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Discussion in 'Hilton | Honors' started by uggboy, Dec 12, 2013.
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Santa Claus Came Early for Hilton With The Biggest Hotel IPO Ever
disagree! It means diminishing benefits & promos, just like Hyatt's program when it went public.
Santa Claus should have come to Hilton before I booked my NYC hotel and showered me with discounts! I've been a good girl this year. Okay, maybe decent. Oh, who am I kidding?
You are right about the future for HH, but one small hope is that since Hilton was already owned by Wall Street PE firms so they've been "squeezing value" from their assets with "changes we'll like" for a long time. Hopefully that means they future won't get much worse.
Until their IPO Hyatt was actually dozens of companies held and controlled by many trusts for the extended Pritzker family with not nearly as much focus on bottom line profitability and financials until now so they had a lot more cuts to fit in.
This just ties the health and wealth of Hilton, including its loyalty program, to Wall Street. If they do well, the happy days will trickle down and likely improve HHonors. If they go bust, well...you get the picture. Insofar as Wall Street is usually more about long-term wealth than short-term return or daily "bumps", this huge IPO might mean very little to the average Joe or consumer.
Really? Why do companies like Dell go private, if not to escape the short-term focus pressure that WS puts on them?
Anyone who invests on WS for short-term gets very little back or will be a nervous wreck reacting to daily fluctuations. The direction of the markets is always up, even though there might be huge plunges along the way. Well, that is the philosophy that has guided me since I started investing during the Clinton years. I have not been disappointed...
As an investor, I agree with that, but IMO it's different from saying that WallStreet is not about short term returns. *I* am not WallStreet. Report a few "bad" quarters (bad usually means below expectation) and the calls for the CEO's head start coming in, even if the cause might be management's focus on long term goals. I see it in action every day working for a large public company.
While I understand the lure to make a quick profit, I think that it is misguided and counter-productive when it comes to playing the investment game. One who plays the markets for the long-term will not be disappointed...
Having worked for major public companies, it is HAMMERED into employees that each and every quarter be better than the last.
So while your investment approach I think is sound, you are not at all addressing the short term pressure/expectations that WS puts on publicly traded companies. Maybe you don't, but WS exerts an amazing amount of short term pressure on a company's performance.
likely? Care to share any gems of benefits that have resulted from this?
Aha, but that is just it! I can look at the long term and not worry about the short term because I am not on WS, nor do I work for a public company. I am far removed from the day to day hype, and I have been since the early 90s when I entered the investment world. I have just watched from the sidelines the stock market go up and up and the return on my investment with it...
Can't yet because it's hardly started... Let's see how well they do...If they reap significant benefits from it (read: make a lot of money), my money and common business sense would be on reinvesting into beefing up their "product", which might benefit the consumer...
blah blah blah, you you you, no one cares and no one asked. The following question was posted:
for some reason you decided to start a lecture on your philosophy of investing, rather than addressing the original question posted. Is there a reason why you do this?
beefing up the product (the properties) is far different than providing additional benefits to the HHonors program. Unlike you, I don't believe greater revenue/profit = more benefits for the HHonors program.
Very strange but fine, we are done here because all I really care about when it comes to WS is what I have expressed.
Off on my Year-end Asian Escapade(tm) at 6 am tomorrow morning, and look forward to that. I will send a postcard every now and then.
Happy holidays to you too!