Raw materials: Trend analysis
The escalation of prices in the last months of commodity prices (example: soybeans, corn, iron ore and copper) has promoted a debate among economists about their continuity and related reasons. But what does commodities mean? Economic expression in English, which refers to a specific good or product of primary origin marketed on the world stock […]
Precious metals: Trend analysis
The price of gold shows a very positive behavior, but unnoticed by investors as a result of the behavior of the SP500 via technological companies. This fully recovered the observed devaluation in March and shows: i) maximums similar to 2020 (with a + 12% appreciation); ii) the 2013 levels; and, iii) 15% of the historical […]
Investments: certain of “uncertainty” and/or “change”
To speak of uncertainty and/or change in investments is a euphemism that softens the naked reality of subjectivity (a sense of illusory denial). If not, let us think about when: i) does investing involve uncertainty?; ii) isn’t change the only constant in life? Heraclitus of Ephesus referred to it; it is such that the euphemism […]
Create or not create an SGPS? Here’s the question… – part 2
Bearing in mind the notion of trade-off it is not reasonable to ignore SGPS´s disadvantages, as well as, do not to forget the analysis dimensions: corporate income and selo tax (IS). Regarding dividends and/or similar (capital and interest gains), if equity shares acquisition resumes a period less than one year with capital losses, tax deduction […]
Create or not create an SGPS? Here’s the question… – part 1
Ex-ante the dilemma it is vital to debate trade-off, since it affects a decision. This notion sums up the conflict of choice, ie, the unlikelihood to obtain benefits from a non-choice; however, analysis oughts opportunities strengths and weaknesses. Choosing is literally a daily process as the mundane example denotes: a cheese sandwich or a cake? […]
The notion of a SGPS – part 2
What is the true share limit of a SGPS given the ex-ante publication (10% limit)? Legislation reveals: 30% amount of total shares value equal or greater than 10% of the voting capital within subsidiary companies; If acquisition value of each holding is not less than 5 million EUR considering the latest approved balance sheet; Shares […]
The notion of a SGPS – part 1
A Sociedade Gestora de Participações Sociais (SGPS) is a commercial entity created to manage subsidiaries activities (downward operations) or a group of enterprises (upward operations). Other synonyms are holding, shareholding company or mother-company, although this definition is simple enough to Einstein say “beautiful”! However, a deeper analysis reveals ambiguity that has fostered debate. Historically SGPS´s […]