~ Un-Common Sense In An Irrational World: We Challenge the Conventional Wisdom ~
Letter from the Editor: A New Frontier in Investing
We are pleased to be back after having paused publication of the Intrinsic Value Wealth Report Newsletter for a few years.
The publication was paused for three reasons: (1) Dr. Wendee embarked on a very large project, which is now complete and well underway (see the following paragraph); (2) Dr. Wendee had a very busy travel and teaching schedule during most of the past couple of years; and (3) we wanted to work on a new direction and focus for the newsletter – in essence, a New Frontier in Investing.
As to one of our big projects, Dr. Wendee has been building an investment banking firm that includes traditional investment banking (e.g., Reg A offerings and IPOs); alternative investments (e.g., real estate and oil & gas funds); and crowdfunding (Reg CF and non-Reg CF). This is the tenth such operation he has built over the last forty-two years for himself and others.
Having worked through these various factors that caused us to take a break, we are now back. And we are back even better than before. You might have noticed that we have a new tagline for the newsletter: “Un-Conventional Wisdom in an Irrational World: We Challenge the Conventional Wisdom.” Our tagline represents the new focus we have taken for the newsletter. We will be covering the same topics and content as before, plus some new topics and content which you will see as we go forward. We are also taking a less “hands-off” approach to issues and tackling issues more “head-on.” We think you will like our new approach.
A lot of our new discussion will be centered on a new economic theory that Dr. Wendee created called, A Value Creation Theory of the Economy. The theory is also known as Intrinsinomics. The theory can be described as follows: The purpose of this economic study, using the grounded theory research design and an extensive review of, and incorporation of, other economic and financial models and theories, is to explore how free-market-based, capitalistic economies operate through business enterprises to create economic prosperity. The current study follows from the author’s previous research in creating a theory in the field of finance, A Theory of Value Drivers – A Grounded Theory Study, that explored the drivers that create value in enterprises. The basic premise of the current study is that it is the creation of enterprise value by businesses that creates value in the economy, which leads to economic prosperity for all economic actors and participants. You can access the complete economic study at this link: Intrinsinomics. The study was also published in the peer-reviewed journal, Business Forum, a publication of the College of Business and Economics at California State University, Los Angeles. You can find the published study at A Value Creation Theory of the Economy – A New Tool for Businesses, the Public, and Policy Makers to Understand the Economy.
We are also taking a new direction in the format and content of the newsletter with two big changes. The first big change is that a majority of the newsletter will be offered as a free subscription. The free subscription will include the Commentary, which has been offered as a periodic blog on various investment and economic topics. We will continue to offer the Commentary with our same high standards of analysis and reporting, but it will be available to anyone at no charge. We did this for a couple of reasons: (1) we wanted to make this information more readily available to a broad audience in general; and (2) we wanted to make this information available at no charge to students, who as a group, have traditionally been the main readers of this information.
The second big change is that we will be offering, on a paid-subscription basis, information on investments in the Crowdfunding and Alternative Investments arenas. The Crowdfunding companies that we will be covering will be companies that we find on various crowdfunding portals. These companies are typically registered as Regulation CF securities offerings; Regulation A and Regulation A+ securities offerings; and Regulation D, 506c securities offerings. The Alternative Investments we will be covering will be Regulation D, 506c securities offerings and Regulation A and Regulation A+ securities offerings. We have many, many years of experience finding and analyzing all of these types of securities and will be bringing our expertise and access to such investments to our paid-subscription readers. Please see below for a discussion of our Double Alpha Strategy for picking investments in the Alternative Investments and Venture investing arenas. We also will be covering, from time-to-time, unique investment opportunities that we find. We are very active in various investment arenas and see unique and potentially profitable investment opportunities on a regular basis.
We want to emphasize that it is never our intent to offend anyone in this publication or in our podcast. We are big believers in civility and respect. But the nature of many of the topics we cover will undoubtedly lead to some people being offended by certain discussions. That is inevitable and is necessary in a society that prizes open and honest communication. We will always endeavor to keep our discussions civil and respectful; but we will address the issues as we see them (in other words, “we call ‘em as we see ‘em”).
Our podcast has been resumed too. Be sure to check out our podcast at this link: Intrinsic Value Wealth Report Radio. The podcast has a tagline of: “After the Ballots Are Counted – Economic Thinking for the Future.” The podcast was so named as it was reborn after the 2022 mid-term elections. Its aim is to provide policymakers, investors, and others – on both sides of the aisle and coming from all political perspectives – with a clearer picture of what actually creates economic prosperity, which leads to a higher standard of living for everyone; and how their actions as policymakers, investors, and members of a free society influence that outcome. The podcast will also cover the investment landscape.
A significant benefit of the new direction for the newsletter and the podcast is to provide our readers with a broader and clearer understanding of the global economic and investment climate, so that they can make better investment decisions. Intrinsinomics was specifically created for policymakers, investors, and global citizens to better understand how economic prosperity is created. It is the creation of economic prosperity that leads to a higher standard of living for everyone.
Finally, we wish to announce that we will be opening up to new investors in the near future the opportunity to invest in two investment funds that we manage: (1) Northwest Quadrant Alternative Investments Opportunity Fund; and (2) Northwest Quadrant Alternative Investments Venture Fund. You can click the links to learn more.
Northwest Quadrant Alternative Investments Opportunity Fund, LLC invests in alternative investments such as real estate; oil & gas; and private equity. These alternative assets generally provide higher returns than stocks and bonds. If managed properly, the overall risks of a portfolio can be reduced substantially. We believe that our Double Alpha Strategy* of investing in these alternative investments can provide the mechanism for achieving high returns, while also providing appropriate and effective risk reduction. There is no guarantee, of course, that these investment objectives can be attained. Please see the disclaimers at the end of this page and at the link to the Northwest Quadrant Alternative Investments Opportunity Fund page.
Northwest Quadrant Alternative Investments Venture Fund, LLC invests in early-stage companies that have higher return potential than other assets and asset classes. The overall returns for these early-stage venture capital types of investments can be in the 25% to 35% range. While these assets also have higher risk than other assets and asset classes, if managed properly, the overall risks of a portfolio can be reduced substantially. We believe that our Double Alpha Strategy* of investing in these alternative investments can provide the mechanism for achieving high returns, while also providing appropriate and effective risk reduction. There is no guarantee, of course, that these investment objectives can be attained. Please see the disclaimers at the end of this page and at the link to the Northwest Quadrant Alternative Investments Venture Fund page.
* Our Double Alpha Strategy consists of:
- Picking highly qualified asset managers, in the case of the Opportunity Fund; or picking well-researched individual companies, in the case of the Venture Fund.
- Diversifying across asset classes; individual assets; and asset managers (in the case of the Opportunity Fund); and investing in many individual companies and many sectors/industries (in the case of the Venture Fund).
We are accepting indications of interest from investors who may wish to invest in these funds. Each fund has a target raise of $5 million, so please get your indications of interest to us as soon as possible, as we expect that these funds will reach their target raise quickly. If you are interested, please email Dr. Paul Wendee at pwendee@pmwassoc.com or call him at 949-919-2853. If you email him, please put “Northwest Quadrant Alternative Investments” in the subject line.