Professional Documents
Culture Documents
The 37 Important Real Estae Investing Questions
The 37 Important Real Estae Investing Questions
*HW6WDUWHGLQ5HDO(VWDWH,QYHVWLQJ
%XLOG<RXU,QYHVWPHQWV
%X\ZLWK1R0RQH\'RZQ
*HW&DVK%DFNDW&ORVLQJ
$QG0XFK0XFK0RUH
5HDO(VWDWH,QYHVWLQJ,QIRUPDWLRQDW
WKH5HDO(VWDWH,QYHVWPHQW6LWH
VLQFH
)LQDQFLDO,QGHSHQGHQFHWKURXJK(GXFDWLRQ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
&RS\ULJKW1RWLFH
&RS\ULJKWE\&5(21/,1( ,QF $OO5LJKWV5HVHUYHG
1RSDUWRIWKLVSXEOLFDWLRQPD\EHUHSURGXFHGRUWUDQVPLWWHGLQDQ\IRUPRUE\DQ\PHDQV
PHFKDQLFDORUHOHFWULFLQFOXGLQJSKRWRFRS\LQJDQGUHFRUGLQJRUE\DQ\LQIRUPDWLRQVWRUDJHDQG
UHWULHYDOV\VWHPZLWKRXWSHUPLVVLRQLQZULWLQJIURPWKHSXEOLVKHU5HTXHVWVIRUSHUPLVVLRQRU
PRUHLQIRUPDWLRQVKRXOGEHVHQWWR&5(RQOLQHFRP 3XEOLVKHGE\&5( 21/,1( ,QF &UHDWHG
HSULQWHGDQGGLVWULEXWHGLQWKH8QLWHG6WDWHVRI$PHULFD
/HJDO'LVFODLPHU1RWLFH
7KLVHERRNLVGHVLJQHGWRSURYLGHLQIRUPDWLRQLQUHJDUGWRWKHVXEMHFWPDWWHUFRYHUHG:KLOHDOO
DWWHPSWVKDYHEHHQPDGHWRYHULI\LQIRUPDWLRQSURYLGHGLQWKLVSXEOLFDWLRQQHLWKHUWKHDXWKRU
QRUWKHSXEOLVKHUDVVXPHVDQ\UHVSRQVLELOLW\IRUHUURUVRPLVVLRQVRUFRQWUDU\LQWHUSUHWDWLRQRI
WKHVXEMHFWPDWWHU
7KLVHERRNLVVROGZLWKWKHXQGHUVWDQGLQJWKDWWKHSXEOLVKHUDQGDXWKRUDUHQRWHQJDJHGLQ
UHQGHULQJOHJDODFFRXQWLQJRURWKHUSURIHVVLRQDOVHUYLFHV,IOHJDORUH[SHUWDVVLVWDQFHLV
UHTXLUHGWKHVHUYLFHVRIDFRPSHWHQWSURIHVVLRQDOVKRXOGEHVRXJKW7KHSXEOLVKHUZDQWVWR
VWUHVVWKDWLQIRUPDWLRQFRQWDLQHGKHUHLQPD\EHVXEMHFWWRYDU\LQJVWDWHDQGRUORFDOODZVRU
UHJXODWLRQV$OOXVHUVDUHDGYLVHGWRUHWDLQFRPSHWHQWFRXQVHOWRGHWHUPLQHZKDWVWDWHDQGRU
ORFDOODZVRUUHJXODWLRQVPD\DSSO\WRWKHXVHUVSDUWLFXODUEXVLQHVV
7KHSXUFKDVHURUUHDGHURIWKLVSXEOLFDWLRQDVVXPHVUHVSRQVLELOLW\IRUWKHXVHRIWKHVHPDWHULDOV
DQGLQIRUPDWLRQ$GKHUHQFHWRDOODSSOLFDEOHODZVDQGUHJXODWLRQVERWKIHGHUDODQGVWDWHDQG
ORFDOJRYHUQLQJSURIHVVLRQDOOLFHQVLQJEXVLQHVVSUDFWLFHVDGYHUWLVLQJDQGDOORWKHUDVSHFWVRI
GRLQJEXVLQHVVLQWKH8QLWHG6WDWHVRUDQ\RWKHUMXULVGLFWLRQLVWKHVROHUHVSRQVLELOLW\RIWKH
SXUFKDVHRUUHDGHU7KHDXWKRUDQG3XEOLVKHUDVVXPHQRUHVSRQVLELOLW\RUOLDELOLW\ZKDWVRHYHURQ
WKHEHKDOIRIDQ\SXUFKDVHU RUUHDGHURIWKHVHPDWHULDOV7KHSXUSRVHRIWKLVZRUNERRNLVWR
HGXFDWHDQGHQWHUWDLQ$Q\SHUFHLYHGVOLJKWVWRDVSHFLILFLQGLYLGXDORURUJDQL]DWLRQVDUH
XQLQWHQWLRQDO
7KLVHERRNZDVHGLWHGDQGGHVLJQHGE\'HEUD$XJXU ZZZ0\:HE*DOFRP
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:KDWLVWKHEHVWZD\IRUDEHJLQQHUWRJHWVWDUWHGLQUHDOHVWDWH
LQYHVWLQJ"
&DQ\RXUHDOO\GRQRPRQH\GRZQUHDOHVWDWHGHDOV"
+RZFDQ\RXPDNHPRQH\LQUHDOHVWDWHLI\RXGRQWKDYHDQ\
PRQH\"
:KDWLI\RXKDYHEDGFUHGLW"'RHVWKDWUXLQ\RXUFKDQFHRIGRLQJ
UHDOHVWDWHGHDOV"
:KDWPDNHVDGHDODJRRGGHDO"
+RZGR,ILQGJRRGUHDOHVWDWHGHDOV"
+RZGRZHILQGPRWLYDWHGVHOOHUV"
+RZGRHVVRPHRQHRYHUFRPHWKLVIHDURIGRLQJWKHILUVWGHDO"
+RZGR\RXGHWHUPLQHZKDWDSURSHUW\LVUHDOO\ZRUWKEHIRUH\RXEX\
LW"
+RZGR,PDNHDQRIIHU"'RHVLWQHHGWREHLQZULWLQJDQGZKHUHFDQ
,JHWWKHVHFRQWUDFWV"
:KDWVWKHEHVWZD\WRJHWFRPSDUDEOHVDOHVGDWD"
+RZGR\RXGHYHORSDVXFFHVVIXOPDUNHWLQJSURJUDPWRJHQHUDWH
OHDGVDQGZKDWPHWKRGVGR\RXXVH"
:KDWDUHVRPHFUHDWLYHILQDQFLQJRSWLRQV"
+RZGR,ILQGDQGJHWILQDQFLQJIRUP\GHDOV"
+RZGR,ILQGSULYDWHLQYHVWRUVWRIXQGP\GHDOV"
3OHDVHH[SODLQKDUGPRQH\ORDQV$ORWRISHRSOHGRQWUHDOO\
XQGHUVWDQGZKDWKDUGPRQH\LVDQGLQFOXGLQJWKHOHQGLQJFULWHULD
DQGWKHFRVWDQGWKHWHUPV
+RZFDQ,ILQGKDUGPRQH\OHQGHUV"
:KDWVWKHEHVWPHWKRGWRXVHIOLSSLQJUHKDEVEX\LQJVXEMHFWWR
OHDVHRSWLRQVEX\LQJLQZKROH7KHUHVVRPDQ\GLIIHUHQWZD\VWR
EX\DQGGHDOZLWKUHDOHVWDWH:KDWVWKHVLQJOHEHVWPHWKRG"
:KDWLVDTXLFNIOLSGHDO"+RZGRHVLWZRUN"
+RZGR\RXILQGTXLFNIOLSGHDOV"
:KDWDUHWKHULVNVLQDTXLFNIOLS"+RZGR\RXUHGXFHWKRVHULVNV"
:KDWDUHWKHEDVLFVWHSVLQDOHDVHRSWLRQ":KDWDUHWKHULVNVDQG
KRZGR,SURWHFWP\VHOI"
:KDWLVWKHEHVWZD\WRILQGJRRGWHQDQWV"
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:KDWLVDVXEMHFWWRWUDQVDFWLRQ",QFOXGHKRZWRH[SODLQLWWRWKH
VHOOHUDQGWKHULVNVLQYROYHGIRUERWKSDUWLHV
+RZGR,ILQGSUHIRUHFORVXUHGHDOV"
:KDWVWKHEHVWZD\WRQHJRWLDWHDVKRUWVDOHZLWKWKHEDQN"
:KDWDUHWKHULVNVDQGEHQHILWVRIGRLQJUHKDEV",QFOXGLQJKRZWRJHW
IXQGLQJDQGLQVXUDQFH
+RZGR\RXJHWFDVKEDFNDWFORVLQJ"
:KDWVWKHEHVWZD\WRILQGEX\HUVIRU\RXUGHDOV"
+RZGR,UHGXFHP\ULVNV"
,PLQDYHU\FRPSHWLWLYHPDUNHWZLWKORWVRIRWKHUUHDOHVWDWH
LQYHVWRUV+RZFDQ,PDNHPRQH\"
+RZGR\RXPDNHPRQH\LQDKRWIDVWPRYLQJVHOOHUVPDUNHWZLWK
KLJKSULFHGKRXVHV"
:KDWDUHWKHSURVDQGFRQVRIJHWWLQJDUHDOHVWDWHOLFHQVHLI\RXUH
DUHDOHVWDWHLQYHVWRU"
,VLWSRVVLEOHWRPDNHPRQH\LQUHDOHVWDWHSDUWWLPHDQGKRZZRXOG
\RXGRLW"
+RZGR\RXGHFLGHZKHQLWVWLPHWRTXLW\RXUMREDQGVWDUWLQYHVWLQJ
IXOOWLPH"
:KDWVDOOWKLVWDONDERXWWKHUHDOHVWDWHEXEEOH",VWKHUHDFRPLQJ
UHDOHVWDWHEXVWDQG ZKDWVKRXOGZHGRDERXWLW",VLWWRRODWHWR
VWDUWLQYHVWLQJQRZ"
,I\RXORVWDEVROXWHO\HYHU\WKLQJDOO\RXUDVVHWVDOO\RXUPRQH\DOO
\RXUFUHGLWKRZZRXOG\RXVWDUWRYHULQYHVWLQJLQUHDOHVWDWHWRGD\"
5HVRXUFHV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
&5(21/,1(7(/(6(0,1$5
7KH0RVW,PSRUWDQW
5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 ,ZDQWWRZHOFRPHHYHU\RQHWRRXUYHU\ILUVWWHOHVHPLQDU
7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
%HIRUHZHVWDUWOHWPHWHOO\RXDOLWWOHELWDERXWKRZWKLVZKROHHYHQWWRRN
SODFHDQGKRZZHHQGHGXSGRLQJDWHOHVHPLQDULQWKHILUVWSODFH
$ERXWILYHZHHNVDJR,HPDLOHGDOORIRXUQHZVOHWWHUVXEVFULEHUVDQGDVNHG
WKHTXHVWLRQ:KDWLV\RXUPRVWLPSRUWDQWUHDOHVWDWHLQYHVWLQJ
TXHVWLRQ"3OHDVHVHQGLWWRXV
:HUHFHLYHGDOPRVWDQVZHUV
6R,JRWP\VWDIIWRJHWKHUDQGZHZHQWWKURXJKDOO TXHVWLRQV:HSXW
WKHPLQSLOHVE\IUHTXHQF\:HHQGHGXSSLFNLQJZKDWZHWKLQNDUH WKH
PRVWLPSRUWDQWUHDOHVWDWHLQYHVWLQJTXHVWLRQV
6RWRQLJKWZHUHVRIRUWXQDWHWRKDYHWZRVXSHUUHDOHVWDWHLQYHVWLQJH[SHUWV
ZLWKXV-RH.DLVHUDQG'DYLG) LQNHO
-RH.DLVHULVP\GHDUIULHQGZKR,KDYHNQRZQIRURK,WKLQN\HDUVQRZ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
6RPHWKLQJOLNHWKDW
-39$8*+$1 6HYHQ\HDUV"
-2(.$,6(5
<HV
-39$8*+$1 +HLVDVXSHUVXFFHVVIXOUHDOHVWDWHLQYHVWRUDQGKHUHDOO\
UHDOO\UHDOO\ GRHVGHDOGD\LQDQGGD\RXW+HVEHHQLQYHVWLQJIXOO WLPH
VLQFHWKHPLGV+LVVSHFLDOQLFKHLVLQIRUHFORVXUHVDQGILQGLQJWKH
WUXO\PRWLYDWHGVHOOHU+HVMXVWWKHVXSHUPDVWHUDWWUDFNLQJGRZQ
PRWLYDWHGVHOOHUV
'DYLG)LQNHOLVDQH[ 2O\PSLFOHYHODWKOHWHWXUQHGUHDOHVWDWHPLOOLRQDLUH+H
LVRQHRIWKHOHDGLQJUHDOHVWDWHLQYHVWLQJH[SHUWVLQWKHFRXQWU\+HDQGKLV
SDUWQHU3HWHU&RQWLWHDFKSHRSOHDOODFURVVWKHFRXQWU\KRZWRFUHDWH
PXOWLSOHVWUHDPVRILQFRPHEX\LQJKRPHVLQQLFHDUHD VZLWKQRWKLQJGRZQ
DQGVPDOOULVNV
:HOFRPH'DYLG:HOFRPH-RH
'$9,'),1.(/ +RZG\
-2(.$,6(5
7KDQN\RX
-39$8*+$1 /HWVJHWVWDUWHGZLWKTXHVWLRQQXPEHU
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:HUHJRLQJWRWDNHWXUQVRQVRPHRIWKHVHTXHVWLRQVDQGWKHQRQRWKHUV,G
OLNHWRKHDUERWKRI\RXURSLQLRQV7KHUHVQRWDOZD\VRQHVLQJOHFRUUHFW
DQVZHUDQGLWVLQWHUHVWLQJWRVHHGLIIHUHQWYLHZSRLQWVIURPGLIIHUHQWH[SHUWV
2ND\WKLVLVTXHVWLRQQXPEHU/HWVVWDUWZLWK\RX'DYLG
:KDWLVWKHEHVWZD\IRUDEHJLQQHUWRJHW
VWDUWHGLQUHDOHVWDWHLQYHVWLQJ"
'$9,'),1.(/ 2ND\7KDWVDQLPSRUWDQWTXHVWLRQWKHUH,GOLNHWRORRN
DWLWIURPWZRSHUVSHFWLYHV2QHZKDWVWKHHDVLHVWZD\WRJHWJRLQJDQG
WZRZKDWVWKHVPDUWHVWZD\WRJHWJRLQJ"
)RUWKHHDVLHVWZD\WR JHWVWDUWHGLQYHVWLQJREYLRXVO\LWVJRLQJWREHXVLQJ
VRPHRIWKHEDVLFLGHDVOLNHOHDVHRSWLRQVDQGZLFKHGOHDVHGRSWLRQVDQGVR
IRUWK7KHVHUHTXLUHYHU\OLWWOHRUQRPRQH\DQGQRFUHGLW7KHVHDUHWKLQJV
WKDWFDQEHVWUXFWXUHGZLWKMXVWDOLWWOHE LWRINQRZOHGJHDQGDUHPXFKORZHU
ULVNV
)RUH[DPSOH)LQGLQJDPRWLYDWHGVHOOHUZKRZRXOGOHDVH\RXDSURSHUW\DW
DSD\PHQWDQGDSULFHWKDWZRXOGOHW\RXWXUQDQGILQGVRPHERG\HOVHWR
VDQGZLFKOHDVHRSWLRQWKHSURSHUW\DQGVHOOWRVRPHERG\HOVH
,WKLQNWKHILUVWRUKRXVHV,GLGP\ILUVW\HDURILQYHVWLQJZDVZLWK
VDQGZLFKHGOHDVHRSWLRQV,KDGJRVKFORVHWR,PMXVWEULQJLQJDQXPEHU
KHUHDERXWWKUHHWRIRXUKXQGUHGWKRXVDQGGROODUVWKDWZHUHORFNHGLQ
SURILWVIURPWKRVHGHDOV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHVHFRQGSDUWRIWKDWTXHVWLRQUHDOO\LV ZKLFKLVWKHVPDUWHVWZD\WKDW
LQYHVWRUVVKRXOGJHWLQYHVWLQJ"
,PNLQGRIUHDGLQJWKDWLQWRWKHTXHVWLRQ,PVXUHZKRHYHUDVNHGPHDQWWR
DVNWKDWSDUWWRR
,WKLQNWKHGXPEHVWDQGWKHULVNLHVWWKLQJWKH\FDQ GRLVWRVWDUWRIIE\
LQYHVWLQJWKHLURZQPRQH\,IWKH\KDYHWKHKDQGLFDSRIKDYLQJDORWRI
PRQH\DQG,PNLQGRIPDNLQJDMRNHRIWKDWWKH\VKRXOGVWDUWRIILQYHVWLQJ
XVLQJWKHLUPRQH\DVDZD\WROHYHUDJHWKHPVHOYHVLQWRWKHSURSHUWLHV
2IWHQWLPHV ZKHQSHRSOHJHWVWDUWHGWKDWKDYHDORWRIPRQH\WKH\XVHLWLQ
SODFHRIMXVWDOLWWOHELWRIVSHFLDOL]HGNQRZOHGJH,WKLQNKDYLQJPRQH\FDQ
RIWHQWLPHVEHDKDQGLFDSWROHDUQLQJKRZWREX\VPDUW
:KHQ\RXKDYHQRPRQH\\RXKDYHWRXVH\RXUZLWVD OLWWOHELWPRUH2QFH
\RXYHGRQHWKUHHRUIRXUQRWKLQJGRZQRUORZPRQH\GRZQGHDOV,WKLQNLW
PDNHVPRUHVHQVHLI\RXKDYHDFFHVVWRFDVKWRXVHWKHFDVKWREX\
7KHRQO\GRZQVLGHRIEX\LQJZLWKFDVKLVWKDWWKHUHLVWRRPXFKURRPIRU
PLVWDNHVL I\RXUHQRWFDUHIXOLQWHUPVRIHVWLPDWLQJFRVWV/LNHLI\RXUH
JRLQJWRUH KDELW0DNLQJPLVWDNHVRQWKHWUXHYDOXHRIWKHKRXVHRUQRW
XQGHUVWDQGLQJZKDWLWPHDQVWRGRKROGLQJFRVWVDQGFORVLQJFRVWVWZLFH
DQGDOOWKHUHVWRIWKDWLVWKHGRZQVLG H
,WKLQNWKHVLPSOHVWDQGVDIHVWZD\WRJHWVWDUWHGZRXOGEHDOHDVHRSWLRQ
VDQGZLFKOHDVHRSWLRQV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,ZRXOGDGGDVHFRQGZD\ULJKWDIWHUWKDW,WZRXOGEHEX\LQJSURSHUW\
VXEMHFWWRWKHH[LVWLQJILQDQFLQJPHDQLQJWKHH[LVWLQJORDQLQSODFH,P
VXUHZHOOEHWDONLQJDERXWWKDWODWHULQWKHFDOO
-39$8*+$1 2ND\+RZDERXW\RX-RH":KDWV\RXURSLQLRQ"
-2(.$,6(5
IXUWKHU
:HOO,DJUHHZLWKWKDW,GWDNHLWRXWGRZQDQRWFK
:KHQ,VWDUWHG,ZHQWWRDOOWKHVHPLQDUVDQGGLGDOOWKRVH NLQGVRIWKLQJV,
ZHQWRXWWKHUHWKLQNLQJWKDW,NQHZZKDW,ZDVGRLQJ%XWQRZ,NQRZWKDW
,GLGQWNQRZZKDW,ZDVGRLQJ
:KDW,PVD\LQJLV,WKLQNLWZRXOGEHLPSRUWDQWWKDWSHRSOHDFWXDOO\NQRZ
ZKDWPDNHVDJRRGGHDODJRRGGHDO
,VHHVRPDQ\ SHRSOHWU\LQJWRWDNHDWHFKQLTXHDQGVWLFNWKDWRQWR
VRPHWKLQJWKDWMXVWDLQWJRLQJWRIO\ QRPDWWHUZKDWWHFKQLTXH\RXUH
WKURZLQJDWLW,NQRZLQWKHORQJUXQZKDWVQRWJRLQJWRZRUN
7KLQJVVRXQGJRRGRQSDSHUDORWRIWLPHV%XWLQWKHUH DOZRUOGWKDWVWXII
MXVWFRPHVEDFNWRELWH\RXPRUHRIWHQWKDQQRW
,VXJJHVWZHVSHQGDORWRIWLPHUHDOO\OHDUQLQJZKDWPDNHVDGHDODGHDO
:KDWLVSURILW",WVDORWRIZRUNWRGRWKLVDORWRIHQHUJ\<RXPLJKWDV
ZHOOPDNHVXUH\RXUHGRLQJVR PHWKLQJWKDWVJRLQJWRSD\RIILQWKHHQG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHUHDUHPRUHIXQWKLQJVWRGRWKDQEUHDN HYHQ,VHHDORWRIJX\VJRLQJ
RXWWKHUHVSHQGLQJDORWRIPRQH\RQDGYHUWLVLQJDQGUXQQLQJDURXQGZLWK
GHDOVWKDW,NQRZLQWKHEHVWFDVHVFHQDULRZLOOMXVWEUHD NHYHQ
,WVUHDOO\HDV\WRVSHQGILYHRUVL[RUHLJKWKXQGUHGEXFNVDPRQWKRQ
FODVVLILHGDGVGRDOOWKHIOLHUVDQGDOOWKHWKLQJVWKDWSHRSOHGRQRZDGD\V
7KHHQGRIWKHPRQWKVKRZVXSDQG\RXUHQRWDORWIXUWKHUDORQJWKDQZKHQ
\RXVWDUWHG
6RWRPHLWVMXVWUHFRJQL]LQJZKDWLVDJRRGGHDO,WVZKDW,ZRXOGLQYHVW
P\HQHUJLHVLQULJKWQRZ8QWLO,NQHZWKDWXQWLO,FRXOGUHFRJQL]HZKDW
PDGHDJRRGGHDORUHYHQPRUHLPSRUWDQWZKDWPDGHVRPHWKLQJDEDG
GHDO,PQRWVXUH,GJHWRXWWKHUH VOLQJLQJIRULWDWWKLVSRLQW
,GUHDOO\ZDQWWRNQRZWKDW,NQHZZKDW,ZDVGRLQJ
-39$8*+$1 2ND\JUHDW7ZRGLIIHUHQWSHUVSHFWLYHV,ORYHLW
4XHVWLRQQXPEHUWKLVRQHVIRU'DYLG
&DQ\RXUHDOO\GRQRPRQH\GRZQUHDO
HVWDWHGHDOV"
-39$8*+$1 +RZPDQ\WLPHVKDYHZHKHDUGWKDW"
'$9,'),1.(/ ,JHWWKDWDWOHDVWDFRXSOHWLPHVDZHHN$QGLWVHHPV
DERXWRQFHHYHU\WLPH,JREDFNWRYLVLWP\IDPLO\DW7KDQNVJLYLQJDQG
GXULQJWKHKROLGD\V7KH\DVNWKHVDPHWKLQJ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
6RWUXVWPH,FHUWDLQO\FDQXQGHUVWDQGDQ\VNHSWLFLVPWKDWDQ\RI\RXKDYH
DERXWUHDOO\EX\LQJSURSHUWLHVZLWKOLWWOHRUQRWKLQJGRZQ
)LUVWRIDOOXQGHUVWDQGWKDWEX\LQJDSURSHUW\ZLWKQRWKLQJGRZQGRHVQW
QHFHVVDULO\PHDQWKDWWKHVHOOHUJHWVQRPRQH\2IWHQWLP HV\RXUHDEOHWR
VWUXFWXUHGHDOVZKHUHWKHVHOOHUVJRLQJWRJHWDVLJQLILFDQWFKXQNRIPRQH\
,WVMXVWQRWJRLQJWREH\RXUPRQH\<RXUHJRLQJWRERUURZLWIURP
VRPHERG\HOVH ZKHWKHULWLVIURPDOHQGHURUXVLQJDEX\HUWRIXQGWKDW
GHDO
7KDWVWKHILUVWSDUWRIWKHDQVZHU
7KHVHFRQGSDUWRIWKDWLVXQGHUVWDQGWKDWWKLVLVQRWVRPHWKLQJEUDQGQHZ
-RHDQG,KDYHEHHQGRLQJRXULQYHVWLQJIRUDZKLOH%XWQHLWKHURQHRIXV
LQYHQWHGQRWKLQJGRZQUHDOHVWDWH5REHUW$OOHQGLGQWLQYHQWQ RWKLQJ
GRZQUHDOHVWDWH
3HRSOHKDYHEHHQEX\LQJZLWKOLWWOHRUQRWKLQJGRZQIRUDORWORQJHUWKDQ
WKDW,WVMXVWWKH\GLGQWWHUPLWWKDWZD\
%X\LQJFUHDWLYHO\LVVRPHWKLQJWKDWVEHHQDURXQGIRUDORQJORQJWLPH,
WKLQNWKLVLVLQWHUHVWLQJ :KHQZHLVVXHGRXURULJLQDOSUHVVFKDOOHQJHZKLFK
ZDVDUHSHDWRIWKDW%RE$OOHQFKDOOHQJH\RXNQRZVHQGLWWRDQ\FLW\ZLWK
DJURXSRIWKUHHEHJLQQLQJVWXGHQWVDQGZHOOKHOSWKHPEX\RUFRQWURO
RIWKHUHDOHVWDWH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:HSLFNHGXSKRXVHVDQGRXUXSIURQWLQYHVWPHQWZDVGRZQ
-2(.$,6(5
:RZ
'$9,'),1.(/ 7REHFOHDUZKDWWKDWPHDQVLVZHXVHGRQWKUHH
RIWKHKRXVHVDVXSIURQWFRQVLGHUDWLRQWRORFNXSWKHOHDVHRSWLRQV
2QWKHRWKHUVHYHQZHXVHGWKHUHVWRIWKHGROODUV WRPDNHLWELQGLQJ
FRQVLGHUDWLRQZKLFKLVMXVWDIDQF\WHUPWKDWPHDQVOHJDOYDOXHFKDQJLQJ
KDQGVWRPDNHLWDELQGLQJFRQWUDFW
:KHQZHUHVROGWKHSURSHUWLHVODWHURQZHVROGWKHPWRWHQDQWEX\HUV6R
ZHJRWPRQH\FRPLQJLQIURPWKHSHUVRQZHVROGLW WRRQDUHQWWRRZQ
EDVLV
7KDWVDSUHWW\VWDQGDUGZD\RIGRLQJDOLWWOHRUQRWKLQJGRZQWUDQVDFWLRQ
7KHUHDUHDORWRIGLIIHUHQWZD\V,NQRZODWHUZHOOVKDUHZLWK\RXDORWRI
GLIIHUHQWLGHDVDERXWKRZWRGRWKDW%XWWKHNH\LVWRXQGHUVWDQGWKD W
PDQ\SHRSOHKDYHGRQHWKDWEHIRUH
,JHWTXHVWLRQVDOOWKHWLPH&DQ\RXGRLWLQKLJKSULFHGDUHDV"&DQ\RXGR
WKDWLQVPDOOOLWWOHUXUDOFRPPXQLWLHV"
-XVWWZRTXLFNVWRULHVWRLOOXVWUDWH
:HVHQWDPDVVHPDLOWRRXUOLVWDERXWWKHQHZERRNWKDW ZHUHZRUNLQJRQ
ZKLFKLVDIROORZ XSWRWKH0DNLQJ%LJ0RQH\,QYHVWLQJLQ5HDO(VWDWH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
ERRN,WVGRQHWKURXJK:DOWHU'HDUERUQDQGLWVFRPLQJRXW,WVFDOOHG
0DNLQJ%LJ0RQH\,QYHVWLQJLQ)RUHFORVXUHV:LWKRXW&DVKRU
&UHGLW ,WLVVFKHGXOHGWRFRPHRXWQH[W6HSWHPEHU
:HUHMXVWHOLFLWLQJVWRULHVIURPGLIIHUHQWSHRSOHDQGRIRXUVWXGHQWVWKDWDUH
GRLQJWKDW$QG,KDGWZRHPDLOV,WKLQNRIJUHDWLQWHUHVW
1XPEHURQHFDPHIURPRXUJX\ZKROLYHVXSLQ6DQ)UDQFLVFRLQWKH%D\
DUHD3HRSOHWKL QNWKDWWKHUHVQRZD\\RXFDQEX\DSURSHUW\LQWKHED\
DUHD+HVKDUHGDGHDOZLWKPHWKDWKHZDVDEOHWRILQGDQGSXWWRJHWKHU
+HVJRLQJWRPDNHRYHURQDKRXVHWKDWKHIRXQGWKHUH/LWHUDOO\
KLVJLUOIULHQGVQH[WGRRUQHLJKERUKDGDYDFDQWSURSHUW\DQGGLGQWZDQWLW
%DVLFDOO\KHMXVWZDQWHGWREX\WKDWSURSHUW\VXEMHFWWRKLVORDQ
1XPEHUWZRWKHRWKHUJX\ZDVDJHQWOHPDQWKDWZDVDUHDOHVWDWHDJHQW
UHIHUUDOOHDGRIDVWXGHQWRIRXUVRXWLQ7H[DV,WVDVPDOOHUFRPPXQLW\
DQGWKHJX\VJRLQJWRPDNH,PJXHVVLQJDERXWWKLUW\WKRXVDQGRUVRRQ
WKLVSDUWLFXODUSURSHUW\
,WZDVDGLYRUFHVLWXDWLRQ7KHSURSHUW\ZDVLQSUH IRUHFORVXUHZKLFKLV
JRRGEHFDXVHLQ7H[DVIRUHFORVXUHKDSSHQVUHDOO\TXLFN>ODXJKV@%XWKH
ZDVDEOHWR SXWWKDWWRJHWKHU
6RMXVWXQGHUVWDQGWKDWKDYLQJVNHSWLFLVPLVKHDOWK\0DQ\SHRSOHKDYH
JRQHEHIRUH\RXDQG\RXFDQFRS\DQGPRGHOWKHLUNQRZQIRUPXODVDQGWKHLU
NQRZQVXFFHVVWLSV<RXGRQWKDYHWRUHLQYHQWWKHZKHHO
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
$FWXDOO\WKLVLVEHIRUH,PRYHGWR6DQ'LHJR,XVHGWR
OLYHXSLQ/RV$QJHOHV:HXVHGWRFRPHGRZQWR6DQ'LHJRRQWKDWEHFDXVH
WKHFLW\ZDVVRQLFH,HQGHGXSDERXWIRXUPRQWKVODWHUPRYLQJEDFNGRZQ
KHUH
'$9,'),1.(/ 5HDOO\+H\ZHUHWKH\H[SHULHQFHGRUZDVLWQHZJX\V"
-2(.$,6(5
7KHWKUHHRIWKHP2QHRIWKHPKDGERXJKWDGXSOH[WHQ
\HDUVSULRUFRPLQJRQWRWKHFKDOOHQJH+HOLYHGLQKDOIDQGWKRXJKWWKH
RWKHUVQDPHZDV-LP+HZDVDSRV WDOHPSOR\HHDQGWKHRWKHUWZRKDG
QHYHUERXJKWDSURSHUW\EHIRUHLQWKHLUOLYHVDVDQLQYHVWPHQWSURSHUW\
'$9,'),1.(/ :RZ
-2(.$,6(5
:HZDQWHGWRPDNHVXUHNQRZLQJWKHSUHVVXUHQRWWR
VWDFNWKHGHFNEHFDXVHWKH\ZRXOGKDYHFULHGIRXO
'$9,'),1.(/ ,JXHVV
-39$8*+$1 -XVWVRWKHFDOOHUVNQRZ'DYLGZDVUHIHUULQJWRWKH%D\
DUHD7KDWVWKH6DQ)UDQFLVFR%D\DUHDZKLFKLVDYHU\YHU\KLJKSULFHG
UHDOHVWDWHDUHD
'$9,'),1.(/ 7KDQN\RXIRUFODULI\LQJWKDW-3
-39$8*+$1 6RLI\RXFDQGRLWWKHUH'DYLG\RXFDQGRLWDQ\ZKHUH
ULJKW"
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ ([DFWO\ULJKW
-39$8*+$1 2ND\JUHDW
-2(.$,6(5
'RHVWKDWLQFOXGH2DNODQG"
-39$8*+$1 >ODXJKV@,WLQFOXGHVHYHU\ZKHUHEXWWKHSODFHZKHUH\RX
OLYH-RH
-2(.$,6(5
,KDYHDSDUWQHULQ2DNODQGDQGZHMXVWJRWDGHHGIURPD
JDOLQ&KLFDJR,WZDVDIRUHFORVXUHSURSHUW\,QIDFWWKHGHHGFDPHWRGD\
7KHSURSHUW\ZHUHWROGLVZRUWKVRPHZKHUHDURXQGWZRDQGDTXDUWHURU
VRPHWKLQJ,WVIUHHDQGFOHDUDQGLWVJRLQJWRD WD[VDOH:HERXJKWDKDOI
LQWHUHVWLQWKDWVDOHZLWKWKHEDFNWD[HV:HH[SHFWVRPHPRQH\WREH
PDGHWKHUH
-39$8*+$1 2ND\TXHVWLRQQXPEHUWKUHH7KLVRQHVIRU\RX-RH
-2(.$,6(5
2ND\
+RZFDQ\RXPDNHPRQH\LQUHDOHVWDWHLI
\RXGRQWKDYHDQ\PRQH\"
-2(.$,6(5
7KHPRQH\LVWKHOHDVWLPSRUWDQWFRPPRGLW\KHUH,WVQLFH
WRKDYHDQGFHUWDLQO\LVJRRGWRJUHDVHWKHZKHHOVEXWLWVFHUWDLQO\QRW
JRLQJWREHWKHFULWLFDOFRPSRQHQW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,WVRQHRIWKRVHWKLQJVZKHUHRQFH\RXXQGHUVWDQGWKHJDPH DQG\RX
XQGHUVWDQGDOOWKHGLIIHUHQWSLHFHVRIWKDWSX]]OHZKRWKHGLIIHUHQWSDUWLHV
DQGSOD\HUVDUH\RXVRUWRIGHYHORSDJDPHSODQ7KDWSUHWW\PXFKFRYHUV
DOORIWKRVHGLIIHUHQWOLWWOHWKLQJVPRQH\EHLQJRQHRIWKHP
,KDYHDSDUWQHUULJKWQRZZL WKDZKROHEXQFKRIPRQH\,WVUHDOO\HDV\IRU
XVWRGRSUHWW\PXFKDQ\GHDOZHZDQWWRGR,WVMXVWDPDWWHURIWDSSLQJ
VRPHERG\RQWKHVKRXOGHUDQGVD\LQJ\RXQHHGWRZULWHDFKHFNKHUHRU
ZKDWHYHU
7KHQRWLRQWKDWWKHPRQH\LVDOO LPSRUWDQW,PHDQLWLVDQLPSRUWDQWSDUW
GRQWJHWPHZURQJEXWLWVVRHDV\WRILOOWKDWSDUWLFXODUQHHG,NQRZ,
GLGQWEHOLHYHLWZKHQ,ILUVWKHDUGLW,WZDVUHDOO\KDUGIRUPHEHFDXVHWKH
VHPLQDUEX]]ZDV\RXNQRZLIWKHGHDOVJRRGHQRXJKWKHPRQH\ZLO O
DOZD\VEHWKHUH$QG,DOZD\VSXWWKHVHGHDOVWRJHWKHUDQGWKHPRQH\ZDV
QHYHUWKHUH
:KDWWKH\GRQWWHOO\RXLVWKDW\RXKDYHWRGHYHORSUHODWLRQVKLSV,WVD
SHRSOHEXVLQHVV
1RERG\VJRLQJWRZULWH\RXDFKHFNWRPRUURZLIWKH\GRQWNQRZ\RX %XW
RQFH\RXVSHQGVRPHWLPHDQG\RXKDYHVRPHPLQRUVXFFHVVHVWKHQWKH
PRQH\LVWKHUH
7KHPRQH\LVWKHOHDVWGLIILFXOWSDUW)LQGLQJWKHGHDOLVPXFKKDUGHUWKDQ
ILQGLQJWKHPRQH\
-39$8*+$1 2ND\4XHVWLRQQXPEHU'DYLG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:KDWLI\RXKDYHEDGFUHGLW"'RHVWKDW
UXLQ\RXUFKDQFHRIGRLQJUHDOHVWDWH
GHDOV"
'$9,'),1.(/ >ODXJKV@)LUVWRIDOO,MXVWZDQWHGWRVD\WKDW,WKRXJKW
WKDWZDVDSUHWW\DFFXUDWHGRZQ WRHDUWKDQVZHU-RH,OLNHGWKDWZKDW
\RXMXVWVDLGDERXWWKHPRQH\
,QWHUPVRIEDGFUHGLWKHUHVWKHLQWHUHVWLQJWKLQJ,GRQWWKLQN\RXQHHGWR
ZRUU\DERXWKDYLQJJRRGFUHGLWRUEDGFUHGLW,PHDQLI\RXKDYHJRRG
FUHGLWLWFDQEHDQDVVHWHVSHFLDOO\LI\RXSODQRQILQGLQJDFRXSOHRIWKH
SURSHUWLHVFRQYHQWLRQDOO\
%XWDWDFHUWDLQSRLQWFRQYHQWLRQDOILQDQFLQJLVQRWJRLQJWRZRUNDVDQ
LQYHVWRU%DQNVDUHQRWJRLQJWRORRNDW\RXWKHVDPHZD\ZKHQ\RXKDYH
WKUHHRUILYHKRXVHVZLWKFRQYHQWLRQDOOHQGLQJWKHUH
,WVLQWHUHVWLQJ/RRNLQJEDFNDWDOOWKHSURSHUWLH VWKDW,KDYHLQWHUHVWLQRU
KDYHERXJKWRYHUWKH\HDUVWKHUHVOLWHUDOO\EHHQRQHVHOOHUZKRVHYHU
DVNHGPHWRFKHFNP\FUHGLW
-2(.$,6(5
<HDKPHWRR2QHVHOOHU
'$9,'),1.(/ $QGLWVLQWHUHVWLQJ
-39$8*+$1 $IWHUDOOWKHVH\HDUVRQHVHOOHU
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ ,WLVLQWHUHVWLQJ7KHKRXVHWKDW,PVLWWLQJLQULJKWQRZ
LVZRUWKDERXW,WVKHUHLQWKH6DQ'LHJRDUHD,IRXQGD
PRWLYDWHGVHOOHUZKRVROGPHWKHKRXVH$WWKHWLPH,ERXJKWLWLWZDV
ZRUWKDERXW+HOLWHUDOO\FDUULHGEDFNKDOIDPLOOLRQGROODUVDFWXDOO\
RYHUWKDWRIILQDQFLQJ$QGQRSHUVRQDOJXDUDQWHHRQWKHORDQDQGQRFUHGLW
FKHFN
2QHWKLQJ,ZRXOGVD\WRSHRSOHLVWKDWZKHQVHOOHUVEULQJXSFUHGLWFKHFNV
LWW\SLFDOO\PHDQV\RXUHPRYLQJWRRIDVWLQ WKHSURFHVV7KH\UHVD\LQJWKH\
GRQWWUXVW\RX
7UXVWLVQRWGHYHORSHGE\WKHLUFKHFNLQJ\RXUFUHGLW7UXVWLVGHYHORSHGE\
VSHQGLQJWLPHWRJHWKHU
+HUHVVRPHWKLQJ,PJRLQJWRVD\WKDWPLJKWVRXQGSUHWW\PXFKVWUDQJHWR
DORWRI\RXRQWKHFDOOKHUH
7KHVLQJOHPRVWLPSRUWDQWWKLQJLQDQ\QHJRWLDWLRQRQDFUHDWLYHUHDOHVWDWH
GHDOLVWKHZLOOLQJQHVVDQGWKHDELOLW\WRFRQQHFWHPRWLRQDOO\ZLWKWKHRWKHU
SHUVRQWKDW\RXUHQHJRWLDWLQJZLWK
,I\RXFDQGHYHORSDQHPRWLRQDOFRQQHFWLRQZLWKWKHPZKH UH\RXFDQUHDOO\
WRXFKWKHPDQG\RXDOORZWKHPWRWRXFK\RXHPRWLRQDOO\WKH\UHJRLQJWR
OHW\RXEX\WKHKRXVH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHJX\ZKRVROGPHWKLVKRXVHLVDZRQGHUIXOJX\+LVQDPHLV$O+HDQG
KLVZLIH1RUPDVROGPHWKHSURSHUW\$OZDVDIDVFLQDWLQJJX\ +HZDVLQ
KLVODWHV
<RXPLJKWWKLQN:HOOJRVKKHMXVWGRHVQWNQRZDERXWUHDOHVWDWH+H
VROG\RXWKHKRXVHZLWKQRFUHGLWFKHFNDQGQRSHUVRQDOJXDUDQWHH
$OZDVVRPHERG\ZKRZDVZRUWKSUREDEO\DERXWILYHRUVL[WLPHVWKHQHW
ZRUWKWKDW ,KDYHDQGKHKDGGRQHLWDOOWKURXJKUHDOHVWDWH+HRZQHGDORW
RIFRPPHUFLDOUHDOHVWDWHDQGDWRQRIDSDUWPHQWEXLOGLQJV
+HZDVMXVWVHOOLQJRIIHYHU\WKLQJWKDWKHKDG+HMXVWGLGQWZDQWWRKDYH
WRGHDOZLWKKLVKRXVHDQ\PRUH,WZDVPRUHWKD QRQHVWRU\KHZDVDQ
HOGHUO\JHQWOHPDQZKRFRXOGQWZDONXSDQGGRZQWKHVWDLUVDQ\PRUH+H
DOUHDG\RZQHGRWKHUSURSHUW\IUHHDQGFOHDUWKDWKHZDQWHGWRPRYHLQWR
6RLWVDPDWWHURIWKHHPRWLRQDOFRQQHFWLRQZLWKSHRSOH,P\RXQJ,
PHDQQRWRQO\ DP,EXW,ORRNOLNH,P
)RUWKRVHRI\RX,GRQWNQRZ\RXNLQGRIJHWWHDVHGDERXWWKDWDORW$QG,
GR,KDYHDEDE\IDFHDQGVRPHSHRSOHZRXOGDVNPHKRZVRPHRQHFRXOG
WDNHPHVHULRXVO\,DVNP\VHOIWKDW+RZFRXOGDVHOOHUHYHUWDNHPH
VHULRXVO\":KHQ,VWDUWHGLQYHVWLQJ,GLGQWKDYHEDGFUHGLW,MXVWGLGQW
UHDOO\KDYHDQ\UHDOHVWDEOLVKHGFUHGLWDQGVRWKDWZDVDELJWKLQJ
&UHGLELOLW\LVDVWDWHRIPLQGDQGLIVRPHRQHVDVNLQJWRFKHFN\RXUFUHGLW
WKHEHVWZD\WRKDQGOHLWLV WZRIROG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
)LUVWDGGUHVVWKDWKHDGRQE\VD\LQJ2IFRXUVH\RXUHJRLQJWRQHHGWRGR
WKDW<RXUHJRLQJWRQHHGWRGR\RXUGXHGLOLJHQFH,OOQHHGWRGRPLQH
7KHQ\RXVHWLWDVLGHIRUWKHPRPHQW
7KHVHFRQGSDUWLV\RXQHHGWRJREDFNDQGFOHD UO\HVWDEOLVKWKDW\RXDUH
WKHUHWRPDNHDSURILW
:KDWWKH\UHUHDOO\VD\LQJE\FKHFNLQJ\RXUFUHGLWLV ,PQRWVXUHLI\RX
FRXOGSHUIRUP\RXUHQGRIWKHGHDO
7KHELJJHVWDQGEHVWDVVXUDQFH\RXFRXOGHYHUJLYHWRDVHOOHUWKDW\RXUH
JRLQJWRSHUIRUP\RXUHQGRIWKHWUDQVDFWLRQLVWRJREDFNWRWKHIDFWWKDW
\RXUHWKHUHWRPDNHDSURILW
,WHOOWKHVHOOHUDOOWKHWLPHDWOHDVWWZRRUWKUHHWLPHVLQWKHILUVWKDOIKRXU
WRPLQXWHVRIP\QHJRWLDWLRQV,VD\0U6HOOHU,DPDQLFHSHUVRQEX W
,GRQWZDQW\RXWRWKLQNWKDW,PKHUHMXVWWREHDQLFHSHUVRQ,I,EX\WKH
SURSHUW\ZKLFK,PQRWVXUH,PJRLQJWRZDQWWREX\MXVW\HWEXWLI,GR
WKHRQO\UHDVRQ,GZDQWWREX\LWLVEHFDXVH,SODQRQEHLQJDEOHWR
FRQVHUYDWLYHO\WXUQDKHDOW K\SURILWE\EX\LQJWKHSURSHUW\$UH\RXRND\
WKDWWKHUHDVRQ,PKHUHWREX\WKHSURSHUW\LVEHFDXVH,ZDQWWRPDNHD
SURILW"%HFDXVHLI\RXUHQRWWKHQOHWVFXWWKHFRQYHUVDWLRQVKRUWDQG,OOEH
UHVSHFWIXORIERWKRIRXUWLPHDQG,FDQMXVWOHDYH
<RXGEHDPD]HGDWKRZWKDWFRPPHQWMXVWOLNHWKDWWKDWH[DFWODQJXDJLQJ
SXWVVHOOHUVDWHDVH%HFDXVHWKH\NQRZWKDW\RXUHWKHUHWRPDNHDSURILW
6RWKH\MXVWJLYH\RXWKHEHQHILWRIWKHGRXEW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,YHKDGUHDOHVWDWHDJHQWVZKRRZQHGSURSHUW\,Y HKDGRWKHULQYHVWRUV
ZKRRZQHGSURSHUW\WKDWKDGRWKHULQYHVWRUVRQRQHSURSHUW\
,YHKDGPRUWJDJHOHQGHUVDQGUHDOHVWDWHDWWRUQH\VZKRYHRZQHGSURSHUW\
VHOOLWWRPHZLWKQRFUHGLWFKHFN6RKDYHWKRXVDQGVRIRWKHUSHRSOHZKR
KDYHXVHGRXULGHDVW KURXJKRXUERRNVDQGWKHUHVWRILW
-39$8*+$1 *UHDWDQVZHU
-2(.$,6(5
,WPDNHVDORWRIVHQVHWKHFRQQHFWLQJWKLQJ<RXNQRZ
WRGD\LQFRQVHFXWLYHDSSRLQWPHQWV,KDGRQHODG\WHOOPH,ZDVWKHDQVZHU
WRKHUSUD\HUV$QGWKHQH[WODG\WROGPH, ZDVEHWWHUWKDQ6DQWD&ODXV
>ODXJKV@,PHDQQRWVXFKDEDGGD\\RXNQRZ
'$9,'),1.(/ ,WKLQNLWVLQWHUHVWLQJ-RHDV,OLVWHQWR\RXKHUH,P
VXUHWKHOLVWHQHUVDUHSLFNLQJXSRQWKDW,JHWDVHQVHWKDWZKHQ\RXUH
WKHUHZLWKWKHP\RXUHVORZDQG\RXMXVWWDNH\RXUWLPHZLWKWKHP
,FDQLPDJLQHKRZMXVW\RXUSHUVRQDOLW\E\WDNLQJ\RXUWLPHDQGJRLQJDELW
VORZHUUHDOO\KHOSVSHRSOHIHHODWHDVHHVSHFLDOO\LQDQHPRWLRQDOO\ORDGHG
VLWXDWLRQOLNHWKHSUH IRUHFORVXUHRUIRUHFORVXUHVWKDW \RXVSHFLDOL]HLQ
-2(.$,6(5
<HVWKDWVUHDOO\WUXH:HQHHGWREHDVQRQ WKUHDWHQLQJ
DVSRVVLEOH,WVQRWDQ\VRUWRIDFWRUDQ\WKLQJOLNHWKDW,WVMXVWDQDWXUDO
ZD\WKDWLWVGRQHDQGVKRXOGEHGRQH,WKLQNSHRSOHSLFNXSRQWKDWDQG
WKH\NQRZZKHQ\RXUHVLQFHUHDQGZKHQ\RXUHQRWVLQFHUH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,WVZKHQ\RXJHWWRWKHSRLQWZKHUH\RXNQRZZKDW\RXUHGRLQJDQGZK\
\RXUHGRLQJLWWKDWLVDOOUHDO,WLVDOOOHJLWLPDWH$QGLWGRHVFRPHWKURXJK
3HRSOHGRWUXVW\RX7KH\GRPDNHWKDWFRQ QHFWLRQ%XVLQHVVLVMXVWVR
PXFKHDVLHUWKDWZD\
,VHHDORWRISHRSOHPDLOLQJRIIHUVKRSLQJIRUDUHVSRQVHWKDWWKH\ZDQW
7KH\UHPLVVLQJWKDWZKROHSDUWRIWKHSX]]OH,IWKH\ZRXOGMXVWVLWGRZQ
DQGWDONZLWKWKHVHSHRSOHWKHLURGGVRIJHWWLQJZK DWWKH\QHHGWRPDNHD
SURILWJRHVXSWHQIROG:KHQVRPHERG\OLNHV\RXDQGZRXOGHQMR\GRLQJ
EXVLQHVVZLWK\RXWKDWVZKHQDJRRGGHDOVKDSSHQ
-39$8*+$1 7KDWVULJKWDQGLWVWKDWSUREOHPVROYHUPHQWDOLW\
:RXOGQW\RXVD\"<RXUHWKHUHWRVROYH DSUREOHP
-2(.$,6(5
2KIRUVXUHIRUVXUH7KH\UHFRJQL]HWKDW,PJRLQJWR
PDNHVRPHPRQH\RQLWDQGOLNH'DYLGVDLG,PDNHVXUHWKH\XQGHUVWDQG
WKDW
7KHUHDUHWLPHVZKHQ,ZLOOVKRZWKHPH[DFWO\ZKDW,LQWHQGWRGRDQGKRZ
,OOPDNHWKHPRQH\ 7KH\NQRZWKDWVIRUWKHLUFLUFXPVWDQFHLWVEH\RQG
ZKDWWKH\FDQGR,WVOLNH+H\PRUHSRZHUWR\RX,I\RXFDQSXOOWKDW
RII\RXNQRZJRRGIRU\RX
-39$8*+$1 *UHDW2ND\TXHVWLRQQXPEHUILYH-RH.DLVHU
:KDWPDNHVDGHDODJRRGGHDO"
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
:HOODWVRPHSRLQWUHDOO\VRRQ,ZRXOGOLNHWRJHWSDLGDQG
LI,FDQPDNHWKDWKDSSHQ,PJRLQJWRFDOOWKDWDJRRGGHDO
,NQRZZKDWVQRWDJRRGGHDO,NQRZWKHVH]HURHTXLW\WKLQJVWKDW\RXVHOO
WR]HURFUHGLWEX\HUV,FDQSUHWW\P XFKJXDUDQWHHWKDWVQRWJRLQJWREHD
JRRGGHDO7RPDNHVRPHWKLQJOLNHWKDWKDSSHQ\RXKDYHWREHPXFK
VPDUWHUWKDQ,DQGYHU\FOHYHU
,PQRWVXUHZKDWHOVHLWZRXOGWDNHEXW,NQRZWKDWLWVDELJJHUMREIRUPH
,PQRWVXUHWKDW,ZDQWWRZRUN WKDWKDUGWRPDNHWKDWKDSSHQ
6RZKDW,PORRNLQJIRUDQGZKDW,PJRLQJWRGHFLGHLVDJRRGGHDORUDEDG
GHDOLVMXVWWKHERWWRPOLQH,WVUHDOO\UHDOO\VLPSOH
:HWHQGWRFRQIXVHWKHVHWKLQJVE\DOOWKHVHWHFKQLTXHV/HWVMXVWERLOLW
GRZQWRWKHHVVHQFHRIZKDWWKLVLV:KDWDP,JRLQJWRPDNHRQWKLVDQG
KRZVRRQDP,JRLQJWRPDNHLW"$QGLILWVUHDOQXPEHUQRWVRPHQXPEHU
WKDW,KDGWRIXGJHRUPDQLSXODWHWKHILJXUHV LILWVDUHDOQXPEHUDQG,P
JRLQJWRJHWSDLGUHODWLYHO\VRRQ WKDWVJRLQJWREHDJRRGGHDOIRUPH
,OLNHWRVHHDPLQLPXPRIMXVWRQDQ\WKLQJDWDOO$QG,OLNHWRVHH
LWLQGD\V,I,FDQGRWKDW,OOGRWKDWGHDODOOGD\ORQJ
,WVJRWWREHVRPHWKLQJZKHUHWKHUHDUHQRWDORWRIWKLQJVWKDWKDY HWR
KDSSHQWRPDNHWKDWFRPHWRJHWKHU,PQRWJRLQJWREHUHKDEELQJDKRXVH
IRUWKDW,PQRWJRLQJWRQHHGWKHVWDUVDQGSODQHWVWRDOLJQIRUWKDW,P
MXVWJRLQJWRJLYHSUHWW\VWUDLJKWSUHWW\VLPSOHVROLGQXPEHUV,FDQFRXQW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
RQ1XPEHUV,FDQDFWXDOO\JRWRWKHEDQNZLWK1RWWKDW,ZRXOGDFWXDOO\
JRWRWKHEDQNWKRXJK>ODXJKV@<RXNQRZZKDW,PHDQ<HDK
-39$8*+$1 2ND\'DYLGTXHVWLRQQXPEHU
+RZGR,ILQGJRRGUHDOHVWDWHGHDOV"
'$9,'),1.(/ :KLFKLVSUREDEO\WKHPRVWLPSRUWDQW RIWKHTXHVWLRQVWKDW
,VDZRQKHUHIURPP\SHUVSHFWLYH
,PDZIXOO\FXULRXVWRKHDUZKDW-RHKDVWRVD\RQWKHIROORZ XSTXHVWLRQ
QH[W,NQRZLWVLQWHUHVWLQJ
,ZDVOHDYLQJDPHVVDJHHDUOLHUIRUKLPWRGD\/HWWLQJKLPNQRZWKDWZKLOH,
ZDVWDNLQJD ZHHNVYDFDWLRQDERXWDPRQWKDJRWR+DZDLL,EURXJKWVRPH
IXQEXVLQHVVUHDGLQJDQG,EURXJKWKLVPDQXDORIKRZ\RXFDQWRWDOO\
GRPLQDWHWKHIRUHFORVXUHPDUNHW
-2(.$,6(5
2KZRZ,GLGQWNQRZWKDW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
%XWVRPHRIWKHLGHDVWKHUH,YHQRZDGGHGWRZK DW,PGRLQJ:KLFKZDV
LQWHUHVWLQJ
/HWPHMXVWVKDUHZLWK\RXUOLVWHQHUVKHUH7KHERWWRPOLQH
7KLQNDERXWDPRWLYDWHGVHOOHUDQGWKHIROORZLQJDFURQ\P 0 LVWKHZRUG
PRWLYDWLRQLWVWZRWKLQJV7KDWVERWKDFRPSHOOLQJUHDVRQWRVHOODQGLWVD
WLPHGHDGOLQH<RXUWLPHFUXQFKWRVHOOLWZLWKLQ
7KLQNDERXWDFRPSHOOLQJUHDVRQWRVHOOVRPHWKLQJ,I \RXFDQWSXWLWWRZRUN
LQVHFRQGVRUOHVVZK\WKHSHUVRQPXVWVHOOWKHLUSURSHUW\WKH\UHQRW
PRWLYDWHGRU\RXGRQWXQGHUVWDQGWKHLUPRWLYDWLRQZHOOHQRXJK
7KHVHFRQGSDUWWRWKDWZRXOGEHWKHWLPHIDFWRU,W\SLFDOO\ILQGWKDWLI
WKH\YHJRWPR UHWKDQWZRPRQWKVWKH\UHQRWDVPRWLYDWHGWRUHDOO\JLYH
\RXDYHU\JRRGGHDO7KH\QHHGWRSHUFHLYHWKHPVHOYHVDVKDYLQJWRR
PXFKWLPHRUOHVV
JRLQJWRPRYHLQIRXUPRQWKVDQGWK H\UHSHRSOHZKROLNHWRSODQWKHLUWLPH
D\HDULQDGYDQFHWKH\UHWDUULHG)RUWKHPWKH\SHUFHLYHWKDWWKHLU
WLPHOLQHLVDOUHDG\XS6RWKDWZRXOGTXDOLI\
%XW WRILQGDJUHDWGHDOPRWLYDWLRQDQGDFRPSHOOLQJUHDVRQWLPHOLQH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
6VWDQGVIRU VLWXDWLRQ6LWXDWLRQW\SLFDOO\ZLOOPHDQWRZKDWZHGRDV
KDYLQJHTXLW\WKDWWKH\FRXOGGLVFRXQWWKHSURSHUW\RUHYHQPRUH,WVQRW
MXVWHTXLW\,WVEHLQJDEOHWRQRWQHHGWKHFDVKXSIURQWWKDWWKH\KDYHLQWKH
SURSHUW\7KH\FRXOGWDNHVRPHNLQGRIIOH[L EOHWHUPVRIVDOH:HFRXOG
PDNHWKHPSD\PHQWVIRUDSHULRGRIWLPHDQGFDVKWKHPRXWGRZQWKHURDG
RUVRPHWKLQJOLNHWKDW
6RWKDWVDLGOHWPHVKDUHZLWK\RXZKDW,FDOOP\IDYRULWHWKUHH)LUVWRI
DOOWKLVLVRQHWKDWVXQSRSXODU,ORRNXSRQWK HGLVFXVVLRQERDUGDQGSHRSOH
DOZD\VVD\2KLWPDNHVQRVHQVHWRGRLW
,WKLQNHYHU\RQHQHHGVWRVHUYHWKHLUDSSUHQWLFHVKLSIRUWKHILUVWGD\VRI
,WPDNHVJRRGVHQVHEHFDXVHWKHUHVQREHWWHUZD\WROHDUQKRZWRWDONZLWK
PRWLYDWHGVHOOHUVRUWRWDONWRVHOOHUVSHULRGWKDQWRDFWXDOO\JHWRQWKH
SKRQHDQGWDONZLWKWKHP
-2(.$,6(5
<HDKWUXH
'$9,'),1.(/ ,WVQRWIXQLWVQRWJODPRURXVEXWLWVVRPHWKLQJWKDW\RX
SXW\RXUZRUNLQGRLQJ
7KHQ\RXJHWFRPIRUWDEOHPHHWLQJZLWKVHOOHUVDQGILQGLQJWKHPRQWKH
SKRQHWKDWZD\2EYLRXVO\\RXUDGYHUWLVLQJLQUHIHUUDOQHWZR UNVDQGDOOWKH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
RWKHULGHDVWKDWSDVVLYHO\JHW\RXGHDOVDUHPXFKPRUHLPSRUWDQWIRUWKH
ORQJWHUP%XWIRUWKHVKRUWKDXO\RXYHJRWWROHDUQWKDW
,PHDQLI\RXUHJRLQJWRVSHQGPRQH\LQDGYHUWLVLQJWRJHWVHOOHUVWRFDOO
\RXDQG\RXGRQWKRZW RKDQGOHWKRVHFDOOVWKDWVDZDVWHRI\RXUPRQH\
6RQXPEHUPDNLQJ\RXUGLDOV
1XPEHUZRXOGEHWKRVHWDFN\XJO\EXWYHU\HIIHFWLYH,EX\KRXVHV
FRUUXJDWHGSODVWLFVLJQV:HJHWWRQVRIGHDOVRIIRIWKRVHWKLQJV6RGRRXU
VWXGHQWV<RXGKDYHWRFKHFNWKHORFDORUGLQDQFHVLQ\RXUDUHD7KHUHDUH
SUREDEO\VRPHUXOHVDQGUHJXODWLRQVDERXWWKDWVR\RXKDYHWRPDNH\RXU
RZQGHFLVLRQVWKHUH7KHRQHVZHXVHMXVWVLPSO\VD\,EX\KRXVHVFDVK
RU,EX\KRXVHVLQGD\VRUOHVV7KH\MXVWZRU NTXLWHZHOO
:HKDYHWKHPFDOOD KRXUUHFRUGHGPHVVDJHJLYLQJWKHPDJRRGEHQHILW
ODLGLQPHVVDJH
QXPEHUVWROOIUHHYRLFHPDLOV\VWHPV6RWKDWHYHQLIWKH\KDQJXS ZHVWLOO
FDSWXUHWKHLUSKRQHQXPEHU
:KDW,GRDQG,UHFRPPHQGWKDW\RXDOOGRWKLVRQFHDZHHNJHWDFDOO
GHWDLOUHSRUWIRU\RXUYRLFHPDLOV\VWHPDQGFDOOEDFNWKHSHRSOHZKRGLGQRW
OHDYHPHVVDJHV
,WVUHDOVLPSOHWRGR<RXFDOOWKHPXSDQG VD\+LWKLVLV'DYLG,YHJRW
DPHVVDJHKHUHWKDWVRPHRQHIURPWKLVQXPEHUKDGJLYHQPHDFDOO$QG
ER\LWVDOLWWOHHPEDUUDVVLQJEXW,PQRWUHDOO\VXUHH[DFWO\ZKDWLWVDERXW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
<RXNQRZZKHQHYHULQGRXEWPDNH\RXUVHOIYXOQHUDEOH,WZRUNV UHDOO\ZHOO
RQWKHWHOHSKRQH
,PQRWHYHQVXUHZKDWLWZDVDERXW,WKLQNLWKDGWRGRZLWK\RXNQRZ
,PDQLQYHVWRUWKDWEX\VKRXVHVLQWKHDUHDKHUH,GRQWNQRZLIWKDWV
ZKDWLWKDGWRGRZLWKRUQRW%R\\RXSUREDEO\GRQWHYHQKDYHDKRXV H
\RXUHORRNLQJWRVHOOGR\RX"
8VLQJDOLWWOHQHJDWLYHSKUDVLQJZRUNVUHDOZHOO
7KHWKLUGTXLFNLGHDWKDW,OOVKDUHZLWK\RXZRUNVYHU\HIIHFWLYHO\,WKLQNDOO
RI\RXVKRXOGSOD\DURXQGZLWKLWRQFH\RXJHWJRLQJDQGRQFH\RX
XQGHUVWDQGKRZWRPHHWZLWKVHOOHUVDQGKRZWRWDONZLWKWKHPRQWKH
SKRQH&ODVVLILHGDGYHUWLVLQJLQWKHFRPPXQLW\
,WKLQNWKRVHDUHWKUHHQR EUDLQHUVWKDWQHHGWRJHWJRLQJ
-39$8*+$1 2ND\7KDQN\RX'DYLG4XHVWLRQQXPEHU-RH
+RZGRZHILQGPRWLYDWHGVHOOHUV"
-2(.$,6(5
:HOO,WKLQN'DYLGMXVWPHQWLRQHGDFRXSOHRIJRRGSRLQWV
:HXVHGWRGRDORWRIWKDW,GRQWNQRZLIRXUDUHDZDVMXVWVORZWR
GLVFRYHUWKHUHDOHVWDWH\RXNQRZWKHLQYHVWRUVIORFNLQJKHUH:HGLGQW
VHHWKDWIRUDORQJWLPHDQGIR UDWOHDVW\HDUVLWZDVMXVWPHDQGFUD]\
'DYH,OOEX\DQ\KRXVHDQGDGYHUWLVLQJLQWKHSDSHU
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,WZDVDEHDXWLIXOWKLQJ,WZDVMXVWWKHWZRRIXV$QGZHMRFNH\EDFNDQG
IRUWKDQGGLGDORWRIEXVLQHVV%XWWKHQDIHZ\HDUVEDFNZHORRNHGXSDQ G
WKHUHZHUHDGVLQWKDWVHFWLRQ7KHUHZHUHEDQGHGVLJQVDOORYHUWRZQ
,WEHFDPHDSSDUHQWWKDWZHQHHGHGWRGRVRPHWKLQJGLIIHUHQW
,WZDVNLQGRIFRROEHFDXVH,VWRSSHGDGYHUWLVLQJDQGDOORIDVXGGHQ,KDG
OLNHDPRQWKPRUHWKDQ,KDGEHIR UH7KDWZDVDWRXJKQXWWRFUDFN
HYHU\PRQWK7KDWSDUWZDVUHDOO\QLFHEXW,NQHZWKDW,FRXOGQWMXVWVWRS,
NQHZ,KDGWRGRVRPHWKLQJ6R,VDWGRZQDQGWKRXJKWDERXWLWDOLWWOHELW
DQG\RXNQRZPRWLYDWHGVHOOHUVRXWWKHUH
,I\RXUHDOO\WKLQ NDERXWLW\RXFDQSUREDEO\ILJXUHRXWZKHUHWKH\DUH2XU
EXVLQHVVMXVWDEVROXWHO\WUDQVIRUPHGZKHQZHGHFLGHGWKDWZHZRXOGQR
ORQJHUKRSHWKDWWKH\IRXQGXV
:KHQZHGHFLGHGMXVWWRKXQWWKHPGRZQOLNHWKHGRJVWKH\DUH>ODXJKV@
7KHQWKLQJVUHDOO \WRRNRIIIRUXV6RWKDWVZKDW,GR7KDWVP\WKLQJ,
ILJXUHRXWZKHUHWKH\DUHDQGLWVQRWKDUG
<RXNQRZWKH\UHLQSUREDWHILOHVDQGLQGLYRUFHILOHVDQGLQIRUHFORVXUHILOHV
7KH\UHULJKWGRZQWKHUH,WVQRWDELJVHFUHW,WVQRWDQ\WK LQJP\VWHULRXV
RUOLNHVXSHUUHILQHG,WVQRWKLQJOLNHWKDW
,I\RXIROORZHGPHDURXQGDOOGD\\RXZRXOGEHWRWDOO\XQLPSUHVVHG
EHFDXVH,GRQWGRDQ\WKLQJGLIIHUHQWWKDQDQ\ERG\HOVH7KHRQO\GLIIHUHQFH
ZRXOGEHWKDW,MXVWGRWKHRQHWKLQJWKDWPD WWHUV$OOWKHUHVWRIWKHVWXII,
UHFRJQL]HGRHVQWPDWWHUDQ\PRUH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
6R,PMXVW]HURHGLQRQWDUJHWLQJWKRVHSHRSOHDQGWKDWVDOO,GR$VD
UHVXOW,JHWDORWRISKRQHFDOOV
-39$8*+$1 <RXVSHQGDORWRIWLPHDWWKHFRXUWKRXVH
-2(.$,6(5
:HOO,KDYHVRPHERG\ZKRGRHVWKDWIRUPHZKLFKLV
QLFH%XW,PGRZQWKHUHWRR,PHDQ,PGRZQWKHUHSXOOLQJWKURXJKWKH
VWXIIWKDWRQFHZHJHWDVQLIIRIDGHDO\RXNQRZ\RXYHJRWWRJRVFRSH
WKDWRXW%XWWKDWVLW
:HFDQWDIIRUGWRMXVW SXWDQDGLQWKHSDSHUDQGKRSHWKH\ILQGXV,ZDQW
WRJRULJKWWKHUH,ZDQWWREHNQRFNLQJRQWKHLUGRRU
7KHUHZDVDWLPHZKHQZHZHUHNLQGRIDIUDLGRIGRLQJWKRVHVRUWVRIWKLQJV
(YHQSLFNLQJXSWKHSKRQHZDVKDUG1RZWKHPRVWHQMR\DEOHWKLQJ IRUPH
WRGRLVVLWGRZQZLWKDOLVWRISKRQHQXPEHUVDQGWU\WRKXQWWKLVJX\GRZQ
,NQRZJLYHQHQRXJKWLPH,ZLOOILQGKLPDQG,ZLOOEHWKH RQO\ JX\ZKRV
IRXQGKLP
,FDQJXDUDQWHHVRPHRIWKHVHSHRSOHZKRYHPRYHGDQGGRQWZDQWWREH
IRXQG7KH\UHKDUGWRWUDFNGRZQ,I\RXFDQJHWWRWKHPWKHUHVHTXLW\
RQWKHWDEOH*RRGWKLQJVFDQKDSSHQ7KDWVZKDWZHGR
:HXVHGWRVSHQGDORWRIWLPHGULYLQJDURXQGORRNLQJDWKRXVHV:HGJR
PLOHVDQGWKRXJKWRIRXUVHOYHVDVLQYHVWRUV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:HVLJQHGXSDFRXSOHRIKRXVHVWRGD\DQGKDYHQWHYHQVHHQWKHKRXVHV,
GRQWHYHQZDQWWRVHHWKHKRXVHV
-39$8*+$1 5LJKWDORWRIQHZLQYHVWRUVUHDOO\JHWFDXJKWXSLQORRNLQJ
DWKRXVHV
-2(.$,6(5
<HDK
'$9,'),1.(/ <HS
-39$8*+$1 7KH\UHDOO\ QHHGWRIRFXVRQPRWLYDWHGVHOOHUV
-2(.$,6(5
5LJKW,PVXUHWKDWVFRUUHFW%XW\RXNQRZHDUO\RQLI
\RXUHQHZWKDWVDJRRGWKLQJ<RXKDYHWRGRWKDWEHFDXVHLWLVDOHDUQLQJ
SURFHVV7KHUHVDORW\RXKDYHWROHDUQHDUO\RQ
,VSHQWDORW RI\HDUVGULYLQJDURXQGORRNLQJDWKRXVHV,OLYHLQDQDUHD
ZKHUH\RXFDQGULYHDORQJZD\VWRJRORRNDWKRXVHVLI\RXUHDOO\ZDQWHG
WR
2QFHZHUHFRJQL]HGWKDWDOORIWKDWVWXIIMXVWJRWLQWKHZD\LWZDVMXVW
+HUHLWLV7KLVLVDJX\ZKRVJRW WRVHOODQGKHVJRWWRVHOOQRZ/HWVJR
ILQGKLPDQGVHHZKDWZHFDQGR
:KHQZHILJXUHGWKDWSDUWRXWHYHU\WKLQJHOVHVRUWRIPDGHVHQVH
-39$8*+$1 2QHRIWKHEHVWERRNV,YHHYHUUHDGRQILQGLQJWKH
PRWLYDWHGVHOOHUWKHWUXO\PRWLYDWHGVHO OHULV-RH.DLVHUV7RWDOO\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'RPLQDWH<RXU)RUHFORVXUH0DUNHWSODFH +HUHDOO\GRHVOD\RXWDORWRI
GLIIHUHQWDSSURDFKHVWRJHWWLQJWRWKHVHOOHUILUVW
'$9,'),1.(/ ,ZRXOGHFKRWKDWDVZHOO,PHDQRQHRIWKHWKLQJV,
UHDOO\HQMR\HGDERXWWKDWZDV \RXULGHD-RHRIWKHWULJJHUGRFXPHQW
ZKLFKE\WKHZD\ZHOOSUREDEO\SLJJ\EDFNRQLQRXUQH[WERRN,WZDVWKDW
JRRG,WKLQNHYHU\RQHRXWKHUHZKRGRHVQWKDYHWKDWLQWKHLU/LEUDU\LV
FUD]\P\VHOI
-2(.$,6(5
5LJKW
+RZGRHVVRPHRQHRYHUFRPHWKLVIHDURI
GRLQJWKHILUVWGHDO"
'$9,'),1.(/ ,WKLQNLWVLPSRUWDQWWRUHFRJQL]HWKDWKDYLQJIHDURYHU
\RXUILUVWGHDOLVVRPHWKLQJWKDWHYHU\ERG\KDV$VDPDWWHURIIDFW\RXUH
JRLQJWRKDYHIHDULQ\RXUILUVWDQG\RXUVHFRQGDQG\RXUWKLUGGHDODQG
HYHQEH\RQGWKDW
7KHILUVWIHDULVSUREDEO\WKHIHDURIMXVWWKHUHMHFWLRQLIDVHOOHUVD\VQRWR
\RX7KHQWKHUHVDIHDURIWKHVXFFHVVDQGWKHUHVDIHDURIZKDW\RXGR
RQFH\RXVLJQHGXSDSURSHUW\DQGDFWXDOO\FORVHGRQLW
7KHWKUHHWKLQJV,FRXOGPHQWLRQWKDWZRXOGKHOSDOOHYLDWHWKHIHDULVILUVWRI
DOOXQGHUVWDQGWKDWHYHU\ERG\IHHOVLW<RXDUHQRWQHZ<RXDUHQRW
DORQHIHHOLQJWKHIHDU,WVWRWDOO\QDWXUDO,WVDW HUULI\LQJWKLQJ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,FDQUHPHPEHUWKDW7KHILUVWSURSHUW\,ZDVQRWVRVFDUHGEHIRUH,ERXJKW
LWEXWWKHQH[WZHHNDIWHU,FORVHGRQLW,ZDVWHUULILHG
0\IDPLO\ZDVJLYLQJPHDOONLQGVRIHQFRXUDJHPHQWOLNH$UH\RXQXWV
ZKDWDUH\RXWKLQNLQJ ">ODXJKV@
6RXQGHUVWDQGQXPEHURQHWKDWHYHU\RQHIHHOVWKHIHDU,I\RXGLGQWIHHO
WKHIHDU,ZRXOGZRQGHUDERXW\RX
1XPEHUWZRORZHU\RXUIHDUE\QHYHUFRPPLWWLQJWRDGHDOWKDW\RXKDYHQW
DOUHDG\SUH VROGRUSUH ILOOHGZLWKDQHQGXVHUIRU WKHSURSHUW\EHIRUH\RX
FORVHRQLW,GRQWJLYHPRQH\WRVHOOHUVXSIURQWXQWLO,YHDOUHDG\SUH VROG
WKHSURSHUW\DQGVRPHRQHKDVJLYHQPHWKHFDVKLQWKHEDFNHQG
:KDWWKDWPHDQVLVHDUO\RQLI,PJRLQJWREX\DSURSHUW\,PJRLQJWR
ZDQWWRPDNHVXUHWKDWZKHQHYHU,PJRLQJWRFORVHRQLW,KDYHDOUHDG\
JLYHQP\VHOIRUGD\VWRILQGP\EX\HURUP\HQGXVHU:KHWKHU,P
JRLQJWRVHOOLWRQDUHQWWRRZQEDVLVRUVHOOLWWRDFDVKEX\HURUKRZHYHU
,PJRLQJWRH[LWWKHSURSHUW\:KLFKI RUPHLVXVXDOO\VHOOLQJLWWRDWHQDQW
EX\HURQDUHQWWRRZQEDVLV
,PJRLQJWRKDYHDOUHDG\IRXQGEX\HUVEHIRUH,KDYHWRPDNHP\ILUVW
SD\PHQWWRWKHVHOOHUZKLFKSXWVPHDWJUHDWHDVH
,I,GRQWILQGWKHP,PKDYLQJDFRQYHUVDWLRQ1RWPRQWK VODWHUWRWKH
VHOOHU,ZDQWWREHFOHDUDERXWWKDW%XW,OOJREDFNDZHHNRUWZRZHHNV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
ODWHUDQGJLYHWKHPDVWDWXVUHSRUWDQGE\WKHHQGRIWKUHHRUIRXUZHHNV
,PJRLQJWROHWWKHPNQRZZKHUHLWVWDQGVLQWKHGHDO
<HV,IRXQGVRPHRQHRU1R,PQRWJRLQJWREHDEOHWRILQGVRPHRQHDQG
ZHQHHGWRJLYHWKDWSURSHUW\EDFNZLWKWKDW
2QFH\RXJHWJRLQJDQG\RXUHFRPIRUWDEOH\RXFRXOGFHUWDLQO\FRPPLWWRD
GHDOHDUOLHUWKDQWKDW%XWIRUWKHILUVWFRXSOHGRQWFRPPLWWRWKHGHDOXQWLO
\RXYHDOUHDG\SUH VROGWKHSURSHUW\WRVRPHRQHHOVH
,NQRZLWVHHPVVRREYLRXVZKHQ,VD\LWWKDWZD\EXWPRVWLQYHVWRUVGRQW
GRWKDW7KH\EX\LWDQGWKHQWKH\KRSHWKH\ FRXOGILQGVRPHRQHIRULW,
ZRXOGEHVFDUHGLI,ZHUHGRLQJLWWKDWZD\LQLWLDOO\
-39$8*+$1 ,WKLQNDORWRIQHZLQYHVWRUVGRWKDW7KH\ZDQWWRMXPS
LQZLWKERWKIHHWDQGWKH\VLJQDFRQWUDFWWRSXUFKDVHSURSHUW\DQGWKHQ
WKH\JR+RO\&RZ:KDW DP,JRLQJWRGRQRZ"
'$9,'),1.(/ <HV
-39$8*+$1 6RZKDW\RXUHVD\LQJLVWKDW\RXQHHG\RXUH[LWVWUDWHJ\
VHWXS
'$9,'),1.(/ <HV7KHWKLUGDQGILQDOSDUWWRWKDWZRXOGEHZKHQ\RX
EX\DSURSHUW\WKHLQLWLDOWLPH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:KHWKHULWEH\RXUILUVWVHFRQGRUWKLUGSURSHUW\EX\LWZLWKRXW\RXURZQ
PRQH\LQWKHUH<RXURZQPRQH\LVQRWMXVWPRQH\WKDW\RXUHSXWWLQJLQ
IURP\RXUEDQNDFFRXQWEXWPRQH\WKDW\RXKDGWRSHUVRQDOO\JXDUDQWHHRQ
WKURXJKDEDQN'RQWGRWKDW
*LYH\RXUVHOIDFRXSOHW KDW\RXFDQOHDUQIURP,GRQWPLQGSXWWLQJP\
WLPHDWULVNEXW,GRQWZDQW\RXWRSXW\RXUPRQH\DWULVNXSIURQW/HW
\RXUVHOIJHWDIHHOIRUKRZWKHSURFHVVJRHV
/HDUQZKHUH\RXKDYHWLPHDWULVN1RW\RXUPRQH\DQGWKDWVKRXOGJRD
ORQJZD\WRDVVXDJH\RXLQ\RXUIHDUV
-39$8*+$1 *UHDW7KDQN\RX2ND\-RHTXHVWLRQQXPEHU
-2(.$,6(5
2ND\
+RZGR\RXGHWHUPLQHZKDWDSURSHUW\LV
UHDOO\ZRUWKEHIRUH\RXEX\LW"
-2(.$,6(5
7KDWVDSRSXODUTXHVWLRQDQGSHRSOHVHHPWRWKLQNWKHUHV
D P\VWHU\WRWKLVDQGLWVUHDOO\VLPSOH
'DYLGVRUWRIKLQWHGDERXWLWHDUOLHU7KHUHVRQO\RQHUHDOO\JRRGZD\WRWHOO
ZKDWDSURSHUW\LVZRUWKDQGWKDWVZKDWVRPHRQHZLOODJUHHWRSD\IRULW
$OOWKHDSSUDLVDOVWKHFRPSVDOOWKDWVWXIILVJRRG 'RQWJHWPHZURQJ,
PHDQLWVRND\WRKDYHDOOWKLVVWXII%XWZHLJQRUHPXFKRIWKDW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,ZDQWWRILQGDEX\HUZKRVJRLQJWREHZULWLQJWKHFKHFNIRUWKDWSURSHUW\
7KDWJX\VJRLQJWRWHOOPHZKDWWKDWSURSHUW\LVZRUWK
6RLI,FDQGRPXFKO LNH'DYLGWDONHGDERXWLIZHFDQWLHWKLVXSDQGWKHQ
KDYHVRPHWLPHWRILQGRXUEX\HUZHOOTXLFNO\NQRZZKHWKHUWKHPHPEHURI
WKDWOHDVHSXUFKDVHGWKDWDQGWKHQXPEHUZHUHWU\LQJWRVHOOIRU:HOOILQG
RXWUHDOO\TXLFNLIWKDWVWKHQXPEHUWKDWVJR LQJWRZRUNIRUVRPHERG\$QG
LILWLVVRPHERG\VD\V,OOWDNHLWZHYHSUHWW\PXFKILJXUHGRXWZKDWWKDW
KRXVHLVZRUWK
-39$8*+$1 %XWDVDEHJLQQHUIRUQHZSHRSOHWKH\YHJRWWRKDYH
VRPHQXPEHUWKDWWKH\ZRUNZLWKEHIRUHWKH\DFWXDOO\FRPPL WWRDSURSHUW\
-2(.$,6(5
<HV,WKLQNWKDW\RXQHHGWRVSHQGDORWRIWLPHLQ\RXU
PDUNHWSODFHWRJHWUHDOO\IDPLOLDUZLWKLW&HUWDLQO\LQRUGHUWRGRZKDW,
MXVWWDONHGDERXW\RXKDYHWRKDYHDSUHWW\JRRGIHHOIRUZKDWLWVZRUWK
:HFDQKDYHDORWRIKRXVHVLWVQRWVXFKDEDGWKLQJSHRSOHGRWKDW,
GRQWNQRZKRZ\RXFRXOGJRZURQJGRLQJWKDW,NQRZWKDWXOWLPDWHO\WKH
RQO\WKLQJWKDWPDWWHUVLVZKDWVRPHERG\LVZLOOLQJWRSD\IRULW
7KHDSSUDLVHUFDQWHOO\RXZKDWVRPHERG\SDLGIRU WKHKRXVHQH[WGRRUEXW
LWVQRWKLVPRQH\RQWKHOLQHLIKHJHWVWKLVZURQJRQ\RXUV\RXNQRZ"+H
GRHVQWKDYHDORWRIULVNKHUH
6RWRPH,ZDQWWRKDYHWKDWVLJQHGFRQWUDFWVRWKDW,GRQWKDYHWR
FRPPLWRQP\SXUFKDVHXQWLO,YHJRWVRPHERG\ UHDG\WRVWHSLQWKDWEDQN
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 2ND\'DYLGTXHVWLRQQXPEHU
+RZGR,PDNHDQRIIHU"'RHVLWQHHGWR
EHLQZULWLQJDQGZKHUHFDQ,JHWWKHVH
FRQWUDFWV"
'$9,'),1.(/ >ODXJKV@,PJRLQJWRDQVZHUWKLVLQWZRSDUWVKHUH,P
JRLQJWRUHVSRQGWRPDNLQJDQRIIHUILUVWRIDOO
,PJRLQJWRVD\VRPHWKLQJWKDWVJRLQJWRVKRFNVRPHRIWKHOLVWHQHUV
,GRQWWKLQNDQ\RQHVKRXOGHYHUPDNHDQRIIHU
7KHVHFRQGSDUW,OOPRUHWDONDERXWEHFDXVHLWVYHU\LPSRUWDQW+RZWRJHW
JRRGFRQWUDFWV
,WKLQNRQHRIWKHELJJHVWPLVWDNHVSHRSOHPDNHQHJRWLDWLQJLVWRJRWKHUH
WU\LQJWRVHOOWKHVHOOHURQVHOOLQJWKHPWKHSURSHUW\,WVWRWDOO\WKHZURQJ
G\QDPLF<RXQHHGWREHWKHUHOXFWDQWSDUW\
,WKLQNWKHG\QDPLFLVZURQJIRUPDNLQJDQRIIHU ,GRQWWKLQNDQ\RQH
VKRXOGHYHUPDNHDQRIIHU$QRIIHULV\RXUSXWWLQJVRPHWKLQJRQWKHWDEOH
7KHVHOOHUJHWVWRVD\\HVRUQRWKH\JHWDOOWKHSRZHUWRPDNHWKH
GHFLVLRQ,WKLQNWKDWVVLOO\
-2(.$,6(5
,WVFUD]\,GRQWNQRZZK\SHRS OHFRQWLQXHWRGRWKDW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ <HDKLVQWLWIXQQ\",WKLQNDERXWLW
,I,ZHUHSOD\LQJEDVHEDOODQG,PWKHSLWFKHULI,PKROGLQJRQWRWKDWEDOO
DQGWKHEDOOLVWKHRIIHUDQGWKHVHOOHULVWKHSHUVRQDWEDWDVVRRQDV,
UHOHDVHP\RIIHUDQGOHWJRRILWWKH\FRQWUROZKDWKDSSHQVQH[W7KH\
HLWKHUVZLQJRUWKH\GRQWVZLQJ,IWKH\VZLQJWKH\FDQKLWLWRXWRIWKH
SDUNRUQRW
,ZRXOGPXFKUDWKHUEHXSWKHUHRQWKHPRXQGDQGIDNLQJWKHWKURZXQWLO
WKH\JXDUDQWHHPHWKDWWKH\UHJRLQJ WRVZLQJRQLW7KHQ,OOOHWJRRILW
,WVHDV\WRGR7KLVLVQRWFRPSOLFDWHG
,PJRLQJWRVKDUHZLWK\RXJX\VWZRZRUGVWKDWOHW\RXGRWKDW7KHZRUGV
DUHZKDWLI
6D\-RHLVP\VHOOHUKHUH,VD\-RH,GRQWNQRZLI,GHYHQZDQWWRG R
WKLVMXVW\HWEXWZKDWLI ZHZHUHDEOHWRJLYH\RXWKH\RXUH
ORRNLQJWRGR",VWKDWVRPHWKLQJWKDWZRXOGHYHQEHDILWIRU\RXRU
SUREDEO\QRW"$QG,PJRLQJWRPDNHKLPVD\\HVWRWKDW
7KHQWKHVHFRQGSDUW,PQRWJRLQJWRMXPSLQUL JKWDZD\RQFHKHVD\V
\HV:HVKRXOGWDONDERXWWKDW,PQRWJRLQJWRMXPSLQULJKWDZD\DQG
VHOOKLPRQWKHGHDOZKLFKLVZKDWPRVWSHRSOHVUHDFWLRQLV
,PJRLQJWRIROORZWKDWXSZLWKDQRWKHUVWDWHPHQW,PJRLQJWRDVN-RHIRU
H[DPSOH-RHZKDWLIZHZHUHWRDJDLQ,PQRWVD\LQJZHFRXOGGRWKLV
EXWZKDWLI ZHZHUHWRPDNH\RXSD\PHQWVIRUDSHULRGRIWLPHDQGFDVK
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
\RXRXWGRZQWKHURDG",VWKDWVRPHWKLQJZHVKRXOGHYHQWDONDERXWRU
SUREDEO\QRW"
5ROHSOD\LQJKHUH
-2(.$,6(5
<HDKOHWVWDONDERXWLW
'$9,'),1.(/ ,PJRLQJWRIROORZWKDWXSZLWK2ND\$TXHVWLRQIRU
\RX-RHZRXOGLWHYHQEHDILWIRU\RX"
1RZKHVJRLQJWRKDYHWRVHOOPHRQDOOWKHUHDVRQVZK\KHZRXOGVSHQG
WLPHWDONLQJDERXW+HVWKHRQHWKDWVQRZF RPPLWWLQJWKDWGHDO,QHYHU
PDNHWKHRIIHU,QHYHUJRRYHUWRPDNHDQRIIHU
:KHQVHOOHUVVD\&RPHRYHUKHUHDQGPDNHPHDQRIIHU,VD\:HOO
KDQJRQ,QHHGWREHIUDQNKHUH,GRQWHYHQNQRZLI,ZDQWWKHSURSHUW\
MXVW\HW:LWKDOOWKDWV JRLQJRQLQWKHZRUOGULJKWQRZ,PQRWHYHQVXUHLI
QRZVWKHULJKWWLPHWREX\DQRWKHUSURSHUW\0D\,DVN\RXVRPHTXHVWLRQV
DQGVHHLILWVVRPHWKLQJ,GHYHQEHUHPRWHO\LQWHUHVWHGLQ"
0DNHWKHPVHOO\RXWKDWVWKHULJKWG\QDPLF
-2(.$,6(5
<RXNQRZWKHIOLSVLGHRIWKDWLVZK\ZRXOG\RXHYHUPDNH
VRPHERG\DQRIIHUZKHQ\RXKDYHQRLGHDZKDWLWLVWKH\UHDOO\ZDQW"
'$9,'),1.(/ 2KJRRGSRLQW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
,WVVRVLOO\,ZRXOGPXFKUDWKHUVSHQGPLQXWHVDQGVLW
WKHUHDQGWDONDERXWWK LQJVDQ\WKLQJRUWKHSURSHUW\,WGRHVQWUHDOO\
PDWWHU$WVRPHSRLQWWKHGLVFXVVLRQJHWVDURXQGWRWKHSURSHUW\
%\WKHQWKHFRQYHUVDWLRQVIORZIUHHO\DQGZHOLNHDQGWUXVWHDFKRWKHU7KHQ
ZHFDQDFWXDOO\WDONDERXWZKDWWKH\UHORRNLQJIRUDQGZ KDWWKH\ZDQWWR
GR,WVQRWKDUGLI\RXYHJRWDFRXSOHRIWULFNVLQ\RXUEDJKHUH
,WVQRWKDUGWRWDLORULWWRZKDWZRUNVIRUWKHP,IWKH\YHJRWDQ\URRPDW
DOO\RXOOJLYHWKHPVRPHWKLQJWKDWWKH\DFWXDOO\ZDQW1RWMXVWVRPH
QXPEHUWKDW\RXW KURZDWWKHP
,I\RXPDNHDQRIIHUWKDWZD\\RXSUHWW\PXFKKDYHWRORZ EDOOWKHPWR
PDNHDGHDOEHFDXVHWKDWVDOO\RXYHJRW<RXYHJRWDQXPEHU
,JHWSDLGEHFDXVH,FDQQHJRWLDWH,QP\QHJRWLDWLRQ,GRQWNQRZDEXQFK
RIWULFN\FORVHVDQGWKDWVWXII,PMXVWDQLFHJX\,PJRLQJWRVLWGRZQ
DQG,PJRLQJWRWDONWRKLPDQGZHUHJRLQJWRZRUNVRPHWKLQJRXW
,IWKH\UHKDOIZD\QLFHSHRSOHZHOOFRPHXSZLWKVRPHWKLQJ,PVXUH
WKH\UHFOHYHUHQRXJKDQG,PFOHYHUHQRXJKWKDWEHWZHHQWKH WZRRIXVZH
FDQSXWRXUKHDGVWRJHWKHUDQGFRPHXSZLWKDVROXWLRQWKDWVROYHVWKHLU
SUREOHP$QG\RXNQRZOHDYHDOLWWOHURRPZKHUH,FDQPDNHDIHZEXFNV
WRR3HRSOHDUHKDSS\WRGRLWWKDWZD\
,I\RXUHMXVWWKURZLQJDQXPEHUDWWKHPRQDSUHS ULQWHGIRUPWKDW\RX
W\SHGLQDGROODUILJXUH\RXORVHWKDWRSSRUWXQLW\WRGRWKDWVWXII$QGWKDWV
KRZ\RXJHWSDLGLQWKLVEXVLQHVV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHPRVWLPSRUWDQWWKLQJKHUHLV\RXFDQPDNHHLJKWEXFNVDQKRXU
VZLQJLQJDKDPPHURU\RXFDQPDNHDQKRX UVLWWLQJGRZQDQG
WDONLQJZLWKSHRSOH
'$9,'),1.(/ <HV,DJUHHZLWKHYHU\WKLQJ\RXVD\WKHUH,WV
LQWHUHVWLQJ,WHQGWREHOLHYHWKDW\RXFDQVFULSWRXWDORWRIWKLVSURFHVV$
ORWRIWKHODQJXDJHSDWWHUQVKDSSHQRYHUDQGRYHUDJDLQ:KDW\RXFDQ W
VFULSWRXWLVWKDWVHQVHRIMXVWFDULQJDERXWRWKHUSHRSOH
&DVWLQJZRXOGEHSXWWLQJRXWVRPHNLQGRIZKDWLI7KH\QLEEOHRQWKDW
DQG\RXYHJRWWRVHWWKHKRRN:KLFK\RXVD\:HOOZKDWDERXWEODQN"
:KDWDERXWXVPDNLQJSD\ PHQWVIRUDSHULRGRIWLPH:RXOGLWHYHQEHDILW
IRU\RX"
7KHQ\RXUHHOLQE\WXUQLQJLWLQWRWKHLULGHD<RXMXVWUHVWDWHLW<RXVD\
:HOOLI,PKHDULQJ\RXULJKW0U6HOOHUZKDW\RXUHWHOOLQJPHLV\RXZDQW
XVWRPDNHVXUH,YHJRWWKLVULJKWKHUH<RXVDLG\RXZDQWXVWRFRYHU
WKDWSD\PHQWRIDPRQWKDQGDWVRPHSRLQWRYHUWKHQH[WILYH\HDUV
FDVK\RXRXWWKHIXOO'LG,JHWWKDWULJKW"
,PHDQWKHUHLVVRPHSDWWHUQWRWKDW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
<HDKVXUH
5LJKW,FDQWUXWKIXOO\VD\,KDYHQRWKDGDQRIIHUUHMHF WHG
LQ\HDUVEHFDXVH,GRQWPDNHWKRVHNLQGVRIRIIHUV,WVQRWD\HVRUD
QRWKLQJ:HVLWGRZQDQGZHWDONDERXWLW7RJHWKHUZHZRUNVRPHWKLQJ
XS,IWKDWZRUNVJUHDW
,IQRWZHUHMXVWQRWJRLQJWRPDNHDQRIIHU:HHLWKHUVRUWHGWKLVRXWD QG
ILJXUHGRXWDZD\WRPDNHLWKDSSHQRUQRW,IQRWZHOOMXVWZLVKWKHPOXFN
DQGJRRQ
'$9,'),1.(/ 2QWKHFRQWUDFWSDUWRIWKLQJV,ZRXOGSXWWKLV)LUVWRI
DOO,WKLQNDORWRISHRSOHPLVWDNHQO\WKLQNWKDWWKH\JRWRWZRVRXUFHVIRU
WKHLUFRQWUD FWV%RWK,WKLQNDUHWURXEOH
)LUVWWKH\JRWRDORFDOVWDWLRQHU\VXSSO\VWRUHDQG,WKLQNWKDWVWKHELJJHVW
WURXEOHRIDOO(YHQ1R/RZ3UHVVKDVZRQGHUIXOERRNV,KDYHSUREDEO\
RIWKHPLQP\RZQ/LEUDU\%XW,GRQWWKLQNWKDWVWKHSODFH \RXZDQWWRJR
WRIRUSXUFKDVHFRQWUDFWVRUIRUOHDVHRSWLRQFRQWUDFWV7KHFRQWUDFWVDUH
ZD\WRRQHXWUDO
<RXQHHGWRKDYHFRQWUDFWVZKHQ\RXUHEX\LQJWKDWDUHZRUGHGLQ\RXU
IDYRU:KHQ\RXUHVHOOLQJWKH\UHYHU\PXFKVHOOHUIDYRUHG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHRWKHUSODFHWKDWSHRSOHJRWRIRUFRQWUDFWVDQGIRUPVDQG,WKLQNLWVD
ELJPLVWDNHDVZHOOLVWKH\XVHWKHORFDO%RDUGRI5HDOWRUVVWDWHDSSURYHG
FRQWUDFWV,GRQWWKLQNWKDWVDJRRGLGHDHLWKHU
-39$8*+$1 (VSHFLDOO\LQ&DOLIRUQLD:KDWDUHWKH\QRZSDJHV"
'$9,'),1.(/ 2KLWVULGLFXORXV7KHOHDVHRSWLRQIRUPILYH\HDUVDJR
XVHGWREHWKUHHSDJHV,WVXSWRVHYHQSDJHVI RUWKH&DOLIRUQLD$VVRFLDWLRQ
RI5HDOWRUIRUPV,WVQXWV
,WKLQN\RXVKRXOGDOZD\VVWDUWRIIZLWKDRQH SDJHDJUHHPHQWZKHQ\RXUH
EX\LQJ:KHQ\RXUHVHOOLQJ\RXFDQXVHDORWORQJHUFRQWUDFWLIEX\HUVDUH
ZLOOLQJWRJRDKHDGDQGVLJQLW
:KHQ\RXUHEX\LQJXVHDRQH SDJHGRFXPHQWPD\EHERWKVLGHVLI\RX
QHHGWR7KHQ\RXOD\HULQWKHRWKHUGRFXPHQWVDVDVHFRQGDU\DGGHQGXP
7KLVLVDVHFRQGDU\GRFXPHQWVLJQHGDGD\RUWZRODWHU
,WVLQWHUHVWLQJZKHUHFDQ\RXJHWWKDWVWXII"0DQ\RIWKHF RXUVHVWKDW\RX
KDYHRQ&UHDWLYH5HDO(VWDWH2QOLQH DUHMXVWHDV\SODFHVWRJRZLWKWKDW
8QGHUVWDQGWKHRQO\ZD\WRJHWD JRRGIRUPLVZKHQSHRSOHKDYHEDVLFDOO\
KDGRSSRVLQJDWWRUQH\VSRNLQJKROHVLQWKHP
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,OOVKDUHZLWK\RXDTXLFNH[DPSOH,NQRZRQRXUOHDVHSXUFKDVH
DJUHHPHQWZHXVHRQHOHJDOVL]HSDJH,WVLQWHUHVWLQJPRVWRIZKDWVLQ
WKHUHZHYHKDGWROHDUQWKHKDUGZD\7KHUHLVVWXIIWKDW\RXMXVWGRQW
OHDUQLQWKHVHPLQDUV
)RUH[DPSOHKH UHVRQHOLWWOHLQVLGHUWLSWKDWZHKDGWROHDUQ,WFRVWXV
DERXWRIORVWSURILW:HSLFNHGXSD \HDUOHDVHRSWLRQRQDWZR
EHGURRPFRQGRPLQLXPLQDFRPPXQLW\LQDUHDOO\QLFHDUHDRI6DQ
'LHJRFDOOHG5DQFKR%HUQDUGR7KHVHOOHUZDVDOD QGORUGZKRMXVWZDQWHG
RXWRIWKHSURSHUW\:HSLFNHGXSD \HDUOHDVHRSWLRQIRU
1RZWKHZD\ZHVWUXFWXUHRXUOHDVHRSWLRQVDORWRISHRSOHGRLWDVDRQH
\HDURQH PRQWKWHUPZLWKRSWLRQDOUHQHZDOVWKDWKDSSHQHDFKDQG
HYHU\\HDU VRWKDW\RXFRXOGSRSRXWRIWKHGHDOLI\RXZDQWHGWR%XW
WKH\UHREOLJDWHGIRUWKHDXWRPDWLFUHQHZDO
:HOOWKDWDOOVRXQGHGZHOODQGJRRGXQWLOWKHJHQWOHPDQWZR\HDUVLQWRWKH
GHDOEDFNHGRXWZKHQKHJDYHXVDYHU\FUHDWLYHH[FXVHKLVDWWRUQH\F DPH
XSZLWK
,DVNHGP\DWWRUQH\DERXWWKLV2XUDWWRUQH\VDLG:HOO\RXNQRZZKDW,
JXHVVKH\HDKWKDWVDFWXDOO\DSUHWW\YDOLGDUJXPHQW<RXFRXOGJRWR
FRXUWRQLWEXW\RXKDYHDERXWD VKRWRIZLQQLQJ:KLFKPHDQV\RX
NQRZ\RXUHQRWJRLQJWRGRDQ\WKLQJDERXWWKDW
$QGLWVLQWHUHVWLQJEHFDXVH\RXKDYHWKLVVWXIIFKHFNHGRXWE\DWWRUQH\V
7KHRQO\ZD\WKDW\RXUHDOO\ILQGRXWLI\RXUIRUPVDUHJRRGLVKDYHWKHP
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
WHVWHGRXWRYHUWLPH6WDUWRIIZLWKVRPHERG\HOVHVVWXIIDQG\RXM XVWJHWLW
EHWWHUDQGEHWWHURYHUWLPH
7KDWVZK\ZHXSGDWHRXUIRUPVHYHU\VLQJOH\HDUEHFDXVHZHOHDUQWKLQJV
WKDW\HDUWKDWQHHGWREHLQWKHUH
6RZKDWJRWWKLVJX\RXWZDVDELWRIVRPHWKLQJFDOOHGWKH8QLIRUP
&RPPHUFLDO&RGHRUWKH8&&7KH8&&V D\VWKDWDQ\UHVLGHQWLDOOHDVHWKDW
KDVDQDXWRPDWLFUHQHZDOPXVWEHSRLQWRUODUJHUW\SHVL]HDQGLWPXVW
EHLQEROGSULQW
1RZ,GRQWEHOLHYHLQKLGLQJLQVPDOOSULQWRQ\RXUFRQWUDFWV6RRXU
DJUHHPHQWZDVDFWXDOO\ SRLQWW\SHVL]HEXWWKDWFODXVHZDVQRWLQEROG
SULQW
-39$8*+$1 2K
'$9,'),1.(/ $QGWKLVZDVDFWXDOO\RQO\WZRDQGKDOIWKUHH\HDUVDJR
,I\RXZHUHWRORRNDWWKHFRQWUDFWWRGD\LWLVLQEROGSULQW
-2(.$,6(5
,OOEHWLWLV
\HDUVODWHU7KLVPHDQVZHORVWWKLUW\ ILYHWRRIHTXLW\WZR\HDUV
LQWRLW:HKDGHLJKWPRUH\HDUVRISRVLWLYHFDVKIORZRQWKDWSURSHUW\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KLVFRXOGKDYHEHHQDYRLGHGKDGZHXVHGWKHULJKWW\SHVL]HDQGEROGQHVV
6RSOHDVHGRQWEHFKHDSRQ\RXUFRQWUDFWV,WVVLOO\
7KHFRXUVHVRQ&5(2QOLQH KDYHIRUPV$OORIRXUFRXUVHVRIRUPRUH
KDYHRXU)RUP&' 520<RXZDQWWRVWDUWRIIZLWKWKDW7KHFRVWIRU\RXWR
QRWGRWKDWLVJRLQJWREHKXJH
<RXVKRXOGDOVRGHILQLWHO\KDYHDORFDODWWRUQH\FKHFNRXW\RXUIRUPVDVZHOO
-39$8*+$1 $EVROXWHO\
'$9,'),1.(/ %XWPDNHVXUHWKH\DUHVRPHRQHZKRNQRZVDQGZRUNV
ZLWKLQYHVWRUV'RQWMXVWJRWRVRPHERG\ZKRQRUPDOO\ZRUNVZLWKOHQGHUV
GRLQJIRUHFORVXUHVRUVRPHRQHZKRQRUPDOO\ZRUNVGRLQJHYLFWLRQV8VH
VRPHRQHZKRGRHVDORWRIDFWXDOZRUNZLWKLQYHVWRUV
,GHDOO\ILQGDQDWWRUQH\ZKRGRHVLQYHVWLQJWKHPVHOYHV
-39$8*+$1
7KDWVDJRRGSRLQW'DYLG$QGRIFRXUVHDQ
DJUHHPHQWDYHUEDODJUHHPHQWWRSXUFKDVHRUVHOOUHDOHVWDWHLVQRWELQGLQJ
DQ\ZKHUH6RDEVROXWHO\WKDWDJUHHPHQWWKDW\RXFRPHWRZLWKWKHVHOOHU
PXVWEHLQZULWLQJ
-2(.$,6(5
,KDGRQHRIWKRVHODVWQLJKWLQIDFW,WDONHGZLWKDVHOOHU
RXWRIVWDWHDQGZHFDPHWRDQXQGHUVWDQGLQJ,ZDVWRRYHUQLJKWWKH
SDSHUZRUNDQGLWZDVDGRQHGHDO,FDOOHGWKHSHRSOHWROHWWKHPNQRZWKH
IXQGVZRXOGEHWKHUHWR EULQJWKHORDQFXUUHQWDQGVKHFDOOHGWKHQH[WGD\
VD\LQJVRPHERG\KDGPDGHKHUDEHWWHURIIHU
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 >DJUHHLQJ@
-2(.$,6(5
,KDGDOUHDG\RSHQHGHVFURZDQG,ZDVLQWRLWDERXW
6KHDFFHSWHGDQRIIHUWKDWZDVPRUHWKDQP\RIIHU
'$9,' ),1.(/ 2KER\
-2(.$,6(5
<HDK
-39$8*+$1 $QGWKHUHVQRWKLQJ\RXFDQGREHFDXVHLWZDVQWLQ
ZULWLQJ
-2(.$,6(5
7KHUHVQRWKLQJ,FDQGR
-39$8*+$1 7KDWVULJKW
-2(.$,6(5
2QHRIWKRVHFRVWVRIGRLQJEXVLQHVVWKLQJV
-39$8*+$1 ,W LV2ND\-RHTXHVWLRQQXPEHU
-2(.$,6(5
6KRRW
:KDWVWKHEHVWZD\WRJHWFRPSDUDEOH
VDOHVGDWD"
-39$8*+$1 ,NQRZ\RXGRQWEHOLHYHLQLW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
>ODXJKV@,GRQWXVHWKHP,OOWHOO\RXWKHEHVWZD\QRWWR
QHHGWKHP,I\RXEX\HY HU\WKLQJDWKDOISULFH\RXFDQEHSUHWW\FHUWDLQ
\RXUHJRLQJWRFRPHRXWRND\>ODXJKV@
-39$8*+$1 /HWVVD\\RXQHHGFRPSVEHFDXVH\RXGRQWNQRZ+RZ
ZRXOG\RXJHWWKHP"
-2(.$,6(5
:HOO,NQRZDFRXSOHRIDJHQWVVR,FDQSUHWW\PXFKJHW
WKRVHVRUWVRIWKLQJV$QG,GRJHWWKRVH,JHWFRPSVHYHU\QRZDQGWKHQ
HVSHFLDOO\ZKHQZHUHJRLQJWRVHOOSURSHUW\:HQHHGWRNQRZZKDWLWV
ZRUWKZKHQZHYHOLVWHGWKLQJVMXVWOLNHHYHU\ERG\HOVHGRHV,WVQLFHWRJHW
DJRRGLGHDRIZKDWWKRVHWKLQJVDU HJRLQJWREHZRUWKWRR
,ZRXOGVD\LWVDOZD\VQLFHWRKDYHSHRSOH7KLVLVYHU\PXFKDSHRSOH
EXVLQHVV5HODWLRQVKLSVDUHWKHNH\KHUH'HYHORSDJRRGUHODWLRQVKLSZLWK
DQDJHQWRUWZRVRPHERG\ZKRVDJJUHVVLYHDQGNQRZVZKDW\RXUHDOO
DERXW7KRV HWKLQJVDUHLQYDOXDEOH
-39$8*+$1 6RJHW\RXUFRPSVIURPDQDJHQWLI\RXXVHWKHP,Q
VRPHVWDWHV,NQRZLQ&DOLIRUQLDWLWOHFRPSDQLHVZLOOJLYH\RXFRPSV
+RZGR\RXJHW\RXUV'DYLG"
FRQVLGHULQJWKDW,PJRLQJWRWDONZLWKVHOOHUVRYHUWKHFRXUVHRIVHYHUDO
PRQWKV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
3UREDEO\SHUFHQWRIWKRVHVHOOHUVDUHJRLQJWRZDQWDOOWKHLUHTXLW\RUZLOO
QRWEHIOH[LEOHHQRXJK,FDQMXVWUHIHUWKDWEXVLQHVVRYHUWRRQHRIWKRVH
DJHQWV
6RHYHQLIHDFKRIWKHVHDJHQWVMXVWSLFNVXSRQHH[WUDOLVWLQJD\HDU,P
DGGLQJWRQHWWRWKHLUERWWRPOLQH,WVHDV\IRUPHWRFDOOXS
DQG,MXVWVD\%R\GWKLVLV'DYLG,PWKHRQHWKDWVEHHQID[LQJRYHU
WKRVHOHDGVWR\RXKRZVLWEHHQJRLQJ"%\WKHZD\,KDYHDSURSHUW\
&RXOG\RXKHOSPHRXWE\MXVWSXOOLQJXSD&0$"
)RUWKRVHRI\RXWKDWGRQWNQRZ&0$VWDQGVIRU&RPSDUDEOH0DUNHW
$QDO\VLV,WVWKHTXLFNVQDSVKRWWKH\GRLQDERXWWZRRUWKUHHPLQXWHVIURP
WKHPXOWLSOHOLVWLQJVHUYLFH&0/6,WJLYHVPHDJRRGLQGLFDWLRQRIZKDW
VRPHRWKHUWKLQJVKDYHVROGIRU 7KHQLI,UHDOO\FDUHDERXWWKRVHFRPSV,
ZLOOWRKDYHWRGULYHWKHP6RPHRIWKDWPLJKWEHFRPSDUDEOHVRPHZRQW
EH
-2(.$,6(5
5LJKW
'$9,'),1.(/ $QG,PJRLQJWRZDQWILYHKRXVHVZLWKVLPLODUVTXDUH
IRRWDJHZLWKLQDERXWVTXDUHIHHW,GHDO O\WKH\YHVROGZLWKLQWKUHH
PRQWKVZRUVHFDVHZLWKLQVL[PRQWKV8QGHUVWDQGWKDWLWQHHGVWREHLQWKH
VDPHVFKRROGLVWULFWDQGLWQHHGVWREHRIFRPSDUDEOHFRQVWUXFWLRQ7KH
XVXDOW\SHVRIFRPPRQVHQVHWKLQJV
7KDWVJRLQJWRJLYHPHDJRRGEDOOSD UNILJXUH7KDWVKRZ,JHWLW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
(YHQVRLWVMXVWJRLQJWREHDEDOOSDUNIRU\RXULJKW",
PHDQ\RXUHQRWJRLQJWRKDQJ\RXUKDWRQWKDWQXPEHUULJKW"
'$9,'),1.(/ <RXNQRZVRPHWKLQJWKDW\RXVDLGHDUOLHU-RHDQG,KRSH
HYHU\RQHFDXJKWLWEHFDXVHLWZDVUHDOO\JRRG(VSHFLDOO\ZKHQDVHOOHUWHOOV
\RXWKH\KDGWKHKRXVHDSSUDLVHGMXVWLJQRUHWKDW>ODXJKV@
-39$8*+$1 %HFDXVHQRUPDOO\WKH\UHWDONLQJDERXWDQDJHQW
'$9,'),1.(/ <HDKEHFDXVH\RX
-39$8*+$1 6HOOHUVIRU
'$9,'),1.(/ RULWZDVUHILQDQFHRUVRPHWKLQJ$QGWKH\UHILQDQFHG
WKRVHDVKLJKRUWKHDSSUDLVHU
-39$8*+$1 5LJKWVXUH
'$9,'),1.(/ DVKLJKDV\RXQHHGJHWWKDWUHILQDQFHG
-2(.$,6(5
,FDQJHWDKRXVHDSSUDLVHGIRUIRU
HDVLO\7KHVDPHDSSUDLVHUZLOOGRERWKRIWKRVHDSSUDLVDOV
'$9,'),1.(/ 5LJKW
-39$8*+$1 5LJKW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ 3UREDEO\WKHYHU\VDPHGD\>ODXJKWHU@:HOOWKH
PDUNHWVSUHWW\KRWZKHUH\RXUHDW-RH
-2(.$,6(5
<HDK
'$9,'),1.(/ %XW-3PDGHDJRRGSRLQW
7LWOHFRPSDQLHVDWOHDVWRQWKH:HVW&RDVWDUHRULHQWHGWRWKHFRQVXPHU
7KH\UHRXWIRU\RXUEXVLQHVV
,ZDVRQWKH(DVW&RDVWDQGWKH\KDGQRLGHDZKDW,ZDVWDONLQJDERXW%XW
LQP\DUHDWKH\UHMXVWUHDG\WRJR
-39$8*+$1 <HDKLWVUHDOHDV\
'$9,'),1.(/ 7KH\UHFXHGXSDQGWKH\UHZDLWLQJIRUPH,PDNHD
SKRQHFDOODQGWKH\YHJRWFRPSVRQP\ID[PDFKLQHPLQXWHVODWHU
-39$8*+$1 5LJKWULJKW
-2(.$,6(5
<HDK
-39$8*+$1 5LJKW
'$9,'),1.( / ,I,QHHGDUHFRUGHGGRFXPHQWRUHYHQDEODQNGRFXPHQW
IRUPER\WKH\UHMXVWULJKWRQWKDWVWXII
-39$8*+$1 2ND\'DYH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ 7KH\ORYHWRGRLW
-39$8*+$1 'DYLGTXHVWLRQQXPEHU
+RZGR\RXGHYHORSDVXFFHVVIXO
PDUNHWLQJSURJUDPWRJHQHUDWHOHDGVDQG
ZKDWPHWKRGVGR\RXXVH"
'$9,'),1.(/ 2ND\VRZHYHDOUHDG\WRXFKHGDOLWWOHELWRQWKLVRQH
-39$8*+$1 5LJKW
'$9,'),1.(/ ,WKLQNZHMXVWQHHGWRJHWFOHDURQZKDWWKHRXWFRPHLV
ILUVW7KHRXWFRPHIRUWKRVHRI\RXW KDWDUHJRLQJWREHSDUWWLPH
LQYHVWRUV\RXUHORRNLQJWRKDYHWKUHHJRRGFRQVLVWHQWLQGHSHQGHQWOHDG
VWUHDPVJHQHUDWLQJRQHJRRGKLJKTXDOLW\DSSRLQWPHQWSHUZHHN0HHWLQJ
ZLWKWZRRUWKUHHVHOOHUVHDFKDQGHYHU\ZHHN
)XOOWLPHLQYHVWRUV\RXUHDOO\ ZDQWILYHLQGHSHQGHQWOHDGVRXUFHVWKDWFDQ
\LHOGRQHJRRGOHDGHDFKZHHN7KDWVJRLQJWRJHW\RXIRXUILYHRUVL[
DSSRLQWPHQWVDZHHNRIJRRGTXDOLW\VWXII7KDWVJRLQJWRNHHS\RXEXV\
DQGEX\LQJSURSHUWLHV1RTXHVWLRQDERXWWKDW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
6RWRGRWKDW\RXUHJRLQJWRZDQWWRGHYHORSZKHWKHULWEH\RXUFODVVLILHG
DGVRU\RXUPDLOLQJV\VWHPVWKDW\RXKDYHJRLQJRQ,PDELJEHOLHYHUWKDW
\RXQHHGDNLQGRIV\VWHPDWWDFKHGWRZKDW\RXUHGRLQJ
(YHQPRUHLPSRUWDQWO\,ZDQWWRWDONIRUDPRPHQWDER XWWUDFNLQJ0RVW
SHRSOHZLOOWU\VRPHWKLQJ$FRXSOHRIWKLQJVKHUH
1XPEHURQHWKH\GRQWUHDOO\PHDVXUHZKDWVKDSSHQLQJ,PDELJEHOLHYHU
WKDW\RXQHHGWRTXDQWLI\WKHQXPEHUVLQ\RXUEXVLQHVV1RWEHFDXVHLWV
IDQF\QRWEHFDXVHLWVIXQEXWE HFDXVHLWVLPSRUWDQWWRNQRZZKDWV
ZRUNLQJDQGZKDWVQRWZRUNLQJ$QGQRWMXVWZKDWJHQHUDWHV\RXUFDOOVEXW
ZKDWJHQHUDWHVGHDOV
:KDWVWKHEHWWHUTXDOLW\"
,GUDWKHUKDYHRQHOHDGVRXUFHJLYHPHWZROHDGVSHUPRQWKDQG,JHWRQH
GHDOFRQVLVWHQWO\WKDQWRKDYHDQRWKHUOHDGVRXUFHJLYHPHFDOOVSHU
ZHHNEXW,GRQWJHWGHDOVIURPLW,WKLQNRIWKLQJV
2QHRIRXUFRDFKHVIURPRXUPHQWRULQJSURJUDPQDPHG%\URQFDPHXS
ZLWKWKLVDQG,WKRXJKWLWZDVZRQGHUIXO:HFDOOLWWKH&$'6& $'6+H
WUDFNVHDFKRIWKHGLIIHUHQWPDUNHWLQJVWUHDPVKHKDVFRPLQJLQ
+HWUDFNVWKHQXPEHURIFDOOVSHUZHHNLWJHQHUDWHVWKHQXPEHURI
DSSRLQWPHQWVIURPWKRVHFDOOVKHVHWVXSWKHQXPEHURIGHDOVKHVLJQVXS
DQGWKHQXPEHURIWKRVHGHDOVWKDWFORVH +HFDOOVVXFFHVVHVRI&$'6
&DOOV$SSRLQWPHQWV 'HDOV6XFFHVVHV,WKRXJKWWKDWZDVDQLQWHUHVWLQJ
WKLQJ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
$VLPSOHZD\RIGRLQJLWLVE\XVLQJH[WHQVLRQQXPEHUVRQDYRLFHPDLO
V\VWHP<RXNQRZVD\\RXUFODVVLILHGDGH[WHQVLRQLV DQG\RXURWKHUDG
LQWKHORFDOPLOLWDU\SUHVVSDSHULV MXVWIROORZLQJLWWKDWZD\LVSUHWW\
VLPSOH
-XVWPDNHVXUH\RXWUDFNWKHRXWFRPHIURPWKHGLIIHUHQWDGYHUWLVLQJWKDW
\RXUHGRLQJ
2QHRIWKHWKLQJV,WKRXJKWZDVLQWHUHVWLQJDQGKRSHIXOO\-RHZLOOVSHDN
KHUH LQDOLWWOHELWLVVRPHRIWKHZD\VKHVDEOHWRUHVHDUFKIRUPDLOLQJ
SRVWFDUGVDQGOHWWHUFDPSDLJQV
6RPHRIWKHWKLQJVWKDW\RXFDPHXSZLWKLQWHUPVRIWKHWULJJHUGRFXPHQWV
OLNHWKH1RWLFHRIDQ$SSRLQWPHQWRI6XFFHVVRU7UXVWHH WKDWZDVDEULOOLDQW
LGHD2QHRIZKLFK,YHDSSURSULDWHGDQG,WKLQNSHRSOHQHHGWREHDZDUHRI
WKDW,WVDYHU\DGYDQFHGWHFKQLTXHEXWLWVMXVWVRREYLRXVDQGVRJRRG
ZKHQVRPHRQHSXWVLWGRZQWKDWZD\
-2(.$,6(5
:HOOOHWPHWHOO\RXKRZEULOOLDQWWKDWZDV
:H VWXPEOHGRQWRWKDW3HRSOHGRQWNQRZLQP\VWDWHWKDWEHIRUHDOHQGHU
IRUHFORVHVWKH\DSSRLQWDVXFFHVVRUWUXVWHH2QWKHRULJLQDOSDSHUZRUNWKH
WUXVWHHLVW\SLFDOO\WKHWLWOHFRPSDQ\6LQFHLQRXUDUHDWLWOHFRPSDQLHV
GRQWZDQWWRIRUHFORVHRQWKHSDVWFXVWRPHUVWKH\KDYHWKHOHQGHUZLOO
DSSRLQWDVXFFHVVRUWUXVWHHZKLFKLVVRPHERG\ZKRMXVWGRHVIRUHFORVXUHV
7KHILUVWWKLQJWKH\GRLVUHFRUGWKDWDSSRLQWPHQWDQGUHVLJQDWLRQRI
VXFFHVVRUWUXVWHH:KHQ,ILJXUHGWKDWRXW,WKRXJKW,GILJXUHGL WDOORXW\RX
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
NQRZ,WWXUQVRXWWKH\DOVRUHFRUGWKDWZKHQ\RXJRWRSD\RII\RXU
PRUWJDJH
6RKHUH,PVHQGLQJOHWWHUVWRSHRSOHZKRMXVWSDLGRIIWKHLUPRUWJDJHV\RX
NQRZVD\LQJ,XQGHUVWDQG\RXUSURSHUW\LVLQIRUHFORVXUH,KDGD
PRPHQWWKHU HZKHUHLWZDVORRNLQJNLQGRIGLFH\IRUPH$QGRIFRXUVHDOO
WKHSHRSOHIURPWKH&RXQW\DUHFDOOLQJ:KDWDUH\RXGRLQJ"
'$9,'),1.(/ <RXYHORVW\RXUPLQG>ODXJKV@
-2(.$,6(5
DFFRUGLQJ WRSODQ
<HDKVRVRPHRIWKHVHUHDOO\JRRGLGHDVGLGQWTXLWHJR
'$9,'),1.(/ ,WVLQWHUHVWLQJ)ROORZLQJXSRQWKDWKHUH,YHGRQHVRPH
PRUHUHVHDUFKDQGIRXQGRXWKHUHLQ6DQ'LHJRWKHUHDUHEDVLFDOO\ILYHRU
VL[GLIIHUHQWODZILUPVRUERLOHUURRPVEDVLFDOO\WKDWFKXUQRXWPRVWRIWKH
IRUHFORVXUHVIRUWKHFRXQW\
-2(.$,6(5
5LJKW
'$9,'),1.(/ $OVRZKHQ,UHFRJQL]HWKHLUQDPHV,PJRLQJWREHXVLQJ
VRPHRI\RXULGHDVWKHUH1RZ,FDQJHWDOLWWOHELWRIDMXPSRQSHRSOH
-2(.$,6(5
<HVDQG\RXFDQFRQILUPWKDWLWLVDSURSHUW\WKDWVJRLQJ
WRIRUHFORVXUHDQGQRWVRPHERG\SD\LQJRIIWKHLUORDQ
-39$8*+$1 5LJKW>ODXJKV@
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
$QRWKHUWKLQJRIWHQWLPHVWKH\OOKDYHDILOHQXPEHUDQG
-39$8*+$1 2ND\TXHVWLRQQXPEHU-RH
:KDWDUHVRPHFUHDWLYHILQDQFLQJ
RSWLRQV"
-2(.$,6(5
,PQRWVXUHZKDW\RXUHORRNLQJIRUKHUH
-39$8*+$1 :HOO,WKLQNZHKDYHDORWRITXHVWLRQVRQZKDWLVFUHDWLYH
ILQDQFLQJ+RZ FDQ\RXGRGHDOVFUHDWLYHO\"<RXNQRZWKHQDPHRIP\
ZHEVLWHLV &UHDWLYH5HDO(VWDWH2QOLQH
-2(.$,6(5
<HDK,YHEHHQPHDQLQJWRWDONWR\RXDERXWWKDW
>ODXJKWHU@,PQRWVXUHFUHDWLYHLVWKHZRUG,WKL QNLWVMXVWWKDW\RX
GHYHORSDFHUWDLQVHWRIVNLOOVDQG\RXEULQJWKRVHWRWKHWDEOH7KDWV\RXU
FRQWULEXWLRQKHUH
2QWKHRWKHUVLGHRIWKHWDEOHLVWKHVHOOHUZKRVJRWVRPHSUREOHPV
6RPHKRZ\RXYHJRWWRPDNHWKDWPHVK,PQRWVXUHWKDWVFUH DWLYH
-39$8*+$1 ,WKLQNLWVDORWRIWKHVHPLQDUEX]]$ORWRIWLPHV\RX
KHDUFUHDWLYHILQDQFLQJ,WVUHDOO\ZKDWZHUHWDONLQJDERXWKHUH
VWUXFWXULQJDGHDOWKDWVROYHVWKHVHOOHUVSUREOHP
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
5LJKW
GRQHLQDYDULHW\RIZD\VLWFDQEHGRQHE\SD\LQJWKHVHOOHUDOOFDVKULJKW
RXWRI\RXUSRFNHW
-2(.$,6(5
6XUHVXUH
-39$8*+$1 ,WFDQEHGRQHZLWK\RXNQRZ
-2(.$,6(5
7KDWZRXOGEHRQHWRDYRLG
-39$8*+$1 <HVWKDWZRXOGQRWEHFUHDWLYH>ODXJKWHU@
'$9,'),1.(/ 8QOHVVLWZDVUHDOO\UHDOO\FKHDSVXUH
-39$8*+$1 $QGJRLQJWRWKHEDQNDQGJHWWLQJLQWKHPRUWJDJH
DQGSXWWLQJFDVKGRZQZRXOGEHDWUDGLWLRQDOGHDO7KDWZRXOGQWEH
FUHDWLYHEXWWKLQJVOLNHWDNLQJVXEMHFW WRWKHH[LVWLQJPRUWJDJHDQG
-2(.$,6(5
$QGOHDVHRSWLRQVWKRVHNLQGVRIWKLQJV
-39$8*+$1 /HDVHGRSWLRQVDUHPRUHFUHDWLYH
-2(.$,6(5
6XUHVXUH$JDLQLWVJRLQJWREHRQHRIWKRVHWKLQJV
ZKHUHZHER WWOHLWGRZQKHUHWRWKHORZHVWGHQRPLQDWRU,ILWVPHKDYLQJWR
ZULWHDFKHFN,PWKLQNLQJWKDWVQRWJRLQJWREHFUHDWLYH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,I,FDQEULQJVRPHWKLQJHOVHWRWKHWDEOHLIVRPHWKLQJHOVHZRUNVIRUWKHP
ZKHUHDGHDOFRXOGKDSSHQZLWKRXWPHKDYLQJWRSXW XSDORWRIP\RZQ
PRQH\RUKDYLQJWRJRWRWKHEDQNWRJHWDORDQ\HVWKDWVJRLQJWREHDV
FUHDWLYHDV,JHW
(YHU\ERG\WKLQNVLWVDERXWWHFKQLTXH,WVQRW$QG\RXUHWHFKQLTXH
WHFKQLTXHWHFKQLTXHDQGFRXUVHVDOOKDYHIDQF\WLWOHVWKDWGHV FULEH
WHFKQLTXH\RXNQRZ
$QGWKLV\RXGUHPHPEHU$OOWKRVHZKHQ\RXUHWKHUH
ZLWKWKHVHOOHU+DQJRQ,WKLQNLWZDV QR,PHDQZDVWKHULJKW
ZD\WRJR
-39$8*+$1 <HDK>ODXJKV@
-2(.$,6(5
2U%RUVRPHWKLQJ,NQRZZLWKDEVROXWHFHUWDLQW\LWLVQW
DERXWWKDWDWDOO,WVQRWDERXWWKHQXPEHURIWHFKQLTXHVRUDOOWKHOLWWOH
WULFNV
,WVVLPSO\WDNLQJHQRXJKWLPHDQGLQYHVWLQJHQRXJKHPRWLRQDOHQHUJ\WR
KHDUWKHRWKHUSDUW\RXWDQGUHIOHFWDOLWWOHELWDERXWZKDWVWDNLQJSODFH
ZKDWWKHUHDOSUREOHPLVDQGKRZZHFDQVROYHWKDW,I\RXMXVWJHWLWWR
WKHUHDQG\RXYHJRWVRPHUHVRXUFHVDQGSHRSOHZKRGR KDYHVRPHPRQH\
WKHQDGHDOFDQKDSSHQWKHUH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 :KDWSHRSOHUHDOO\QHHGWRXQGHUVWDQGLVWKDWWKH\QHHGWR
NQRZDOOWKHYDULHW\RIGLIIHUHQWZD\VRISXWWLQJWKHGHDOWRJHWKHU
-2(.$,6(5
6XUH
<HV,PMXVWHQMR\LQJWKHGLIIHUHQFHVEHWZHHQDOOWKUHHRI
RXUSHUVRQDOLWLHV,WVMXVWVRREYLRXVKRZLWFRPHVDFUR VVZKHUHZHUH
VKDULQJLGHDVZKLFKLVJRRG
'$9,'),1.(/ 5LJKW
-2(.$,6(5
ZKRVOLVWHQLQJ
,WKLQNRQHRIXVLVJRLQJWRUHODWHWRMXVWDERXWHYHU\ERG\
7KHZD\,ORRNDWLWLVULJKWKHUHZHUHWDONLQJDERXWEX\LQJZLWKWHUPVIRU
WKHPRVWSDUW$ QGE\WHUPV,PHDQZKHUH\RXUHEX\LQJDQGQRWKDYLQJWR
JLYHDODUJHFKXQNRI\RXUPRQH\WRWKHVDOHRIDSURSHUW\:KHUHWKH
VHOOHUVQRWQHFHVVDULO\JHWWLQJDOOFDVKIURP\RX
,ORRNDWLWDV\RXGRQWZDQWWRKDYHWHFKQLTXHVEHFDXVHWKDWV
RYHUZKHOPLQJULJKW"
(YHU\RQHQHHGVWRHYHQWXDOO\JHWWRWKHSRLQWZKHUHWKH\FDQXVHILYHPDLQ
EX\LQJVWUDWHJLHV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,OOWDONDERXWWKHVHILYHEX\LQJVWUDWHJLHVUHDOEULHIO\KHUH,PJRLQJWRSXW
WKHPLQRUGHURIKRZZHOHDUQHGWKHPEHFDXVH,GRQWWKLQNWK DW\RXVKRXOG
WU\WRJHWDOOILYHRIWKHPDWRQFH
,WVNLQGRIOLNHJRLQJDQGSOD\LQJJROI7RGD\ZHUHJRLQJWRZRUNRQRXU
JULSRXUVZLQJRURXUVWDQFH<RXNQRZRXUH\HFRQWDFWRUIROORZ
WKURXJKLWVMXVWWRRPXFK6R,WKLQN\RXVWDUWRII ZLWKRQHDQG\RXSOD\
WKHRGGV
,I\RXUHEX\LQJZLWKOLWWOHRUQRWKLQJGRZQWKHPRVWXVHIXOVWUDWHJ\WROHDUQ
EHJLQQLQJZLVHLV
R +RZWRXVHWKHOHDVHRSWLRQ
R +RZWRUHDOO\XQGHUVWDQGZKHQ\RXILQGWKHULJKWVHOOHU
,WVRQHRIWKHVLPSOHVWZD\VRIGRLQJLW:HILQGWKDWULJKWQRZDERXW
RUSHUFHQWRIRXUVWXGHQWVILUVWVHYHUDOGHDOVDUHJRLQJWRVWDUWRIIDV
OHDVHRSWLRQV,WVMXVWWKHZD\WKDWZHVHHWKDW
6HFRQG,GOD\HULQWKHUHZKLFKLVJRLQJWRDFFRXQWIRUPDQ\SHRSOHDERXW
WRSHUFHQWRIWKHLUGHDOVZLOOEHEX\LQJSURSHUWLHVOHDYLQJDQGXVLQJ
WKHH[LVWLQJILQDQFLQJEDVLFDOO\VXEMHFW WRWKHH[LVWLQJILQDQFLQJ
7KDWVWKHQH[WRQHWKDW,ZRXOGOD\H ULQWKHUH$QG,OLNHWRWKLQNDERXWLW
DVNLQGRIOD\HULQJDFRDWRISDLQW<RXVWDUWRIIZLWKWKHIRXQGDWLRQFRDW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
WKHQ\RXJHW\RXUSULPHUFRDWDQGWKHQ\RXJHW\RXURWKHUFRDWVWRSDLQWRQ
WRSRIWKDW
7KHWKLUGRQH,ZRXOGOD\HULQZRXOGSUREDEO\E HRZQHUILQDQFLQJ7KLVLVD
XVHIXOVWUDWHJ\
%\RZQHUILQDQFLQJZKHWKHULWEHRZQHUVFDUU\LQJWKDWILUVWRUVHFRQG
PRUWJDJH%XWOHDUQLQJWRXVHQRWHVLQWKHUHDOLWWOHELW1RWWRVWUXFWXUH
DQ\WKLQJVRIDQF\WKDW\RXUUHYHUVHDPRUWL]DWLRQZLWKDOHIW WZLVWGHJUHH
DQGJRMXVWDEDVLFXQGHUVWDQGLQJRIKRZDVHOOHUFDQDFFHSWSD\PHQWV
RYHUDSHULRGRIWLPHRUDFFHSWDOXPSVXPSD\PHQWGRZQWKHURDG
7KDWW\SHRIWKLQJ(YHQ+H\,OOEX\\RXUSURSHUW\VXEMHFWWR\RXU
H[LVWLQJILUVWPRU WJDJH$QGWKDWRIHTXLW\WKDW\RXUH
ZDLWLQJIRUZHOOJHWLWWR\RXDVDOXPSVXPSD\PHQWGXHLQIXOOZLWKLQ
PRQWKVRIFORVLQJ
6RPHWKLQJVLPSOHEXWLWVXVHIXO
7KHIRXUWK,ZRXOGVD\ZRXOGSUREDEO\EHEX\LQJDSURSHUW\XVLQJZKDWV
FDOOHGDQHTXLW\VSOLW
7KLVLVEDVLFDOO\OLNHDOHDVHRSWLRQZLWKDOLWWOHELWRIVWHURLGVLQWKHUH
>ODXJKV@,WVDOHDVHRSWLRQZKHUHVRPHRIWKHSURILWWKDW\RXPDNH\RXVSOLW
ZLWKWKHVHOOHU
7KRVHZRXOGEHWKHYHU\PRVWFRPPRQIRXU
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHILIWKZD\2QFH\RXXQGHUVWDQGWKRVHZD\VRIEX\LQJIRUFDVK\RXUH
EX\LQJIRUGHHSGLVFRXQWVZKHWKHULWV\RXUPRQH\RUSULYDWHPRQH\WKDW
\RXUHERUURZLQJ$QG,GRQWPHDQKDUGPRQH\OHQGHUVKHUH,PHDQ
SULYDWHFDVKWKDW\RXYHGHYHORSHGDQGSHRSOHWUXVW \RX7KH\UHJRLQJWR
OHQG\RXPRQH\DWSHUFHQWLQWHUHVWWREHXVLQJIRUWKDW
VWXII6LPSOHLQWHUHVWQRSRLQWVDQGHYHU\RQHKHUHFDQGHYHORSWKDW
2QFH\RXYHGRQHWZRRUWKUHHGHDOVVXFFHVVIXOO\LWVQRWGLIILFXOWWRGHYHORS
UHODWLRQVKLSVWRERUURZPRQH\DWUHDVRQDEOHLQWHUHVWUDWHV1RWSD\LQJ
SRLQWVDQGLQWHUHVWRQVWXII
-39$8*+$1 (VSHFLDOO\ZLWKWKHLQWHUHVWUDWHVDVORZDVWKH\DUHWRGD\
'$9,'),1.(/ ([DFWO\
-39$8*+$1 ,PHDQWKHUHVVRPDQ\SHRSOHZ KRKDYHPRQH\LQ&'VDW
SHUFHQWRISHUFHQWRUZKDWHYHU,WVOLNHKDYLQJQRUHWXUQRQ\RXU
PRQH\
6RZKHQ\RXFDQRIIHUSHUFHQWRUHYHQSHUFHQWWKDWVDKXJHGLIIHUHQFH
IURPZKDWWKH\UHJHWWLQJLQWKHEDQNRULQVRPHRWKHUFRQVHUYDWLYH
LQYHVWPHQW
-2(.$,6(5
7KH\GRKDYHWRVHH\RXLQDFWLRQDOLWWOHELWDQG\RX
NQRZFRQVHUYHLWIRUWKHPVHOYHVWKDW\RXFDQDFWXDOO\PDNHWKLVKDSSHQIRU
WKHP
-39$8*+$1 5LJKWXQOHVVLWV\RXU0RP
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ ,WKLQNLQRQHGHDO,WULHGWRJHWP\VLVWHUWRSXWXSWKH
PRQH\IRULWEHFDXVHVKHFDPHWRPHDQGVDLG'DYLGLI\RXHYHUQHHG
PRQH\IRUDGHDOFRPHVHHPH
,ZDQWHGWRJHWKHULQYROYHGMXVWEHFDXVH,ZDQWHGKHUWREHSDUWRILW,
GLGQWDFWXDOO\QHHGWKHPRQH\DWWKDWSRLQW
-39$8*+$1 5LJKW
'$9,'),1.(/ 6R,VDLG<RXNQRZJUHDW\RXOOSXWLQ,WKLQNLWZDV
LQWRWKHGHDO$QGEHIRUH,JHWSDLGDQ\PRQH\\RXOOJHWDOORI
\RXUSULQFLSDOILUVWDQGWKHQ\RXOOJHWRQH WKLUGRIWKHWRWDOSURILWVIURPWKLV
SDUWLFXODUGHDO
6KHZDVDOOIRULWXQWLOVKHJRWWRWKHSRLQWRIKDYLQJWRZULWHDFKHFN7KHQ
VKHJRWVFDUHGDQGVDLG1R,OOMXVWNHHSLWLQWKLVQLFHVWRFNSRUWIROLRWKDW,
KDYH>ODXJKV@
'$9,'),1.(/ <HDKOHVVYDOXDEOHWKDQLWZDVWKHQ\HDK
-39$8*+$1 5LJKW
-2(.$,6(5
3HRSOHVKRXOGDOVRNQRZHYHU\ERG\LVZLOOLQJWRVD\WKH\OO
SXWXSWKHPRQH\XQWLOLWFRPHVWRZULWLQJWKDWFKHFN
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ ,VWKDWLQWHUHVWLQJ"
-2(.$,6(5
7KH\JHWVFDUFHLQDKXUU\
-39$8*+$1 6R\RXQHHGEDFNXSDQGEDFNXSDQGEDFNXSQXPEHUILYH
ULJKW"
-2(.$,6(5
:HOOLWVWKDWDQG\RXQHHGWRKDYHFRQILUPHGEDQNHUV
WKHUH&RQILUPHGGROODUV
'$9,'),1.(//LNHSHRSOHZKRKDYHLQYHVWHGEHIRUHZLWK\RXRUZLWK
VRPHERG\HOVH
-2(.$,6(5
<HVEHFDXVHWKDWVZKHUH,XVHGWRJHWKXQJXS,GPDNH
ZKDW,WKRXJKWZHUHJRRGGHDOVDQG,KDGSHRSOHOLQHGXSWRILQDQFHWKHP
DQGWKHQWKH\GMXVWGLVDSSHDURQPH$QG, POHIWKROGLQJWKHEDJ\RX
NQRZ
-39$8*+$1 <HV
-2(.$,6(5
,TXLFNO\OHDUQHGWKDWXQWLO\RXKDGVRPHERG\ZKRZDV
FRPPLWWHGDQGKDGGRQHWKLVZLWK\RXLQWKHSDVWWKHUHVWZDVMXVWKRWDLU
DWWKDWSRLQW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
:RZ
-39$8*+$1 ,IZHKDYHWRVWD\ORQJHUDUH\RXZLOOLQJWRVWD\"
-2(.$,6(5
1RSUREOHP
-39$8*+$1 'DYLG"
'$9,'),1.(/ 6XUH
-39$8*+$1 2KJRRG,ZDQWWRWHOOHYHU\RQHWKDWERWK-RHVDQG
'DYLGVFRXUVHVFDQEHIRXQGLQWKHRQOLQHVWRUHDW &5(RQOLQHFRP
<RXFDQWJRZURQJZLWKDQ\RIWKHLUFRXUVHV
7KHUHDVRQ,DVNHG-RH.DLVHUDQG'DYLG)L QNHOWREHZLWKPHRQWKLVYHU\
ILUVWWHOHVHPLQDULVEHFDXVH,MXVWWKLQNWKH\UHWZRRIWKHWRSUHDOHVWDWH
HGXFDWRUVLQWKHFRXQWU\ULJKWQRZ
2ND\JX\V4XHVWLRQQXPEHU-RHZHZHUHMXVWWDONLQJDERXWWKLV
+RZGR,ILQGDQGJHWILQDQFLQJIRUP\
GHDOV"
-2(.$,6(5
:HOOWKHEHVWZD\LVWRVHOOLWWRVRPHERG\,WVUHDOHDV\
WRILQDQFHGHDOVWKDW\RXUHMXVWJRLQJWRWXUQDURXQGDQGVHOO
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,WVDOLWWOHELWKDUGHULI\RXUHWDONLQJDERXWEXLOGLQJDQHPSLUH,QWKHHDUO\
GD\VWKDWZDVDOZD\VP\WKLQJ,ZRXOGEX\DQG,ZRXOGQWVHOO6RLI
SHRSOHOLNHILQDQFLQJWKRVHDUHWRXJKKXUGOHV
5LJKWQRZ,PPRUHLQFOLQHGWRILQGVWXIIWKDW,FDQMXVWWXUQDURXQGDQGIOLS
$QGMXVWE\WKHQDWXUHRIWKDWEXVLQHVVWKRVHGHDOVDUHIXQGHGZLWKWKH QH[W
JX\LQOLQH
7KHHDVLHVWZD\WRILQGWKDWVRUWRIWKLQJLVWRNQRZZKDWLVDJRRGGHDODQG
WREHRXWWKHUHPDNLQJJRRGGHDOV\RXFDQVHOO<RXFDQVHOOWKRVHDQG\RX
FRXOGVWLOOVHOOWKHPFKHDSO\7KHUHZLOOEHSHRSOHWKHUHWREX\LW
,VROGDSURSHUW\WKHRWKHUGD\WKDWZHJRWIRUVRPHERG\LQDSUREDWH
VLWXDWLRQ:HKDGLWXSRQP\ZHEVLWH7KHUHZHUHDFRXSOHRIRIIHUVULJKW
RIIWKHEDW,WZDVEDVLFDOO\DUDFHWRP\RIILFHDQGWKHJX\ZKRJRWWKHUH
ILUVWJRWWKHSURSHUW\
7KHQWKHUHZDVD JX\EHKLQGKLP7KH\SDVVHGJRLQJRXWWKHGRRU,WZDV
WKDWFORVH7KH\ZHUHOLQHGXSDQGUHDG\WRJRZLWKFDVK
6RLI\RXFDQEX\WKHPFKHDSVRWKDW\RXFDQVHOOWKHPFKHDSDQGWKHUHV
VWLOODORWRIURRPLQWKHUHWKRVHGHDOVZLOOJHWILQDQFHG 6RPHERG\ZLOO
ZULWHDFKHFN
-39$8*+$1 4XHVWLRQQXPEHU'DYLG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
+RZGR,ILQGSULYDWHLQYHVWRUVWRIXQG
P\GHDOV"
-39$8*+$1 :HYHEHHQWDONLQJDOLWWOHELWDERXWWKDW
'$9,'),1.(/ ,ZDQWWRPDNHVXUH,PHQWLRQWKLVEHFDXVHPRVWSHRSOH
WKLQNWKH\QHHGSULYDWHPRQH\WRGRGHDOV
8QGHUVWDQGWKDWLI\RXUHDOO\NQRZZKDW\RXUHGRLQJLQWHUPVRIOHDUQLQJWR
QHJRWLDWHDQGFRQQHFWSHRSOHDQGILQGSHRSOHZKRDUHWUXO\LQPRWLYDWLQJ
VLWXDWLRQVWKHQWKDWVRXUFHRISULYDWHPRQH\LVWKHVHOOHUV RZQILQDQFLQJ
WKDWWKH\KDYHDJDLQVWWKHSURSHUW\FXUUHQWO\
7KDWUHDOO\LVWKHEHVWVRXUFHRIILQDQFLQJWKDW\RXKDYHZLWKEX\HUVEHLQJ
WKHVHFRQGEHVWVRXUFH
,OLNHWRVHOOP\SURSHUWLHVRQDUHQW WRRZQEDVLVEHFDXVH,JHWDQLFHWR
RSWLRQSD\PHQWDQGWKDWIXQGVDORWRIP\GHDOV,DOVROLNHWKHP
EHFDXVH,ILQGWKDWRXWRIRUEX\7KHUHVWGRQW7KDWOHWVPHNLQGRI
KDQJRQWRDORWRIZKDW,PEX\LQJDQGVWLOOILQDQFHP\ODQGQRZ
,I,ZDQWHGWRGHYHORSSULYDWHOHQGHUVXQGHUV WDQGLQJWKDW,PJRLQJWRKDYH
DOLWWOHELWRIDWUDFNUHFRUGXVXDOO\WKDWGRHVQWPHDQWKDW,YHJRWWRKDYH
RUKRXVHV,QHHGWRKDYHWZRRUWKUHHVXFFHVVHVDQGWKHQWKH\UH
JRLQJWREHPXFKPRUHLQWHUHVWHGLQWDONLQJZLWKPH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,I,GRQWKDYHW KRVHVXFFHVVHV,FDQILQGDPHQWRUWRZRUNZLWKDQGGR
VRPHGHDOVWRJHWKHUZLWKWKHP$QGERUURZDQGOHYHUDJHWKDWH[SHULHQFH
ZLWKVRPHERG\
7KHNH\LVWKDW,QHHGWRKDYHDWUDFNUHFRUGRUPRUHWKDWVJRLQJWRPDNHLW
HDVLHULQWHUPVRIILQGLQJSULYDWH SDUWLHVWRGRWKDW
,WKLQNJRLQJWR\RXUORFDOUHDOHVWDWHLQYHVWRUVFOXELVDJUHDWZD\WRILQG
VRPHRQHWREHDPRQH\SDUWQHU7KHVHDUHSHRSOHZKRDUHDOUHDG\ZLOOLQJWR
LQYHVWLQUHDOHVWDWH7KH\NQRZZKDWDJRRGGHDOORRNVOLNH
'RQWORRNIRU WKHKDUGPRQH\OHQGHUV,VXJJHVWWKDWHDUO\RQ,WKLQNWKDW
ZRXOGEHWRRPDQ\SHRSOHJHWWLQJPLVWDNHVEHFDXVHWKH\WKLQNWKHUHKDE
URXWHLVWKHZD\WRJR
1RWKLQJZURQJZLWKUHKDEEXWSHRSOHFRQVLVWHQWO\RYHUHVWLPDWHRU
XQGHUHVWLPDWHWKHFRVWLQYRO YHGZLWKWKDW
6R,ORRNIRUWKHSHRSOHZKRUHFRJQL]HZKDWDJRRGGHDOLVLQWKDW5($
JURXS6RPHRQHZKRZRXOGZDQWWRSXWXSWKHPRQH\WKDW,QHHGLQ
H[FKDQJHIRUDKDOILQWHUHVWLQWKHGHDO2UHYHQDRUSHUFHQWLQWHUHVW
LI,KDGWRZLWKWKHILUVWFRXSOHMXVWWRJHWWKHPJRLQJZLWKPH
7KHUHVDQRWKHUVRXUFHRISULYDWHPRQH\WKDW,KDYHVHHQEHYHU\
VXFFHVVIXO2IWHQWLPHV,ILQGSHRSOHZKRGRQWZDQWWRVHOOPHWKHLU
SURSHUW\EXWWKH\UHFRJQL]HWKDWZKDW,PGRLQJLVSUHWW\VPDUW,YHKDG
SHRSOHRIIHUWRIXQGGHDOVIRUPH7KH\ZHUHVHOOHUVRISURSHUWLHVWKDW,
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
GLGQWEX\7KDWVDQRWKHUZD\WKDW\RXFDQGRLW E\IROORZLQJXSZLWK
WKDW
)RUH[DPSOHRQHRIWKHJX\VERXJKWKLVKRXVHLQ6DOHP2UHJRQ:HKDYH
PD\EHDERXWRUKRXVHVLQWKDWDUHD:HKDGDVWXGHQWWKHUHWKDWZH
HQGHGXSEX\LQJVRPHSURSHUWLHVZLWK
7KHJX\ZDVD836GULYHU+HVWDUWHGRIIWKHUHDQGNLQGRIZHQWXSWKURXJK
WKHUDQNV%\WKHWLPHKHUHWLUHGKLVVWRFNZHQWWKURXJKWKHURRIEHFDXVH
WKH\ZHQWSXEO LFDFRXSOHRI\HDUVDJR
+HEDVLFDOO\ZDVVD\LQJLI\RXHYHUFRPHDFURVVGHDOV,GEHZLOOLQJWR
FRQVLGHUIXQGLQJWKHP,WVLQWHUHVWLQJ\RXILQGSHRSOHWKDW\RXGREXVLQHVV
ZLWKRUGRQWGREXVLQHVVZLWK,IWKH\OLNHWKHZD\\RXRSHUDWHWKH\DUH
ZLOOLQJWRGREXVLQHVVZLWK\RX
,WVQRWWKDWGLIILFXOW2QHRIWKHEHVWWKLQJV\RXFDQGRWRILQGGHDOVLVOHW
SHRSOHNQRZWKDW\RXUHDQLQYHVWRU
)LQGWKHSHRSOHZKRFRPHVHH\RX,I\RXUHVKDULQJZLWKVRPHRQHDUHDO
ORZNH\VWRU\DERXWDSURS HUW\\RXERXJKWDQGWKH\KHDUDERXWWKDW
PDQ\RIWKHVHSHRSOHZLOOILQG\RXDERXWSXWWLQJXSPRQH\IRUGHDOV
-39$8*+$1 7KDWVULJKW
'$9,'),1.(/ 3HRSOHZDQWUDWHVRIUHWXUQ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,ZHQWUXQQLQJWKHRWKHUGD\,QP\FDU,KDGP\XJO\WDFN\,%X\
+RXVHVVLJQVZKLFK,YHQHYHUERXJKWDKRXVHIURP%XWWKH\UHPLQGPH
WKDW,PDQLQYHVWRU,YHKDGSOHQW\RISHRSOHOLNHWKLVJX\ZKRZDVRXW
WKHUHPRXQWDLQELNHULGLQJ
,WZDVWKHPLGGOHRIWKHGD\7\SLFDOO\SHRSOHZKRZRUNIRUDOLYLQJFDQW
WDNHRIILQWKHPLGGOHRIWKHGD\WRJRELNLQJRUUXQQLQJ7KLVJX\
DSSURDFKHGPH
,VDLG:HOOJRVK\RXKDYHWKDWVLJQWKHUH,GOLNHWREX\KRXVHV,I\RX
HYHUILQGVRPHWKLQJWKDW\RXFDQWIXQG,GEHKDSS\WRHLWKHUEX\LWIURP
\RXRUPD\EH LIWKHGHDOVJRRGHQRXJKEHDPRQH\SDUWQHURQLW
+HIRXQGPH,PHDQLWVQRWGLIILFXOWWRGRWKDW
<RXMXVWQHHGWRXQGHUVWDQGWKHWKUHHPRVWLPSRUWDQWWKLQJVLQWKHPLQGRI
DQLQYHVWRU
R 7KHILUVWDQGQXPEHURQHFULWHULDIRUDQLQYHVWRULV VHFXULW\
R 7KHVHFRQGPRVWLPSRUWDQWFULWHULDIRUDQLQYHVWRUWKDWVNLQGRID
VPDOOWLPHLQYHVWRULQSURSHUWLHVLVVHFXULW\
R 7KHWKLUGPRVWLPSRUWDQWFULWHULDLVVHFXULW\
7KHVHDUHQRWSHRSOHWKDWDUHORRNLQJIRUKXJHUDWHVRIUHWXUQRQWKHLU
PRQH\7KHVHDUHSHRSOHZKRDUHORRNLQJIRUVPDUWLQWHOOLJHQWLQYHVWPHQWV
ZKHUHWKH\UHQRWJRLQJWRORVHSULQFLSOH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KH\GRQWZDQWWRORVH7KH\GRQWPLQGQRWZLQQLQJKXJHEXWWKH\FDQQRW
DFFHSWORVLQJPRQH\7KDWVZKDW\RXQHHGWRDGGUHVVZKHQ \RXUHXVLQJ
WKHLUPRQH\WREX\
-2(.$,6(5
,OLNHG\RXULGHDDERXWWKHORZ NH\DVSHFWRILWWRR,
UHPHPEHUZKHQ,ZDVVWDUWLQJRXW,ZDVORRNLQJIRUSULYDWHIXQGLQJDQG,
ZDVUHDOO\H[FLWHGDERXW>ODXJKV@LQYHVWPHQWV7KDWVFDUHGDORWRISHRSOH
RIIEHFDXVH,ZDVSDLQWLQJVRPHSUHWW\JRRGVWRULHVWKHUH\RXNQRZ
'$9,'),1.(/ 7RRJRRGWREHWUXH
-2(.$,6(5
7RRJRRGWREHWUXH\HDK
'$9,'),1.(/ ,PHDQSHRSOHVD\:HOOZKDWGR\RXRIIHUSHRSOH"
)LUVWRIDOO,WKLQNLQWRGD\VZRUOGL I,PVWDUWLQJRIIVD\LQJWKLQJVDERXWWR
PD\EHSHUFHQWLQWHUHVWRQDILUVWPRUWJDJHLWVHHPVWRRJRRG,GRQW
RIIHUSHUFHQWRUSHUFHQWHYHQLI,PZLOOLQJWRSD\LW
-2(.$,6(5
5LJKW
ULVN\,I\RXUHJRLQJWRJLYHPHWKDWPXFKDQGWKHEDQNVRQO\JRLQJWR
JLYHPHSHUFHQWWKHEDQNVPXFKVPDUWHUEHFDXVHLWVPXFKPRUHVHFXUH
\RXNQRZ"
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
6R,OLNHWRPDNHVXUHWKDW,UHFRJQL]HWKDWVWDUWORZHUDQGZLWKDPXFK
VRIWHUDSSURDFK
-2(.$,6(5
,WKLQNLWVDJRRGSRLQWDOVRWKDWIRUVRPHUHDVRQZHWKLQN
ZHQHHGWKHVHSHRSOH,PQRWVXUHWKDW\RXGR,WFRPHVLQKDQG\DQGDOO
EXW,WKLQN\RXFDQSUREDEO\ILJXUHLWRXWZLWKRXWKDYLQJDORWRISULYDWH
PRQH\OLQHGXSEHKLQG\RX
0RVWLQYHVWRUV,NQRZQHYHUKDGSULYDWHPRQH\WKHUHZDLWLQJWRZULWHD
FKHFNZDLWLQJIRUWKHPWREULQJDGHDOWRWKHP
'$9,'),1.(/ 7UXH,WVDPD]LQJUHDOO\$PRQWKVGHDO\RXFDQJHW
DZD\ZLWKQRPRQH\,I\RXQHHGVRPHPRQH\\RXUFUHGL WFDUGVUHDOO\
FRXOGIXQG\RXUZD\LQWKHUH
-2(.$,6(5
6XUHVXUH
-39$8*+$1 2ND\JUHDW4XHVWLRQQXPEHU-RH
3OHDVHH[SODLQKDUGPRQH\ORDQV$ORW
RISHRSOHGRQWUHDOO\XQGHUVWDQGZKDW
KDUGPRQH\LVDQGLQFOXGLQJWKHOHQGLQJ
FULWHULDDQGWKHFRVWDQGWKHWHUPV
-2(.$,6(5
,WKLQNSDUWRIWKHFRQIXVLRQLVWKDWWKHWHUPFKDQJHV
GHSHQGLQJZKHUH\RXUHVWDQGLQJ,QVRPHSDUWVRIWKHFRXQWU\,KHDU
GLIIHUHQWVWRULHVDERXWZKDWKDUGPRQH\LV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,NQRZZKHUH,DPKHUHLQ:DVKLQJWRQ6WDWHKD UGPRQH\LVMXVWVLPSO\D
ORDQDJDLQVWDSURSHUW\EDVHGVROHO\RQWKHSURSHUW\WREXLOGLWRUUHSD\LW
1RWVRPXFK\RXUV
-39$8*+$1 7KDWVULJKW
-2(.$,6(5
6RWKLQJVOLNHFUHGLWGRQWKDYHDQ\VRUWRIEHDULQJ ,
KHDURWKHUSDUWVRIWKHFRXQWU\ ILUVWWKLQJDKDUGPRQH\OHQGHUZDQWVLV\RXU
FUHGLWUHSRUW
-39$8*+$1 %XW,GRQWWKLQNWKRVHDUHWUXHKDUGPRQH\OHQGHUV7R
PHLQP\RSLQLRQHYHQWKRXJK,DVNHG\RXWKHTXHVWLRQDUHDOKDUG
PRQH\OHQGHULVORRNLQJWRWKHSURSHUW\IRUWKHVHFXULW\
-2(.$,6(5
6ROHO\RQWKHSURSHUW\
-39$8*+$1 $QGWKH\VKRXOGQHYHUEHFKHFNLQJRXW\RXUFUHGLW
-2(.$,6(5
<HV
-39$8*+$1 ,VHHWKDWDORWLQWKHQHZVJURXS3HRSOHVD\LQJ:HOOLQ
P\DUHDWKHKDUGPRQH\OHQGHUVDUHDVNLQJIRUDFUHGLWFKHFN
7KHDQVZHULVWKH\DUHQRWUHDOO\KDUGPRQH\OHQGHUV
-2(.$,6(5
5LJKW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 ,IWKH\KDYHDSHUFHQWFXVKLRQLQWKHSURSHUW\ZK\
VKRXOGWKH\FDUHDERXW\RXUFUHGLW"
-2(.$,6(5
:HOOWKDWVZKDW\RXZRXOGWKLQN
)RUPHLWZRUNVOLN HWKLV,YHJRWDJX\DQG,MXVWPDNHDSKRQHFDOO,WHOO
KLPWKHSURSHUW\DGGUHVVDQGZKDW,QHHG:LWKLQDGD\RUWZRKHZLOOGULYH
E\DQGORRNDWWKHSURSHUW\
,IWKDWZRUNVJUHDW,IQRWKHOOMXVWSDVV:HZRQWUHDOO\WDONDERXWLW
7KHUHVQRWDORWRIEDFNDQGIRUWKRUJLYHDQGWDNH
-39$8*+$1 5LJKW
-2(.$,6(5
+HNQRZV,PJRLQJWRWHOOKLPZKDW,QHHGDQGQHLWKHURI
XVDUHSOD\LQJJDPHV,ILWZRUNVJUHDW,IQRWZHOOJRRQWRVRPHERG\
HOVH7KDWVWKHZD\LWZRUNV,WXVHG WREHZHZRXOGSD\SHUFHQWRU
SRLQWV
-39$8*+$1 7HQSRLQWV
-2(.$,6(5
(YHQSHUFHQWDQGZHVWLOOILJXUHGRXWKRZWRPDNH
PRQH\GRLQJWKDW
-39$8*+$1 <HDK
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
<RXNQRZWKDWZDVVL[RUHLJKW\HDUVDJR5LJKWQRZLWV
DURXQGSRLQWVDQGVRPHZKHUHDURXQGSHUFHQWIRUKDUGPRQH\QRWVR
EDG
-39$8*+$1 7KDWVQRWEDGIRUSD\LQJWKDWNLQGRIPRQH\,WVVWLOO
H[SHQVLYHPRQH\ZKHQ\RXFRPSDUHLWWRWRGD\VUDWHV:KLFKDUH
KLVWRULFDOO\ORZ,WKLQNWKHORZHVWLQWKHSDVW \HDUVRUZKDWHYHU
-2(.$,6(5
2KGHILQLWHO\
-39$8*+$1 $JDLQ,MXVWZDQWSHRSOHWRXQGHUVWDQGWKDWDKDUG
7KRVHDUHXVHGIRUVKRUW WHUPVLWXDWLRQV
-39$8*+$1 5LJKW
-2(.$,6(5
2QVRPHRIWKRVHWKH\DUHKLJKHU\RXNQRZDQG
SHUFHQW7KRVHDUHWKLQJV\RXZDQWWREHLQDQGRXWRI7KDWVMXVWD
FRQVWDQWLQGRLQJEXVLQHVV
-39$8*+$1 5LJKW
-2(.$,6(5
DERXWILQDQFLQJWKDWGHDO
-39$8*+$1 6KRUWWHUPPRQH\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
6KRUWWHUP7KHEHDXW\ZLWKXVLVWKDW\RXNQRZWKHJX\V
JRWDFKHFNOLNHWZRGD\VODWHU
-39$8*+$1 5LJKW
-2(.$,6(5
<RXNQRZKHVKRRNHGXSZLW KWLWOHFRPSDQLHV+HFDQJHW
WLWOHLQVXUDQFHLQDGD\RUWZRDQGKHVJRWKLVRZQOLWWOHHVFURZFRPSDQ\WR
FORVHWKHVHWKLQJV7KHNH\WRWKLVZDVMXVWKRZTXLFNO\KHFRXOGSXWLW
WRJHWKHU
([DFWO\,I,QHHGWKHPRQH\WRGD\LWVQRWJRLQJWRPDWWHU
ZKDWKHVFKDUJLQJ,I,FDQJHWWKHPRQH\DZHHNODWHUDQGVRPHERG\FDQ
GRLWDWDPXFKFKHDSHUUDWHWKDWVQRWJRLQJWRKHOSPH
-39$8*+$1 1RWLI\RXUHJRLQJWRORVHWKHGHDOULJKW"
-2(.$,6(5
1RWLI,PORVLQJWKDWGHDO,QHHGLWQRZDQGMXVWWKH
DYDLODELOLW\LVVRPHWLPHVZRUWKSD\LQJDSUHPLXPIRU
+RZFDQ,ILQGKDUGPRQH\OHQGHUV"
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
,GLGQWUHDOL]HLWZDVKDUG7KH\DGYHUWLVHLQWKH
QHZVSDSHUIRUXV,VHHWKHVDPHDGVWKDWKDYHEHHQUXQQLQJIRU\HDUV
,KRRNHGXSZLWKDJX\HDUO\RQDQGKDYHXVHGKLPSUHWW\PXFKH[FOXVLYHO\
IRUKDUGPRQH\,NQRZ KHVJRWDORWRIPRQH\RUKHVGHILQLWHO\JRWWKH
DFFHVVWRLW+HVSUHWW\PXFKIXQGHGZKDWZHQHHGHG
-39$8*+$1 <HV:KDW,XVXDOO\WHOODORWRIEHJLQQHUVRQHRIWKHEHVW
WKLQJV\RXFDQGRLVMRLQ\RXUORFDOUHDOHVWDWHFOXEEHFDXVH\RXZLOOIL QGRXW
<RXOOEHDEOHWRQHWZRUNZLWKVRPDQ\SHRSOHDQGILQGRXWZKRWKHOHQGHUV
DUHZKRWKHKDUGPRQH\OHQGHUVDUH
3ULYDWHLQYHVWRUVDUHDVZHWDONHGDERXWHDUOLHU<RXZLOOOHDUQDOONLQGVRI
VWXIIOLNHZKRVDJRRGDJHQWWRZRUNZLWKRUZKRVDJR RGUHDOHVWDWH
DWWRUQH\
-XVWWKHQHWZRUNLQJDORQHFDQDQVZHUVRPDQ\TXHVWLRQVDERXWKRZGR,
ILQG;ULJKW"'RQW\RXDJUHH"
-2(.$,6(5
2KGHILQLWHO\,WPDNHVHYHU\WKLQJVRPXFKHDVLHUZKHQ
WKDWVKRZGHDOVIDOOLQWR\RXUODS<RXUHMXVWVLWWL QJWKHUHQRWGRLQJDWKLQJ
DQGVRPHRQHIURPDWLWOHFRPSDQ\ZLOOFDOODQGVD\/RRN,YHJRW
VRPHERG\KHUHDQGKHVVWXFN,VWKHUHDQ\WKLQJ\RXFDQGR"
,IZHKDGQWKDGWKDWFRQQHFWLRQWKDWGHDOZRXOGQWKDYHKDSSHQHG
-39$8*+$1 7KDWVULJKW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
<HV7KDWSUREDWHGHDO,ZDVWDONLQJDERXWMXVWDPLQXWH
DJRWKDWVH[DFWO\KRZWKDWKDSSHQHG$QRIILFHUIURPDWLWOHFRPSDQ\
FDOOHGXV
-39$8*+$1 7KDWVLQFUHGLEOHLVQWLW"
-2(.$,6(5
<HV([DFWO\
-39$8*+$1 ,WVOLNHRXUJRRGIULHQG/RQQLH6FUXJJVZKRRIFRXUVHLV
WKHNLQJRIPRELOHKRPHV+HVLQKLVVQRZ+HGRHVQWZDQWWRGRDQ\
PRUHGHDOV+HKDVQWZDQWHGWRIRUDQXPEHURI\HDUV%XWKHFDQWTXLW
GRLQJLWEHFDXVHSHRSOHNHHSEULQJLQJKLPGHDOV>ODXJKV@
+HKDVVXFKDYDVWQHWZRUNRISHRSOHRIIULHQGVDQGSDUNPDQDJHUVDQG
HYHU\WKLQJHOVHWKDWKHMXVWFDQWTXLWGRLQJGHDOV7KH\NHHSEULQJLQJWKHP
WRKLP
-2(.$,6(5
7KDWVZK\LWVVRKDUGHDUO\RQEHFDXVH\RXKDYHQRQHRI
WKDWLQSODFH:HILJKWDJDLQVWWKDWEXWLWVRQHRIWKRVHWKLQJVZKHUH\RX
KDYHWRSXWLQWKHWLPH
-39$8*+$1 <RXGR
-2(.$,6(5
GHYHORS
'RDJRRGMREDWLWDORQJWKHZD\DQGWKRVHWKLQJVZLOO
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHUHDUHFHUWDLQWKLQJV\RXFDQNLQGRIIRUFHWRKDSSHQDQGRWKHUVWKDW\RX
GRKDYHWRJRZLWKWKHIORZ,I\RXUHGRLQJDJRRGMRE\RXOOJHWWKDW
WUDFNUHFRUGDQGWKRVHWKLQJVZLOOFRPHWR\RX
<RXOONQRZLWWRREHFDXVHDWVRPHSRLQWWKDWNLFNVLQDQGDOORIDVXGGHQ
\RXFDQDOPRVWFRDVW7KLQJVDUHKDSSHQLQJWKDWMX VWKDSSHQZLWKRUZLWKRXW
\RX
-39$8*+$1 7RSXWWKHHQHUJ\LQHDUO\RQDQGPRYHWKHPROHFXOHVDQG
PDNHWKHFRQQHFWLRQVDQGWDONWRSHRSOHDQGQHWZRUN$QGRQHGD\\RXOO
ZDNHXSDQGWKLQJVVWDUWKDSSHQLQJ
-2(.$,6(5
7KDWVWUXHDQG\RXMXVWDOPRVW KDYHWRSLQFK\RXUVHOI
<RXFDQWEHOLHYHKRZDOOWKLVVWXIIZRUNV7KHUHDUHGD\VWKDW\RXZRXOGVLW
WKHUHZKHQ\RXZHUH\RXQJMXVWWKLQNLQJ:KHQDP,JRLQJWRJHWDGHDO"
,YHEHHQEHDWLQJP\KHDGDJDLQVWWKLVZDOOIRU\HDUVRUDPRQWKDQG
QRWKLQJLVFOLFNLQJ
7KHQWRGD\ZHVHHKRZWKHVHWKLQJVDUHSUDFWLFDOO\MXVWIDOOLQJLQRXUODSV
-39$8*+$1 'DYLGTXHVWLRQ3HRSOHVHHPWRJHWVWXFNRQPHWKRGV
7KHTXHVWLRQLVDQGWKLVZDVDIUHTXHQWO\DVNHGTXHVWLRQ
:KDWVWKHEHVWPHWKRGWRXVHIOLSSLQJ
UHKDEVEX\LQJVXEMHFWWROHDVHRSWLRQV
EX\LQJLQZKROH7KHUHVVRPDQ\GLIIHUHQW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
ZD\VWREX\DQGGHDOZLWKUHDOHVWDWH
:KDWVWKHVLQJOHEHVWPHWKRG"
'$9,'),1.(/ 2ND\,PJRLQJWRJLYH\RXZKDWP\WDNHRQWKHVXEMHFW
LV,ORRNHGDW WKLVDQG,PJRLQJWRDQVZHUWKHYHU\QH[WTXHVWLRQDWWKH
VDPHWLPHEHFDXVHLWILWVWRJHWKHUTXHVWLRQDERXWZKDWLVDTXLFNIOLS
DQGKRZGRHVLWZRUN
-39$8*+$1 5LJKW
:KDWLVDTXLFNIOLSGHDO"+RZGRHVLW
ZRUN"
WHFKQLTXHEHFDXVHWKHQWKH\FDQOHDUQMXVWWKDWDQGEHVHWWKHUH
8QGHUVWDQGWKDWGLIIHUHQWSHRSOHDUHJRLQJWREHDWGLIIHUHQWVWDJHVLQWKHLU
LQYHVWLQJ,OLNHWR,DVNSHRSOHDTXHVWLRQ,IWKHUHVDGHDOKHUHWKDW\RX
FRXOGWXUQFDVKLQGD\VKRZPDQ\ZRXOGWDNHWKDW"
$ERXWDTXDUWHURIWKHKDQGVJRXSRQWKDW7KH\QHHGWKDWFKHFNOLNHWKH\
QHHGWKHLUQH[WEUHDWKRIR[\JHQ
7KHQ\RXOODVNDJDLQ+RZPDQ\RI\RXLI\RXFRXOGZDLWD\HDURUWZR
EXWPDNHVRPHZKHUHLQWKHQHLJKERUKRRGRIDURXQGZRXOGUDWKHU
ZDLWDQGPDNHD\HDURUWZRODWHU"
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
<RXOOILQGPD\EHDERXWSHUFHQWRIWKHKDQGVUDLVHGIRUWKDW
,DVNWKHQH[WRQH+RZPDQ\RI\RXZRXOGUDWKHUZDLWILYHRUVL[\HDUV
DQGUDWKHUWKDQPDNLQJ\RXGPDNH"
$ORWRIKDQGVJRXSIRUWKDWRQH
7KHODVWTXHVWLRQ,DVN+RZPDQ\RI\RXZRXOGKRSHWRQHYHUVHOOWKDW
SURSHUW\DQGPDNHDFRXSOHRIKXQGUHGWKRXVDQGGROODUVEXWPDNHLWRYHU
WKHQH[W\HDUV"
8VXDOO\DERXWRUSHUFHQWRIWKHKDQGVJRXSRQWKDWRQH
6RGHSHQGLQJRQKRZVRPHRQHDQVZHUVWKRVHTXHVWLRQVWKDWVZKDWV
JRLQJWRWHOO\RXZKDWWKHEHWWHUGHDOVDUH JRLQJWREHIRU\RXUVWUDWHJ\,I
\RXZDQWWKDWFKHFNIRURUIRU\RXUHJRLQJWR
QHHGWRWXUQ\RXUGHDOVIDLUO\TXLFNO\
6R\RXILQGSURSHUWLHVWKDW\RXUHEX\LQJUHDOFKHDSWRIOLS7KDWLVZKDW
WKDWVSHFLILFDOO\PHDQV$TXLFN IOLSLVZKHUH\RXUHORFNLQJXSDSURSHUW\
XQGHUDFRQWUDFW5DWKHUWKDQFORVLQJRQWKDWFRQWUDFWXVXDOO\LWVIRUD
FKHDSFDVKSULFH\RXUHVHOOLQJWKDWFRQWUDFWW\SLFDOO\WRDQRWKHULQYHVWRU
,WKLQNWKHEHVWZD\WRKDQGOHWKDWLVWRSXWWKHSURSHU W\RXWWKHUHWRWKH
,QYHVWRUVDVZHOODVSHRSOHZKRZDQWWROLYHLQWKHSURSHUW\WKHPVHOYHVWKH
UHWDLOPDUNHW:KRHYHUJLYHV\RXDFDVKLHUVFKHFNILUVWJHWVLW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,GRQWWKLQN\RXVKRXOGPDUNHWLWRQHDYHQXHDWDWLPH,WKLQNWKDWVDELJ
PLVWDNHWKDWSHRSOHPDNH,I\RXUHORRNLQJWRPDNHSURILWRYHUWKHQH[W
\HDUWRWZR\HDUVRQHRIWKHEHVWH[LWVWUDWHJLHVLVWRDFTXLUHSURSHUW\WRVHOO
LWRQDRQHRUWZR\HDUUHQWWRRZQ
3HRSOHDVNPHDOOWKHWLPH+RZFDQ,LQFUHDVHWKHOLNHOLKRRGRIP\WHQ DQW
EX\HURQDUHQWWRRZQEDVLVRIDFWXDOO\H[HUFLVLQJWKHLURSWLRQV"
R 1XPEHU'RQWVHOOLWWRWKHPIRUPRUHWKDQD PRQWKWHUP
7KHORQJHU\RXJLYH\RXUWHQDQWEX\HULURQLFDOO\WKHOHVVOLNHO\WKH\DUHWR
EX\,ILQGWKDWDIWHUWZRRUWKUHH\ HDUVOLIHKDSSHQVWRMXVWDERXW
HYHU\ERG\>ODXJKV@6RJLYHWKHPPRQWKVRUJLYHWKHPVL[PRQWKVRU
QLQHPRQWKV
R 1XPEHU 6HWDSULFHWKDWVUHDOLVWLF
(YHQLI\RXMXVWVROGWKHSURSHUW\IRULWVGD\VYDOXHPRQWKVRU
PRQWKVODWHUZLWKQR UHDOWRUFRPPLVVLRQLQYROYHGIXOOSULFHSOXVMXVWDOLWWOH
ELWRIH[WUDEHFDXVHLWVDUHQW WRRZQSURSHUW\ZLWKHDV\ILQDQFLQJ<RXUH
VWLOOJHWWLQJDSUHWW\JRRGGHDOLI\RXYHJRWDJRRGSULFHJRLQJLQWRWKH
SURSHUW\
,I\RXUHRSHQWRKDQJLQJRQWR DORQJWHUP\RXUHJRLQJWRPDNHWKHPRVW
PRQH\
+HUHDUHP\WKRXJKWVWRDQ\RQHJHWWLQJVWDUWHG8QGHUVWDQGWKDWLI\RXUH
FRQVWDQWO\WXUQLQJSURSHUWLHVWKHQ\RXUHZRUNLQJWRRKDUGORQJ WHUP
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
6RZKDWHYHU\RXUHGRLQJHYHQLI\RXQHHGWKDWFDVKWXUQVRPHSURSHUWLHV
7KDWVJUHDW%XWDSRUWLRQRIZKDW\RXEX\\RXQHHGWRKDQJRQWR7KDWV
P\EHOLHI,OOVKDUHP\ELDVEHFDXVH,ZDQWSHRSO HWRXQGHUVWDQGZKHUH,P
FRPLQJIURP
7KHUHVDWKRXVDQGGLIIHUHQWZD\VWRGRUHDOHVWDWH,ZDQWWREHFOHDUDQG
XSIURQWZLWKSHRSOHZKDW,OLNHWRGRDQGGRQWOLNHWRGR6RPHRILWV
DSSURSULDWHIRUVRPHSHRSOHDQGVRPHLWVQRW,PWRWDOO\RND\ ZLWKWKDW,
GRQWOLNHGRLQJUHKDEEHFDXVH,WKLQNSHRSOH
-39$8*+$1 <RXKDYHVRPHWKLQJLQFRPPRQZLWK-RH.DLVHU>ODXJKV@
'$9,'),1.(/ 1RGRXEW:HOO-RHVSUREDEO\ERXJKWWKUHH6R,ZDV
OLNH-RHDUH\RXSUHWW\KDQG\ZLWKDKDPPHU"
-2(.$,6(5
1R
-39$8*+$1 7KHODVWWLPHZHWDONHGDERXWUHKDE-RHVDLG,I\RXHYHU
VHHPHZLWKDKDPPHULQP\KDQGVKRRWPH
-2(.$,6(5
6KRRWPH
'$9,'),1.(/ 2KRND\:HOO,GRQWZDQWWREHVKRWEXW,ZDQW\RXWR
VODSPH-RHZLOOEHGHDGEXW,OOMXVWKDYHDZHOWRQP\IDFH>ODXJKV@
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
$VDPDWWHURIIDFWWKH\DOZD\VXQGHUHVWLPDWHWKHWLPHFRVWDQGWKH\
DOZD\VXQGHUHVWLP DWHWKHHPRWLRQDOVWUDLQLQJFRVWRIWKDW,PHDQZKHQ
\RXKDYHDSURSHUW\WKDWVHPSW\WKDW\RXKDYHVRPXFKLQYHVWHGLQWKHUH
RU\RX
-39$8*+$1 7KDWRQHVVRVWUHVVIXO
'$9,'),1.(/ ,WLV,WVOLNHWZRPRQWKVRIKHOOZK\ZRXOGDQ\RQHZDQW
WR SXWWKHPVHOYHVWKURXJKLW"7KHRWKHUSDUWWRP\ELDVLV,OLNHKRPHVLQ
QLFHDUHDVEHFDXVHRIWKDW
7KHVHFRQGSDUWLV,GRQWZDQWWREHDODQGORUGIRUHYHU%HLQJDODQGORUGFDQ
EHYHU\WLPHLQWHQVLYH,WVQRWP\EHVWDQGKLJKHVWSDLGXVHRIP\WLPH DV
DQLQYHVWRU
,OLNHWRVHOOZKDW,DFTXLUHRQDUHQW WRRZQEDVLVVR,SXWVRPHERG\LQ
WKHUHZLWKPRUHRIDQRZQHUVPHQWDOLW\,WGRHVQWJHWULGRIDOOWKH
KHDGDFKHVRIEHLQJDODQGORUG7KHUHDUHVWLOOVRPHUHVSRQVLELOLWLHVLQWKHUH
-2(.$,6(5
5LJKW
'$9,'),1.(/ ,GRNQRZ,FDQJHWULGRIWKHPDMRULW\RIWKHPDQG,DOVR
NQRZ,FDQGHIHUWKHUHVWRIWKHP,NQRZ,KDYHPD\EHDERXW
WUDGLWLRQDOUHQWDOVWKHUHVWDERXWDUHOHDVHGZLWKRSWLRQVWREX\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KH\FDXVHDERXWWKHVDPHQXPE HURIKHDGDFKHV7KHUHQWWRRZQVWXII
VWLOOKDVVRPHVWXIILQYROYHG
7\SLFDOO\ZKDWKDSSHQVLV,VHOORQDWZRRUWKUHH\HDUUHQW WRRZQNQRZLQJ
WKDWWKH\UHSUREDEO\QRWJRLQJWREX\$ORWRIWKDWPDLQWHQDQFHLVJRLQJWR
JHWGHIHUUHG,MXVWWDNH FDUHRILWZLWKWKHLURSWLRQPRQH\DWWKHHQGDQG
,GUDWKHUGRWKDWWKDQKDYHWRWDNHFDUHRILWDORQJWKHZD\7KDWVMXVWD
ELDVWKDW,KDYHLQP\RZQVWDWHEHFDXVHLWVHDVLHU
-39$8*+$1 $QGSHRSOHDVWKH\JHWLQWRWKHEXVLQHVVGHYHORSWKHLU
RZQSUHIHUHQFHVELDVHVDQGWKLQJVOLNHWKDW7KHUHDUHSHRSOHEHVLGHVWKH
WKUHHRIXVZKROLNH WRGRUHKDEV
'$9,'),1.(/ <HV,WZRXOGEHJUHDWIRUWKHP,PJODGWKHUHDUH
UHKDEEHUVRXWWKHUH7KHLURQ\LVWKDWWKHUHDUHSUREDEO\UHKDEEHUVIRU
HYHU\RQHRIXV
,PHDQLWMXVWVHHPVWKDWVWKHPRVWSRSXODUZD\IRUWKHDYHUDJHSHUVRQWR
LQYHVW7KH\WKLQN,OOEX\LWFKHDS,OOJRWKHUHRQWKHZHHNHQGVDQGIL[LW
XSDQGWKHQ,OOUHVHOOIRULPPHGLDWHFDVKSURILW
JRLQJWRKDYHWRVLWWKHUHDQGZRUNWKHLUZHHNHQGV7KH\UHJRLQJWRKDYH
KROGLQJFRVWVDQGFORVLQJFRVWV WZLFH<XFN,GRQWZDQWLW
-39$8*+$1 <HV
-2(.$,6(5
$QGWKH\OOHDUQWKDWPRQH\WRR
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 <HV
'$9,'),1.(/ 7KH\ZLOODQGWKH\GHVHUYHHYHU\GROODUWKDWWKH\HDUQ
-39$8*+$1 <HV
-2(.$,6(5
(YHU\SHQQ\RILW%HFDXVH,FRXOGWHOO\RXDERXWD
PRQWKUHKDEZHGLGRQFH
'$9,'),1.(/ 2KQR
-2(.$,6(5
<HDKZHKDG LQLWDQGDWWKHHQGZHVSOLW,WKLQN
-39$8*+$1 2KP\JRVK
-2(.$,6(5
ZKDWDUHZHGRLQJ"
-39$8*+$1 $WOHDVW\RXGLGQWORVHPRQH\:HOO\RXORVWDOO\RXUWLPH
-2(.$,6(5
:HOOLWZDVVRPHWKLQJ,ZRXOGUDWKHUKDYHDYRLGHG
'$9,'),1.(/ ,WVUHIUHVKLQJWRKHDU\RXVD\WKDW$ORWRISHRSOHSDLQWD
FR]\SLFWXUHRIUHKDEELQJSURSHUWLHV
7KHILUVWSURSHUW\,HYHUGLG,FDQUHPHPEHUVLWWLQJWKHUHSDLQWLQJFDELQHWV
3HWHUZDVWHDVLQJPHEHFDXVHKHZDVGRLQJLWZLWKPHDQGKHVDLG 'DYLG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
\RXYHSDLQWHGOLNHRQHVKHOIDQG,YHSDLQWHGWKHVHIRXUFDELQHWV:KDWV
JRLQJRQKHUH":K\DUH\RXJRLQJDOOWKHZD\WRWKHEDFNRIWKHFDELQHW"
7KH\FDQWVHHWKDW
,WZDVIXQQ\
-39$8*+$1 %XW\RXNQRZZKDWLVHYHQZRUVHWKDQGRL QJLW\RXUVHOI"
'HDOLQJZLWKFRQWUDFWRUV
-2(.$,6(5
2K\XFN
-39$8*+$1 1RZ,GRQWZDQWSHRSOHWRJHWWKHZURQJLGHDKHUHDORW
RISHRSOHOLNHWRGRUHKDEVWKHWKUHHRIXVGRQW
-XVWWKHRUJDQL]DWLRQDOVNLOOVWKDW\RXQHHGWRPDNHDOOWKHVHWKLQJVFRPH
WRJHWKHUDWWKHULJKWWLPHVLWVEH\RQGPH
'$9,'),1.(/ <HV
-39$8*+$1 5LJKW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ $QGQRWKLQJHYHUJRHVDFFRUGLQJWRSODQ,WVMXVWDORWRI
VWUHVV&RQVWDQWO\GHDOLQJZLWKDOONLQGVRISHRSOHDQGLWVMXVWDORWRIZRUN
<RXFDQPDNHDORWDWLWEXW\RXGRH DUQHYHU\QLFNHORIWKDW
-39$8*+$1 2ND\-RHTXHVWLRQQXPEHU
+RZGR\RXILQGTXLFNIOLSGHDOV"
-2(.$,6(5
:HOO,PQRWVXUHTXLFNIOLSPHDQVDQ\WKLQJGLIIHUHQWWKDQ
DQ\RWKHUGHDODVIDUDVILQGLQJJRHV:HWDONHGDERXWWKHFRXUWKRXVHDQG
ZKRPLJKWEHDPRWLYDWHGVHOOHUVRUWRIGLUHFWLQJRXUHQHUJLHVDOPRVWWR
WKHSRLQWRIDODVHUEHDP)LJXULQJRXWZKDWZHZDQWDQGIRFXVLQJRQWKDW
DQGWUDFNLQJWKRVHSHRSOHGRZQ
7KDWVKRZZHGRSHUFHQWRIP\EXVLQHVV,WVVWULFWO\PHJRLQJRXWDQG
ILQGLQJWKHP,ZDVORRNLQJDWWKHQHZVSDSHUVUHDOHVWDWHVHFWLRQWKHRWKHU
GD\DQG,UHDOL]HG,KDGQWORRNHGLQWKDWWKLQJIRUDWOHDVWWKUHHRUIRXU
\HDUV,NQRZWKDWVQRWZKHUHWKRVHGHDOVDUH
)LQGLQJTXLFNIOLSGHDOVLVMXVWWKHVDPHDVMXVW ILQGLQJDJRRGGHDO,WV
NQRZLQJZKHUHWRORRNWKHQSXWWLQJLQWKHHQHUJ\DQGWKHWLPHWRPDNH
WKRVHWKLQJVFRPHWRJHWKHU
-39$8*+$1 7KHIROORZXSTXHVWLRQVWRWKDW-RHDUH
:KDWDUHWKHULVNVLQDTXLFNIOLS"+RZ
GR\RXUHGXFHWKRVHULVNV"
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 :HWRXFKHGRQWKLVHDUOLHU,WKLQN
-2(.$,6(5
ZRXOGWKLQN
:HOO,JXHVVJHWWLQJKXQJXSLVJRLQJWREHWKHSUREOHP,
,I\RXYHQHJRWLDWHGDGHDODQG\RXYHGRQHDJRRGMREZLWKLWWKHDQVZHULV
SUHWW\JRRG<RXUHJRLQJWREHDEOHW RWXUQWKDWWRVRPHERG\,FDQVHH
ZKHUHLI\RXYHSDLGWRRPXFKDQG\RXUHDOO\GLGQWGR\RXUKRPHZRUN\RX
FRXOGJHWKXUWRQWKDWLI\RXFRXOGQWVXEVHTXHQWO\FORVHDQGWKHUHVRPH
LVVXHVWKHUH
$WWRUQH\VPDNHWKHLUSUHVHQFHNQRZQRQWKRVHNLQGVRIW KLQJV<RXNQRZ
HDUQKLVPRQH\WRJHWODZVXLWVVWDUWHGXS7KDWVSRVVLEOH
,ZRXOGWKLQNLI\RXNQHZZKDW\RXZHUHGRLQJDQG\RXKDGHVFDSHFODXVHV
LQWKHUH\RXGLGDJRRGMREQHJRWLDWLQJ
)RUPHLILWVVRPHWKLQJWKDW,VLJQXS,YHJRWDFRXSO HRIZHHNVDWOHDVW
WRILQGDEX\HUIRULW,I,GRQWILQGDEX\HUWKHQZHUHMXVWJRLQJWRVD\QR
KDUPQRIRXO,PJRLQJWREHDEOHWRJUDFHIXOO\H[LWIURPWKDWVFHQDULR
$QGQRERG\VJRLQJWREHKXUWRUXSVHWRUDQ\WKLQJEHFDXVH,ZLOOKDYH
H[SODLQHGWKDWWRWKHVHOOHUJRLQJLQ
7KLVLVKRZ,GRLWDQGZKDWLVPRVWOLNHO\WRKDSSHQ$VORQJDVZHYHJRW
WKDWXQGHUVWRRGLQWKHEHJLQQLQJLI,GRQWILQGDEX\HUWKHQZHFDQSDUW
IULHQGV$QGMXVWJRRQWRWKHQH[WRQH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:KDWDUHWKHEDVLFVWHSVLQDOHDVH
RSWLRQ":KDWDUHWKHULVNVDQGKRZGR,
SURWHFWP\VHOI"
-2(.$,6(5
2KWKLVLVRQH,HQMR\,GRDORWRIOHDVHRSWLRQVDQGVR
GRRXUVWXGHQWV%DVLFDOO\ZKDW\RXUHGRLQJLVQHJRWLDWLQJWZRWKLQJVWR WKH
VHOOHU<RXUHILQGLQJDPRWLYDWHGVHOOHUWKDWKDVDFULWLFDOQHHG7KH
GHWHUPLQLQJIDFWRULQDQ\GHDOLVILQGLQJDVHOOHU$QGGRLQJVRPHWKLQJ
ZLWKWKHSURSHUW\
<RXUHQHJRWLDWLQJDOHDVHIRUWKDWSHULRGRIWLPH$WWKHVDPHWLPH\RXUH
SUHQHJRWLDWLQJDSULFHXSIURQWWRSXUFKDVHWKDWSURSHUW\DWDQ\SRLQWRYHU
WKHOHDVHSHULRG,WVFDOOHGDQ2SWLRQWR %X\6R\RXUHOHDVLQJLWZLWK
WKHRSWLRQWREX\QRWDQREOLJDWLRQEXWWKHULJKWFRQWUDFWXDOO\WREX\WKDW
SURSHUW\DWDQ\SRLQWL QWLPH7KDWVDQRSWLRQ
$QGVRQRZWRWKHULVNVLQYROYHGLQOHDVHRSWLRQV
%DVLFDOO\,ZRXOGVD\WKHUHDUHWKUHHUHDOULVNVWKDW\RXQHHGWRGHDOZLWK
1XPEHU:KDWKDSSHQVLI\RXFDQWILQGDQHQGXVHUIRUWKDWSURSHUW\"
,QRXUFDVHRXUH[LWVWUDWHJ\PRVWWLPHVLVWRVDQGZLFKOHDVHRSWLRQWKDW
SURSHUW\ZKHUH\RXILQGDWHQDQWEX\HUIRUWKHSURSHUW\RQDUHQW WRRZQ
EDVLV:HEX\RQDUHQWWRRZQEDVLVRXUVHOYHV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
6RZHXVHDFODXVHLQWKHUHZHFDOOLWFODXVHQXPEHU,WVLPSO\VD\V
TXDOLILHGUHVLGHQW+DYLQJDUHVLGHQWRIWKHXWPRVWTXDOLW\LQWKHSURSHUW\
LVPRVWLPSRUWDQWWRDOOSDUWLHV7KLVDJUHHPHQWLVVXEMHFWWRWHQDQW
ZKLFKLVLQDQDJUHHPHQWZHXVHDVWKHLQYHVWRUILQGLQJDQDSSURYHGDQG
TXDOLILHGUHVLGHQWWRRFFXS\W KHSURSHUW\6REDVLFDOO\ZHPDNHRXU
GRFXPHQWVXEMHFWWRXVILQGLQJDQHQGEX\HUDWHQDQWEX\HU
:HUHFDUHIXOQRWWRWDNHDGYDQWDJHRIWKHVHOOHUDQGOHDYHWKDWDJUHHPHQW
WKHUHIRUWKUHHRUIRXUPRQWKV7KDWVWRWDOO\ZURQJ
:KHQHYHU\RXUHGHDO LQJZLWKDVHOOHU\RXKDYHDQREOLJDWLRQWRWUHDWWKHP
IDLUO\DQGHWKLFDOO\6RWZRWRIRXUZHHNVLVDOOLWUHDOO\VKRXOGWDNHIRU\RX
WRILQGDWHQDQWEX\HUIRUDSURSHUW\<RXVKRXOGNHHSWKHPLQIRUPHGDORQJ
WKHZD\
,I\RXILQGWKDWWKHUHQWWKDW \RXUHSD\LQJWKHPLVZD\RXWRIOLQHIRU\RXWR
ILQGDWHQDQWEX\HUZKLFKLVWKHQXPEHURQHUHDVRQZK\\RXPD\QRWILQGD
WHQDQWEX\HUMXVWKDYHDFRQYHUVDWLRQ5HQHJRWLDWHLWRUFKRRVHMXVWWR
ZDONDZD\IURPWKHGHDOHDUO\RQ
7KHVHFRQGULVNWKDW\RXKDYHRQDSURSHUW\LVZKDWKDSSHQVGRZQWKHURDG
:KDWLIWKHVHOOHUFKRRVHVQRWWRDOORZ\RXWRH[HUFLVHWKDWRSWLRQ"7KDWV
RQHRIWKHELJJHURQHV
(VSHFLDOO\LIDQ\RIWKHSHRSOHOLVWHQLQJWRQLJKWDUHLQDIDLUO\IDVWPRYLQJ
WKDWVUHDOO\PRYLQJXSDWDERXWSHUFHQWRUKLJKHUDSUHWW\IDVWPRYLQJ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
PDUNHWDQG\RXYHJRWWKHSURSHUW\XQGHUFRQWUROIRUIRXUILYHVL[VHYHQ
\HDUV<RXUHJRLQJWRWDONDERXWVLJQLILFDQWJUR ZWKRQWKDWSURSHUW\
7KHVHOOHUZKRZDVPRWLYDWHGWZRRUWKUHH\HDUVDJRGRZQWKHURDGDW
FORVLQJPLJKWQRWEHDVPRWLYDWHGWRVHOO\RXWKHSURSHUW\7KH\DUH
ORRNLQJDWWKHRURIHTXLW\WKDW\RXYHFUHDWHGLQWKDW
6RZHSURWHFWRXUVHOYHVWKUHHZD\V,PJRLQJWRJRWKURXJKLWTXLFNO\DQG
IRUWKRVHRI\RXWKDWGRDORWRIOHDVHRSWLRQV\RXFDQWDNHORRNDWWKH
SURWpJpSURJUDPWKDWZHKDYH,WKDVWKHVHWPDUNLQ GHSWKWKHUH,NQRZ
WKHUHDUHRWKHUFRXUVHVWKDWKDYHLWLQWKHUHDVZ HOO
1XPEHU:HUHFRUGDPHPRUDQGXPRIRSWLRQRUWKHRSWLRQLWVHOIGRZQDW
WKHORFDOODQGUHFRUGVRIILFH,QRXUDUHDLWVDWWKHORFDOFRXQW\UHFRUGV
RIILFH)RUVRPHSHRSOHLWVDWWKHFRXQW\FOHUN6RPHDUHDFWXDOO\OLWHUDOO\DW
WKHFRXUWKRXVH%XW,UHFRUGDQRSWLRQRUDPHPRUDQGXPRIRSWLRQVWKDW,
SXWRQDSXEOLFUHFRUGWKDWFORXGVWKHWLWOH
-39$8*+$1 7KDWPHDQVWKDWWKHVHOOHUFDQWVHOOLWRXWIURPXQGHU\RX
-2(.$,6(5
<HV0DNHLWGLIILFXOWIRUWKHVHOOHUWRVHOOWRVRPHERG\HO VH
,WGRHVQRWPDNHLWLPSRVVLEOH
,UHPHPEHUDSURSHUW\ZHZHUHZRUNLQJRQDERXWD\HDUDQGDKDOIDJR
2XUWHQDQWEX\HUZDVH[HUFLVLQJWKHLURSWLRQVWREX\VRWKH\GLGWKHWLWOH
LQVXUDQFHUHSRUW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHSUHOLPLQDU\WLWOHUHSRUWGLGQWVKRZRXURSWLRQ RQWKDW,ZDVWKLQNLQJ
DUH\RXVXUHLWVQRWRQWKHUHEHFDXVH,KDYHDUHFRUGHGGRFXPHQWWKDW
FDPHEDFNWRPHDIWHULWZDVUHFRUGHGIURPWKHFRXUWKRXVHIURPWKHFRXQW\
FOHUNVRIILFH
-39$8*+$1 :RZ
-2(.$,6(5
7KH\GLGQWILQGLWDQG,GLGQWSX VKLWEHFDXVHLIWKH\UH
ZLOOLQJWRLQVXUHLW,PHDQ,ZDVQWFRQFHUQHGDERXWLW
-39$8*+$1 5LJKWH[DFWO\
-2(.$,6(5
%XWVR,GRQWKROGWKDWRSWLRQVDUHYHU\JRRG7KH\DUHD
GHFHQWFORXGRQWKHWLWOHEXWWKH\UHQRWUHDOO\VWURQJHQRXJK:H GRWKH
VHFRQGVWHSZKLFKLVWRUHFRUGZKDWVFDOOHGWKHSHUIRUPDQFHPRUWJDJHRU
SHUIRUPDQFHGHHGRIWUXVW
$PRUWJDJHRUD'HHGRI7UXVW LVDGRFXPHQWWKDWLVXVHGWRVHFXUHVRPH
RWKHUSLHFHRISDSHUXVXDOO\DSURPLVH7KLVLVXVHGZKHQ\RXEX\D
SURSHUW\<RXXVHDSURPLVVRU\QRWHWKDWVD\V,RZH\RXPRQH\DQGD
'HHGRI7UXVWRUDPRUWJDJHZKLFKVD\V,I,GRQWSD\\RX\RXWDNHW KH
KRXVHEDFNDQGIRUFHWKHVDOHIRU\RXUPRQH\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
<RXFDQXVHWKDWVDPH'HHGRI7UXVWRUPRUWJDJHWRVHFXUHWKHSHUIRUPDQFH
RIWKHVHOOHURQWKHRSWLRQ:KDWWKDWPHDQVLVWKH\GRQWVHOOLWWR\RXWKDW
ZD\
<RXGRQWMXVWKDYHDFORXGRQWKHWLWOH\RX KDYHOLWHUDOO\DOLHQRQWKHWLWOH
7KLVSXWV\RXRQWKHUHDVDVHFXUHGFUHGLWRU
7KHUHLVQRZD\DWLWOHFRPSDQ\LVJRLQJWRPLVVWKDWLWVWRRVWURQJ,WLV
WKHVWURQJHVWZD\DQDFWXDOLQGLYLGXDOFDQJHWDOLHQRQWKHWLWOH
-39$8*+$1 5LJKW
'$9,'),1.(/ 7KHQWKHWKLUGWKLQJZHGRLVZHDFWXDOO\VHWXSDOOWKH
FORVLQJGRFXPHQWVXSIURQWDQGLQDGYDQFH:HKDYHWKHPKHOGE\HLWKHUDQ
HVFURZFRPSDQ\DWLWOHFRPSDQ\RUIURPWKH(DVW&RDVWE\DFORVLQJ
DWWRUQH\
7KHQZHKDYHWKRVHGRFXPHQWVLQ FOXGLQJWKHSXUFKDVHFRQWUDFWWKDWZHZLOO
XVHLIDQGZKHQZHH[HUFLVHRXURSWLRQ7KHVHLQFOXGHWKHLQVWUXFWLRQV7KH
FORVLQJDJHQWLQFOXGHVWKHDFWXDOGHHGWKDWLVXVHGWRWUDQVIHUWLWOHIURPWKH
VHOOHUWRXVULJKWWKHUHZLWKVHDOHGLQVWUXFWLRQV
:KDWWKDWPHDQVLVQRRQHFDQFKDQJHWKHLUPLQGZLWKRXWERWKSDUWLHV
VLJQLQJ
-39$8*+$1 5LJKW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ :HPDNHVXUHLWJRHVWRDFORVLQJDJHQWZKLFKLVWKH
HVFURZFRPSDQ\WKHWLWOHFRPSDQ\RUWKHDWWRUQH\WKDWZHSLFN:H
FKRRVHDSDUW\WKDWZHKDYHGHYHORSHGDUHODWLRQVKLSZLWKEHFDXVHLIZRUVH
FRPHVWRZRUVH\RXGRQWZDQWWRXVHWKHVHGRFXPHQWVGRZQWKHURDG
<RXUHJRLQJWRZDQWIUHVKGRFXPHQWVEHFDXVHWLWOHFRPSDQLHVGRQWOLNH
XVLQJGHHGVWKDWKDYHEHHQGDWHGRQHWZRRUWKUHH\HDUV DJR
-39$8*+$1 %XWDUHWKH\WKHUHLQFDVHDSUREOHPDULVHV"
'$9,'),1.(/ <HV,IZRUVHFRPHVWRZRUVH,GUDWKHUKDYHWRILJKWIRU
DFOHDQWLWOHWRDSURSHUW\ZLWKP\EHLQJRQWLWOHLPSHUIHFWO\WKDQWRKDYHWR
ILJKWZLWKP\QRWEHLQJRQWLWOHWRD SURSHUW\DWDOO
7KHVHDUHMXVWWKLQJV\RXGRXSIURQWWKHQWKHSUREOHPVGRQRWRFFXU7KH
SUREOHPV,KDYHKDGZLWKVHOOHUVQRWKRQRULQJWKHLURSWLRQZHUHRQHVWKDW,
GLGQRWHVFURZWKHGRFXPHQWVIRUWKHFORVLQJ,JRWOD]\VFDUHGRU,MXVW
SODLQIRUJRW
-39$8*+$1 :HOOWKDWVDJUHDWH[SODQDWLRQ
'$9,'),1.(/ 6RUU\LI,ZHQWWRRORQJ
-39$8*+$1 1RLWVJRRG
-2(.$,6(5
7KHRWKHUWKLQJWKDW,VHHDORWLVWKDWWKHVHOOHUVWLOORZQV
WKDWSURSHUW\6RWKDWHTXLW\WKDWJHWVFUHDWHGRYHU WKH\HDUVVWLOOORRNVD
ORWOLNHWKHLUPRQH\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'RQW\RXILQGWKDWWRR"
'$9,'),1.(/ <HV
-2(.$,6(5
WDONHGDERXW
<HV$QGWKH\KDYHDKDUGWLPHUHPHPEHULQJZKDWDOOZH
-39$8*+$1 >/DXJKV@
-2(.$,6(5
LQFDVH
6RLWLVQLFHWRKDYHDOOWKDWVWXIIDO OWXFNHGDZD\WKHUHMXVW
-39$8*+$1 <HV
'$9,'),1.(/ ,WVLQWHUHVWLQJWKDW\RXZRXOGVD\WKDW-RH3HRSOHDVNPH
DOOWKHWLPH:K\ZRXOGQW\RXZDQWWKHGHHGWRWKHSURSHUW\"
7KHDQVZHULVRIFRXUVH\RXSUHIHUKDYLQJWLWOHWRWKHSUR SHUW\ZKHQHYHU
\RXFDQ%XWZHILQGWKDWZHZLOOWDNHDERXWRQHRIHYHU\WKUHHOHDVH
RSWLRQV:HWXUQWKHPLQWRRXUJHWWLQJDSURSHUW\VXEMHFW WRWKHH[LVWLQJ
ILQDQFLQJGRZQWKHURDGRQFHWKHVHOOHUDQG,KDYHDUHODWLRQVKLS
,PJXHVVLQJ-RH\RXSUREDEO\GRVRPHWKLQJVLPLODU<RXDUHSUREDEO\
YHU\WLPHO\RQDOO\RXUSD\PHQWV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:HVHQGDOORIRXUFKHFNVRQWKHWKRIWKHPRQWK7KDWZD\WKHVHOOHUV
JHWWKHLUFKHFNVHDUO\MXVWE\DFRXSOHRIGD\V%XWHYHU\VLQJOHPRQWKWKH\
DUHHDUO\OLNHF ORFNZRUN
7KDWVDORWRIFUHGLELOLW\IRUWKHPWRFDUU\EDFNILQDQFLQJRUWRVHOOXVWKH
SURSHUW\VXEMHFW WRWKHH[LVWLQJILQDQFLQJGRZQWKHURDG
+DYH\RXQRWLFHGWKDWIRU\RXUVHOI"
-2(.$,6(5
:HOOZHOLNHWRJHWDSD\PHQWDKHDG7KHQZHKDYH
HYHU\WKLQJVHWXSWKURXJKFRQWUDFWFROOHFWLRQV7KDWZD\ZHFDQSUHWW\PXFK
GHSHQGRQWKHWHQDQWVSD\PHQWWRPDNHWKHSD\PHQW:HZLOONQRZLQ
HQRXJKWLPHLIWKHWHQDQWLVJRLQJWREHODWH$WWKDWSRLQWZHZLOONQRZLI
ZHZLOOKDYHWRFRYHUWKDWSD\P HQW%XWLIZHUHDSD\PHQWDKHDGDQGWKH
WHQDQWSD\VRQWKHWKWKDWVVWLOOZD\DKHDGIRUWKHFRQWUDFWKROGHU
-39$8*+$1 <HV
-2(.$,6(5
$QGWKHQDOOWKRVHLVVXHVDERXWODWHSD\PHQWVRUODWHIHHV
DOOWKRVHMXVWNLQGRIPDJLFDOO\GLVDSSHDUDQG ZHQHYHUKDYHWRWKLQNDERXW
LW
-39$8*+$1 6RWKDWVRUWRIJRHVULJKWWRWKHQH[WTXHVWLRQQXPEHU
:KDWLVWKHEHVWZD\WRILQGJRRG
WHQDQWV"
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
<RXNQRZRQHRIWKHWKLQJV,ZDVQHYHUUHDOO\JRRGDWZDV
SURSHUW\PDQDJHPHQW
-39$8*+$1 ,NQRZ>ODXJKV@
-2(.$,6(5
,KDYHVRPDQ\RWKHUWKLQJV,ZRXOGUDWKHUGR)RUPHWKH
IXQZDVDOZD\VLQWKHKXQW
6XUH,YHVSHQWDORWRIWLPHQRZZLWKFDUHIXOO\GRLQJWKHGXH GLOLJHQFHZLWK
WHQDQWV<RXKDYHWRFRQYLQFHPHWKDW\RXUHWKHS HUVRQ,VKRXOGEHUHQWLQJ
WRQRZ
:HYHGRQHHYLFWLRQV,QIDFWZHYHGRQHDORWRIHYLFWLRQV:HLQKHULWDORW
RISURSHUWLHV,QKHULWPHDQLQJZHEX\SUREOHPSURSHUWLHVDQGZHLQKHULW
WHQDQWV
:HNQRZWKLVHYLFWLRQURXWLQHSUHWW\ZHOOQRZ,WV QRWDORWRIIXQ,WV
PHVV\DQGH[SHQVLYH:HGFHUWDLQO\UDWKHUDYRLGWKDW6RDVIDUDVTXDOLW\
WHQDQWV,PQRWVXUH
:HGRWKHQRUPDOVWXIIWKDWHYHU\ERG\GRHV:HVFUHHQVFUHHQDQGVFUHHQ
:HSUHWW\PXFKFURVVRXUILQJHUVDQGKRSHZHGLGHQRX JK:HKDYHWKH
UHVRXUFHVZKHUHZHFDQGRDJRRGLQYHVWLJDWLRQRQSHRSOH,IWKHUHVHYHQD
KLQWRISUREOHPVZHORRNIRUVRPHERG\HOVH
-39$8*+$1 ,QRWKHUZRUGV\RXGRDWKRURXJKFUHGLWUHSRUW
-2(.$,6(5
'HILQLWHO\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 <RXFKHFNZLWKWKHODQGORUG
-2(.$,6(5
:HUHRQOLQHZLWKDOORIWKDWVWXII
:HFDQJHWFULPLQDOKLVWRULHVDQGWKRVHNLQGVRIWKLQJVDVZHOO,KDGDJDO
WKHRWKHUGD\VD\LQJ:HOOKHVJRWDIHORQ\,VWKDWJRLQJWREHD
SUREOHP">/DXJKV@
-39$8*+$1 2KMXVWDOLWWOHRQH
'$9,'),1.(/ 7KDWLVJRLQJWREHDSUREOHP>/DXJKV@
$QG\RXNQRZLI\RXUHLQWKHSRVLWLRQZKHUH\RXKDYHWRUHQWWRSHRSOH
ZKR\RXVKRXOGQWEHUHQWLQJWR\RXUHGRLQJLWDOOZURQJ<RXUHPDNLQJD
PLVWDNHVRPHZKHUH,WVKRXOGQHYHUJHWWRWKDWSRLQW
-39$8*+$1 :HOOKHUHVDQLQWHUHVWLQJWKLQJWKDW,MXVWWKRXJKWRI
-RH,NQRZWKDW\RXUHKROGLQJDERXWRQHRXWRIHYHU\SURSHUWLHVWKDW
\RXEX\
-2(.$,6(5
3UHWW\PXFK
5LJKW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 :KHUHDV'DYLG,WKLQNLI,PFRUUHFW\RXUWHQDQWVDUHDOO
OHDVHRSWLRQWHQDQWV
'$9,'),1.(/ <HVDERXWQLQHRXWRIIRUPH
-39$8*+$1 1LQHRXWRIWHQDUHOHDVH RSWLRQWHQDQWV"
'$9,'),1.(/ ,KDYHPXOWLIDPLO\KRXVHV
-2(.$,6(5
<RXKDYHPXOWLXQLWVDVZHOO"
'$9,'),1.(/ :HGRVRPHPXOWLXQLWVDQGREYLRXVO\ZHKDYHPRUHRI
WKHUHQWHUVLQWKHP
-2(.$,6(5
5LJKWVXUH
+HUHVDQH[DPSOH*LYHWKHPWKHRSWLRQWREX\7KH\JLYH\RXOHWVVD\
XSIURQWIXOO\UHIXQGDEOHSURYLGHGRQHRIWKUHHWKLQJVKDSSHQ ,
PHDQDOOWKUHHWKLQJVKDSSHQ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
R 1XPEHURQH7KH\SD\WKHLUUHQWRQWLPHHYHU\PRQWK7KH\UH
DOORZHGWREHODWHRQRQHSD\PHQWHYHU\PRQWKVE\GD\VRU
VRPHWKLQJOLNHWKDWRUE\VHYHQGD\V%XWDQ\WKLQJPRUHWKDQWKDW
WKH\ORVHWKDWPRQH\
R 1XPEHUWZR 7KHLURSWLRQPRQH\LVIXOO\UHIXQGDEOHLIWKH\VWD\
WKHUHGXULQJWKHHQWLUHOHDVHSHULRGZKLFKPLJKWEHRU
PRQWKV
R 1XPEHUWKUHH 7LHLWLQWRDQRSWLRQWKDWWKH\FDQQRWH[HUFLVHIRUD
FHUWDLQSHULRGRIWLPH
'RLQJWKDWLWOH WV\RXWDNHDVHFXULW\GHSRVLWZKLFKE\ODZLQPRVWDUHDV
DOORZVOLNHRQHPRQWKVUHQWRQHPRQWKVVHFXULW\GHSRVLWDQGOHWV\RXJHW
IRXURUILYHWLPHVWKDWDPRXQW7KDWVRQHJRRGZD\WRJR
7KHVHFRQGWKLQJLVDQG,WKLQNSHRSOHIRUJHWWRGRWKL V\RXQHHGWRFUHDWH
DKXJHDPRXQWRIFRPSHWLWLRQIRUWKHSURSHUW\6R\RXJHWDKXJHQXPEHU
RISHRSOHZKRZDQWWRDSSO\IRUWKDWSURSHUW\UHJDUGOHVVRIWKHUHQWDO
GHPDQGLQWKHDUHD7KHQIURPWKHVHSHRSOHZKRZDQWWRFRPSHWHIRUWKH
SURSHUW\\RXFKRRVHWKHEHVW
,VWLOOVHHSURSHUW\PDQDJHPHQWSHRSOHPDNLQJWKHEHJLQQHUPLVWDNHRI
VKRZLQJWKHSURSHUW\WRRQHSHUVRQDWDWLPH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
0LVWDNH,OOJHWILYHVL[VHYHQHLJKWIDPLOLHVWKHUHDOODWRQFH7KH\OO
EHKDYHPXFKEHWWHU,JHWGHSRVLWVRQDO OWKHSURSHUW\IURPWZRRUWKUHH
GLIIHUHQWIDPLOLHVDQGWKHQ,OOGRP\GXH GLOLJHQFHWRFKRRVHWKHEHVWRQH
7KHQ,OOTXLFNO\DQG,PHDQTXLFNO\OLNHWKHVDPHGD\JHWEDFNWRWKH
SHRSOHZKR,GLGQWFKRRVHDQGJLYHWKHPWKHLUPRQH\EDFN
7KHQ,OOWDNHWKHSHUVRQZKRZDVEHVW,WKLQNLWVLPSRUWDQW
,WKLQNLI,FDQKROGPRQH\LQP\KDQGIURPVRPHERG\,GRQWFDUHDERXW
WKHLUSDVWDVPXFK+DYLQJWKHPJLYHPHHQRXJKPRQH\XSIURQWKHOSV,
PHDQ,FDQEHEULEHG>ODXJKV@1RUHDOO\WKLQNDERX WLW
-2(.$,6(5
2K,DJUHHZLWK\RX
'$9,'),1.(/ ,PHDQLIWKH\JLYHPHPRQH\,GRQWPLQGXVLQJWKHLU
PRQH\WRIL[VWXII,I\RXUHSD\LQJJRRGSHRSOHWRGRWKHZRUN\RXGRQW
KDYHWKHSUREOHPVZLWKWKHPQRWVKRZLQJXSEHFDXVHWKH\ZHQWRXW
GULQNLQJWKHQLJKWEHIRUHRUVRPHWKLQJOLNHWKDW6RWKDWVZKDW,ZRXOGVD\
DERXWWKDW
,OLNHWRTXDOLI\SHRSOHE\PRQH\1RWWKDWLWVQRWLPSRUWDQWWRFKHFNRXW
SDVWUHQWDOKLVWRU\DQGDOOWKHUHVWRIWKDW,I,JHWHQRXJKPRQH\IURP
VRPHRQH,NQRZWKDW,FDQEHDWWKHPLQDQHYLFWLRQEHIRUHWKHLUPRQH\
UXQVRXW
-2(.$,6(5
'R\RXJLYHWKHPDQ\IODFNDWDOORU\RXMXVWJRULJKWLQWR
FRXUWRQWKRVHHYLFWLRQV"
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ <RXNQRZZKDW,PDELJEHOLHYHULQWUHDWLQJWKHPOLNHD
JRRGSDUHQWZRXOG DQ\FKLOGZKRLVPLVEHKDYLQJ,NQRZWKDWLI,OHWWKHP
VWD\XSSDVWWKHLUEHGWLPHDWSPHYHQE\DPLQXWHWKHQWKH\UHJRLQJ
WRZDQWWKHLUEHGWLPHWREHODWHUWKHQH[WWLPH
6RIRUH[DPSOH,NQRZLQ2UHJRQ,KDYHWRJLYHWKHPDFHUWDLQQXPEHUR I
GD\V,EHOLHYHLI,UHPHPEHUFRUUHFWO\LWVILYHGD\VEHIRUH,FDQGRP\
HYLFWLRQ
,Q&DOLIRUQLDLIWKHLUSD\PHQWLVQRWLQE\WKHWKRIWKHPRQWKDQGZHGR
WKLVZLWKDOORIRXUSURSHUWLHVDFURVVWKHERDUGZHVWDUWWKHHYLFWLRQSURFHVV
$WKUHHGD\QRWLFHJHWVSRVWHG
:HKLUHIODWIHHHYLFWLRQDWWRUQH\VLQWKHGLIIHUHQWDUHDVWRGRDOORILW,G
UDWKHUMXVWSD\VRPHRQHVRPHPRQH\WRGRLWULJKW
-2(.$,6(5
<HV
'$9,'),1.(/ ,PDNHDSKRQHFDOODQG,MXVWVWHSEDFNDQGOHWWKHPGR
LW,WVDUDFH,IWKH\FDQSD\PHEHIRUHWKHHYLFWLRQLVILQDOL]HG,WDNH
WKHLUPRQH\,IQRWWKDWVMXVWOLIH
-39$8*+$1 ,WVQRWWKDWH[SHQVLYHKHUH-RH:KDWDUH\RXSD\LQJ
'DYLGDERXWRUVRPHWKLQJIRUDQHYLFWLRQ"
'$9,'),1.(/ <RXNQRZZKDWLWGHSHQGV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,XVHGDFRPSDQ\RXWKHUHFDOOHG.LPEDOO&DUH\DQG6W-RKQ7KH\GRDOO
WKHVWXIIIRUXVLQ&DOLIRUQLD,IWKH\MXVWGRWKHWKUHH GD\QRWLFHWKH\
FKDUJHXVVRPHWKLQJOLNH
-39$8*+$1 2KULJKW
'$9,'),1.(/ ,IWKH\KDYHWRGRDQXQODZIXOGHWDLQHULWVDQRWKHU
DQGVRPHRGGGROODUV
7KHQWKH\JRWRFRXUW7KHPRVWLWFRVWVPHZKHQWKHWHQDQWVJRWRFRXUWWR
ILJKWWKHHYLFWLRQDQGDOOWKDWNLQGRIVWXII ZLWKDQDWWRUQH\IRUERWKFRXUW
DSSHDUDQFHV ,WKLQNLWVOLNHQRZ,WXVHGWREHDERXW%XWLWV
ZRUWKHYHU\SHQQ\EHFDXVHWKH\DUHVRJRRG7KH\UHULJKWRQWRSRILW
7KH\FDOOPHXSWRVD\:HQHHGWKLVZHQHHGWKDWIURP\RX7KDWVDOO
-39$8*+$1 5LJKWULJKW
-2(.$,6(5
,VQWLWQLFHZKHQ\RXILJXUHWKDWRXW"<RXYHJRW
VRPHERG\WKHUHMXVWUHDG\WRJRIRU\RX$QG\RXNQRZ\RXFDQMXVWVRUW
RISXOOWKHWULJJHUDQGLWJHWVGRQH7KDWVZRUWKVRPXFK
'$9,'),1.(/ 'HILQLWHO\'HILQLWHO\
-2(.$,6(5
:HXVHGWROLVWHQWRWHQ DQWVDQGVRUWRIKRSHWKDWZKDW
WKH\ZHUHVD\LQJZDVWUXHP\SDUWQHUHVSHFLDOO\
>/DXJKV@
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
<RXTXLFNO\OHDUQWKDWDWVRPHSRLQWDQGVRRQHUWKDQODWHU\RXGRQHHGWR
ELWHWKHEXOOHWDQGMXVWGRZKDWKDVWREHGRQH
'$9,'),1.(/ 5LJKW
-2(.$,6(5
,WQHYHUJHWVEHWWHU<RXJLYHWKHPPRUHWLPHDQGLQWKH
HQG\RXUHJRLQJWRSD\RQHZD\RUWKHRWKHU6R\RXPLJKWDVZHOOWDNH
FDUHRILWQRZZKHQLWVPDQDJHDEOHDQGLWVWKHOHDVWDPRXQWRIGROODUVRQ
WKHWDEOH
-39$8*+$1 ,WVVFDU\,ZRXOGWKLQNLWZRXOGEHVFDU\WRJHWDWKUHH
GD\QRWLFH,WGRHV VKRZWKDW\RXUHQRWIRROLQJDURXQGWKDW\RXUHVHULRXV
2ND\'DYLGQXPEHU 3OHDVHH[SODLQEHFDXVHDORWRISHRSOHUHDOO\GRQW
XQGHUVWDQGWKLV
:KDWLVDVXEMHFWWRWUDQVDFWLRQ"
,QFOXGHKRZWRH[SODLQLWWRWKHVHOOHUDQG
WKHULVNVLQYROYHG IRUERWKSDUWLHV
,OOWHOO\RXKRZQRWWRH[SODLQWRWKHVHOOHUDVZHOO
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
)LUVWRIDOOVXEMHFW WRLVEX\LQJDSURSHUW\VXEMHFWWRH[LVWLQJILQDQFLQJ
:KDWWKDWPHDQVDQG,OOJLYHDTXLFNH[DPSOHWKDWZLOOIROORZWKLVXSWR
H[SODLQLWWKHVHOOHUOLWHUDOO\GHHGVWKHSURSHUW\RYHUWR\RXWKHLQYHVWRU
<RXMXVWWDNHRYHUVHQGLQJLQWKHPRUWJDJHSD\PHQWHYHU\PRQWKWRWKH
VHOOHUVEDQNIRUWKHVHOOHUVORD Q<RXUHQRWDVVXPLQJDORDQ<RXUHVLPSO\
OHDYLQJWKDWROGERQHLQSODFHWKDWWKHVHOOHUZHQWRXWDQGTXDOLILHGIRUDQG
WKHVHOOHUDOUHDG\SDLGIRU
<RXUHMXVWWDNLQJRYHUPDNLQJWKHSD\PHQWV<RXXQGHUVWDQGWKDW\RXRZQ
WKHSURSHUW\EXW\RXUU LJKWWRWKHRZQHUVKLSRIWKDWSURSHUW\FRPHVVHFRQG
WRWKDWRIEDQNVOLHQDJDLQVWWKHSURSHUW\W\SLFDOO\DVDPRUWJDJHRUDGHHG
RIWUXVW
$TXLFNH[DPSOHRIKRZWKDWZRUNV<RXILQGDVHOOHUZKRLVIRXUSD\PHQWV
EHKLQGKHDGHGWRZDUGIRUHFORVXUHRQD SURSHUW\,NQRZDORWRI
SHRSOHDUHLQDUHDVWKDWDUHZD\WRRH[SHQVLYH$QGRWKHUVZKHUHLWVZD\
WRRFKHDS%XWLWVMXVWHDV\WRPDNHWKHPDWKSDUWRILWFOHDU
6RWKH\UHEHKLQGRQWKHLUSD\PHQWVE\7KH\RZHDJDLQVW
WKH SURSHUW\LQFOXGLQJWKDWEDFNSD\PHQW7KHKRXVHLVZRUWK
<RXFRPHLQDQGPDNHXSWKHEDFNSD\PHQWVRIDQG\RX
WDNHWLWOH7KHVHOOHUOLWHUDOO\GHHGVLWWR\RX<RXRZQLWEXWWKH\OHDYH
WKHLUPRUWJDJHDJDLQVWSURSHUW\ ,WVQRWJHWWLQJSDLGRIIQRUDUH
\RXIRUPDOO\DVVXPLQJWKHORDQ<RXUHMXVWQRWWHOOLQJWKHEDQNDERXWLW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
1RZVRPHSHRSOHVD\:HOOLVWKDWRND\QRWWRWHOODEDQN",VWKHUH
VRPHWKLQJLOOHJDODERXWWKDW"
1RWRQO\LVLWSHUIHFWO\HWKLFDOWR GRWKDWEXWDOVRLWVLQWHUHVWLQJ/RRNDWD
JRYHUQPHQWIRUPOLNHWKH+8'WKHFORVLQJVWDWHPHQW7KHUHVDEODQNRQ
WKHUHWKDWWDONVDERXW6XEMHFW WR)LQDQFLQJ
6XEMHFWWR)LQDQFLQJKDVEHHQDURXQGIRUWKHODVW\HDUV,WVQRW
DQ\WKLQJQHZ,WVMXVWEHHQDZHOOJXDUGHGVHFUHW,WVHHPVIRUDORWRI
SHRSOHWKH\MXVWKDYHQWNQRZQKRZWRGRWKDW
6RKRZGR\RXH[SODLQWKLVWRWKHVHOOHU"
)LUVWRIDOO,OOWHOO\RXKRZ QRW WRH[SODLQLW,GRQWVD\WRWKHVHOOHU+H\
0U6HOOHUZKDW LIZHEX\\RXUSURSHUW\OHDYH\RXUORDQLQSODFHPHDQLQJ
\RXUHWRWDOO\RQWKHKRRNIRUDOOWKHULVN:HOOKDYHQRWKLQJLQWRLWDQG
PD\EHZHOOSD\WKHSD\PHQWPD\EHZHGRQWEXWHLWKHUZD\LWGRHVQW
PDWWHUEHFDXVH\RXUHWKHRQHRQWKHKRRN
,GRQWODQJXDJHLWWKDWZD\,GRZDQWWRPDNHVXUHEHIRUHDOOLVGRQHWKDW
WKH\XQGHUVWDQGHYHU\WKLQJWKDW,YHMXVWVDLGWKHUH%XW,GRQWJLYHWKHP
WKHILUVWLPSUHVVLRQWKDWZD\
SURSHUW\RXWULJKW"7KHQZHOOWDNHRYHUPDNLQJWKDWSD\PHQWHDFKDQG
HYHU\PRQWKIURPKHUHRQRXW,V WKDWVRPHWKLQJZHVKRXOGHYHQWDON
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
DERXW"2USUREDEO\QRW<RXSUREDEO\KDWHWKHLGHD>,PXVLQJQHJDWLYH
SKUDVLQJ@
7KHVHOOHUVD\V1RZHVKRXOGWDONDERXWWKDW
,VLPSO\VD\:HOORND\:KDWDERXWXVPDNLQJXSWKHEDFNSD\PHQWVDQG
WKHQMXVWWDNLQJRYHUWKHSD\PHQWVIURPKHUHRQRXWDIWHUZHYHERXJKWWKH
SURSHUW\:RXOGWKDWHYHQZRUNIRU\RX"
7KHQWKH\FDQWHOOPHWKHWKLQJVOLNH:HOODWOHDVWLWNHHSVWKHIRUHFORVXUH
RIIP\FUHGLWDQGDWOHDVW\RXFDQVDYHP\IXWXUHFUHGLW%XW GRZQWKHURDG
,FDQJRDKHDGDQGEX\DQRWKHUSURSHUW\
7KDWVKRZ,ODQJXDJHVXEMHFW WRWRDVHOOHU
%HIRUH,EX\,ZDQWWRPDNHLWFOHDUWRHYHU\ERG\,QHYHUFRQYLQFHDVHOOHU
ZLWKRXWPDNLQJVXUHWKH\UHYHU\FOHDURQXQGHUVWDQGLQJWKHSRVLWLRQW KDWLW
VWD\VRQWKHLUFUHGLWUHSRUWZLWKDORDQLQWKHLUQDPHQXPEHURQH
1XPEHUWZR,PQRWJRLQJWREHSHUVRQDOO\OLDEOHIRUWKHORDQ7KH\ZLOOVWLOO
EHOLDEOHIRUWKHORDQ%XWPRVWSHRSOH\RXEX\DSURSHUW\VXEMHFW WRIURP
MXVWZDQWWRZDONDZD\DQ\ZD\
,I\RXDVNWKHPWKHTXHVWLRQ0U6HOOHU,GRQWNQRZLI,HYHQZDQWWREX\
WKLVSURSHUW\-XVWLQFDVH,FKRRVHQRWWREX\LWZKDWV\RXUSODQ%"6RLI,
GRQWZDQWWREX\LWPD\EH,FDQJLYH\RXVRPHLQSXWWRPDNH\RXUSODQ%D
OLWWOH ELWEHWWHU
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
1LQHWLPHVRXWRIWHQWKHLUSODQ%LVMXVWWRJLYHLWEDFNWRWKHEDQNRUWR
VD\,GRQWNQRZ,JXHVV,OOSUREDEO\HQGXSORVLQJLWDQ\ZD\
7KH\MXVWZDQWWRZDONDZD\IURPLW
7KH\UHWRWDOO\ZLOOLQJWRZDONDZD\IURPLWVRZK \QRWKDYHWKHPJHW
VRPHWKLQJRXWRILWDWOHDVWVDYLQJWKHLUFUHGLW
6RPHWLPHV,OOJLYHWKHPVRPHPRQH\IRUWKDW,WFDQEHDQ\ZKHUHIURP
WRRUHYHQPRUHLILWVDJRRGHQRXJKGHDODQGWKHUHV
HQRXJKHTXLW\LQWKHUH
/HWPHVKDUHZKDW,WKLQNSUREDEO\LVWKHPRVWLPSRUWDQW
-39$8*+$1 /HWPHMXVWVD\WKLVDQGLQWHUUXSWIRUDVHFRQG'DYLGLQ
RQHVHQWHQFHWHOOHYHU\RQHDERXW\RXUVXEMHFW WRFRXUVH
'$9,'),1.(/ 6XUH,QRQHVHQWHQFHLWVDJUDGXDWHOHYHOFRXUVH<RX
NQRZKRXUVRIDXGLRWUDLQLQJMXVWRQWKHWRSL FRIKRZWREX\KRZWR
VWUXFWXUHKRZWRVHOOSURSHUWLHVVXEMHFW WRWKHH[LVWLQJILQDQFLQJ
-39$8*+$1 $QGWKHWLWOHRIWKHFRXUVHLV+RZWR)LQG&ORVHDQG6HOO
3URSHUWLHV8VLQJ([LVWLQJ)LQDQFLQJ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
<RXGRQWZDQWWREHVRPHRQHZKRVEDVLFDOO\GRQHVRPHWKLQJWKDWVFDOOHG
FRHUFLQJWKHVHOOHULQWRDGHDO<RXUHGHDOLQJZLWKDVHOOHUZKRLVZKDWLV
OHJDOO\FDOOHG DVHOOHUXQGHUGXUHVV 7KH\ZLOOFODLPWKDWVRPHWLPHV
7KLVPHDQVWKDW\RXUHGHDOLQJ ZLWKDVHOOHUZKRVLQDYHU\VWUHVVHG
VLWXDWLRQYHU\YXOQHUDEOHDQG\RXMXVWQHHGWRPDNHVXUHWKDWHYHU\WKLQJ
\RXGRLVDWDUPVOHQJWK
<RXGRQWW\SLFDOO\ZDQWWRJRLQWKHUHEX\WKHSURSHUW\ULJKWWKHUHRQWKH
VSRWDQGJLYHWKHPQRWKLQJIRUWKH LUHTXLW\RUZDONDZD\ZLWKWKHGHHG
WKDWGD\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
6RPHVWDWHVHYHQKDYHODZV,Q&DOLIRUQLD\RXKDYHWRJLYHWKHPILYH GD\
ULJKWVRIUHVFLVVLRQLILWVDSURSHUW\WKDWKDVDOUHDG\VWDUWHGWKHIRUHFORVXUH
SURFHVVZLWKDQRWLFHRIGHIDXOWILOHG
7KHNH\LVMXVWWUHDWLQJWKHPKRZ\RXGZDQWWREHWUHDWHG%HIDLUZLWK
WKHP0DNHVXUHWKDW\RXKDYHWKHPXQGHUVWDQGWKLQJV(YHQDVNWKHPLI
WKH\KDYHDFRXQVHORUDQDWWRUQH\RUDIULHQGWKDWWKH\FRXOGUXQWKLVVWXII
E\WRPHHWZLWKWKHPDQG\RX
,PDNH WKHPZULWHLQWKHLURZQKDQGWKDWWKH\XQGHUVWDQG,SODQRQ
UHVHOOLQJWKHSURSHUW\IRUPRUHPRQH\,GRDOOWKRVHEDVLFFRPPRQVHQVH
WKLQJVWKDWVKRZWKDWLWZDVQWPHIRUFLQJWKHPLQWRVRPHWKLQJ7KHVH
WKLQJVKHOSWRVKRZWKDWWKH\UHDOO\GLGXQGHUV WDQGDQGNQHZZKDW,ZDV
SODQQLQJRQGRLQJZKLFKZDVWRPDNHDSURILWRIIWKHSURSHUW\,WVKRZVWKDW
WKH\FKRRVHWRPRYHIRUZDUGLQWKHGHDODQGDUHVWLOOZLOOLQJRIWKHLURZQ
IUHHZLOO
'$9,'),1.(/ 2K\HV,WKLQNWKDWZHUHNLQGRIWKHZRUVHVWDWHWKHUH
6RWKRVHRI\RXWKDWOLYHLQRWKHUVWDWHVMXVWVPLOHLWVRQHPRUHUHDVRQQRW
WROLYHLQ&DOLIRUQLD
>ODXJKWHU@
-2(.$,6(5
7KHRWKHUWKLQJWKHUHWRRLVWKHEHW WHUWKHGHDOWKHPRUH
OLNHO\WKH\UHJRLQJWRFRPHEDFNDQGFODLPDIRXOKDSSHQHGVRPHZKHUH
DORQJWKHOLQHRIFRXUVH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 5LJKW
'$9,'),1.(/ <HV
-2(.$,6(5
:HDUHSDUWLFXODUO\FDUHIXODERXWWKRVHNLQGVRIWKLQJV
:KHQWKHUHLVWKLVNLQGRIKRQH\PRRQSHULRGZKLOH,PWKHUHVROYLQJWKHLU
SUREOHPVSHRSOHWHOOPHWKH\UHDOO\DSSUHFLDWHWKDW7KH\WHOOPHKRZPXFK
WKH\DSSUHFLDWHWKDW
,DVNWKHPWRVHQGPHDOLWWOHOHWWHUDQGWDONDERXWZKDWMXVWWRRNSODFHKHUH
DQGKRZZHZHUHDEOHWR KHOSWKHPRXW,WVQLFHKDYLQJWKRVHWKLQJVLQWKH
ILOH%HFDXVHWKH\DUHJRLQJWRIRUJHWKRZLWZDVDWVRPHSRLQW
$WVRPHSRLQWSUREDEO\VRRQHUWKDQODWHUWKH\GRFRPHEDFN<RXNQRZ
\RXJHWDFDOOIURPDQDWWRUQH\DQGKHVGLVWUHVVHGDERXWVRP HWKLQJ,WV
QLFHWRKDYHDOOWKRVHVXSSRUWLQJGRFXPHQWVLQWKHILOH
-39$8*+$1 7KDWVWUXH2ND\-RHTXHVWLRQQXPEHUDQGZHYHKLW
RQWKLVEHIRUHWRR
+RZGR,ILQGSUHIRUHFORVXUHGHDOV"
-39$8*+$1 /HWPHDJDLQVWDWHWKDW\RXFRYHUW RQVRIZD\VWRORFDWH
SUHIRUHFORVXUHGHDOVDQGWRWDOO\GRPLQDWHWKHIRUHFORVXUHPDUNHWSODFHLQ
\RXUFRXUVH%XWZK\GRQW\RXMXVWFRYHUDFRXSOHQRZ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
:HOO,GRVSHQGDORWRIWLPHDWWKHFRXUWKRXVH:HGR
PRVWRIRXUEXVLQHVVIURPVRPH ,WVWDUWVZLWKVRPHSXEOLFUHFRUG
VRPHZKHUH$Q\RIWKRVHNLQGVRIVLWXDWLRQVHQGXSLQDFRXUWILOH6RZH
VSHQGDORWRIWLPHWKHUH
,ZLOODFWXDOO\VLWWKHUHZLWKP\ODSWRSZKHQ,PGRLQJDJURXSRIWKLQJV
DQG,PXOORYHUDILOHDQGDEVRUEZK DWVWDNLQJSODFH:LWKHQRXJKWLPH\RX
JHWDSLFWXUHRIZKDWLVJRLQJRQ<RXFDQVHHWKHGLIIHUHQWSOD\HUVDQGWKH
GLIIHUHQWSDUWLHVDQG\RXGHYHORSDVWUDWHJ\RIKRZWRDSSURDFKWKLVJX\RU
WKDWJX\
,QRQHIRUHFORVXUHILOHWKHUHDUHVRPDQ\GLIIHU HQWZD\VWRJRDIWHUWKDW
SURSHUW\ZKHWKHULWVWKHKRPHRZQHUWKHPVHOYHVDFUHGLWRURUPD\EH
VRPHERG\KDVDSDUWLDOLQWHUHVWOLNHDQH[ ZLIHRUVRPHWKLQJ$OOWKRVH
SOD\HUVKDYHDQLPSDFW<RXILJXUHRXWDJDPHSODQ
-39$8*+$1 $VHFRQGPRUWJDJH SHUKDSV
-2(.$,6(5
<HV$Q\RIWKRVHWKLQJV<RXJHWLQWKHUHDQG\RXMXVW
EXPSDURXQGDOLWWOHELW<RXJHWDJRRGIHHORIZKDWVJRLQJRQ,WGRHVQW
WDNHORQJDQGSUHWW\VRRQWKHVROXWLRQRUDWOHDVWDJRRGDSSURDFK
EHFRPHVREYLRXV
:HIRXQGW KDWZHVSHQGDORWRIWLPHZRUNLQJZLWKOLHQKROGHUV/LHQKROGHUV
VD\\HVWHQWLPHVHDVLHUWKDQSHRSOHLQIRUHFORVXUHVD\\HV:HNQRZ
WKRVHKDYHQWEHHQSDLGLQIRUHYHU
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 :K\GRQW\RXH[SODLQZKDWDOLHQKROGHULV
-2(.$,6(5
:HOOVRPHERG\ZKRVJRWDORDQRUDQLQWHUHVWDJDLQVWWKH
SURSHUW\RWKHUWKDQWKHRZQHU
-39$8*+$1 5LJKW
-2(.$,6(5
2ULWFRXOGEHDMXQLRUPRUWJDJHDMXGJPHQWFUHGLWRURU
RQHRIWKRVHNLQGVRIWKLQJV
GLYRUFHKDYHVRPHVRUWRILQWHUHVW,WVQRWDQLQWHUHVWWKDWWKH\KDYHGRQH
DQ\WKLQJZLWKIRU\HDUV7KH\PD\KDYHIRUJRWWHQDERXWLW%XWFHUWDLQO \
WKH\KDYHJLYHQXSRQLW
,I\RXFDQJHWDKROGRIWKHPRIWHQWLPHVWKH\ZLOOVHOO\RXWKDWLQWHUHVWIRU
QH[WWRQRWKLQJMXVWDWRNHQSD\PHQW
<RXNQRZZLOOEX\DZKROHEXQFKRIVWXII<RXQHYHUJHWWRWKDWSRLQW
LI\RXGRQWWDNHWKHWLPH WRVLWWKHUHZLWKWKDWILOHDQGJRWKURXJKLWDOLWWOH
ELW
-39$8*+$1 'R\RXUGHWHFWLYHZRUN
-2(.$,6(5
<HV-XVWVHHZKDWUHDOO\LVJRLQJRQDQGILQGWKHVRXUFH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
6RPHWLPHV\RXFDQWDONWRSHRSOHZKRKDYHVRUWRIDQLQVLGHNQRZOHGJH
DERXWWKHS DUWLFXODUWKLQJ
$ORWRIWLPHVZHOOEHWU\LQJWRILQGSHRSOHEHFDXVHZLWKDORWRIWKHVH
IRUHFORVXUHSURSHUWLHVZHUXQLQWRWKHUHVQRERG\DURXQG6RZHOOKXQW
WKHPGRZQ:HGRWKDWRIWHQE\WKHLUODVWQDPH+RSHIXOO\LWVVRPHWKLQJ
RWKHUWKDQ6PLWK:HJHWRQOLQHWRILQGUHODWLYHVDQGZHWDONWRWKHP
2IWHQDUHODWLYHZLOOWHOO\RXWKHZKROHVWRU\
<RXWDNHOLWWOHSLHFHVKHUHDQGWKHUHDQGFRPHXSZLWKDQDSSURDFKWKDWV
UHDVRQDEOH7KDWVROYHVDSUREOHPRUWZRDQGJHWV\RXSDLG
-39$8*+$1 2ND\QH[WTXHVWLRQDJDLQDERXWIRUHFORVXUHVFHQDULRV
:KDWVWKHEHVWZD\WRQHJRWLDWHDVKRUW
VDOHZLWKWKHEDQN"
-39$8*+$1 %HIRUH\RXVWDUWWKHUHVDORWRISHRSOHRQWKHFDOOWRQLJKW
ZKRGRQWNQRZZKDWDVKRUWVDOHLV
-2(.$,6(5
:HOOWKHWKHRU\EHKLQGDVKRUWVDOHZRXOGEHZKHQWKH
EDQNLVRZHGPRUHWKDQWKHSURSHUW\LVZRUWK6RLQRUGHUIRUDVDOHWR
KDSSHQZLWKWKDWSURSHUW\WKHEDQNLVJRLQJWRKDYHWRDFFHSWOHVVWKDQ
ZKDWWKH\UHRZHGDVSD\PHQWLQIXOOIRUWKDWRE OLJDWLRQ
,GRQWGRDORWRIVKRUWVDOHV:HXVHGWRGRVRPHWKLQJVLPLODU,QWKHROG
GD\VZHKDG,JXHVVZHVWLOOKDYH%HQHILFLDODQG+RXVHKROG)LQDQFHDQG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
WKRVHNLQGVRIWKLQJV7KDWVZKHUHZHDOZD\VKDGRXUEHVWOXFNZLWKJHWWLQJ
DKROGRIWKRVHSHRSOHDQGQHJRWLDWLQJWKHLUVHFRQGVDZD\
,IDILUVWZDVLQIRUHFORVXUHDQGWKHUHVD%HQHILFLDOPRUWJDJHEHKLQGWKDW
WKH\SUHWW\PXFKNQHZWKH\ZHUHQRWJRLQJWRJHWSDLGDQ\WKLQJ6R
QHJRWLDWLQJWKDWDQGEHLQJDEOHWREX\WKDWIRUSHQQLHV RQWKHGROODULVDUHDO
SRVVLELOLW\7KDWZRXOGEHWKHRQO\VKRUWVDOHQHJRWLDWLQJWKDWZHGR
%\GHILQLWLRQLIWKHSURSHUW\VKDVQRHTXLW\LWVSUREDEO\QRWRQH,PJRLQJ
WREHORRNLQJDW
VKRUWVDOHV%XWDJDLQLWVDSURSHUW\WKDWKDVQRHTXLW\RUQHJDWLYHHTXLW\
'DYLGKDYH\RXHYHUGRQHDVKRUWVDOH"
'$9,'),1.(/ <HV,OOMXPSLQKHUHDQGPDNHDMRNHRILW,WKLQNVKRUW
VDOHVDUHVRPHWKLQJWKDWSHRSOHGRQWUHFRJQL] HWKDW\RXFDQPDNHDSURILW
VRPHWLPHVRQLWVLQWHUHVWUDWH
0\PRPUHFHQWO\QHJRWLDWHGDVKRUWVDOHRQDQLQYHVWPHQWSURSHUW\VKHGLG
XSLQ%URRNLQJV2UHJRQ$QGVR,WHDVHSHRSOHVRPHWLPHVDQGVD\LIP\
PRPFDQGRLW\RXFDQGRLW
>ODXJKWHU@
6KHIRXQGDSURSHUW\WKDWKDGDERXWDORDQDJDLQVWLW,WKDG
VRPHILUHGDPDJH6KHQHJRWLDWHGDQSULFH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHELJWKLQJLVLI\RXUHJRLQJWRQHJRWLDWHRQDVKRUWVDOHWKHELJJHVW
FRQVLGHUDWLRQWKHOHQGHULVJRLQJWRZDQWLVWRFORVHT XLFNO\
7KLVSDUWLFXODUSURSHUW\ZKHQVKHZHQWLQIRUWKHRIIHUVKHNLQGRILJQRUHG
HYHU\WKLQJ,VDLGH[FHSWIRURQHWKLQJ6KHRIIHUHGLQGD\VVKHZRXOG
FORVHLW
7KHOHQGHUVVDLG:HOOJUHDWZHOOWDNH\RXURIIHUEXWRQO\LI\RXFORVHLQ
GD\V
,WVWKHQXPEHURQHFRQVLGHUDWLRQIURPOHQGHUVKRZTXLFNO\WKH\UHJRLQJWR
JHWWKHLUPRQH\'LIIHUHQWOHQGHUVZLOOQHJRWLDWHDWGLIIHUHQWWLPHV
6RPHOHQGHUVZLOOVD\<HVZHOOQHJRWLDWHVRPHOHQGHUVZLOOVD\QRWKH
QH[WZHHN,W GHSHQGVRQZKDWWKHLUSRUWIROLRVRIUHDOHVWDWHDUHZLWKWKHLU
EDGORDQVRQWKHLUERRNVVRWKDWWKH\FDQORRNJRRGIRUWKHIHGHUDO
UHJXODWRUV
-RHKLWLWRQWKHKHDGWKHUH,WLVVRPXFKHDVLHUWRQHJRWLDWHDVKRUWVDOHRQ
DVHFRQGRUDWKLUGPR UWJDJHRUDOLHQKROGHUOLNHDPHFKDQLFVOLHQWKDQLW
HYHULVRQDILUVWPRUWJDJH
)LUVWPRUWJDJHVDUHDOPRVWLPSRVVLEOHWRQHJRWLDWHVKRUWVDOHVXQOHVVWKHUH
LVVRPHNLQGRIPDMRUGDPDJHWRWKHSURSHUW\WKDWLVYHU\REYLRXV%DQNV
ZRXOGUDWKHUWDNHEDFNWKHSURSHUW\DQGORVHWKHLUPRQH\,GRQWNQRZZK\
WKDWLVEXW,MXVWKDYHQWEHHQDEOHWRUHDOO\QHJRWLDWHZLWKILUVWPRUWJDJH
KROGHUV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:KHQDVHOOHUWHOOVPHWKH\KDYHDELJVHFRQGPRUWJDJHRUDWKLUGPRUWJDJH
HYHQ,NQRZ,PJRLQJWREHDEOH WRJRLQWKHUHDQGSUREDEO\IRUILYHWHQ
RUILIWHHQFHQWVRQWKHGROODUEX\WKDWVHFRQGPRUWJDJH,IWKH\UHDOO\DUHLQ
DSURSHUW\WKDWVRYHUILQDQFHGZLWKWKDW
-2(.$,6(5
,VQWLWIXQQ\KRZLQYHVWRUVZKRGRQWNQRZDQ\EHWWHU
VHHDWLWOHUHSRUW ZLWKDOONLQGVRIOLHQVDQGVWXIIWKH\UHGLVDSSRLQWHG\RX
NQRZ"
-39$8*+$1 <HV
-2(.$,6(5
:HVHHWKRVHWKLQJVDQGLWVOLNH\RXNQRZ
-39$8*+$1 ([WUDSURILW
-2(.$,6(5
<HHKDZ+HUHZHJR7KDWVH[DFWO\ULJKW
'$9,'),1.(/ 7KDWVWUXH
-39$8*+$1 2ND\'DYLGTXHVWLRQQXPEHUDQGZHYHDOUHDG\EHHQ
WKURXJKVRPHRIWKLV
:KDWDUHWKHULVNVDQGEHQHILWVRIGRLQJ
UHKDEV",QFOXGLQJKRZWRJHWIXQGLQJDQG
LQVXUDQFH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHELJULVNZLWKWKHUHKDELVMXVWPLVXQGHUVWDQGLQJRUPLVFDOFXODWLQJZKDW
WKHUHDOFRVWVRIWKHUHKDEDUH
3HRSOHJHWWKHLUHVWLPDWHVEXWDIWHUGRLQJWKHZRUNWKHUHVDOOWKLVRWKHU
ZRUNWKH\GLGQWNQRZDERXWWKDWJHWVXQFRYHUHG:KHQWKH\VWDUWSXOOLQJ
DSDUWWKHZDOOVWKH\UHFRJQL]HWKDWWKHZLULQJLVFRPSOHWHO\PHVVHGXSDQG
WKHZKROHSURSHUW\VJRLQJWREXUQGRZQSUREDEO\LIWKH\GRQWUHSODFHLWRU
VRPHWKLQJ
6RWKHWKLQJ,ZRXOGVD\LVWKHRQO \ZD\\RXORVHPRQH\RQDUHKDELVLI\RX
RYHUSD\
3OHDVHZKDWHYHU\RXWKLQNWKHSULFHLVWKDW\RXFRXOGFRQVHUYDWLYHO\SD\ JR
ORZHUWKDQWKDW%XLOGLQVRPHH[WUDFXVKLRQ8QWLO\RXUHDOO\XQGHUVWDQG
ZKDWLWWDNHV
1XPEHUWZR,WKLQNSHRSOHRYHU LPSURYHSURSHUWLHVDOOWKHWLPH
,NQRZEHFDXVH,EX\SURSHUWLHVIURPUHKDEEHUVZKRUHKDEEHGEXWJRWVWXFN
DQGQRRQHZDQWHGWRSD\ZKDWWKH\KDGLQWRLW6RZKDWKDSSHQVLV,WKLQN
IRUPRVWSHRSOHLVWKH\UHKDEDSURSHUW\WRWKHLURZQFDVHZKLFKL VWKH
PRVWGHDGOLHVWRIUHKDEEHUVLQV,WKLQN1RWWKDW\RXGRQWKDYHWKHWDVWH
QHFHVVDULO\EXW\RXGRQWKDYHWKHWDVWHRIWKDWPDUNHWSODFH
%HIRUH,ZRXOGHYHQFRQWHPSODWHDUHKDELQDQDUHD,ZRXOGJRWDNHDORRN
DWWHQRWKHUKRXVHVWKDWDUHVH OOLQJULJKWQRZLQWKDWVDPHQHLJKERUKRRG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 <HV
'$9,'),1.(/ $QGVHHZKDWWKHLPSURYHPHQWVDUHWKDWSHRSOHDUH
ZLOOLQJWRSD\IRULQWKDWQHLJKERUKRRG
,QVRPHDUHDV\RXZDQWFHLOLQJIDQVLQWKHURRPV2WKHUKLJKHUHQG
QHLJKERUKRRGVDFHLOLQJIDQLVJRLQJWRDFWXDOO\EHDGHWULPHQWEHFDXVH LW
ORRNVNLQGRIWDFN\6RPHSHRSOHSXWDIDQF\PDUEOHFRXQWHUWRSRQEXWWKH
PDUNHWZRQWSD\\RXIRULW<RXVSHQGDGROODUWKH\SD\\RXFHQWVIRU
WKDWLPSURYHPHQW
-2(.$,6(5
5LJKW
'$9,'),1.(/ %XWRWKHUWKLQJVZLOODOZD\VSD\IRUWKHPVHOYHVOLNHOD\LQJ
FDUSHW
6RMXVWPDNHVXUH\RXGRQWLPSURYHLWWR\RXUWDVWH,PSURYHLWWRWKH
WDVWHRIWKHSHRSOHEX\LQJWKHSURSHUW\0DNHVXUH\RXXQGHUVWDQGWKDW
SDUWRILW
7KHILQDOWKLQ J,GVD\LQWHUPVRIJHWWLQJIXQGLQJDQGLQVXUDQFHLVWKDW,
GRQWNQRZLI,PUHDOO\WKHSHUVRQWREHVSHDNLQJDERXWLW,GRQWKDYH
-39$8*+$1 <RXGR-RHGRQW\RX"
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
>ODXJKV@$VIDUDVWKHIXQGLQJSDUWRUWKHLQVXUDQFH"
-39$8*+$1 ,QWKHROGGD\VLQ\RXUHDUOLHUOLIH\RXYHGRQHUHKDE
-2(.$,6(5
<HDK,QWKHROGGD\V LWZDVHDV\$QDJHQWZRXOGFRPH
DQGKHGZULWHLQVXUDQFHRQDQHPSW\KRXVH1RZWKDWVJHWWLQJKDUGHUDQG
KDUGHUWRGR<RXNQRZWKH\VK\DZD\IURPHYHU\WKLQJ
-39$8*+$1 <HV
-2(.$,6(5
:HUHXVHGWREX\LQJWKLQJVRQWKHSKRQHDQGWKH\GJR
GULYHDURXQGDQGORRNDWWKHPWKUHHPRQWKVODWHURUVR1RZWKH\GRQW
ELQGWKHPXQWLOWKH\YHJRWDGULYHE\6RLWVDORWWRXJKHU
'$9,'),1.(/ <HVIRUPHDQGHYHQLQ&DOLIRUQLDP\6WDWH)DUPDJHQW
FDQWHYHQZULWHDQ\PRUHSROLFLHV7KH\YHORVW VRPXFKPRQH\EHFDXVHRI
P\PROGDQGRWKHUWKLQJVWKDWDUHLQ&DOLIRUQLD
-2(.$,6(5
7KHRWKHUWKLQJDERXWUHKDEV\RXKDYHWREHUHDOO\JRRG
DWPDWKWRGRWKHP<RXGEHVKRFNHGDWKRZFKHDS\RXKDYHWREX\WKHVH
WKLQJVWRDFWXDOO\PDNHDSURILWRQWKH P
,Q\RXUPLQG\RXGRWKHPDWKDQGWKLQN:HOOZHFRXOGGRWKLVDQGWKDW
,WOOZRUNRXW
%XWZKHQ\RXJHWULJKWGRZQWRLWLWVMXVWDPD]LQJKRZH[SHQVLYHLWLVWR
UHKDEKRZPXFKWKLQJVFRVWOLNHODERU<RXKDYHWREHDEOHWREX\WKHVH
WKLQJVUHDOO\UHDOO\FKHDSO\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 7KDWVWUXH2ND\-RHTXHVWLRQQXPEHU7KLVLVDELJ
TXHVWLRQEHFDXVHRIWKH&DUOWRQ6KHHWVLQIRPHUFLDOV
-2(.$,6(5
<HDKULJKW>ODXJKV@
-39$8*+$1 7KHSDVW\HDUV
-2(.$,6(5
<HV
-39$8*+$1 1H[W
+RZGR\RXJHWFDVKEDFNDWFORVLQJ"
-2(.$,6(5
ZRXOGQWLW"
:HOO,ZRXOGWKLQNWKDWZRXOGEHDJRRGWKLQJWRNQRZ
-39$8*+$1 2K\HDK
-2(.$,6(5
,KDYHIULHQGVZKRDUHDJHQWVVRGRQWJHWPHZURQJEXW
DJHQWVKDYHILJXUHGRXWKRZWR JHWFDVKEDFNDWFORVLQJ
-39$8*+$1 <HS
-2(.$,6(5
6RKRZKDUGFRXOGLWEH",PHDQLWFDQWEHWKDWGLIILFXOW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
(YHU\WKLQJZHGRLVJRLQJWREHEDVHGRQFDVKEDFNDWFORVLQJ(VSHFLDOO\LI
\RXUHGRLQJTXLFNIOLSVDQGWKRVHNLQGVRIWKLQJV< RXNQRZWKDWVMXVWWKH
ZD\LWLV
,I\RXUHWDONLQJDERXWEX\LQJKRXVHVWRNHHSFORVLQJDQGJHWWLQJFDVKEDFN
WKDWEHFRPHVDOLWWOHPRUHGLIILFXOW7KHUHDUHWULFN\ZD\VWRGRLWZKLFK\RX
GRQWQHHGWRPRQNH\DURXQGZLWK
-39$8*+$1 <HV
-2(.$,6(5
7KLVLVWKHZD\LWVGRQHLI\RXUHEX\LQJDQG\RXUH
PDNLQJDJRRGGHDO)RULQVWDQFHP\KDUGPRQH\OHQGHUZHWDONHGDERXW
HDUOLHUZLOOORDQSHUFHQWORDQWRYDOXH6RLI,EX\DSURSHUW\VD\DW
FHQWVRQWKHGROODU,ZLOOZDONRXWRIHVF URZZLWKDFKHFNHYHU\WLPH
,WVWKHHDVLHVWZD\WREX\FKHDSDQGJHWDORDQ<RXZDONRXWRIHVFURZ
ZLWKPRQH\
,I\RXUHGRLQJTXLFNIOLSV\RXUHQRWORRNLQJWRNHHSWKHSURSHUW\WKHQ
&DVKDWFORVLQJLVSUHWW\PXFKWKHZKROHJDPHSODQ
-39$8*+$1 7KDWVWKHGHILQLWLRQRIDTXLFNIOLS
-2(.$,6(5
<RXEHW<RXUHJHWWLQJFDVKDWFORVLQJ
-39$8*+$1 $QGWKHQ
-2(.$,6(5
,WVWRXJKHULI\RXUHWU\LQJWRNHHSLW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 5LJKW,I\RXJHWLWIRUDUHQWDO
-2(.$,6(5
<HV
-39$8*+$1 <HVXQOHVV\RXJHWILQDQFLQJOLNH\RXVDLG
'$9,'),1.(/ :HDOVRJHWFDVKEDFNDWRXUFORVLQJVEHFDXVHZKHQZHUH
GRLQJRXUFORVLQJZHUHVHOOLQJWKDWSURSHUW\VLPXOWDQHRXVO\WRDSHUVRQRQ
DUHQWWRRZQEDVLV
-39$8*+$1 5LJKWULJKW
'$9,'),1.(/ :HUHJHWWLQJSHUFHQWRUSHUFHQWRIDQRSWLRQSD\PHQW
ZKLFKJLYHVXVVRPHFDVKULJKWWKHUH
-39$8*+$1 5LJKW7KDWVULJKW6RZHYHFRYHUHGPRVWRIWKHZD\V
WRJHWFDVKEDFNDWFORVLQJ
%XWLWVDELJTXHVWLRQLWVDELJTX HVWLRQ
'$9,'),1.(/ ,WKLQNLWVLQWHUHVWLQJ/LNH-RH,PDSSUHFLDWLYHRI\RXU
PHQWLRQLQJWKDWWKHUHDUHVRPHZD\VWKDWDUHWDONHGDERXWLQFHUWDLQ
FRXUVHVLQWHUPVRIJHWWLQJWKHFDVKEDFNDWFORVLQJ7KH\UHDOO\ERUGHUOLQH
RQORDQIUDXG
-39$8*+$1 )UDXG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ ,WVUHDOO\WHUULEOH
-39$8*+$1 <HVULJKW
-2(.$,6(5
2K\HDK
'$9,'),1.(/ <RXNQRZWKHSKDQWRPVHFRQGPRUWJDJHVWKDWVHOOHUV
DVVLJQEDFNRYHUWR\RXDQGJLYH\RXWKHFKHFNXQGHUWKHWDEOH,PHDQ
-39$8*+$1 1RWDJRRGLGHD
-2(.$,6(5
\RXNQRZZKDW"
,WVWHPSWLQJDQG\RXNQRZWKDW$QG\RXJHWFDVKEXW
,WVIUDXG-XVWGRQWJRWKHUH
'$9,'),1.(/ 7KHIXQQ\SDUWLV,KDGDORDQEURNHUMXVWWKHRWKHUGD\RQ
DSURSHUW\ZHZHUHVHOOLQJ+HZDVWU\LQJ WRILQDQFHKLVEX\HUDQG
VXJJHVWHGWKDWYHU\WKLQJ$QG
-39$8*+$1 2KZRZ
'$9,'),1.(/ EXWLWZDVOLNHHYHU\GD\EXVLQHVVWRKLP7KDWVMXVW
KRZKHJHWVWKHVHWKLQJVGRQH
-39$8*+$1 %XWWKHWUXWKLVLI\RXUHGRLQJDJRRGGHDOLI\RXU H
PDNLQJDSURILWIURPWKHYHU\VWDUWRIWKHGHDO\RXGRQWKDYHWRGRDQ\RI
WKDW<RXEX\LW<RXEX\LWIRUWKHULJKWSULFH<RXGRQWQHHGWRGRORDQ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
IUDXG,WVMXVWQRWQHFHVVDU\,WLVPXFKPRUHFRPPRQWKDQDORWRISHRSOH
WKLQN,WVMXVWQRWWKHZD\WRJR,WVQRWZRUWKWKHULVN
'$9,'),1.(/ :HOO,ZRQGHUDERXWWKHVHSHRSOHZKRDUHQWDVVDYY\
$QG\RXNQRZWKLVEURNHUKDG,MXVWEHHQVRPHERG\ZKRGLGQWNQRZ
EHWWHULWVRXQGHGOLNHDJRRGGHDO,ZRQGHUKRZPDQ\SHRSOHDUHVLJQLQJ
XSIRUWKLVNLQGRIWKLQJDQGZKDWWKHFRQVHTXHQFHVDUH
-39$8*+$1 %XWZHYHVHHQRQWKHQHZVJURXSVDOOWKHWLPHZKDW
SHRSOHVD\
'$9,'),1.(/ <HV
-39$8*+$1 0\EURNHUVDLG,FRXOGGRWKLV\RXNQRZ$QGIRUWXQDWHO\
ZHKDYHDORWRISHRSOHDQVZHULQJWKDWTXHVWLRQVD\LQJGRQWGRLW,WVORDQ
IUDXG
-2(.$,6(5
5LJKWZKDW,WHOOWKHPLV*UHDWJHWWKDWLQZULWLQJZLWKD
ORDQEURNHU6D\'LVFORVHWKDWWRERWKSDUWLHV7KHQ,ZRXOGEHKDSS\WR
GRLWRQFHLWVEHHQGLVFORVHGEHFDXVH WKHQLWVQRORQJHUIUDXG
'$9,'),1.(/ *RRGLGHD
-2(.$,6(5
>ODXJKV@<RXGEHKDSS\DQGVXUSULVHGKRZTXLFNO\WKH
ORDQEURNHUFKDQJHVWKHWRSLF
-39$8*+$1 ([DFWO\\HV2ND\TXHVWLRQ'DYLG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:KDWVWKHEHVWZD\WRILQGEX\HUVIRU
\RXUGHDOV"
'$9,'),1.(/ ,JRWZRZD\VUHDOVLPSOH7KHWZRELJJHVWEDVLFVDUH
1XPEHU$GYHUWLVHULJKW
1XPEHU'HOOZLWKRZQHUILQDQFLQJZKHWKHULWEHRQDUHQW WRRZQRU
VRPHWLPHV,OOVHOOZLWKZUDSDURXQGPRUWJDJHVRUFRQWUDFWV
,NQRZWKDWLI ,PVHOOLQJZLWKILQDQFLQJWKHSURSHUW\GRHVQWPDWWHU,GRQW
SXWP\WLPHDQGHQHUJ\LQWRPDNLQJWKHSURSHUW\ORRNSHUIHFW ,IRFXVP\
WLPHDQGHQHUJ\LQWRFUHDWLQJDQHQYLURQPHQWZKHUHSHRSOHDUHFRPSHWLQJ
WREX\ 6R,PJRLQJWRGRWZRWKLQJV
1XPEHU ,PJRLQJWRXVHDGVLQWKHSDSHU<RXQHHGWRKDYHWKRVHLQ
WKHUH,PJRLQJWRDGYHUWLVHRQ6DWXUGD\VDQG6XQGD\VEHFDXVHDOOZHHNLV
NLQGRIDZDVWHRIPRQH\,WVWKH6DWXUGD\DQG6XQGD\WKDWJHWV\RXRU
SHUFHQWRI\RXUFDOOV
,PJRLQJWRSXWP\DGVLQWKHFRUUHFWVHFWLRQ,I,PVHOOLQJRQDUHQW WR
RZQEDVLV,GRQRWSXWLWLQWKH)RU5HQWVHFWLRQ,SXWLWLQWKH)RU6DOHRU
WKH5HQWWR2ZQVHFWLRQLIWKHSDSHUHYHQKDVRQH
,PDOVRJRLQJWRXVHVLJQV'ROODUIRUGROODUVLJQV DUHDFWXDOO\DEHWWHU
VRXUFHRIOHDGVIRUEX\HUV,GRQRWEHOLHYHLQKDYLQJSUHSULQWHGVLJQVRWKHU
WKDQIRUZKDWVULJKWWKHUHLQIURQWRIWKHKRXVHDQGPD\EHRQWKHFRUQHU
ORWOHDGLQJXSWRWKHKRXVH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,ILQGWKDWWKRVHXJO\OLWWOHKDQGZULWWHQVLJQV DFWXDOO\SXOOEHWWHUIRUEX\HUV
)RUH[DPSOHLI\RXUHLQDQDUHDWKDW\RXGRQWJHWDORWRIUDLQ\RXFDQMXVW
XVHIOXRUHVFHQWSRVWHUERDUG,I\RXUHLQDQDUHDRIWKHFRXQWU\WKDWJHWV
ORWVRIUDLQRUDORWRIVQRZMXVWEX\VRPHEODQN\HOORZFRU UXJDWHGSODVWLF
SUREDEO\[RU[-XVWZULWHRQWKHUHUHDOELJOHWWHUVZKDWLWLV
WKDW\RXUHRIIHULQJ
:KHUHSHRSOHEORZLWLQFUHDWLQJFRPSHWLWLRQLQP\RSLQLRQLVWKH\VSLOOWKH
EHDQVRYHUWKHSKRQH3HRSOHWKLQNWKDWWKH\VKRXOGTXDOLI\RYHUWKH
WHOHSKRQH,WKLQNWKDWVDPLVWDNH
,GRQWZDQW WRTXDOLI\RYHUWKHSKRQH,MXVWZDQWWRJHWHYHU\RQHWRWKH
SURSHUW\DVORQJDV,NQRZZKDWWKH\KDYHWRZRUNZLWKLVDQXSIURQW
SD\PHQW
,OOVWLOOOHWSHRSOHZKRGRQWKDYHWKHPRQH\FRPHWRWKHSURSHUW\EHFDXVH
RIWZRWKLQJV1XPEHURQHWKH\OO EHFRPSHWLWLRQIRUP\SHRSOHZKRGR
KDYHWKHPRQH\
-2(.$,6(5
5LJKW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ $QGQXPEHUWZRZKRNQRZVPD\EHWKH\ZLOOIDOOLQORYH
ZLWKLW0D\EH,FDQZRUNZLWKWKHPDQGKHOSWKHPJHWWKHPRQH\RXWRI
WKHLU.SODQRUDUHODWLYHJLYLQJWKHP WKHPRQH\%XW,ZDQWHYHU\RQH
WKHUH
,GHDOO\,PJRLQJWRKDYHRUSHRSOHFRPLQJWRWKHSURSHUW\,GRQWGR
P\VKRZLQJVIURPWROLNHUHDOWRUVGR,GRP\VKRZLQJVIURPWR
DQG,GRQWHYHQKDYHDVKRZLQJ,PDNHVSHFLILFDSSRLQWP HQWVZLWK
HYHU\ERG\7KH\MXVWFRLQFLGHQWDOO\DOOVWDUWDWWKHVDPHWLPH
-39$8*+$1 5LJKW:HOOWKDWFUHDWHVXUJHQF\
'$9,'),1.(/ <HVXUJHQF\IHDURIORVVFRPSHWLWLRQDQGDOOWKHJRRG
WKLQJVWKDWJHWV\RXVHOOLQJDSURSHUW\IDVW
-2(.$,6(5
ULJKWQRZ6R
:HOO,PQRWGRLQJDORWRIOHDVHRSWLRQVDVIDUDVVHOOLQJ
-39$8*+$1 %XW\RXUHVHOOLQJ\RXUSURSHUWLHV
-2(.$,6(5
2KVXUH<RXNQRZ,YHJRWDQDJ HQWZKRZHSUHWW\
PXFKKDYHKLUHGQRZ:HYHJRWDORWRISURSHUWLHVWKDWJRWKURXJKRXU
V\VWHPKHUH6R,YHJRWDJX\ZKRLVDYHU\DJJUHVVLYHDJHQW:HOLVWWKH
WKLQJVDQGKHMXVWJHWVLWGRQH+HGRHVDOORIWKHUXQQLQJDURXQG
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ 7KDWVJUHDW-RH+HUHVDTXHVWLRQIRU\RX'R\RXKDYH
KLPOLVWDWWKHWRSHQGRIWKHPDUNHW"2UGR\RXKDYHKLPJRLQWRMXVWD
OLWWOHELWOHVVWRJHWWKHPWXUQHGTXLFNHU"
-2(.$,6(5
5LJKWZHUHDOZD\VJRLQJWREHDOLWWOHELWOHVV
'$9,'),1.(/ 2ND\
-2(.$,6(5
2XUWKLQJLV,PQRWORZSURILWRUDQ\WKLQJEXWZHGRQHHG
WRMXVWJHWWKHPLQDQGRXW7KHORQJHUWKH\KROGRQJHWVWREHDSUREOHP
EHFDXVHZHFRXOGJHWUHDOO\JRRGDWEX\LQJSURSHUWLHV
:KHUHZHJHWKXQJXSLVDOORIDVXGGHQZHOR RNDURXQGDQGWKHUHDUHMXVW
ZD\WRRPDQ\SURSHUWLHVDQGZD\WRRPXFKFDVKLQYHVWHGLQWKRVH6R
JHWWLQJULGRIWKHPLVWKHSULPDU\WKLQJ
-39$8*+$1 (VSHFLDOO\LI\RXGRELJYROXPH
-2(.$,6(5
<HDKZHGRDORW
-39$8*+$1 +LJKYROXPH
-2(.$,6(5
:HGRDORW:HUHEX\LQJWKHPFKHDS:HUHVWLOOSXWWLQJ
XSVRPHVLJQLILFDQWGROODUVLQWRWKHP6RLWWXUQVRXWWKDW\RXFDQUXQRXW
RIPRQH\UHDOO\TXLFNO\HYHQEX\LQJKRXVHVDWFHQWVRQWKHGROODU
,I\RXUHQRWDZDUHRIWKDWLWVJUHDW WRORRNDWWKHEDODQFHVKHHWWRVHHDOO
WKHVHKXJHHTXLWLHVWKHUH%XWDOORIDVXGGHQWKHUHVQRFDVKDYDLODEOH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KDWVDVFDU\WKLQJ6RZHDOZD\VKDYHWREHPRYLQJSURSHUWLHV
DJJUHVVLYHO\
+RZGR,UHGXFHP\ULVNV"
'$9,'),1.(/ ,OOMXVWUHFDSLQDERXWDPLQXWHZKDWWKDWZDV
1XPEHU 'RQWSXWPRQH\LQWRWKHGHDOXQWLO\RXOHDUQKRZWREX\ULJKW
'RQWVLJQSHUVRQDOO\RQWKHORDQVXQWL O\RXOHDUQKRZWREX\ULJKW7KHQ
\RXPDNHGHFLVLRQVLILWPDNHVVHQVHIRU\RXWRGRWKDW
1XPEHU ,QWHUPVRIUHGXFLQJ\RXUULVNVLWJRHVEDFNWRQXPEHURQH
'RQWSXW\RXUPRQH\LQWKHGHDOXQWLO\RXNQRZZKDWDJRRGGHDOLVDQG
KRZWRGRLW
-2(.$,6(5
*RRGSRLQW
-39$8*+$1 *RRG-RHQXPEHU
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,PLQDYHU\FRPSHWLWLYHPDUNHWZLWK
ORWVRIRWKHUUHDOHVWDWHLQYHVWRUV+RZ
FDQ,PDNHPRQH\"
-39$8*+$1 %R\\RXNQRZWKDWDSSOLHVWRZKHUH\RXOLYHLQ&DOLIRUQLD
WRR\RXNQRZ"
-2(.$,6(5
GRQWJRWKHUH
,WVDOODYHU\FRPSHWLWLYHPDUNHW7KHVKRUWDQVZHULV
<RXNQRZZHGRQWLQYHVWLQZKDWP RVWSHRSOHDUHFRQVLGHULQJWKH
PDUNHWSODFH7KDWVZKHUHZHVHOORXUSURSHUWLHV%XWZHJRZKDW,FDOO
VXEWHUUDQHDQ:HJRWRWKHPDUNHWXQGHUQHDWKWKHPDUNHW7KDWVWKH
SHRSOHZKRGRQWZKRPD\QRWHYHQKDYHDSURSHUW\IRUVDOH7KH\UHMXVW
SHRSOHZLWKSUREOHPVWKDWQHHGWREHVROYHG,IVHOOLQJWKHSURSHUW\LVD
VROXWLRQIRUWKHPWKDWVWKHSHUVRQ,ZDQWWRWDONWR7KDWVQRWWKHSHUVRQ
ZKRVJRWWKHKRXVHOLVWHG
,PQRWWKHVRUWRISHUVRQWKDWKRRNVXSZLWKDQDJHQWRUPDNHVDZKROH
EXQFK RIRIIHUVWKURXJKWKH0/6
,WKLQNWKDWVZKDWDORWRIP\FRPSHWLWRUVGR7KH\SRXURYHUWKDW0/6
HYHU\GD\7KH\YHJRWDJHQWVVHQGLQJWKHPWKHLUKRWVKHHWVDQGSOD\LQJ
WKHPWRSURSHUWLHVWKDWVRUWRIILWWKHLUFULWHULD
,GRQWZDQWWRPHVVZLW KDQ\RIWKDW,PPRUHWKDQKDSS\WROHWWKHP
KDYHWKDWPDUNHWSODFH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,NLQGRIZDQWWKDWPDUNHWSODFH\RXNQRZLWVQRWDVHFUHWRUDQ\WKLQJ%XW
LWVXQGHUQHDWKDOOWKDW,WVVRUWRIMXVWVLWVWKHUH:HJHWLQDQGEXPS
DURXQGLQWKDWPDUNHWSODFH 7KDWVZKHUHZHJHWDOORXUGHDOVDQGWKHUH
DUHQWPDQ\SHRSOHWKHUH
:HUXQLQWRVRPHRIWKHVDPHIDFHVHYHU\QRZDQGWKHQEXWWKHUHDUHQWD
ORWRISHRSOHZKRYHILJXUHGWKDWRXWVRPXFK,GRQWWKLQNWKHUHDUH
VHPLQDUVRUFRXUVHVWKDWUHDOO\WHDFK ZKDWWKDWVDOODERXW6RIDUDV
FRPSHWLWLRQLWVQRWDVEDGDVLWPD\VHHP
-39$8*+$1 %HFDXVH\RXUHWDONLQJDERXWDOOWKHGHWHFWLYHZRUN\RXUH
GRLQJDWWKHFRXUWKRXVH
-2(.$,6(5
:HOOLWVDORWRIWKDW%XWZHVDZLQWKHSDSHUUHFHQWO\
WKDWLQP\QHLJKERUKRRGLWVWKHPRVWRYHUSULFHGPDUNHWLQWKHFRXQWU\
,PGRLQJRND\
-39$8*+$1 <HV
-2(.$,6(5
6RLIZHFDQPDNHLWKDSSHQKHUH
-39$8*+$1 5LJKW
-2(.$,6(5
EXVLQHVV
DQG\RXNQRZLWVJRWWREHDYDOLGZD\RIGRLQJ
,ZDVLQ6SRNDQHZKLFKLVHDVWHUQ:DVKLQJWRQPLOHVHDVW,ZDVMXVW
VKRFNHGDWWKHGHDOVWKDWFRXOGEHPDGHWKHUH<RXNQRZ,FRXOGQWVHH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
DQ\FRPSHWLWLRQWKHUH7KHUHZDVMXVWDWRQRIEXVLQHVVDQGDOLWWOHELWRI
WKHROGVFKRROVWXIIZKHUHVHOO HUVZLOOVWLOOVHOORQUHDOHVWDWHFRQWUDFWV
3ULYDWHILQDQFLQJNLQGRIWKLQJ
'$9,'),1.(/ ,PFKLPLQJLQKHUH,I\RXUHORRNLQJMXVWDWIRUHFORVXUHV
WKH$PHULFDQ0RUWJDJH$VVRFLDWLRQVDLGWKDWLQWKHVHFRQGTXDUWHURI
ZKLFKHQGHGLQ-XQHRXWRIHYHU\SURSHUW\WKDWKDGDPRUWJDJH
SHUFHQWRIWKHPZHUHOLWHUDOO\LQGHIDXOW ,WZDVMXVWDPD]LQJ
-2(.$,6(5
:RZ
'$9,'),1.(/ $QGIRUHYHU\RQHWKDWZDVLQGHIDXOW\RXKDGDERXWRQH
RWKHURQHKHDGHGWKDWZD\EHKLQGLQWKHLUSD\PHQWV
,WPHDQVLI\RXGULYHE\WR\RXUORFDOJURFHU\VWRUHDQGSDVVKRXVHV
RURIWKHPDUHLQIRUHFORVXUH5LJKWWKHUHDQGDERXWRUPRUHDUH
EHKLQGLQWKHLUSD\PHQWV7KH\UHHYHU\ZKHUH
-2(.$,6(5
<HV
DFFRXQWWKHWLUHGODQGORUGVWKHGLYRUFHVLWXDWLRQVDQGWKHSHRSOHWKDWZDQW
WRJHWVWDUWHGLQWKHLUEXVLQHVVDQGQHHGPRUHFDSLWDORUZDQWWRWXUQWKHLU
SURSHUWLHVIRUSHRSOHZKRKDYHEHHQUHORFDWHG,PHDQGHDOVDUH
HYHU\ZKHUH
-2(.$,6(5
:HOOZHERXJKWDSURSHUW\ODVW\HDUIURPDIHOORZZKR
LQKHULWHGDRQHKDOILQWHUHVWLQDSURSHUW\LQ&DOLIRUQLD+HZDVQWVHOOLQJ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
7KHSHRSOHOLYLQJLQWKHKRXVHDUHQWVHOOLQJ7KDWSURSHUW\LVQRWRQWKH
PDUNHW
7KHUHV]HURFRPSHWLWLRQIRUWKDWGHDO%XW,KDSSHQHGWREHJRLQJWKURXJK
DSUREDWHILOH,VDZWKDWKHJRWWKLVKDOILQWHUHVWVL[\HDUVDJRDQGKHVROG
PHKDOIRIDKRXVHIRUOLWHUDOO\FHQWVRQWKHGROODU7KDWZDVQWDGHDOLQ
WKHPDUNHWSODFH7KDWZDVWRWDOO\ EHQHDWKWKHPDUNHWSODFH
$QGLIZHZHUHQWRXWORRNLQJIRUWKDWYHU\VFHQDULRWKHUHZRXOGKDYHEHHQ
QRWUDQVDFWLRQ+HGVWLOORZQKDOIRIDKRXVHDQGQRWKDYHDQ\WKLQJWRVKRZ
IRULW
-39$8*+$1 7KDWVZKDW\RXPHDQE\JRLQJVXEWHUUDQHDQ
-2(.$,6 (5
7KDWVVXEWHUUDQHDQULJKWWKHUH
-39$8*+$1 ,ORYHLW>ODXJKV@:HOO,FDQWWKLQNRIDKRWWHUIDVWHU
PRYLQJPDUNHWLQ6RXWKHUQ&DOLIRUQLD2UHYHQZKHUH\RXOLYH-RHLQ
:DVKLQJWRQ6WDWH7DFRPD6RWKHQH[WTXHVWLRQLV
+RZGR\RXPDNHPRQH\LQDKRWIDVW
PRYLQJVHOOHUVPDUNHWZLWKKLJKSULFHG
KRXVHV"
'$9,'),1.(/ >ODXJKV@,PHDQWKHVDPHZD\\RXPDNHLWLQWKHVORZ
PDUNHW<RXMXVWQHHGWRXQGHUVWDQGWKDWLQDIDVWPRYLQJPDUNHWWKHUHDUH
WZRWKLQJVWRFRQVLGHU
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
1XPEHURQH 7KHVHOOHUVDUHVWLOOJRLQJWRKDYHPRWLYDWLQJUHDVRQV
,UHPHPEHULQ6DQ'LHJRWKHKLJKHUWKHPDUNHWZDVLQWKHVXPPHURI
KRXVHVZHUHKDYLQJOHVVWKDQWZRRUWKUHHZHHNVRQWKHPDUNHW
7KH\ZHUHVHOOLQJIRURYHUOLVWLQJSULFHV+RXVHVZHUHDSSUHFLD WLQJDFURVV
WKHFRXQW\DERXWSHUFHQWRQDYHUDJHZLWKVRPHDUHDVJRLQJXSRYHU
SHUFHQWSHU\HDU
-39$8*+$1 <HDKLWZDVFUD]\
-2(.$,6(5
:RZ
'$9,'),1.(/ 7KDWVDPHVXPPHUZHVWLOOSLFNHGXSWKUHHKRXVHVDQG
\RXNQRZRQHZDVDUHIHUUDO
$PRWKHURIRQHRIP\VWXGHQWVLQWKHDUHDKHUHFXWVSHRSOHVKDLUIRUD
OLYLQJ6KHIRXQGVRPHRQH LQKHUEDUEHUFKDLU$FWXDOO\,NQRZIRU
ZRPHQ\RXGRQWFDOOLWDEDUEHUV\RXFDOOLWVRPHWKLQJGLIIHUHQW
-39$8*+$1 ,WVDVDORQ
'$9,'),1.(/ ,QDVDORQVXUHWKDWVLW'RQWDVNPHZK\EXWWKLV
ZRPDQZDVWHOOLQJKHUDERXWKRZVKHZDVEHKLQGLQKHUSD\PHQWVDQGLQWR
IRUHFORVXUH
:HHQGHGXSEX\LQJWKDWSURSHUW\:HPDGHDERXWPD\EHLQ
HTXLW\LQWKDWKRXVHDQGZHZ LOOKDQJRQWRLWEHFDXVHLWVDORQJ WHUP
NHHSHUIRUXV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 <HV
'$9,'),1.(/ %XW\RXNQRZWKH\UHHYHU\ZKHUH
1XPEHU /HWVJHWEDFNWRWKHVHFRQGSDUWRIZKDWWRZDWFKRXWIRULQD
IDVWPRYLQJPDUNHW7KHPRVWGDQJHURXVWLPHWRPL VSULFHWKLQJVLQDIDVW
PRYLQJPDUNHWLVULJKWZKHUHWKHPDUNHWPLJKWEHWDNLQJDWXUQGRZQ
6RSOHDVHWKDWVHYHQPRUHUHDVRQZK\\RXVKRXOGQWEHEX\LQJZLWKFDVK
RUPRQH\\RXKDGWRVLJQSHUVRQDOO\IRU ,IWKHPDUNHWWXUQV\RXMXVWZDQW
WREHLQWHOOLJHQWDERXWWKDW<RXZDQWWRPDNHVXUHWKDW\RXYHJRWWKH
DELOLW\WRKDQJRQWRWKHSURSHUW\EHFDXVHLWVFDVKIORZRYHUWKHQH[WWKUHH
IRXUILYHVL[\HDUV
<RXOOFRPHRXWRND\RQWKHRWKHUHQGLI\RXFDQUHDOO\PDNHWKHSURSHUW\
FDVKIORZ
-39$8*+$1 -RH\RXZDQWWRDGGDQ\WKLQJ"
-2(.$,6(5
<HV3HRSOHDUHDOZD\VWHOOLQJPH7KHUHVQRWDGHDOWR
EHKDGLQP\PDUNHWSODFH0\JX\ZLOOMXVWOLVWLW\RXNQRZ2IIHUVDUH
FRPLQJLQDWPRUHWKDQDVNLQJSULFH
SHRSOHZLOOGRDQ\WKLQJQRWWREHLQYROYHGLQWKDWPDUNHWSODFHRUWRJHW
LQYROYHGLQWKDWSURFHVV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
,I,FDQFRPHLQDQGPDNHWKHPDUHDVR QDEOHRIIHUWKH\OOVHOOLWWRPHMXVW
WRJHWLWGRQH6RWKH\FDQPRYHRQ
7KHPRWLYDWLQJIDFWRULVQWWKHLUJHWWLQJWKHODVWGROODULQWKLVGHDO7KH
PRWLYDWLQJIDFWRULVWKHLUPRYLQJGRZQWKHURDG,I,PWKHJX\ZKRFDQ
PDNHWKDWKDSSHQWKH\OO PDNHPHDGHDOWKDWZLOOZRUN
'$9,'),1.(/ *RRGSRLQWJRRGSRLQW
-39$8*+$1 2ND\\RXJX\V,NQRZ-RHWKDW\RXUHQRWDUHDOHVWDWH
DJHQW<RXGRQWKDYHDUHDOHVWDWHOLFHQVHHLWKHUGR\RX'DYLG"
'$9,'),1.(/ 1RQHYHUUHDOO\KDGDGHVLUH WRJHWRQH
-39$8*+$1 <HV:HOOWKHQH[WTXHVWLRQQXPEHULV
:KDWDUHWKHSURVDQGFRQVRIJHWWLQJD
UHDOHVWDWHOLFHQVHLI\RXUHDUHDOHVWDWH
LQYHVWRU"
-39$8*+$1 :KRZDQWVWRWDNHWKDWRQH"
-2(.$,6(5
:HOOLQWKLVEXVLQHVVZKHQ\ RXYHVSHQWVRPHWLPHLQLW
\RXVWDUWWRVHHWKHWKLQJVWKDWZRUNDQGWKHWKLQJVWKDWJHWLQWKHZD\7KH
JRDOLVWRHOLPLQDWHDOOWKHVWXIIWKDWJHWVLQWKHZD\+DYLQJDOLFHQVH,
ZRXOGWKLQNZRXOGILWLQWRWKDWFDWHJRU\IRUPHDQ\ZD\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$ 1 ,WZRXOGJHWLQWKHZD\EHFDXVHRIGLVFORVXUHVDQGDOORI
WKDWVWXII
-2(.$,6(5
,MXVWGRQWZDQWWREHERWKHUHG,MXVWZDQWWREHDEOHWR
URFNDQGUROOZLWKWKLVVWXIIDQGGRZKDW,GRDQGPDNHWKLQJVKDSSHQ$QG
WKHUHDUHDOONLQGVRIRWKHUWKLQ JVWKDWJHWLQWKHZD\,MXVWFDQWEH
ERWKHUHG\RXNQRZ
'$9,'),1.(/ <HDK,GDVNP\VHOI:KDWVWKHUHDODGYDQWDJHRIKDYLQJ
DOLFHQVH"
7KHRQO\RQHDGYDQWDJHWKDW,VHHRIKDYLQJDUHDOHVWDWHOLFHQVHLVDVDQ
LQYHVWRU\RXJHWDFFHVVWRWKH0/6:HOO,FDQJHWDFFHVVWRWKH0/6LI,
QHWZRUNZLWKWKHUHDOWRUZLWKRXWDQ\RIWKHGRZQVLGH
-39$8*+$1 5LJKW$QG\RXGRQWKDYHWRSD\IRULWHLWKHU
'$9,'),1.(/ 5LJKW7KHUHVQRWKLQJZURQJZLWKEHLQJOLFHQVHGWKRXJK
,NQRZRISOHQW\ RILQYHVWRUVZKRPDNHPRQH\DQGDUHOLFHQVHG
7KHELJJHVWGRZQVLGHWKDW,VHHLQEHLQJDOLFHQVHGDJHQWLVWKDWWKHUHVD
KXJHELDVLQWKHPDUNHWSODFHIRUVHOOHUVZKRVHOO)RU6DOH%\2ZQHUDQG
MXVWGRQWOLNHUHDOWRUV
-39$8*+$1 5LJKW
'$9,'),1.(/ %HFDXVHWKH\YHEHHQKRXQGHGWRGHDWKIURPSHRSOH
FDOOLQJWKHPXSWKDWZD\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 5LJKW$QGLI\RXUHDOLFHQVHGUHDOHVWDWHDJHQW\RXKDYH
WRGRDOOWKHGLVFORVXUHVWXII
'$9,'),1.(/ 5LJKW
-39$8*+$1 $QG,YHNQRZQDORWRILQYHVWRUVZKRKDYHJLYHQXSUHDO
HVWDWHOLFHQVHVMXVWWR
'$9,'),1.(/ ,WVQRWZRUWKLW
-39$8*+$1 QRWKDYHWRVD\,PDUHDOHVWDWHDJHQWEHFDXVHRIWKH
QHJDWLYLW\
-2(.$,6(5
$OZD\VWKHILUVWTXHVWLRQRXWRIWKHVHOOHUVPRXWK
-39$8*+$1
5LJKW
-2(.$,6(5
$UH\RXDQDJHQW"
-39$8*+$1 5LJKW
-2(.$,6(5
,WVDOZD\VEHHQQLFHWRVD\QR
-39$8*+$1 <HV
'$9,'),1.(/ ,MXVWZDQWWRVKDUHVRPHWKLQJZLWKWKHSHRSOHOLVWHQLQJ
EHFDXVHZHGRDORWRIVWXIIRQWKHSKRQHZKHUHZHUHV FUHHQLQJVHOOHUV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
2QHRIWKHWKLQJVWKDWRXUVWXGHQWVJHWLVWKHTXHVWLRQ$UH\RXDUHDOWRU"
,MXVWZDQWWRVKDUHZLWKSHRSOHWKHEHVWUHVSRQVHLI\RXUHQRWDOLFHQVHG
DJHQW$QGWKH\VD\$UH\RXDUHDOWRU" ,ZDQW\RXWRVFUXQFKXS\RXU
IDFHDQGVD\1RGLG,QHHGWREHDUHDOWRU" >ODXJKV@$QGWKH\MXVWWRWDOO\
UHIUDLQMXVWE\DQVZHULQJWKDWZD\
-39$8*+$1 7KDWVDJRRGRQH'DYLG2ND\QXPEHU'DYLG
,VLWSRVVLEOHWRPDNHPRQH\LQUHDO
HVWDWHSDUWWLPHDQGKRZZRXOG\RXGRLW"
'$9,'),1.(/ >ODXJKV@7KHDQVZHULV\HV<RXUHJRLQJWRQHHGWREH
IDLUO\GLVFLSOLQHG:KDW,PHDQE\GLVFLSOLQHGLVIRUVRPHUHDVRQ,IRXQGLQ
UHDOHVWDWHLI\RXUHZRUNLQJRQHKRXUWKLVZHHNDQGWKHQKRXUVWKHQH[W
ZHHNDQGWKHQWZRZHHNVR IQRWKLQJLWMXVWGRHVQWDOOMHOOWRJHWKHU
%XWLI,PFRQVLVWHQWO\ZRUNLQJKRXUVHDFKDQGHYHU\ZHHNRU
PD\EHHYHQDWWKHYHU\PRVWKRXUVRQDSDUW WLPHEDVLVLQRU
KRXUVDZHHNDIWHUDERXWWZRRUWKUHHRUIRXUZHHNVLQDURZ WKLQJVVWDUW
WRMHOOWRJHWKHU,VWDUWWRJHWDOLWWOHELWRIDUK\WKP,GRQWNQRZZK\WKDW
LVEXWGLVFLSOLQHLVLPSRUWDQW6R\HV<RXFDQGRWKDW
,PWKLQNLQJSUREDEO\ SHUFHQWRIWKHSHRSOHLQUHDOHVWDWHZRUNIXOO
WLPHVRPHZKHUHHOVH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
<HV\RXFDQPDNHPRQH\RQLWSDUW WLPH2QHRIWKHWKLQJV\RXKDYHWR
FRQVLGHULVWKHGLVFLSOLQHEXWDOVR\RXMXVWQHHGWRXQGHUVWDQGWKDW\RXFDQ
VSHQGWZRWKLQJVWRJHWGHDOV
<RXFDQVSHQGPRQH\RU\RXFDQVSHQGWLPH7 KLVLVIRUSHRSOHWRFRQVLGHU
DVWKH\JRGRZQWKHURDG
:KDW,PHDQE\WKDWLVLI\RXGRKDYHDQRWKHUIXOO WLPHMREFRQVLGHUZKDW
\RXFDQSD\VRPHERG\HOVHWRGRIRU\RXDQGZKDW\RXFDQWSD\VRPHERG\
HOVHWRGRIRU\RX <RXFDQQHYHUSD\VRPHRQHHOVHWRQHJRWLDWHWKHGHDO
IRU\RX6RUU\EXW\RXFDQWGRWKDW
-2(.$,6(5
$QG\RXZRXOGQWZDQWWRLI\RXFRXOG
'$9,'),1.(/ <HVEHFDXVHWKH\ZRXOGQW,IWKH\ZHUHWKDWJRRGDQGJRW
DJRRGHQRXJKGHDOZK\ZRXOGQWWKH\NHHSWKHEHVWDQGMXVWJLYH\RXWKH
PHGLRFUHRUWKHQRWVRJRRG"
-2(.$,6(5
<HV
'$9,'),1.(/ %XWGRQWEHGRLQJ\RXURZQFOHDQXSRQDSURSHUW\'RQW
EHWKHRQHOLFNLQJHQYHORSHVDQGVHQGLQJRXWWKLQJVLQWKHPDLO3D\RWKHU
SHRSOHRUHYHQDQKRXUWRGRWKDWVWXII
,QYHVWRUVPDNHKXQGUHGVWKR XVDQGVRUHYHQWHQVRIWKRXVDQGVRIGROODUV
SHUKRXUIRUVLWWLQJGRZQIDFH WRIDFHZLWKVHOOHUVDQGFROOHFWLQJFKHFNVIURP
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
EX\HUV7KDWVZKHUH\RXUWLPHQHHGVWREHVSHQW$Q\WKLQJWKDWWDNHV\RX
DZD\IURPWKDWLVJRLQJWRKXUW\RXULQFRPH
-39$8*+$ 1 ([FHOOHQWSRLQW
-2(.$,6(5
*RRGSRLQW<RXEHW
-39$8*+$1 $QG\RXNQRZ,WKLQNWKHWUXWKLVWKDWPRVWSHRSOHGR
VWDUWSDUWWLPHLQUHDOHVWDWH6RLWLVSRVVLEOH/RWVRISHRSOHGRLW
$QGWKDWVRUWRIOHDGVWRWKHQH[WTXHVWLRQ-RH
+RZGR\RXGHFLGHZKHQLWVWLPHWRTXLW
\RXUMREDQGVWDUWLQYHVWLQJIXOOWLPH"
-2(.$,6(5
,JXHVVLWZRXOGGHSHQGDORWRQ\RXUWROHUDQFHDQGKRZ
PXFKULVN\RXUHZLOOLQJWRWDNH,ZRXOGWKLQNWKDW\RXZRXOGZDQWWRHUURU
RQWKHVLGHRIVDIHW\DQGVHF XULW\WKHUH
:KHQ,VWDUWHGLQUHDOHVWDWH,TXLWP\MREWKHILUVWGD\,KDGQRWKLQJ
>ODXJKWHU@
-39$8*+$1 7KDWV-RH.DLVHU>ODXJKV@
'$9,'),1.(/ ,WVMXVWVRGLIIHUHQWIURPKRZP\LPSUHVVLRQRI\RXLV
-RHEHFDXVH\RXUHMXVWVXFKDODLGE DFNNLQGRI
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-2(.$,6(5
:HOO\RXGRQWXQGHUVWDQG,GEHHQWRDVHPLQDU,ZDV
FRQYLQFHGEXWLWGLGQWTXLWHJRDFFRUGLQJWRSODQ
0\LQODZVVWLOOKDYHQWIRUJRWWHQDERXWWKLV>ODXJKWHU@6R,ZRXOGVXJJHVW
VLWWLQJGRZQDQGUHDOO\WKLQNLQJDERX WLW<RXNQRZLWVJRWWRZRUNIRUWKH
ZKROHIDPLO\DVZHOO0\ZLIHIRXJKWLWHYHU\VWHSRIWKHZD\EHFDXVHVKH
FRXOGUHFRJQL]HWKHIROO\WDNLQJSODFHLQIURQWRIKHU>ODXJKV@
%XW,ZDVVRFRQYLQFHGWKDW,KDGIRXQGP\WKLQJDQGWKDW,FRXOGPDNH LW
KDSSHQ7KHUHZHUHMXVWVRPDQ\WKLQJV,GLGQWNQRZ$QGWKRVHZLOOFDWFK
XSWR\RX
-39$8*+$1 <HS
-2(.$,6(5
<RXGHILQLWHO\KDYHWRVSHQGWKHWLPHLQWKHEXVLQHVV<RX
NQRZDWVRPHSRLQW\RXOOMXVWNQRZWKHUHZLOOEHPRQH\FRPLQJLQ<R XOO
KDYHVRPHVXFFHVVHV
-39$8*+$1 <RXOOKDYHVRPHPRQH\LQWKHEDQN
-2(.$,6(5
0RQH\LQWKHEDQNDQG\RXZLOONQRZ$QGE\WKHVDPH
WRNHQ\RXPD\GHFLGH\RXGRQWZDQWWRGRWKLVDWDOODQGWKHUHPD\QHYHU
FRPHDWLPHWRTXLW\RXUMRE
1RWHYHU\ERG\KDVWKHWHPSHUDPHQWRUWKHSHUVRQDOLW\IRUWKLV$QGLWVQRW
DEDGWKLQJ,WVMXVWNLQGRIWKHZD\LWLV,WZRXOGEHQLFHWRVWLOOKDYHWKDW
MREZKHQ\RXGHFLGHWKDWWKLVLVQWZKDW\RXZDQWWRGR
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
6XUH
'$9,'),1.(/ <HDKWKDWPDNHVLW
-39$8*+$1 $QGWKDWVWKHWKLQJWRGRWRR
'$9,'),1.(/ $EVROXWHO\7KDWVDNQRZQSDWKWRILQD QFLDOIUHHGRP
-39$8*+$1 $EVROXWHO\
'$9,'),1.(/ 7HQUHQWDOSURSHUWLHV$QGWKHQRYHUWKHQH[W\HDUV
SD\LQJWKHPRII
-39$8*+$1 3D\RII
'$9,'),1.(/ .HHSWKHPVDIHIURPDODZVXLWZLWKSHUKDSVDOLQHRIFUHGLW
RUDIURQWPRUWJDJHWRPDNHWKHPHQFXPEHUHGDOLWWOHELWDQGWKH\UHJRLQJ
WRPDNHDORWRIPRQH\GRZQWKHURDG
-39$8*+$1 <HV
-2(.$,6(5
7KHUHQWLVJRLQJXSHYHU\\HDU
-39$8*+$1 7KHODVWWZRDUHP\IDYRULWHTXHVWLRQV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
:KDWVDOOWKLVWDONDERXWWKHUHDOHVWDWH
EXEEOH",VWKHUHDFRPLQJUHDOHVWDWHEXVW
DQGZKDWVKRXOGZHGRDERXWLW",VLWWRR
ODWHWRVWDUWLQYHVWLQJQRZ"
'$9,'),1.(/ <RXNQRZWKDWVVRIXQQ\ZKLOH\RXUHUHDGLQJWKDW
$QG,VHHLWDVVXFKDJHQXLQHVLQFHUHTXHVWLRQWKDWSHRSOHDVN:KDW
WKH\UHUHDOO\VD\LQJLV,PVFDUHGWRJHWVWDUWHGQRZ,VWKLVDUHDVRQZK\
,VKRXOGEDVLFDOO\VWLIOHP\GUHDPV"
-39$8*+$1 7KHSULFHLVUXQQLQJZLWKWKLVUHDOHVWDWHEXEEOHVWXIIULJKW
QRZ,WVRQWKHQHZVJURXSDWOHDVWRQFHDZHHN
'$9,'),1.(/ 6XUH
-39$8*+$1 :KHUHVRPHRQHKDVUHDG7KH:DOO6WUHHW-RXUQDO DUWLFOHRQ
WKHUHDOHVWDWHEXEEOH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
'$9,'),1.(/ %HFDXVHZKHQVWRFNPDUNHWVFUDVK
-39$8*+$1 <HV
'$9,'),1.(/ \RXUHWDONLQJWKHPJRL QJGRZQSHUFHQWLQ
YDOXH
:KHQUHDOHVWDWHPDUNHWVFUDVKWKHUHLVQRFUDVKWKDWVDPHZD\
0DUNHWVDUHFUDVKLQJZKHQWKH\JRGRZQRUSHUFHQW7KDWVDELJ
FUDVKLQDUHDOHVWDWHPDUNHW7KHUHVDELJGLIIHUHQFHKHUH,PHDQLI
VRPHERG\ORVWWKHKRXVHRUORVWSHUFHQWRIWKHYDOXHWKDWZRXOGEHD
FUDVK
(YHQVWLOOPDUNHWUHQWVDUHJRLQJWRVWD\ZLWKLQUHDVRQ7KH\UHJRLQJWREH
EXIIHUHGIRUWKRVHPRQWKVRUVR$QGZHDOONQRZWKDWVDORQJHQRXJK
SHULRGRIWLPH3URYLGHGWKDW WKHDUHDGRHVQWORVHLWVHFRQRPLFEDVHRULW
FDQUHHVWDEOLVKDQHFRQRPLFEDVHLWVJRLQJWRJREDFNXSLQYDOXHDJDLQ
3URYLGHG\RXUHQRWLQDQDUHDWKDWRQO\KDVRQHLQGXVWU\ZKLFKLVPDNLQJ
/3UHFRUGVRUVRPHWKLQJOLNHWKDW
-39$8*+$1 <HV
'$9,'),1.(/ <RXQHHGWRKDYHDIDLUO\EURDGEDVHHFRQRPLFIDFWRU
\RXUHQRWFRQFHUQHGDERXWMREVORVVDQGDOOWKDWVWXII
<RXNQRZZKDW"(YHQLILWGRHVWDNHDKLWULGHLWRXWWKHRWKHUVLGHDQG
\RXOOVWLOOPDNHPRQH\$QG\RXNQRZZKDWHOVH":KHQ WKDWPDUNHWWDNHV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
WKDWEXVW\RXUHJRLQJWRPDNHDWRQRIPRQH\EX\LQJLIWKHSURSHUWLHVDUH
OHVVH[SHQVLYH
-39$8*+$1 7KDWV\RXURSSRUWXQLW\7KDWV\RXUFDOOWRSHRSOH
-2(.$,6(5
6XUH<RXNQRZWKH\WDONDERXWWKLVUHDOHVWDWHEXEEOH
DQG,P OLNHKH\ZKHUHGR,VLJQXSIRUWKLV"
'$9,'),1.(/ 5LJKW,PHDQVRPHRIXVZDQWWKDWWRKDSSHQVRZHFDQ
EX\<RXNQRZEDVLFDOO\,ZDQWWKDWVDOHWRKDSSHQ
-2(.$,6(5
<RXNQRZLWVHDV\WRSXWGHDOVWRJHWKHUZKHQ\RXYHJRW
DOONLQGVRIVWXII JRLQJRQLQWKHPDUNHWSODFH3HRSOHDUHZRUULHGDERXWWKLV
DQGWKDWDQGWKLQJVDUHFUDVKLQJDURXQG7KDWLVZKHQ\RXZDQWWREHLQ
WKHUHSLFNLQJXSWKHSLHFHV7KRVHDUHHDV\
,UHPHPEHUZKHQLQWHUHVWUDWHVZHQWWKURXJKWKHURRI7KH\HLWKHUVROGW R
PHRUWKH\GLGQWVHOOEHFDXVHQRRQHZDVTXDOLI\LQJIRUWKRVHORDQVDWDOO
-39$8*+$1 5LJKWULJKW
-2(.$,6(5
7KDWZDVMXVWWKHEHVW(YHU\ERG\ZDVEHPRDQLQJWKHIDFW
RIKRZWHUULEOHWKHPDUNHWZDV
-39$8*+$1 5LJKW\HDK
-2(.$,6(5
,WV OLNH&RPHRQPDQ
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 <HDK%R\WDONDERXWDQLQWHUHVWUDWHVSUHDGKXK"
>ODXJKWHU@
'$9,'),1.(/ 7KDWVIRUVXUH
-39$8*+$1 2ND\WKHODVWTXHVWLRQJX\VLVWKLV
,I\RXORVWDEVROXWHO\HYHU\WKLQJDOO
\RXUDVVHWVDOO\RXUPRQH\DOO\RXUFUHGLW
KRZZRXOG\RXVWDUWRYHULQYHVWLQJLQUHDO
HVWDWHWRGD\"
-39$8*+$1 -RHGR\RXZDQWWRJRILUVW"
-2(.$,6(5
:HOOORRNLQJDWDVVHWV\RXUPRQH\DQG\RXUFUHGLW
1RQHRIWKRVHLPSDFWP\LQYHVWLQJWRGD\1RQHRIWKRVHWKLQJVKD YHDQ\
IDFWRUDVWRZKDWP\LQYHVWLQJLVOLNHWRGD\,GRWKHVDPHWKLQJ,PGRLQJ
ULJKWQRZ
-39$8*+$1 5LJKWDQG\RXFRXOGVWLOOGRDTXLFNIOLSULJKW"
-2(.$,6(5
:HOO\HDKWKRVHSHRSOHWKLQNLWVDOODERXWWKHP,WVDOO
DERXWWKHLUPRQH\WKHLUFUHGLWDQGLWVQRWKLQJDERXWWKHP,WVDOODERXW
ZKDW\RXNQRZZKR\RXNQRZDQGKRZDUWIXOO\\RXUHDEOHWRDVVHPEOHWKDW
WHDPDQGEULQJDOORIWKHVHWKLQJVWRJHWKHUWRSXWGHDOVWRJHWKHU
6RZKDW\RXYHJRWWRGD\FUHGLWPRQH\RUZKDWHYHU WKDWVLPPDWHULDO
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 'DYH"
'$9,'),1.(/ ,ZRXOGHYHQJRRQHIXUWKHUWKDQWKDW,WVLQWHUHVWLQJWKDW
\RXWDONDERXWWKHDVVHWVWKHUH7KHTXHVWLRQNLQGRISXWWKDWRXWWKHUHEXW
,ZRXOGQWHYHQOLVWWKRVHDVUHDODVVHWV
1RWMXVWEHFDXVHRIWKHLQYHVWLQJEXWWKHORYHRIP\IDPLO\DQGKHDOWK
7KRVHDUHVRPXFKPRUHLPSRUWDQWWKDQUHDOHVWDWHDQGPRQH\
0RQH\LVLPSRUWDQWWKHUHVQRTXHVWLRQDERXWWKDW,WFDQFUHDWHIUHHGRP
WLPHDQGVHFXULW\IRUSHRSOHWKDW\RXORYH,WFDQF UHDWHHQRXJKWKDW\RX
FDQKDYHDQLPSDFWRQJHQHUDWLRQVWRFRPH7KDWVDOOZRQGHUIXODQGQREOH
,DOVRNQRZWKDWWKHKHDOWKRIORYHGRQHVDQGWKHLUUHODWLRQVKLSVDQGP\VHOI
DUHHYHQPRUHLPSRUWDQW
2QHRIWKHWKLQJV,ZRXOGMXVWPHQWLRQWRSHRSOHOLVWH QLQJLVWKDW\RXVKRXOG
FRQVLGHUWKHLGHDRIIHHGLQJIRUWKHIXWXUH:KHUHDSHUFHQWDJHRIZKDW\RX
HDUQJRHVUHLQYHVWHGEDFNLQ\RXUFDSDFLW\IRUHDUQLQJPRUHPRQH\
:KLFKPHDQVLQ\RXUHGXFDWLRQ
$SHUFHQWDJHRIZKDW\RXHDUQJRHVLQWR\RXUUHODWLRQ VKLSV%DVLFDOO\ZKDW
WKDWPHDQVLVWDNLQJRUSHUFHQWRIDQHWSURILWIURPDSURSHUW\DQG
KDYLQJLWEHIRUIDPLO\VWXIIWKDW\RXGRWRJHWKHUZLWKWKHP
$QGDSHUFHQWJRHVLQWRKHOSLQJSHRSOHZKR\RXGRQWHYHQKDYHDQLGHD
ZKRWKH\DUH<RXOOQHYHUPHHWWKHPLQGLYLGXDOO\%XWWKHUHDUHFKDULWLHV
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
DQGJURXSVRISHRSOHWKDWMXVWOHW\RXPDNHDVWDWHPHQWRXWWKHUHWKDW\RX
KDYHVRPXFKJRRGVWXIIFRPLQJLQWR\RXUOLIHVRPXFKDEXQGDQFHWKDW\RX
FDQJLYHVRPHRILWDZD\
6RWKDWDVLGHZKDWZRXOG ,GRGLIIHUHQWDOORYHUDJDLQ"
,WKLQNHDUO\RQ,ZRXOGUHFRJQL]HWKDW,ZRXOGQWEHVRDIUDLGRIDFTXLULQJ
PRUHSURSHUWLHV
(DUO\RQ,ZDVVFDUHGDQGVDLGQRWRDORWRIGHDOV'RLQJLWDJDLQWKLV
WLPHLWZRXOGQWEHQHDUO\DVKDUG,ZRXOGVD\ \HVWRDORWPRUHRIWKH
GHDOVWKDW,ZDVDIUDLGRI
-39$8*+$1 6R\RXGKDYHWKHDELOLW\WRGRHYHQPRUHGHDOV
'$9,'),1.(/ 6XUH
-39$8*+$1 7KDQ\RXGLGZKHQ\RXVWDUWHGRXW"
'$9,'),1.(/ 6XUH7KHRWKHUSDUWWKHRQO\WKLQJ,ZRXOGKDYH WRGR
GLIIHUHQWDWWKLVSRLQWLVWXUQPRUHSURSHUWLHVTXLFNHU2QO\EHFDXVHLW
VRXQGVOLNH,GKDYHWRKDYHVRPHFDVKIORZFRPLQJLQ
5LJKWQRZ,GUDWKHUKDQJRQWRWKLQJVDQGQRWKDYHWKHWD[DEOHLQFRPH
,GUDWKHUKDYHWKHXQUHDOL]HGJDLQULJKWQ RZ7KHUHDUHWZRPRQH\
SUREOHPV1RWKDYLQJDQ\RILWDQGKDYLQJWRRPXFKRILW 6RWKDWZRXOGWKH
RQO\UHDOVKLIWWKHUH
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
%XWRQFH\RXXQGHUVWDQGDERXWKRZWRLQWHUDFWZLWKSHRSOHDQGKRZWR
ODQJXDJHWKLQJVWKDWLVZKHQ\RXUHQHJRWLDWLQJ<RXFDQUHD OO\ZRUNWR
XQGHUVWDQGFRQQHFWDQGWDNHDGYDQWDJHRIVLWXDWLRQVLQDJRRGKHDOWK\
ZD\1RWLQDQDGYHUVHZD\
7KHUHVMXVWVRPXFKZHDOWKRXWWKHUH,PHDQDEXQGDQFHLVUHDOO\DVWDWH
RIPLQG<RXFDQKDYHDVPXFKRUDVOLWWOHRILWDV\RXUHRSH QWRUHFHLYLQJ
,NQRZLWVHHPVDOLWWOHDLU\WKHRU\SHUKDSVEXWWKDWVZKDW,WUXO\
EHOLHYH
-39$8*+$1 ,WVQRW,WVSUREDEO\WKHPRVWLPSRUWDQWWKLQJWKDWZDV
VDLGWRQLJKW
:HUHWDONLQJDERXWWHFKQLFDOWKLQJVDQGGHWDLOHGWKLQJV%XWUHD OO\ZHDOWK
LVDVWDWHRIPLQG$QGWKHDEXQGDQFHFRQVFLRXVQHVVLVVRLPSRUWDQWWR
VXFFHVVLQWKLVEXVLQHVVRULQDQ\EXVLQHVVDQGLQOLIH7KHWKRXJKWWKDW
WKHXQLYHUVHLVDEXQGDQWDQG\RXUHHQWLWOHGWRVRPHRIWKDWDEXQGDQFH\RX
NQRZ6R
-2(.$,6(5
,WVDJRRGWKLQJ
-39$8*+$1 ,WVDJRRGWKLQJ2QWKDWQRWHWKDQN\RXVRPXFK-RH
7KDQN\RX'DYLG
%RWK <RXEHW
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
-39$8*+$1 7KLVZDVVXFKDJUHDWFDOO:D\EHWWHUWKDQ,WKRXJKWLW
ZDVJRLQJWREH,NQHZLWZDVJRLQJWREHJRRG EXW,GLGQWNQRZLWZDV
JRLQJWREHWKLVJRRG
'$9,'),1.(/ :KDWVKRXOGZHWDNHWKDWWRPHDQ-RH"
>ODXJKWHU@
-39$8*+$1 1RQR,PHDQLWLQDSRVLWLYHZD\,NQHZLWZDVJRLQJWR
EHJRRG6RWKDQN\RXVRPXFK
7KDQN\RXHYHU\RQHIRUGLDOLQJL QWRQLJKWDQGOLVWHQLQJ:HOOKDYHWKH
WUDQVFULSWVDQGWKHDXGLRWDSHVDYDLODEOHLQDERXWWKUHHZHHNV:HGWU\WR
GRLWIDVWHUEXWZHKDYHWKHKROLGD\VDQGWKRVHWKLQJV
,OOHPDLOHYHU\RQHZKHQWKHWUDQVFULSWDQGDXGLRILOHVDUHUHDG\
7KDQN\RX-RHDQG'DYLGDQGJRRGQLJKW
-2(.$,6(5
<RXEHW%\HE\H
'$9,'),1.(/ *RRGOXFNWRHYHU\ERG\
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
5HVRXUFHV
%\-2(.$,6(5
7RWDOO\'RPLQDWH<RXU)RUHFORVXUH0DUNHWSODFH
KWWSZZZFUHRQOLQH FRPFDWDORJE KWPO
7KH8OWLPDWH/HDVH2SWLRQ6WUDWHJ\
KWWSZZZFUHRQOLQHFRPFDWDORJE KWPO
7KH+XQWIRU$EDQGRQHG3URSHUWLHV
KWWSZZZFUHRQOLQHFRPFDWDORJE KWPO
7KH0HFKDQLF
V/LHQ6\VWHP
KWWSZZZFUHRQOLQHFRPFDWDORJF KWPO
%\'$9,'),1.(/
+RZWR)LQG&ORVHDQG6HOO3URSHUWLHV8VLQJWKH([LVWL QJ)LQDQFLQJ
KWWSZZZFUHRQOLQHFRPFDWDORJF KWPO
7KH3URWpJp3URJUDP
KWWSZZZFUHRQOLQHFRPFDWDORJF KWPO
7KH,QWHQVLYH 7UDLQLQJ9LGHR/LEUDU\
KWWSZZZFUHRQOLQHFRPFDWDORJF KWPO
&5(RQOLQHFRP7HOHVHPLQDU7KH0RVW,PSRUWDQW5HDO(VWDWH,QYHVWLQJ4XHVWLRQV
+RZWR%X\$SDUWPHQW%XLOGLQJVZLWK/LWWOHRU1RWKLQJ'RZQ
KWWSZZZFUHRQOLQHFRPFDWDORJFKWPO
7KH6HYHQ0DVWHU6NLOOVRI+LJKO\6XFFHVVIXO,QYHVWRUV
KWWSZZZFUHRQOLQHFRPFDWDORJF KWPO
7KLVWHOHVHPLQDUZDVEURXJKWWR\RXE\ &5(RQOLQHFRP