I despise private equity - veritable parasites on the vast majority of companies they buy: (i) they can't make the numbers work if they use their own equity to buy companies which leads to (ii) use banks' money to leverage up the acquired company's balance sheets so they're essentially to working to pay interest on their debt when rates increase or their business slides, (iii) they all recruit from the same 10 schools leading to rank arrogance, and (iv) acquired companies tend to lose their connection to their local communities. Private equity will often bring in some of their own people who are too good to move where the acquired companies are located which leads to private equity moving companies out of the small towns they've been for 100 years to somewhere like Atlanta that has no connection to the company.
If I had super powers, I'd require private equity companies use a minimum % of equity to buy companies and I'd terminate the whole carried interest advantage and I disallow folks like Mitt Romney from the tax advantage he got from putting his initial ~$50K investment in a private equity fund in a Roth IRA that's now worth something like $500MM.....completely tax free. That's some major bull malarkey.
If I had super powers, I'd require private equity companies use a minimum % of equity to buy companies and I'd terminate the whole carried interest advantage and I disallow folks like Mitt Romney from the tax advantage he got from putting his initial ~$50K investment in a private equity fund in a Roth IRA that's now worth something like $500MM.....completely tax free. That's some major bull malarkey.
Statistics: Posted by Flashes1 — Sat Oct 05, 2024 8:22 pm — Replies 4 — Views 210
