Traditional forms of corporate investment have been limited to a mix of equities, bonds, and cash equivalences.
July 4, 2006 (Press Release) --
Abstract
Corporate vision, mission, goals, and objectives limit corporate strategic finance. Traditional forms of corporate investment have been limited to a mix of equities, bonds, and cash equivalences.
In today’s market, real estate is an appropriate alternative investment. Instead of riding the Dow Jones Industrials as the primary index relative to stock portfolios, firms are addressing residential real estate as an alternative investment.
Corporate strategic financial planning is limited by investment objectives, forecasting techniques, and misguided financial plan implementation. Corporate financial plans evolve with the corporation over time.
As a case study, consider the California’s Central Pacific Railway. During the later part of the nineteenth century, the Central Pacific Railway led the way in engineering techniques in building bridges and tunnels for the continental railway across the United States.
Central Pacific created the largest fleet of passenger ferries and freight services in Oakland and San Francisco, California. In building this infrastructure, Central Pacific purchased every inch of available land in Oakland and San Francisco useable for maritime use (http://en.wikipedia.org/wiki/Southern_Pacific_Railroad).
In the early part of the 20th century, Southern Pacific Industries purchased Central Pacific, and continued expansion of railway construction from basic transportation into vacation destinations such as National Parks.
By the early 1930’s Southern Pacific maintained over 13,848 miles of right of way from Portland, Oregon to Los Angeles and on to the East to Phoenix, Houston and New Orleans, Louisiana.
As early as 1863, Central Pacific Railway was given land right of ways with the exclusive permission to run telgraph wires and operate the telegraph backbone. This grew into local phone service 1978 after the Execunet II decision, Southern Pacific Communications was allowed to become US. Sprint, and divesture of the baby bells starting competition in the telecommunications market.
Southern Pacific from the onset was a real estate and technology driven corporation. In the 1950’s divesture allowed the tearing down of Central Pacific Railway stations and replacing with hotels.
Southern Pacific sold travel and Western National Parks through the monthly Sunset. The magazine led into planned 1960’ communities, one for example being San Francisco’s Park Merced. Hundreds of units in a scenic park setting overlooking the city of San Francisco offered at above market rates.
Southern Pacific is an excellent example of corporate strategic investment in evolving markets. Many firms do not maintain diverse portfolios, and park surplus cash in bank CD’s, treasury bills, mutual funds, equities, and perhaps repurchasing their own equities. Real estate should be part of the corporate strategic growth plan.
For this analysis, equities will be limited to the Dow Jones Industrial Index and real estate investments will be limited to the Reno, Nevada market. The time period for this study is limited to years 2001-2005, inclusively. As a constant, the Consumer Price Index is included in the evaluation.
Corporate vision, mission, goals, and objectives limit corporate strategic finance. Traditional forms of corporate investment have been limited to a mix of equities, bonds, and cash equivalences.
In today’s market, real estate is an appropriate alternative investment. Instead of riding the Dow Jones Industrials as the primary index relative to stock portfolios, firms are addressing residential real estate as an alternative investment.
Corporate strategic financial planning is limited by investment objectives, forecasting techniques, and misguided financial plan implementation. Corporate financial plans evolve with the corporation over time.
As a case study, consider the California’s Central Pacific Railway. During the later part of the nineteenth century, the Central Pacific Railway led the way in engineering techniques in building bridges and tunnels for the continental railway across the United States.
Central Pacific created the largest fleet of passenger ferries and freight services in Oakland and San Francisco, California. In building this infrastructure, Central Pacific purchased every inch of available land in Oakland and San Francisco useable for maritime use (http://en.wikipedia.org/wiki/Southern_Pacific_Railroad).
In the early part of the 20th century, Southern Pacific Industries purchased Central Pacific, and continued expansion of railway construction from basic transportation into vacation destinations such as National Parks.
By the early 1930’s Southern Pacific maintained over 13,848 miles of right of way from Portland, Oregon to Los Angeles and on to the East to Phoenix, Houston and New Orleans, Louisiana.
As early as 1863, Central Pacific Railway was given land right of ways with the exclusive permission to run telgraph wires and operate the telegraph backbone. This grew into local phone service 1978 after the Execunet II decision, Southern Pacific Communications was allowed to become US. Sprint, and divesture of the baby bells starting competition in the telecommunications market.
Southern Pacific from the onset was a real estate and technology driven corporation. In the 1950’s divesture allowed the tearing down of Central Pacific Railway stations and replacing with hotels.
Southern Pacific sold travel and Western National Parks through the monthly Sunset. The magazine led into planned 1960’ communities, one for example being San Francisco’s Park Merced. Hundreds of units in a scenic park setting overlooking the city of San Francisco offered at above market rates.
Southern Pacific is an excellent example of corporate strategic investment in evolving markets. Many firms do not maintain diverse portfolios, and park surplus cash in bank CD’s, treasury bills, mutual funds, equities, and perhaps repurchasing their own equities. Real estate should be part of the corporate strategic growth plan.
For this analysis, equities will be limited to the Dow Jones Industrial Index and real estate investments will be limited to the Reno, Nevada market. The time period for this study is limited to years 2001-2005, inclusively. As a constant, the Consumer Price Index is included in the evaluation.
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