http://www.valueletter.org Financial Strategy and Executive Leadership from Value Strategies LLC Sat, 05 Dec 2009 12:10:17 +0000 http://backend.userland.com/rss092 en Further to our research regarding the profitability of various industry segments and sectors, Terry & Company took a hard look at the profitability of various businesses. We spent a lot of time analyzing various industries, markets, sectors, segments, lines of business, etc. Some define “sectors” as ... http://www.valueletter.org/2009/11/16/health-care-profitability-myth-and-fact-1/ We Americans have a lot of free time, about five hours a day, representing a gain of one hour over the last forty years, and four hours since the late 1800s. Sure, Americans are among the hardest working people in the world, but we spend only 20% of our time ... http://www.valueletter.org/2009/06/16/more-on-american-blessings/ Rejoice evermore. Pray without ceasing. In everything give thanks: for this is the will of God. — I. Thessalonians 5.16-18 Make a joyful noise unto the Lord, all ye lands. Serve the Lord with gladness: come before his presence with singing. Know ye that the Lord he is God: ... http://www.valueletter.org/2009/06/16/biblical-passages/ You were looking for good news, right? Here it is: Harvard still has $36.6 billion remaining in its endowment. Feel better? Oh, sorry. In Harvard’s defense, the administration says that much of that ... http://www.valueletter.org/2009/05/16/good-news/ Considering Relative Value We, the United States of America , are a very prosperous nation, despite the current headlines, layoffs, bank failures and mortgage failures and associated home foreclosures. We have a lot to be thankful for. Some wake-up facts: º Of the world’s 6 billion ... http://www.valueletter.org/2009/05/15/considering-relative-value/ There are more non-profits in the United States than there are lawyers. Scary? Plus, you can assume out of groups of this size, both lawyers and non-profits, there have to be some good ones, some great ones and some that are not so hot. According to the American Bar Association, ... http://www.valueletter.org/2009/03/12/some-quick-thoughts-on-non-profits/ According to some (believable) estimates, the total, aggregate amount of Federal bailouts, equity banks and investment houses, liquidity infusions by the U.S. Federal Reserve Bank, loan guarantees, TARP, and economic stimulus checks, and the new Obama stimulus package, blah, blah will total as much as $9 trillion by June ... http://www.valueletter.org/2009/02/12/how-big-is-big/ In June, 2007, Edward M. Gramlich, who died later that year, published “Subprime Mortgages: America’s Latest Boom and Bust”, warning about the coming bust and urging lawmakers to better protect consumers against predatory lending practices and toughen the regulation of mortgage lenders and banks, calling the mortgage process “confusing, costly ... http://www.valueletter.org/2009/02/12/current-reflections-february-2009/ For St. Peter’s sake! Everyone keeps talking about who caused this economic mess, how deep will we go, and when we will come out of it. I have the specific, accurate and complete answers to all of those questions, but unfortunately I don’t have the space here ... http://www.valueletter.org/2009/02/12/john-thain-as-in-brain/ Comment by a prominent hand surgeon in the south of the United States. Dr. “Smith” is in his mid-fifties and is associated with a state medical teaching university. He is renowned for reconstructive surgery of the hand, wrist and elbow. “I have no control, no say, over what ... http://www.valueletter.org/2009/01/13/the-worth-and-the-value-of-medicine/ My dear daughter Agnes, As we discussed, (and I am supposed to be writing about value), perhaps the crucial . . . seminal . . . some big word ….event of the campaign was Colin Powell’s recent endorsement for Obama last weekend. General Powell is the model for Rec ... http://www.valueletter.org/2008/11/14/letter-to-my-daughter/ A recent article discussed the fact all that members of Congress have defined benefit pension plans. Only five-percent of Americans have defined benefit plans and I, myself, terminated the defined benefit plan at the Troxel Company, where I was CEO. I also terminated the defined benefit for ... http://www.valueletter.org/2008/11/14/congress-is-different-of-course-it-is/ There have been thirteen recessions since __________________ ? Answer: Since 1929, with the deepest and the most prolonged coming in the late 1920s to early 1930s and the early/mid 1970s. So here we are again, eh? ( I personally have predicted eleven of the last ... http://www.valueletter.org/2008/11/14/economic-notes/ I am bemused to read of the possible merger of General Motors and Chrysler . . . but befuddled why the plans don’t include Ford, not to mention American Motors, Pierce-Arrow, Hudson, Bricklin, DeLorean, Studebaker, Dephi and Dana. If everyone gets in now, there will be government bailout money ... http://www.valueletter.org/2008/10/13/chrylser-and-gm/ Here are excerpts from an (in)auspicious email I received in April of this year from close friend, an investment banker in New York. Note his predictions about Lehman, AIG, Freddy Mac, Fannie Mae, Merrill Lynch. And the autos? Michael – The US is in one of the worst ... http://www.valueletter.org/2008/10/13/the-gift-of-prophecy/ Did you know that Lehman Brothers: Paid its regular cash dividend on August 25, 2008? Announced on September 10, 2008 that it would slash its dividend from 68 cents to 5 cents. (It did not have a nickel even on ... http://www.valueletter.org/2008/10/13/follow-the-money/ The number of people without health insurance dropped 1.3 million to 45.7 million. The uninsured fell to 15.3% from 15.8%. The primary reason for decline: More people, especially children, are covered by government-sponsored insurance. ... http://www.valueletter.org/2008/09/18/health-insurance-news/ My friend Rhashia has two nephews - her sister’s children - at Lompoc (an “FCC” or Federal Correctional Complex in Lompoc, California), both chaps in for selling crack or meth or something. Bad shit, I agree. One is in for five years, no parole. I have, accordingly, ... http://www.valueletter.org/2008/09/18/prison-cars-cats-and-the-bible/ The U.S. unemployment rate of 5% remains low by historical standards. Retailers are presumably suffering, but Costco, Target and Wal-Mart have recently reported better-than-expected sales. Housing As far as housing goes, we are in “very, very unchartered territory”. We have to go back as far as the Great ... http://www.valueletter.org/2008/08/21/recent-observations-from-wharton-professors/ Limited Too to close 26 stores and convert 560 to low priced Justice Store brands. Linen N things: bankrupt in May 2008. Pep Boys closing 31 stores and laying off 550. (Manny, Moe and . . . hey, where’s Jack?) Kirtland’s closing 130 stores over 24 months. Mrs. Field’s Cookies ... http://www.valueletter.org/2008/08/21/retailing-it%e2%80%99s-a-jungle-out-there/ The Wall Street Journal is read by the people who run the country. The Washington Post is read by people who think they run the country. The New York Times is read by people who think they should run the country and who are very good at crossword puzzles. ... http://www.valueletter.org/2008/07/09/heres-how-to-keep-all-that-political-news-in-perspective/ Debt, grinding debt, whose iron face the widow, the orphan, and the sons of genius fear and hate; debt, which consumes so much time, which so cripples and disheartens a great sprit with cares that seem so base, is a preceptor whose lessons can not be forgone, and is need ... http://www.valueletter.org/2008/07/09/quotes-2/ For those who’ve ever wondered about investing in newspapers, it’s not a pretty picture. Here’s (below) how the stock prices of some selected media / newspaper stocks have performed over the past decade. Company Performance New York Times Down 58% Gannet Down 59% Media General Down 69% Journal ... http://www.valueletter.org/2008/07/09/newspaper-investing/ Newspaper article: “The 20 airports on our list transported 345 million passengers last year, about 45% of all U.S. passengers. This massive volume — almost double what it was two decades ago–strains the existing infrastructure.” Wow, lots of people will respond. It’s DOUBLED in the past twenty years! ... http://www.valueletter.org/2008/07/09/the-trick-of-numbers/ Studies have isolated a number of personal attributes shared by great CEOs: a much larger than average vocabulary is one common trait, perhaps not surprising in that it likely closely correlates to education and the ability to express oneself clearly and exactly, both orally and in writing. Another common ... http://www.valueletter.org/2008/06/12/great-ceos/ Basic Family Relationship: The essence of the Terry Family is that we are a “parent-centered” family, not child-centered, male-centered, or female-centered. At the appropriate time, which in their sole judgment the parents shall determine, we will give consideration to becoming a “family-centered” household. Mom and Dad were here before ... http://www.valueletter.org/2008/05/10/terry-family-children%e2%80%99s-code-of-conduct/ A Timely Quiz Perhaps: Identify the Sources of the Excerpts (A. and B.) following: A. We will provide against the possible failure of local and state agencies, and create an emergency relief fund to be loaned temporarily to any state showing of actual need and temporary failure of its financial resources. We urge drastic ... http://www.valueletter.org/2007/12/05/78/ OOOOOOOOOOOOOOOOOO ! Scary . . . . ! We’ve had a several folks call and ask if we think the “housing meltdown”, “housing scare” or whatever you call it, is for real. The answer is yes, but . . . . like most complex issues, simple answers are, well, ... http://www.valueletter.org/2007/10/10/housing-scare-for-halloween/ M&A: Falling apart as we speak. Large cap companies that waited to sell off their dogs are now staring at 25% to 50% discounts from what they might have gotten three to six months ago. Rule: If you have done all of your homework, you and your ... http://www.valueletter.org/2007/09/28/where-to-invest-these-days/ Jet Blue Southwest Air Tran Northwest American Continental Alaska U.S.. Air United (a reason to stay out of Los Angeles, San Francisco, Denver, Chicago and Washington, D.C.) Delta (a reason to stay out of Atlanta, Cincinnati, Salt Lake and JFK) A free Starbuck’s coffee to the ... http://www.valueletter.org/2007/09/28/recent-combined-service-rankings-of-major-airlines/