UnitThreeHowBillGatesInvestsHisMoney国际经贸高级英语复旦大学省公.pptx

,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,Unit Three,How Bill Gates Invests His Money,TEXT,Tending the Investment Pools,As Gates converts billions of dollars of Microsoft stock into philanthropic tender,Michael Larson will be shepherding the funds every step of the way.He will manage the foundation portfolios until the dollars are expended on syringes,scholarships,and software.“People have no idea the kind of pressure that Michael Larson operates under,says Roger McNamee.“For one thing,hes running money for two of the largest foundations in the world.The better he does,the more good works can be done.,1/26,Unit ThreeHow Bill Gates Invests His Money,Heres how Larsons job works.Hes in charge of three large pots of money:the two foundations and the$5 billion or so in Gates personal portfolio,which is mostly invested through Cascade,though there are other smallish accounts also under Larsons auspices.Each of these three pools is discretely managed,with its own objectives and investments.And theres one thing both Gates and Larson want to make perfectly clear.“Michael and I talk regularly about general investment matters,but he has full discretion over the portfolio.Gates says.Larson,his usual grin gone for a second,says,“I wish everyone understood that.When people find out that Cascade has made an investment in something,thats not Bill Gates.Ill call Bill about something Im buying if he needs to know,but Bill might not have any idea what Cascade owns.(There are exceptions to this rule.For instance,Gates makes his own investments in biotechmore on that later.),2/26,Unit ThreeHow Bill Gates Invests His Money,So whats in the portfolios?The Learning Foundation is the simplest.Because Patty Stonesifer and her crew have a fairly constant need for cash,Larson keeps this portfolio mostly in short-maturity U.S.government and corporate fixed-income securities.The William H.Gates Foundation is a little more complicated.Though it may have a smattering of stocks at any given time,it too is almost entirely in bondsabout 75%short-term U.S.governments and corporates.“The portfolio is pretty conservatively positioned right now for a couple of reasons,”says Larson.“First,it reflects my view of the markets.And second,we just had an inflow of a couple of billion dollars.”Another reason bonds are attractive to Larson is that as new money streams in,scaling up in the fixed-income markets is much easier than in stocks.,3/26,Unit ThreeHow Bill Gates Invests His Money,As for the other 25%of this foundations assets,Larson has made investments running the whole gamut of the bond market.He holds some inflation-protected Treasury bonds called TIPs,and plain-vanilla corporate bonds like Ford,Du Pont,and Time Warner(parent of Time Inc.,FORTUNEs publisher).He also has a position in junk bonds and foreign government bondsDanish,German,Canadianas well as foreign corporates,gobs of mortgage-backed securities,and all sorts of hedging investments.Larson farms out some 15%of the overall portfolio to bond managers at Morgan Grenfell,PIMCO,Miller Anderson&Sherrerd,and Western Asset Management.“These guys have discretion over the money we give them,but if I dont agree with their take on interest rates or the yen,Ill override them by hedging,Larson says.,4/26,Unit ThreeHow Bill Gates Invests His Money,Gates$5 billion personal portfolio is another matter.First,there is the question of how much Microsoft stock Gates should own.“The money I have outside Microsoft is less than 10%of the total,says Gates.“Since we are obviously heavily weighted with Microsoft,we will sell stock periodically in order to get more diversity.Its basically the same strategy most individual investors engage in.(As if!),Because Microsoft stock has soared over the past few years,Gates and Larson have had to sell huge amounts of stock to maintain even the semblance of a diversified portfolio.Since the company went public,Gates has sold an average of five million Microsoft shares a quarter,adjusted for splits.That works out to around 80000 shares every single trading day,though Larson sells through a“blind program during legal windows to avoid insider-trading charges.Larson tries to sell as quietly as he can through,5/26,Unit ThreeHow Bill Gates Invests His Money,his favorite brokers,including DLJ,Goldman Sachs,and Allen&Co.Gates has sold some 256 million(split-adjusted)shares of Microsoft stock over the past 13 years,for about$5.16 billion.He has given away another 76 million shares.,If Gates continues to sell and give away Microsoft stock,will he still hold sway over the company?“Losing control of Microsoft isnt an issue as I give the money away,says Gates.“No one person controls Microsoft.The board and the shareholders decide whether they want to have me as CEO.(Sure,Bill.)Actually,Gates ownership of the company has declined steadily over the years.At the time of the IPO,he owned 44.8%of Microsofts stock.He now owns just about 18.5%.About half of that decline is due to dilution,brought about by the issuance of millions of shares to Microsoft employees exercising options,while the other half is due to stock sales and gifts.,6/26,Unit ThreeHow Bill Gates Invests His Money,As for the actual content of Gates$5 billion portfolio(drum roll,please),it turns out to be not that exciting.And for good reason.“If you think about it,90%plus of Bills wealth is in a single technology stock.He really doesnt need much,if any,equity exposure at all,says Larson.“Right now his portfolio actually looks somewhat like a big old bond fund.In fact,a recent snapshot of Gates personal portfolio looks like this:Larson has 70%,or$3.5 billion,invested in short-term governments and corporates,with a small weighting in foreign bonds.He also owns some emerging-market debt and high-yield issues.“Basically we are short on the yield curve right now,Larson says,again reflecting his wary view of the markets.,7/26,Unit ThreeHow Bill Gates Invests His Money,What about the other 30%,or$1.5 billion?About half of it$750 millionis in what Larson calls private equity;thats buyout funds and direct investments,such as Gates stake in Teledesic,McCaws satellite company(Larson is on its board).That figure also includes funds run by outsiders.About 5%of Gates portfolio is farmed out to managers like McNamees Integral Capital Partners and Blue Ridge Capital,a New York hedge fund run by John Griffin,former right-hand man of Julian Robertson at Tiger Management.Larson also has a significant amount of money in short positionsactually more than usual right nowwhich reflects his view that many stocks are fully,if not overly,valued.He also has a small amount of money with Bill Fleckenstein,who runs a short-selling fund.,8/26,Unit ThreeHow Bill Gates Invests His Money,Of the nonbond portion of Gates portfolio,another$250 million is in what Larson calls“real stuff.He means real assets,like commodities(hes been in and out of crude oil futures)and real estate,such as investments in the Reserve,a real estate and golf course development near Palm Springs,and in the Cliveden hotels in England.,The remaining$500 million is in stocks.Given Gates huge position in Microsoft,why does Larson own equities at all?“Because I think some stocks have behavior patterns that run counter to Microsoft,says Larson.“For instance,if and when the air comes out of tech stocks,food and oil stocks could hold up real well.The other reason we do equities is because we have some expertise in certain areas,and we make money at it.It so happens that one of Larsons interests is media stocks.He favors cable stocks such as TCI and Liberty Media,as well as Cox Communications and Barry Dillers USA Networks.,9/26,Unit ThreeHow Bill Gates Invests His Money,Larson also holds Berkshire Hathawayhe owned 300 shares last year and recently bought a bunch morewhich he thinks became particularly attractive after its Gen Re acquisition.“Gen Re was in the S&P 500.Berkshire isnt.So after the deal,index managers had to sell Berkshire,depressing the price.,Gates does make his own investment decisions in biotech.Says he:“Ive always been interested in scienceone of my favorite books is James Watsons,Molecular Biology of the Gene,.Im an investor in a number of biotech companies,partly because of my incredible enthusiasm for the great innovations they will bring I serve on the board of ICOSwhich develops drugs to fight inflammatory diseases.I continue to make a number of investments in this area.At various points Gates has owned stock in other biotechsincluding PathoGenesis,Targeted Genetics,and Chiroscience-but he is out of all those stocks now.He recently bought a stake in a company called Advanced Medicine,a private biotech firm.,10/26,Unit ThreeHow Bill Gates Invests His Money,As for tech stocks,“We pretty much dont own em,Larson says,“not with Bills other asset.It could be awkward,of course,if Cascade owned,say,3%of a small tech company that Microsofts strategic planners later decided they wanted to gobble up.Or if that small company felt inclined to sue Microsoft at some point.Gates does,however,own some tech stocks through his investments in McNamees partnerships.And Larson concedes that he might be short some tech names.“I do think the market is high right now,and there is an awful lot of excitement about tech stocks,says Larson.Whoa!Does that mean he thinks Microsoft is overvalued?“I wouldnt bet againstMicrosoft,he says.,11/26,Unit ThreeHow Bill Gates Invests His Money,Larson continues:“I just think at some point the cycle is going to turn.Well have some rotation.There will be some trigger event that will change the equity markets point of emphasis.Agriculture,for instance,will come back.Stocks like Deere&Co.which he owns a bit of will make out.Oil looks interesting.There are some opportunities in that sector,and I dont think oil has to go back to$20 a barrel for oil stocks to work out.,What about interest rates?“I think they will trend higher.Its true we dont see much inflation now,but wage inflation is evident,and everything is in such high gear right now.I think long rates could climb 100 basis points,which could be a shock to the market.It could also make for a real nice buying opportunity.But Larson knows he has to go easy.“Sure,I could torque up the portfolio,he says,perhaps a little wistfully,“but thats not what Im,12/26,Unit ThreeHow Bill Gates Invests His Money,paid to do.The point wasnt for Bill to become richer than the Sultan of Brunei.No,but that happened anyway,not because of anything Larson did but because of Microsofts explosive growth(and a little imploding on the Sultans part.),The point is that the real growth engine is Microsoft.Just how big will the company,and therefore Gates fortune,become?How much will Gates end up giving away?No one knows,of course,not even Gates.But consider this:If Microsofts stock compounds over the next 20 years by merely 10%,Gates fortune,even assuming some selling,could be worth$400 billion.Impossible,you say?Well,what would you have said 13 years agothe day of Microsofts IPO,when Gates holdings were worth$234 millionif someone had told you he would be worth$80 billion before the end of the millennium?Impossible.,13/26,Unit ThreeHow Bill Gates Invests His Money,Andrew Carnegie was regarded in his day not just as a robber baron butafter the Homestead Strike of 1892,in which hired guards killed seven striking steel-workersas a plutocrat with blood on his hands.He reshaped his image by giving away most of his fortune during his lifetime,and today he is remembered less for the strike than for his phrase“the man who dies.rich dies disgraced.,Today,Bill Gates is known variously as the creator of Microsoft,as the richest man in the world,and as a monopolist hell-bent on world infotech domination.Hard as it may be for some people to swallow,future generations may remember Bill Gates instead as the greatest philanthropist the world has ever known.,(excerpted from Fortune,March 15,1999),14/26,Unit ThreeHow Bill Gates Invests His Money,Exercises,.Translate the following into English,using the words or phrases in the text:,1.发行大量政府短期债券,to issue a vast amount of short-term government bonds,2.近期内流入证券市场大笔资金,plenty of capital inflow to the securities market in the recent period,3.投资者对联邦通货膨胀保护债券偏好,the preference of investors to the inflation-protected,treasury bonds,15/26,Unit ThreeHow Bill Gates Invests His Money,4.经过套期保值降低风险,5.多样化证券组合,diversified portfolio,6.到达企业原始股份50%以上,to reach more than 50%of the initial public offerings,7.配股所带来证券价值稀释,dilution of securities caused by the distribution of shares,to decrease the risk by hedging,16/26,Unit ThreeHow Bill Gates Invests His Money,8.引发市场指数狂跌事件,9.很快到期美国政府和企业固定收益有价证券,short-maturity U.S.government and corporate,fixed-income securities,10.商品和不动产等实物资产,real assets like commodities and real estate,11.经过正当路径防止内部交易指控,to avoid insider-trading charges through legal windows,the trigger event that causes the imploding on market index,17/26,Unit ThreeHow Bill Gates Invests His Money,12.一些会改变资本市场利率触发事件,13.反应了投资者对市场慎重态度,reflect investors wary view of the market,14.像牧羊人般照看资金运行每一步,shepherd the funds every step of the way,15.在证券市场上再度流行农业债券,the agricultural bonds that come back in the securities market,some trigger events that will change the interest rate in the capital market,18/26,Unit ThreeHow Bill Gates Invests His Money,.Translate the following sentences into English:,1.利率和汇率在过去几个月中猛烈波动，给许多投资者带来了巨大损失。而这家机构经过明智套期保值克服了不利原因，依然取得了丰厚利润。(override.by),During the past several months,the interest rate and the exchange rate have fluctuated greatly,which has brought enormous loss to many investors.But this institution overrode the adverse factors in the market and still obtained a big profit by wise hedging investments.,19/26,Unit ThreeHow Bill Gates Invests His Money,2.证券组合多样化能够有效地降低其中各个证券非系统性风险，却不能消除市场系统风险。(diversification),The diversification of portfolio can efficiently decrease the non-systematic risk of individual securities in the portfolio,but it is unable to remove the systematic risk of the market.,20/26,Unit ThreeHow Bill Gates Invests His Money,3.从60年代末到70年代末资本主义国家严重通胀时期，许多人倾向于把他们货币收入转变为实物或不动产。(convert.into),During the period of high inflation in capitalist countries between the late 1960s and the late 1970s,many people tended to convert their money incomes into goods or real assets.,21/26,Unit ThreeHow Bill Gates Invests His Money,4.德意志联邦银行一位董事会组员说，德国央行当前并未面临降低利率压力，而且在作出相关决定之前，央行需要时间研究相关经济数据。(under the pressure of),One of the Bundesbank council members said that the central bank is under no immediate pressure of cutting interest rates and that it needs more time to study the economic data before making a decision.,22/26,Unit ThreeHow Bill Gates Invests His Money,5.许多教授认为利率会趋向升高，因为即使现在没有很多通胀是事实，不过工资抬高却很显著，而且现在整个经济都处于如此高速运转之中。(trend;gear),Many experts consider that the interest rates would trend higher,because,although it is true that there is not much inflation now,wage inflation is evident and the entire economy is in suc