Undergraduate Business Paper

Companies I am interested In

The aim of this paper is provide summary of the operations of three companies: Vanguard, Goldman Sachs, and Fairholme Funds. In this summary, emphasis is on aspects of risk management, marketing strategies, and investing. Vanguard Group is a leading American company that specializes in investment management. The company targets both institutional and individual investors with a brokerage and mutual funds services. Since it was founded in 1975, the company has succeeded in accumulating $2.2 trillion in assets (Viceira, 2007). This figure includes $286 billion that exists in the form of ETF (exchange-traded fund) assets (Viceira, 2007). Currently, Vanguard’s biggest competitor for the position of the largest mutual fund management company in the world is Fidelity.

Goldman Sachs Group is an international securities, investment banking, and investment management company. This company offers a wide range of financial to a diverse client base. Most clients of the company are high net-worth individuals, corporations, governments, and financial institutions (Endlich, L. (2000). To be able to offer these services, this company has established four core segments: Investment Management, Investing and Lending, Institutional Client Services, and Investment Banking (Endlich, 2000).

In Investment Management, focus is on various aspects of investment including portfolio management, wealth advisory services, brokerage, and financial counseling. In Investment and Lending, the core objective is to provide longer-term loans, private equity securities, currencies, power generation facilities, and consolidated investment entities. On the other hand, the Institutional Client Services segment specializes in client execution services. This segment also offers securities services and securities lending to its diverse institutional clients. Lastly, the Investment Banking segment provides advisory services relating to financial matters. In this case, the main issues addressed include risk management, mergers and acquisitions, corporate defense, underwriting services, public offerings, and divestitures.

Fairholme Fund is a US-based open-ended fund whose core objective is to ensure long-term capital growth (Cendrowski, 2010). To achieve this goal, this company specializes in investing in companies that show potential for growth in the long run. In the process of investing funds, Fairholme Fund also assesses the perceived value of a company before investing in it with a view to get a realistic projection of return on investment (Cendrowski, 2010). Since the objective is to invest in a company in the long run, the company does not assess aspects of market capitalization in its decision to invest in majority of its common stocks.

Unlike Vanguard and Goldman Sachs, Fairholme Fund focuses primarily on long-term capital growth. This specialization explains the rationale for the company’s preference for fixed-income and equity securities. However, for purposes of diversification, the company has also established a reputation for investing in preferred and common stock, business trust shares, partnership interests, and depository receipts (Cendrowski, 2010). In recent times, Fairholme Fund has also demonstrated its competence in investing in bank debt, agency debt securities, corporate debt securities, and short-term debt obligations.

An analysis of these companies is an excellent step towards a greater understanding of concepts relating to risk management, marketing strategies, and investing strategies being adopted in the corporate world. Moreover, university students who intend to major in business but are undecided on which area to specialize in will definitely find an analysis of these companies very insightful. Such students will acquire new knowledge that will help them to change their perceptions in regards to aspects of investment, marketing, and risk management. Finally, it is imperative for university students who want to work for these companies either as interns or in entry-level positions must be aware of the kind of business that they conduct. The best way of acquiring this knowledge is by analyzing these corporate entities in terms of their products, services, niche areas, marketing strategies, and investment decisions.

 

References

Cendrowski, S. (2010). The Megamind Of Miami: Meet the star founder of the $18 billion Fairholme Fund. New York, NY: Fortune.

Endlich, L. (2000). Goldman Sachs: The culture of success. New York, NY: Touchstone.

Viceira, L. (2007). The Vanguard Group, Inc. in 2006 and Target Retirement Funds. Harvard Business School Case 207-129, June 2007.

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