Y H & C Investments
President & Owner
Yale Bock is the owner and operator of Y H & C Investments, a registered investment adviser (Nevada and FINRA licensed) located in Las Vegas, NV. All operations are directed by Yale and he is responsible for the investment research, portfolio management, asset allocation, trading decisions, trade execution, risk management, and any client communication.
Y H & C Investments is a boutique registered investment advisor based in Las Vegas, NV. The company offers asset management services which include strategic asset allocation, tactical asset allocation, investment research, portfolio management, portfolio measurement and assessment, diversification and hedging, and financial documentation and customer support. The mission of the company is to help people reach their financial goals and objectives.
Yale has been investing his own capital for 20 years and client money since 2004. Yale earned a B.A. in economics from UC-Irvine in 1989, and an M.B.A from UC-Irvine in 1991. He earned the right to use the Chartered Financial Analyst designation in 2007.
BA, Economics, University of California, Irvine - The Paul Merage School of Business
Assets Under Management:
Investing money in capital markets involves risk and could result in losing money. Past performance is no guarantee of future results. Future results are likely to be different from past performance. All equity portfolios involve risk and may lose money. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile, liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, attaining or holding the CFA credential in no way suggests performance will be superior than a market index or market return.
Y H & C Investments Video
You are asking a good question. It would recommend regardless of how little money is going to be in the account, you give the TIN to the bank and report the account to the IRS. What you don't want is to be accused of hiding assets by opening an account overseas without reporting those assets to the IRS. The amount of interest you will earn is minimal, and so the difference between reporting it and not is so small it makes sense to do the legally appropriate thing and report the account to the IRS. I hope this helps answer your question.
Yale Bock, CFA
Y H & C Investments
You are asking a distinct question which is quite interesting. Private equity involves a private equity fund taking control of a company, usually using a high percentage of debt (70-100%) in the purchase price combined with 20% equity. They change the management of the company, incentivze the new management with a piece of the ownership, and have them completely change the way the business operates, with the goal to make it more efficient, more profitable, and grow the business. By doing so, in 5-10 years at the end of the fund, they will sell the company for a higher price, or take it public at a greater multiple than the price they paid. So typically, private equity buys into large existing businesses with operations which have been established over a number of years. Venture capital is typically a situation where a fund will invest capital in an early stage technology company, sometimes it will be nearly at the start of a company (called round a), and in other cases it will be later as the technology company has been building a business. The venture capital company will get board representation and try to help grow the company into a much larger enterprise in 5 years, think going from 1 million or 5 million in revenue to 50-500 million in revenue. Venture capital firms are trying to get an exit where they make 5-100 times their money in the 5-10 year lifetime of their fund. Usually, on ten investments, they want one of the ten to make 10-100 times their money and that pays for the other 9 investments where they don't. Another difference between private equity and venture capital is the amount of money invested in each specific company. In some cases, private equity can pay hundreds of millions or even billions. Venture capital, especially early stage, will invest 500K up to maybe 10 million, so the degree of capital used is far different. I hope this helps answer your question.
You are asking a good question and one which many people probably think about. Much depends on what the current level of financial assets you own and are pertinent for the advisor to consider. Many advisors charge flat fees for a year and based on the amount of assets, the fee will be commensurate with that level. Others charge a percent of the total assets managed and the more assets managed, the less the fee is. A good rule of thumb is about 1% of total assets per year, so on a portfolio of 200K, the yearly charge would be 2K. Clearly, another consideration is what you get for the fees you are charged. If you are charged one percent, and the service is based on financial planning where assets are managed and put into indexes, that is one level of service. A different level of service would be you are charged 1%, the assets are managed, and the performance is much better than the market, or much worse. If you do 2-5% better than the market (lets say the market return is 8%), and the portfolio is 200K, the additional 2%-5% return would be additional 4-10K in appreciation of the assets, which would more than make up for the fee being charged. So much of what you are trying to decide is what you will get for the price being charged, based on past performance. I hope this helps answer your question.
Yale Bock, CFA
Y H & C Investments
You are asking a good question as nobody starts out as an experienced investor so you have to start somewhere. Markets are different than individual companies. Mature markets are places like the United States, Canada, England, Australia, France, Germany or countries where one can have some level of confidence in the rule of law. You can monitor country markets by their indexes, which are a group of companies which are listed in that country, often times having their corporate headquarters there (where they incorporated). These are typically the most powerful and financially successful companies in this country. For example, in the United States, think about the Dow Jones Industrial Average or the S&P 500 or Nasdaq. In England, they have the FTSE Index. You can look at any country and research their index to find out what stock index it is and how you can potentially have a small ownership piece of each of the companies in the index. Regarding specific companies to invest in, and what indicators to look for and use as a guide, this is another good question where there is quite a bit involved to consider. On any individual company, you probably need to research the history of the company, its management team and board of directors, the business it is in, and become familiar with its specific market and current competititon and how it compares. You would look at its financial statements and filed government documents like the annual report and 10-q filings to get its most recent financial results. You also would look at its 1, 5, and 10 year stock performance to see what kind of returns you would have gotten if you had invested in the stock. As far as key indicators, you might read up on Price to Earnings, Price to Sales, Price to Cash Flow, and Market Capitalizations and Enterprise Value to get a basic understanding of how stocks are evaluated through fundamental anaysis. My own opinion is to forget anything related to charting as far as analyzing individual companies. Regarding finding stocks with dividends, you will look for companies that have a history of paying dividends for the last 5, 10, 20, or even 50 years. There are plenty out there, and a good place to look is in the S&P 500 index with companies like Johnson & Johnson, Exxon Mobil, 3M, McDonalds, Proctor & Gamble, Pfizer, JP Morgan Chase, etc. I hope this helped answer your question on researching markets and companies to invest in. Also, investing in individual companies and markets is a great way to learn about all kinds of industries and interesting situations which you can use in other parts of your life.
Yale Bock, CFA
Y H & C Investments
It is great you are thinking about the future and you are asking a good question. When thinking about growing your assets, you have to consider the risk tolerance you have for the capital you are allocating. With respect to the specific vehicles you mentioned, a Roth IRA is a great one because your assets grow tax free, versus a traditional (Regular IRA) one which grows tax deferred. On the issue of 401K plans, it is usually a very good idea to max out your contributions, especially if you get a matching contribution from your employer. Of course, that also depends on your tax situation. Regarding the kinds of investments you should be considering, typically stocks (equities) have the highest returns over any kind of long time frame. A low cost way to obtain the market return is to invest in indexes, there are plenty of funds which offer indexes like the S&P 500 or Dow or Nasdaq with minimal fees. From a diversification standpoint, you probably want to spread your capital out with exposure to various asset classes. A good rule of thumb is the younger you are, the more exposure to equities you want, and as you get older, the more you lower that exposure. So at 20, you might be looking at 80-90% in stocks, the rest in cash and bonds. As you move to 50, split it half and half. Other asset classes to look at would be emerging market equities, emerging market bonds, corporate bonds, real estate (real estate investment trusts), small business loans, small business equity, venture capital, hedge funds, or some form of private equity. You can get exposure to these other asset classes with a little research into each area. I hope this helped answer your question.
Yale Bock, CFA
President, Y H & C Investments