Posted on 07/31/2010 5:46:33 PM PDT by bigbob
Part Warren Buffett and part Dolly Parton, the 49-year-old native of the Bronx borough of New York owns or has an equity stake in companies that are as eclectic as her wardrobe — and include brand names such as Arizona Ice Tea, English Leather cologne and Isotoner gloves.
Through her private-equity firm Patriarch Partners she also owns companies with some of the world's most iconic names, including mapmaker Rand McNally, firetruck manufacturer American LaFrance and Italian factory-machine maker Ansaldo Sistemi Industriali.
In 2005, Tilton acquired Mesa, Ariz.-based MD Helicopters, a company founded by Howard Hughes.
Although diverse, the companies had a common trait before Tilton began investing in them. They produced well-known products but were about to go out of business.
"We turn dust to diamonds," she said at the Anaheim Convention Center. "We buy what everybody else tosses away."
Lynn Tilton truly "saves jobs" and creates new opportunities through her PE company, Patriarch Partners. A great example of American Exceptionalism, and well worth watching if you can.
I happened to catch the interview. Very impressive and extremely interesting.
One smart lady. Whay haven’t we heard about her before?
The significant are rarely famous and the famous are rarely significant.
She makes her wealth by collecting as many claims on the future labor of others as possible.
“”I happened to catch the interview. Very impressive and extremely interesting.””
I saw it also - but those PANTS! Guess if we could manage to do what she’s done, it wouldn’t matter.
Just as long as we don’t have to see Hillary or Michelle wearing them, I can stand it. Sure hope they didn’t see them.
She makes her wealth by collecting as many claims on the future labor of others as possible.
I have yet to hear of her forcing anyone to work in one of her companies at gunpoint. The fact is, the people who work there are pretty happy that she saved their jobs.
Now go peddle your communist twaddle somewhere else.
Her private equity company acquires companies that are in distress, invests in them, restructures them, enables them to develop new products that meet customer needs, and in the process, keeps many people employed. Many of these are companies that would not meet the criteria for acquisition by Fortune 500 companies who are under pressure to meet quarter-over-quarter growth expectations and can’t make investments in companies that aren’t already doing well. In this way she saves jobs that would otherwise be lost due to bankruptcy or plant closures, and creates new ones by re-investing in companies who have the potential to be competitive again. Yes, I call that American Exceptionalism.
But my M&A experience is based on initiating only two multi-million dollar acquisitions for a Fortune 50 company. Perhaps you are more knowledgable in corporate finance, and can explain how this amounts to “securitizing bad debt”.
"Arise, ye prisoners of starvation....."
Pics!
That's funny. I don't remember ever having said that she did.
Now go peddle your communist twaddle somewhere else.
LOL! "Communist twaddle"? Do you have even the beginning of an inkling what Communism is?
The facts are that her company specializes in securitizing bad debt to high risk investors.
And how does she do this??? By securitizing bad debt, that's how.
Many of these are companies that would not meet the criteria for acquisition by Fortune 500 companies who are under pressure to meet quarter-over-quarter growth expectations and can’t make investments in companies that aren’t already doing well.
You just made my point for me.
In this way she saves jobs that would otherwise be lost due to bankruptcy or plant closures, and creates new ones by re-investing in companies who have the potential to be competitive again.
Fine...but's it's through securitizing bad debt that she does this. She's no hero - she's part of the problem.
Yes, I call that American Exceptionalism.
You would...if you're putting together M&A's based on high-risk securitizations.
But my M&A experience is based on initiating only two multi-million dollar acquisitions for a Fortune 50 company. Perhaps you are more knowledgable in corporate finance, and can explain how this amounts to “securitizing bad debt”.
Are you securitizing risky debt to make this happen? I doubt it. A Fortune 50 company wouldn't be in that business.
Don't put lipstick on a pig.
Hmmm...
have a closet Marxist here.
How quaint.
You folks are really something else with your lack of understanding in regards to the terms you so loosely throw around.
Please educate me on how I am being "Marxist". Be specific 'O learned one. I'll be waiting.
Absolutely, call it financial recycling. The bad debt exists, it is a fact and it doesn't go away. She finds a way to turn it to a profit instead of wasting away. Think of it as the 21st century version of the 1930 Oklahoma dirt farmer who bought up all his neighbors land when they couldn't pay the bills. He ended up rich and the land became future farms and cities.
Oh, learned one, the woman is successful and makes money, therefore she is your Marxist widdle heart’s enemy. She also keeps people employed...another reason to be the enemy of Marxism....how DARE she be successful at what she does and help life others up and give them jobs so they too can be successful and not dependent on the government. My, my, my, we can’t have happily employed Americans, strong and independent in their own right...everybody should be sitting on their butts waiting for a government handout with the government’s boot on their throat so you kewl Marxists can suck the life out of them.
Have you bothered to go to this person's web site and read her bio? Or are you just relying on what others write and what some may have been exposed to during a media interview.
Let's discuss facts:
She has built her successful company by becoming an expert in securitizing bad debt. She cut her financial teeth at Morgan Stanley.
Do you realize what this means? No? Let me help explain it.
She and her company specialize is selling extremely risky securitized debt to investors. Who has been buying these risky investments over the last number of years? Many investment houses that manage the retirement portfolios of their respective clients.
How many of the folks on this forum experienced a little bit of a "drop" in their retirement savings over the last few years? A few of you? How many of you have suffered depreciated home prices, or find themselves under water on their mortgage? Anybody?
That all came about by people like Ms. Tilton taking debt that was garbage, chopping into pieces with other bad debt - forming tranches, getting those tranches of worthless garbage rated AAA by the ratings agencies, and then selling that trash to your retirement fund.
Do any of you still call that "American Exceptionalism"? Or would you still rather shoot the messenger with words like "Communist" or "Marxist"?
I would encourage whoever reads this to do a little bit of research into what Ms. Tilton is all about instead of focusing so much on the employees of bankrupt organizations.
Yes, it's very sad when people lose their job. It's even sadder when the retirement portfolios of an entire nation get decimated by those that practice techniques such as Ms. Tilton.
Is communist twaddle, pure and simple.
Did you actually read post #17 and have something constructive to add?
Or, would you rather just again demonstrate your ignorance of the whole situation?
Is communist twaddle, pure and simple.
I can only assume that you are attempting to refer to Marx's Labor Theory of Value - and thinking that I adhere to it somehow.
That would be a tremendous leap of misunderstanding on your part.
Bonds - or debt - is what our entire monetary system is based on. When our government issues Treasury bonds it is promising the bearers of those bonds to be paid back at some future date, with interest. The government makes that promise based on its collection of tax receipts, selling even more Treasury securities, and stealing from the various "trust" funds - such as Social Security and Medicare.
All US Treasury bonds get paid back by the future labor of the workers - period. All bonds in general are paid back by the future labor of others, since our entire economic system is based on debt.
I have never stated - nor do I adhere to - the concept that all labor is of equal value, and that widgets should only derive their value from that labor. That is what Marx taught.
That came about by the feds with the CRA as a club forcing banks to give mortgages to people based more on race than on ability to repay. This fueled the real estate bubble and caused all the other evils you blame on Ms. Tilton.
The reason that banks were giving loans to anybody with a pulse is because they were immediately turning around and selling that bad debt to investment houses - which turned around and securitized the debt into tranches and sold them to investors. Those investors ended up getting burned very badly - including a lot of pension funds.
Ms. Tilton securitizing bad debt to "save" failing companies is absolutely no different than the securitized debt from bad mortgage loans. They both end up hurting the end investor.
Shame on you for not bothering to even learn what Ms. Tilton does for a living.
I don’t what to do .so I leave a comment.
I see a substantial difference between failing companies and individuals with bad mortgages.
A failing company can bring in new management. A defaulting mortgagee can not get a brain transplant.
A failing company can find new markets for its products and introduce new products. Under the right circumstances, workers in saved companies can "get religion" and realize that the company succeeds or fails due to their efforts. And, that they are far better off with jobs, even at lower pay and benefits, than without. In a practical sense, a defaulting mortgagee can not retrain into a new career, or even update his existing skills with the pressures of a default on him. And, worst of all, defaulting mortgagees tend to be clumped into regions where unemployment is already high. If he has to move for a new job, the odds of avoiding foreclosure are minimal.
The bottom line is that debt from turn-around situations is a far better bet than debt from defaulting mortgagees, despite your claims of equivalence.
The bottom line is that they are both high-risk bad debt that is being securitized, rated AAA, and sold to investors that are depending on the accuracy of the rating.
The facts are that investors have lost very large amounts of month from all of these forms of securitization.
Ms. Tilton is no heroine. She plays the same games as the rest of the investment bankers.
“month” should be “money”. It’s late. Goodnight...
bookmark
Frankly I don’t think you know what you’re talking about. People have been buying and re-fitting companies to put them back on their feet since the beginning of capitalism...where there is a good product.
You seem to want to paint all capitalists with the failures of the dhimokraps and crashing of the majority of the people’s retirement funds by buying up Fannie/Freddie’s home mortgage scams...you do not seem to understand that this is a different ball game altogether.
Your post implies you think the fund managers etc., who buy these pooled asset instruments are untrained professionals.
In reality, isn’t it the fault of the portfolio managers who buy the junk than it is the person who wishes to sell the junk?
Caveat emptor my friend caveat emptor. We aren’t talking about little old ladies on the street corner being sold these instruments, they are professionals who know the risks.
They are professionals who like to gamble, and most of them aren't that intelligent to tell you the truth.
How do I know? Because I dealt with high-end fund managers for close to ten years.
Okay, so the fund manager who "gambles" would have that reflected in his/her performance yes? And if you invest with a fund manager or someone who represents your retirement fund invests in said "gambles" they are to blame not the guys who bundle the investments right?
Everyone has blame to go around. The people that bundled the investments did so fraudulently. The ratings agencies had willful neglect in their duties. The fund manager was looking for quick commission dollars on the investment, and the customer wasn't doing their due diligence with regards to picking a fund manager.
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