a major benefactor of the school, but was also the head of the board of Wharton for over 15 years. In his 15-plus years as head of Wharton the school became ranked as number 1 in the nation. Steinberg used Reliance as his base of operations. In 1969, he mounted a takeover of Chemical Bank, then one of the nation's largest financial institutions. Chemical and its allies in the establishment beat him back. President Nixon personally called Steinberg to dissuade him from continuing with his acquisition. In a now famous quote in Business Week, Steinberg said, "I always knew there was an Establishment ... I just used to think I was a part of it." For the next 30 years Steinberg used Reliance, and its steady cash flows, to finance numerous acquisitions and attempted acquisitions, including Flying Tigers, Days Inn, Telemundo, Frank B. Hall, Pargas, the Disney Company, and many others, in the process gaining a reputation as a mean corporate raider of legendary proportions (see below article in Fortune Magazine). After having a massive stroke, Saul handed over control of the company to his brother Robert Steinberg after which Saul had limited involvement in the company. Robert managed to take down a 5 billion dollar company within four years. It filed for bankruptcy in 2001, a year after Steinberg was forced to sell his fabled art collection and sell his duplex apartment on Park Avenue in Manhattan for $37m to Stephen A. Schwarzman of the Blackstone Group. Since then he has made a come back with his large stake in the up and coming company Wisdom Tree Investments which is run by his son Jonathan Steinberg. He now resides in a town house which has an estimated value of 12 million dollars. His full business biography is featured in "Master Investors." In April 1988, in a match made in corporate heaven, his daughter, Laura Steinberg, a Warner Bros. story analyst, married Jonathan Tisch, son of Loews President Preston Tisch and nephew of then-CBS President Lawrence Tisch, at the Metropolitan Museum of Art's Temple of Dendur. He also has four other children from three separate wives and two children from his current wife Gayfryd Steinberg; his children from his most recent wife include, socialite, Holden Steinberg and Rayne Steinberg whom he adopted when marrying Gayfryd. He was previously married to Italian beauty Laura Sconnochia Steinberg and had one child, Julian Steinberg from that marriage. His children from his first wife Barbara Steinberg, his high school sweetheart, include Jonathan, Laura and Nicholas. His daughter-in-law is CNBC host Maria Bartiromo, married to son Jonathan "Jono" Steinberg."

[Drano]

Whoa ! ! ! ! ! Bravo, Greenie.

[denleo]

And how do I trade this? Also: Successful people are not just those who are "smart" traders. They could be successful by being at the right place at the right time, or inventing something, or recognizing an opportunity, or by being with someone who is better then them at something, etc.... The worst kind of person I have heard ever is a stock market permanent bear = socialist, who wants to profit from other people suffering (not the one who is short for a trade). His thinking is that if the successful (or the rich) lose it, it will be great for him. Lenin type of a person. Be careful what you wish for. Stock market is NOT a commodity. If it goes down, it means bad things for people. Bad things for investment bankers with yahts, hedge funds with S class cars, bankers with mistresses, and millions of their employees with hondas and three mortgages. Do NOT ever hope for failure!!! If your wishes come true, you are one!!!!!!!!!! Denleo

[beta]

And how do I trade this?

Also:

Successful people are not just those who are "smart" traders. They could be successful by being at the right place at the right time, or inventing something, or recognizing an opportunity, or by being with someone who is better then them at something, etc....

The worst kind of person I have heard ever is a stock market permanent bear = socialist, who wants to profit from other people suffering (not the one who is short for a trade). His thinking is that if the successful (or the rich) lose it, it will be great for him. Lenin type of a person. Be careful what you wish for. Stock market is NOT a commodity. If it goes down, it means bad things for people. Bad things for investment bankers with yahts, hedge funds with S class cars, bankers with mistresses, and millions of their employees with hondas and three mortgages.

Do NOT ever hope for failure!!!

If your wishes come true, you are one!!!!!!!!!!

Denleo

Thank you, Denleo. This is an eloquent post, with much wisdom.