Summary Example

Essays on Summary Assignment Summary of Howard Mark’s Memo on â€Å"Risk Revisited† Howard Mark has analyzed the risk and its incidence, in depth, while writing this memo to â€Å"Oaktree Clients’. This paper summarizes the memo, briefly, hereunder. Defining risk The memo is related to the risk involved in portfolio management. Writer suggests that the risk and its meaning cannot be detailed in the definite terms. He further records that Risk is different form volatility, when looking at the prospect of permanent loss that is associated with a particular event. While volatility is measurable, the risk is not quantifiable as happening of the related risk is also unpredictable. According to the writer, the permanent loss is different from volatility and fluctuation, as they are temporary in nature and any portfolio holder can overcome such periodic disturbances. However, there is a need for the owner to hold the portfolio for a longer time, until the fluctuation is over. The only quantification of a risk can be through prediction of a fall in portfolio value to the maximum level, under the most unfavorable circumstances. However, prediction of the circumstances and the level of adversity is next to impossible. Hence, the risk associated with such adverse situations cannot be determined in mathematical terms. The author has provided the example of chances for getting rains. The rains may be predictable but the quantity of the water falling down on the region remains unpredictable. Similarly, risks can happen, but the quantity of risk involved in such event is not measurable. .(Marks, nd) Future remains unknown Although many investment mangers and economists may pretend to know the future, in reality no body can predict what is going to happen during next hour or in the near future. While the author justifies such inability to predict future, he has provided the reasons for this belief. Referring to the concept of ‘known unknowns’, the author indicates that we may be knowing that a certain risk can occur, but exact nature of same may remain unknown to us. For example, the implication of change in the government regulations can cause a particular risk to occur with the connected industry, however the nature and affect of such risk is known only after the announcement of policy decision. Then there are unknown risks, which are associated with the events that remain unpredictable. For example, a natural calamity or a man-made disaster like Hiroshima bombing or 9/11 attack were not known or predicted before they occurred.(Marks, nd) Considering that future remains unknowable, investment strategies depend on the present circumstances and event/trends to decide about the future portfolio planning. The author suggests that future can be predicted taking into consideration a number of likelihoods and possibilities, which can help in arriving at the probability distribution of the outcome. The risk is not going to occur if there is an existing knowledge about its occurrence. By nature, risks are unknown. However, risk and reward are related to each other. For example, a portfolio holder can hope to reap more benefits, if he is able to take higher risk. The investment, for those investors who are not prepared to take much risk, is largely safer. Risk may cause permanent loss of whole or partial portfolio value, depending on the amount of risk the holder is prepared to take. Thus, risks can be partial or total, depending on the risk-ward ratio, opted by the holder.(Marks, nd) Works Cited Marks, Howard. (2004). â€Å"Risk Revisited.-- Oaktree Capital management†, Retrieved on Nov. 18, 2014, from: http://writer.academia-research.com/file/get/instr/1160354/file/risk_revisited.pdf Summary Example Essays on Summary Term Paper September 10, Summary: â€Å"Fully Training Your Food and Beverage Staff While Reducing Turnover† The article en dâ€Å"Fully Training Your Food and Beverage Staff WhileReducing Turnover† written by Craig Pendleton disclosed relevant information, specifically common issues and concerns that besiege the food and beverage (FB) department within a casino-based industry. The common problems that were revealed included: (1) the nature of the food and beverage sector being categorized more as service-focused, in contrast to being a profit-based endeavor; (2) the complexity in operations within food and beverage operations which include â€Å"manufacturing, service, marketing and sales† (Pendleton 34); (3) employment preferences select FB positions least due to perception of hard work; (4) personnel hired in FB positions were deemed to lack preferences to undergo traditional classroom approach training; (5) promotions were reported to be based primarily on performance a nd not on leadership ability; (6) trend of high turnover rates associated with FB rendering investments for training futile; (7) lack of understanding by personnel of FB on the mission of the organization (casino); (8) outdated training materials; and (9) lack of knowledge and competencies of HRM staff regarding FB operations. The author recommended the following courses of action to address the identified concerns: (1) explicitly state and communicate the mission and vision statements of the casino to members of the FB department; (2) a more comprehensive training program should be designed to cater to the needs, demands, competencies, and skills of FB staff; (3) HR department should have a personnel who is competent and qualified on FB operations to assist in the design of training materials, programs, and career pathing for its staff; and (4) promotions and performance evaluation should be designed based on standards, as well as abilities and aptitudes (Pendleton). Overall, Pend leton emphasized that the FB department is a crucial part of the operations of a casino. Therefore, to ensure that FB personnel perform in the most effective and efficient manner, proper training and development should be accorded, as consistent with the mission and vision of the organization. Likewise, to address the evident high turnover rate, the personal and professional growth of FB personnel should be aptly taken in due consideration.Work CitedPendleton, Craig. "Fully Training Your Food and Beverage Staff While Reducing Turnover." Indian Gaming (2003): 34-35. http://www.indiangaming.com/istore/May13_Pendleton.pdf. Summary Example Essays on Summary Assignment Summary Task Introduction This work presents a summary of the eighteen - year period of Berkshire Hathaway annual reports (from1995 to 2012). The summary is specifically on the leverage level of the company between the stated periods. This will involve analyses of the company’s capital structure and the potential effects of the identified leverage level on the company’s operations. The summary also covers the portrayed trend in the company’s leverage level between the stated periods. Below are the analyses. The company’s leverage analysis between 1995 and 2012 In the year 1995, the company’s level of debt, according to the period’s financial statement was $ 1,061,700. The figure, as compared to the debt level in 1994, shows an increase of $ 251,000. On the other hand, the company’s equity level in the year 1995 was $ 29,928,800. From the company’s capital structure, it is possible to determine the leverage level, which is as follows (1,061,700/16,738,700) = 6.343%. This means that in the year 1995, 6.343% of the company’s capital structure was debt. Therefore, the leverage level was low. In the year 1996, the outstanding borrowing was 1,944,400 up from 1,061,700 in the previous year. On the other hand, the company’s equity level was 23,457,700. Therefore, the company’s leverage level = (1,944,400/23,457,700) = 8.289%. The increase in the leverage level is due to an increase in the outstanding borrowing in the year 1996. The company’s debt level is still manageable. In the year 1997, the company’s borrowing under investment agreement and other debts was 2,266,700, up from 1,944,400 in the previous year thus, increasing the company’s total debt. The company’s equity level rose from 23,426,300 to 31,455,200. Therefore the leverage level = (2,266,700/31,455,200) = 7.206 %. The gearing ratio has decreased as compared to the previous year. The decrease is attributed to more than proportionate increase in shareholders’ equity (Berkshire Hathaway Inc., n.d.). The year 1998 presents $ 2,385,000 as the borrowing under investment agreements. The figure is up from 2,266,700 of the previous year. Thus, increases the company’s total debt. On the other hand, the company’s total equity stands at 57, 403,000 up from 31,455,000. Using this record, the company’s gearing/leverage level = (2,385,000/57,403,000) = 4.15 %. Consequently, the company’s leverage level has decreased as compared to the previous year. In the year 1999, the company’s borrowings under investment agreement and other debt stands at 2,465,000 up from 2,385,000. This explains the increase in the company’s total debts. On the other hand, the shareholder’s equity for the period stands at 57,761,000 up from 57,403,000. Therefore, the company’s leverage level = (2,465,000/57,761,000) = 4.268 %. This shows an increase in the leverage level as compared to the previous year. In the year 2000, company’s fixed charge capital wa s 2,663,000 up from 2,465,000 in the previous year. This implies an increase in the interest expense. The other component of capital structure, equity, stands at $ 61,724,000 up from 57,761,000 in the previous year. The Berkshire Hathaway’s gearing/leverage level = (2,663,000/61,724,000) = 4.314 %. The figure represents an increase in leverage level as compared to the previous year (Berkshire Hathaway Inc., n.d.). In the year 2001, company’s fixed charge capital was 2,663,000 up from 2,465,000 in the previous year. This implies an increase in the interest expense. The other component of capital structure, equity, stands at $ 61,724,000 up from 57,761,000 in the previous year. The Berkshire Hathaway’s gearing/leverage level = (3,485,000/57,950,000) = 6.014 %. The figure represents an increase in leverage level due to a decrease in total equity and an increase in the company’s borrowings. In the year 2002, the company’s fixed charge and other forms of long-term borrowing increased to $ 28,726,000. There was also a large increase, in the company’s equity shares, to 64,037,000. These events put the company’s gearing level at = (28,726,000/64,037,000) = 44.86 %. The reason behind the increased leverage level is the business expansion plan the company had. Therefore, the leverage level of the company has increased. In the year 2003, the company’s fix ed charge and other forms of long-term borrowing decreased to $ 21,963,000 from $ 28,970,000. On the other hand, the company’s shareholder equity increased to 77,596,000. From these data, the companys, gearing level is = (21,963,000/77,596,000) = 28.30 %. The repayment of a portion of the company’s debt (Berkshire Hathaway Inc., n.d) caused the decrease in the leverage level. In the year 2004, the company’s fixed charge and other forms of long-term borrowing decreased to $ 20,408,000 from $ 21,963,000. On the other hand, the company’s shareholder equity increased to $ 85,900,000 from 77,596,000 of the previous year. From these data, the companys, gearing level is = (20,408,000/85,900,000) = 23.76 %, which is a decrease due to a decrease in debt and an increase in the total equity. In the financial year 2005, the company’s fixed charge and other forms of long-term borrowing decreased to $ 20,280,000. On the other hand, the company’s shareholder equity increased to $ 91,484,000. Therefore, the leverage level of the company is = (20,280,000/91,484,000) = 22.17%. In the financial year 2006, the company’s fixed charge debt and other forms of long-term borrowing decreased to $ 19,387,000. On the other hand, the company’s shareholder equity increased to $ 108,419,000. Therefore, the leverage level of the company is = (1 9,387,000/108,419,000) = 17.88%. In the year 2007, the company’s fixed charge debt and other forms of long-term borrowing increased to $ 21,962,000. On the other hand, the company’s shareholder equity increased to $ 120,733,000. Therefore, the gearing level of the company is = (21,962,000/120,733,000) = 18.19% (Berkshire Hathaway Inc., n.d.). In the financial year 2008, the company’s fixed charge and other forms of long-term borrowing increased to $ 30,656,000. On the other hand, the company’s shareholder equity decreased to $ 109,267,000. Therefore, the leverage level of the company is = (30,656,000/109,267,000) = 28.06%. In the financial year 2009, the company’s fixed charge and other forms of long-term borrowing decreased to $ 26,394,000. On the other hand, the company’s shareholder equity increased to $ 135,785,000. Therefore, the leverage level of the company is = (26,394,000/135,785,000) = 19.44%. The leverage level has decreased compared to the previous year. In the financial year 2010, the company’s fixed charge and other forms of long-term borrowing increased to $ 24,016,000. On the other hand, the company’s shareholder equity increased to $ 162,934,000. Therefore, the leverage level of the company is = (24,016,000/162,934,000) = 14.74%. In the financial year 2011, the c ompany’s fixed charge and other forms of long-term borrowing increased to $ 25,399,000. On the other hand, the company’s shareholder equity increased to $ 168,961,000. Therefore, the leverage level of the company is = (25,399,000/168,961,000) = 15.03%. Lastly, in the financial year 2012, the company’s fixed charge and other forms of long-term borrowing decreased to $ 22,077,000. On the other hand, the company’s shareholder equity increased to $ 191,588,000. Therefore, the leverage level of the company is = (22,077,000/191,588,000) = 11.52 %. The graph below shows the fluctuation in the company’s leverage level between 1995 and 2012 (Berkshire Hathaway Inc., n.d.). Reference Berkshire Hathaway Inc. (n.d.). Retrieved from http://www.berkshirehathaway.com/reports.html.