President Trump Operating as a Private Equity Fund

My friend Tom Brammar wrote a very savvy thing about viewing the administration through the lens of a private equity fund gaining control of an underperforming company (the USA, in this case) and saying all the right things to the existing shareholders (citizens) in order to implement an agenda favoring short-term wins over long-term costs.

To wit:

  1. He will lead with a razor focus on maximising short-term gains to ensure there’s maximum uplift in “valuation” before flipping the country to the next owner. What does this mean? Well, if you look at his recent approach to environmental & financial regulation he’s identified that repealing these will give an immediate boost with any downside risks being delayed until well past his ownership.
  2. He will look to replace expensive, capital intensive items with much cheaper substitutes that may look and operate the same. In some places this will be successful and a considerable amount of waste will be stripped out. But in others this will lead to an ultimate debasement of the brand.
  3. Partnerships (trade, geo-political etc.) will be reordered such that those that focus on delivering immediate benefit to the valuation will be prioritised whilst those that may present a longer term opportunity will be neglected.

Click over to read the whole thing, it’s really clever and insightful.

Source:

Trump & Partners LLP acquires USA (plc) (Medium)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Blazing Trader Review commented on Sep 22

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2017/02/05/president-trump-operating-as-a-private-equity-fund/ […]

  2. bitcoin loophole commented on Sep 30

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2017/02/05/president-trump-operating-as-a-private-equity-fund/ […]

  3. bitcoin evolution commented on Oct 01

    … [Trackback]

    […] There you can find 91359 more Information to that Topic: thereformedbroker.com/2017/02/05/president-trump-operating-as-a-private-equity-fund/ […]

  4. knockoff cartier santos 100 steel commented on Oct 23

    … [Trackback]

    […] Here you can find 93697 more Information on that Topic: thereformedbroker.com/2017/02/05/president-trump-operating-as-a-private-equity-fund/ […]

  5. DevOps consulting services commented on Nov 27

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2017/02/05/president-trump-operating-as-a-private-equity-fund/ […]

  6. buy ruger long guns online commented on Dec 02

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2017/02/05/president-trump-operating-as-a-private-equity-fund/ […]

  7. td easyweb ca login commented on Dec 13

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2017/02/05/president-trump-operating-as-a-private-equity-fund/ […]

  8. 토렌트사이트 추천 commented on Dec 19

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2017/02/05/president-trump-operating-as-a-private-equity-fund/ […]

  9. Automated regression testing services commented on Jan 16

    … [Trackback]

    […] Here you will find 68709 more Information on that Topic: thereformedbroker.com/2017/02/05/president-trump-operating-as-a-private-equity-fund/ […]

  10. DeWalt DW368 manuals commented on Jan 20

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2017/02/05/president-trump-operating-as-a-private-equity-fund/ […]