Comments on: The Gates Foundation’s reckless risk-taking http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Paul http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/comment-page-1/#comment-4386 Sat, 18 Jul 2009 04:50:58 +0000 http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/#comment-4386 I wonder if the article Felix referenced is confusing Gates Foundations investments with Bill Gates own personal investments? Cascade Investment corp is his own private investment company and they definitely invest in risky assets. Looking through the foundation’s 2007 tax form 990 there doesn’t appear to be any references to Cascade Investment corp. See:

http://www.gatesfoundation.org/about/Doc uments/2007-foundation-form-990-pf-publi c-disclosure.pdf

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By: cgaros http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/comment-page-1/#comment-4380 Fri, 17 Jul 2009 23:08:02 +0000 http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/#comment-4380 The Gates foundation has enormous resources, far-ranging goals, and no particularly strong and immediate requirements that it must meet (I know the Gates foundation has requirements, but not in the same sense that the Harvard endowment must produce enough cashflow to keep Harvard operational). Who better to pick up positive expectancy but highly risky bets?

I don’t know the situation in detail here, but most distressed situations boil down to “This is worth a lot more or it’s worth nothing”. A retail investor might not want this deal because if it’s worth nothing they can’t send their kid to college. The Gates foundation has plenty of assets and could find uses for even more – so why not take these risks with small percentages of those assets? It’s basically a Benjamin Graham type of situation, and we know that if you have enough of those you can do fine.

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By: KenG http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/comment-page-1/#comment-4368 Fri, 17 Jul 2009 20:13:46 +0000 http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/#comment-4368 Aren’t just about all equities distressed these days?

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By: bk http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/comment-page-1/#comment-4363 Fri, 17 Jul 2009 19:54:23 +0000 http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/#comment-4363 Felix, this is approaching Zero Hedge style conspiracy theory lunacy.

The only positions that Cascade reports are 5% equity stakes in companies. You simply do not know how much is invested in bonds or otherwise. This is maybe a $10m investment from an office that oversees tens of billions.

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By: Truther http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/comment-page-1/#comment-4360 Fri, 17 Jul 2009 19:32:05 +0000 http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/#comment-4360 The Gates Foundation is another front organization for the global elitist eugenics movement. Bill Gates father was behind planned parenthood. The Gates Foundation has one sole purpose- global sustainability through massive population reduction. His GMO seeds given to African farmers has destroyed entire harvests due to their poor quality. Just one of countless examples
www.infowars.com

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By: Brad Willmore http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/comment-page-1/#comment-4354 Fri, 17 Jul 2009 19:03:22 +0000 http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/#comment-4354 I’ve got to strongly disagree with you about the managers at the Gates Foundation. My experience with the organization is that they’ve always demonstrated a very deliberative investing strategy, emphasizing transparency and disclosure in the managers they hire and avoiding high fee, ‘black box’ hedge fund investing when that was all the rage.

Investing in distressed equities is not necessarily more risky than other asset classes and is just a prudent part of allocation for a large asset portfolio like Gates. Most CIOs will tell you that the most ‘riskless’ assets, Treasuries, are overpriced now and likely to expose you to your greatest losses in the near term.

I don’t believe the Gates investment in distressed equities is driven by compensation structure, just sound investment strategy and the continuous need to diversify a multi-billion dollar portfolio

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By: daniel http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/comment-page-1/#comment-4353 Fri, 17 Jul 2009 18:51:55 +0000 http://blogs.reuters.com/felix-salmon/2009/07/17/the-gates-foundations-reckless-risk-taking/#comment-4353 the gates foundation only hires HBS alumn.. time to follow the smart money

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