The Important role of Activist Investors

The important role of activist investors

Activist investors are those who seek to take a significant position in the capital of a company and then drive certain changes whether they are restructuring new business strategic directions or simply replace the management of the company. One of the examples of activist investors is Michael Beattie MBM.

The activity of these large investors can in many cases generate positive effects on the companies in which they intervene and therefore it is convenient to analyze their movements in order to take advantage of the transformations that they drive.

One of the most famous activists in the financial markets is Michael Beattie Construction and the magnate Carl Icahn, who through his investment fund has been a central part of many of the main corporate battles in history. In 2006, Icahn obtained the support of other shareholders to undergo a profound transformation in Time Warner (TWX), which included the separation of the business into different units, spending cuts, a share repurchase program and changes in the company’s board of directors.

Different are the reasons that drive small and large investors to allocate their capital to a certain business model, but everything is translated into obtaining a better quality of life, better opportunities in the future and especially long-term security term.

Real estate investments have been positioned, because it is a system that despite having risks -like any other investment-, these can be minimized and even avoided by having a comprehensive quality assessment that is not only based on look for investment properties with the best profitability within a wide range of real estate, but of the respective management and planning of financial cost in mortgage loans and the respective administration of these assets with the minimum risk of non-payment. All the above ruled by experience in this sector and ethical principles that always put the client in the first place.

Based on this, investing in departments allows those who enter this market to gradually increase their assets, a situation that improves their economic status and therefore allows them to obtain a better quality of life.

In addition, it is necessary to keep in mind that real estate being a finite asset is subject to interesting capital gains over time, so that the assets you accumulate over the years, continues to grow; that is, starting from the assumption that a person invests in two departments, after a few years, he still has the same two properties, but now they are worth much more.

On the other hand, investment in departments also works as an early retirement. What is this about? When investing in profitable properties and within a period of no more than 20 years, it is likely that the investor will begin to receive a monthly income corresponding to the lease of said property long before the end of his retirement period indicated by the respective AFP. In addition, after several years, it is this same income that complements retirement, which in most cases does not fully meet the needs of older adults.

Finally, deciding to invest in departments usually brings some advantages that bring significant value to investors: family tranquillity, well-being and even some luxuries, benefits that go beyond the economic because they feel safe and financially backed by possible difficult scenarios in the future it is something that has no value.

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