Last week, my daughter asked for advice (obviously, she’s no longer a teenager): how can I balance my budget? I told her, among other tips, to control two things – reduce your expenses and minimize your taxes. What works for my family works for others. That’s why Carofin encourages setting up a Self-Directed IRA custodian account to consider investing in private placements, if allowed, through...
Investors are increasingly drawn to alternative investments[i] to make them less vulnerable to market volatility and to achieve “absolute returns” (investment returns more directly tied to the underlying company’s financial performance). Within alternative investments, “Private Equity” investment opportunities abound, but what this really means can be confusing. In this piece, we’ll try to...
Consistency is critical in our business. When it comes to investment analysis, this “First Principle” – “What primary business opportunity is the issuer pursuing?” – is the first question successful investors apply in their consistent approach to company analyses. Have you adopted this principle? Identifying the fundamental rationale for an enterprise is central to helping retain your focus...
In a recent article in The Economist, the author bemoans the fact that today’s “low interest rates leave savers with few good options.” True, but a limited analysis. Carofin suggests savvy investors, and particularly relative newcomers to private investments, look closely at private debt. Let’s dig a little deeper. If they were planning for #retirement, this couple might have turned to U.S....
On August 26, 2020, the SEC adopted amendment to the “Accredited Investor” definition, which determines who can participate in most offerings in the private capital markets. While the definition historically limited access to individual investors who met a specific income or net worth test, the amended definition now allows investors with sufficient knowledge and expertise to participate in...
The COVID years are proving to be a time for reflection – a relatively chaotic period that’s forcing us, both personally and professionally, to reconsider how and why we conduct our lives the way we do. Your investments are, obviously, an important reflection of your values and priorities. What Carofin offers, and why we hope you will be attracted to the companies we represent, is captured in...
The following outlines the different approaches required for Investors to qualify as Accredited Investors under Rules 506(b) and 506(c). As of September 23, 2013, all Investors participating as Accredited Investors in Regulation D, Rule 506(c) and Rule 506(b) Private Placements must verify that their financial status qualifies them as an Accredited Investor. The manner in which they verify...
Does it surprise you how inventive entrepreneurs are when problems arise? Here’s one that struck our fancy. We call it “The Case of the Slipping Shipping.” Years ago, a business owner was mystified. He would load a truck in one location for a customer delivery about 50 miles away. Each time he did so, what should have taken at most an hour and a half was taking 3 hours. His customer,...
In the interest of accessibility, here are some terms that any investor should be familiary with.
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