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Global M&a Activity Surges Towards Record High


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HOLA441

http://uk.reuters.com/article/2015/08/14/uk-investmentbanking-scorecard-m-a-idUKKCN0QJ18C20150814

Global mergers and acquisitions (M&A) have climbed close to a record high this year, accelerated by a trio of multibillion-dollar deals in the U.S., Thomson Reuters data showed.

The largest of these was Warren Buffet's $30 billion-plus purchase of Precision Castparts (PCP.N), announced on Monday. The takeover is the biggest by Buffet's Berkshire Hathaway (BRKa.N).

So far this year, $2.9 trillion in deals have been announced globally, only 3 percent below the $3 trillion record peak in 2007.

Domestic M&A in the U.S. has reached a total of $1.4 trillion, a 62 percent increase on this time last year.

Acquisitions of U.S. companies account for almost half of the total worldwide value of deals in dollars terms.

A quick fix to boost profits with borrowed money? That's some percentage jump.

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HOLA442

Boom and busts come and go. I dunno - I was thinking about putting £1000 into McDonalds and just forgetting about it. I'd think - let's put something away for 25 years, and let's see what it does. It is most likely McDonalds will be around long after I die.

Someone has wrote an article on what happens to $100K invested in McDonalds, and what it would be worth after 25 years.

Link http://www.joshuakennon.com/a-25-year-case-study-of-an-investment-in-mcdonalds-corporation/(if you are curious)

The BRIC story still has some legs to it, and Africa hasn't had their turn yet, McDonalds still has plenty of market left to tap See the McDonalds map http://www.businessinsider.com/mcdonalds-around-the-world-density-map-2013-7?IR=T

Mcdonalds2.jpg

Edited by 200p
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HOLA443

Interesting and tempting idea and interesting JK link about McDonalds. Very tempting but most things have risks in the future it's only in hindsight that some things have been certain financially. If say Enron had survived likely they would be some using investing in Enron as an example (I'm not suggesting what happened to Enron might happen to McDonalds).

Edited by billybong
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HOLA444
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HOLA445

True, there are risks to all businesses. I have the Enron documentary on DVD. They were going from the Leading Energy Company to the World's Leading Company. McDonald's business is relatively simple - it's a property company selling hamburgers, and uses the franchise model to spread the risk around.

Either £1000 turns to nothing, or it might buy a nice boat and a retirement bungalow. Who knows, that's the reason why someone might put a basket of stocks together and just tuck them away. Other candidates I would include Pepsi, and Coca Cola.

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HOLA446

Interesting and tempting idea and interesting JK link about McDonalds. Very tempting but most things have risks in the future it's only in hindsight that some things have been certain financially. If say Enron had survived likely they would be some using investing in Enron as an example (I'm not suggesting what happened to Enron might happen to McDonalds).

With Enron if the energy bets had come off, I'm sure it would have been highlighted as pure business genius rather than blind luck.

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