Angus Cartwright Write up FE469
Background – People
Angus Cartwright III was an investment advisor based in Arlington, Virginia which main role in this particular scenario was to act as the intermediary between the DeRight brothers and potential local real estate properties. There was history already established between the DeRight and Cartwright family as they had been involved in business in the past, and there was full confidence of Angus expertise on arriving to an adequate deal. Cartwright had fully prepared a detailed financial analysis of four properties and was intending to best fit each DeRight’s goals and future expectations.
John and Judy DeRight where in different life stages, willing to incur business in the real estate sector in order to diversify their investment portfolio. In the case of John, he has just sold his company to a medium sized public firm in exchange of $18 million dollars worth of stock. This gave him a stream of $500,000 dollars in dividends yearly that made him retire comfortably along with a similar amount of savings. Nevertheless, by being relatively old in his life, John became more risk-averse and wanted to take advantage of the new capitalization rate of 15% in his current stock position, and sell at most half of his current stock to finance a real estate property. This would definitely bring a more secure investment with a more defined schedule of expected returns.
On the other hand, Judy DeRight was a bit younger than John yet currently managing her own small-sized chemical company, giving her an investment portfolio of about $16 million dollars, mostly in short term securities. In her position she doesn’t necessarily look for high annual payments but a better growth of her initial investment. She already consists of annual profits of more than $1 million dollars, and wants to safely diversify her money and get a attractive long run (10 year) return. I would believe her o be less risk averse than her brother, yet also incurring similar benefits.
Angus Cartwright III was an investment advisor based in Arlington, Virginia which main role in this particular scenario was to act as the intermediary between the DeRight brothers and potential local real estate properties. There was history already established between the DeRight and Cartwright family as they had been involved in business in the past, and there was full confidence of Angus expertise on arriving to an adequate deal. Cartwright had fully prepared a detailed financial analysis of four properties and was intending to best fit each DeRight’s goals and future expectations.
John and Judy DeRight where in different life stages, willing to incur business in the real estate sector in order to diversify their investment portfolio. In the case of John, he has just sold his company to a medium sized public firm in exchange of $18 million dollars worth of stock. This gave him a stream of $500,000 dollars in dividends yearly that made him retire comfortably along with a similar amount of savings. Nevertheless, by being relatively old in his life, John became more risk-averse and wanted to take advantage of the new capitalization rate of 15% in his current stock position, and sell at most half of his current stock to finance a real estate property. This would definitely bring a more secure investment with a more defined schedule of expected returns.
On the other hand, Judy DeRight was a bit younger than John yet currently managing her own small-sized chemical company, giving her an investment portfolio of about $16 million dollars, mostly in short term securities. In her position she doesn’t necessarily look for high annual payments but a better growth of her initial investment. She already consists of annual profits of more than $1 million dollars, and wants to safely diversify her money and get a attractive long run (10 year) return. I would believe her o be less risk averse than her brother, yet also incurring similar benefits.