Paul Mampilly, American investor and former hedge fund manager, recalls events that took place in 1989. As a member of the financial club at college, he visited the New York Stock Exchange where an investment banker cordially welcomed him to Wall Street. With the help of a guide, the group of students was able to experience the exciting live action on the exchange floor.
In those days, people placed orders by phone. Before the computer era, investors owned portable devices enabling them to monitor their investments. He recalls that everyone was screaming when the time to ring the opening bell approached. He remembers that he could hardly hear any sounds. When the stock market opening bell rang at 9:30 a.m., the entire floor was in a state of chaos.
As the years marched on, the exchange floor became quieter and more subdued. The current Wall Street exchange floor exists mainly as a form of tradition instead of a vehicle for traders. Today, most investors place trades with their computers or work with brokers who have access to complex software platforms.
Although Wall Street still maintains a certain amount of prestige and influence since its inception in 1792, Paul Mampilly believes that the glorious and noble days of the past are fading into oblivion. The issue is that even though Wall Street is a leader in the basic method of trading, the ability to make online transactions will eventually eliminate Wall Street’s edge.
Currently, Wall Street is composed of middlemen featuring investment bankers, lawyers, various exchanges, auditors and analysts. The main purpose is to sell stocks. People who want to participate in the action need to work their way through a complicated network.
— Paul Mampilly (@Paul_M_Guru) October 26, 2017
The management at PwC, a prestigious consulting business, stated that investment banks typically charge a fee when initial public offerings (IPOs) are initiated. An IPO provides investors with an initial opportunity to buy shares in a company. The IPO fee ranges from 5 percent to 7 percent. Translating the fee into understandable terms, bankers receive $70 million in fees from a $1 billion IPO.
High Fees Related to IPOs
The U.S. Securities and Exchange Commission (SEC) has indicated that IPO fees equal approximately $3.7 million. Becoming a publicly traded company simply costs too much money. In fact, the number of IPOs has greatly diminished since 1999. In 2008, only 31 companies were traded as IPOs. In 2016, only 105 companies became publicly traded as IPOs.
Introducing Innovative Initial Coin/Token Offerings
It is obvious that the majority of business owners have resisted the temptation to go public. However, these same entrepreneurs currently have a new option for offering shares to the public. Instead of an IPO, a company can now offer an initial coin/token offering (ICO/ITO). Initial coin/token offerings are currently popular and commonly referred to as cryptocurrencies. Creating cryptocurrencies involves the process of digitizing assets for the purpose of trading them as public offerings. For example, people can trade and own crytocurrencies known as Bitcoins.
When ICO/ITO offerings are used for the purpose of selling stocks, the fees are reduced in a dramatic way. For instance, a trader can pay a fee as low as $100 to purchase an ICO/ITO. Of course, wealthy traders can participate in costly initial coin/token offerings in the neighborhood of $300,000. Although $300,000 seems expensive, the amount is minimal when compared to the exorbitant IPO fees charged by investment banks. Even though the ICO/ITO option is a novel approach, lower costs versus expensive IPO fees may eventually offer a unique solution for the masses.
The only thing required is an extremely successful model. Eventually, Wall Street’s IPOs are bound to become rare remnants of a previous era. For this reason, Paul Mampilly has decided to eliminate traditional Wall Street stocks and offerings from his services. In lieu of standard businesses, he wants to find companies that will benefit from new technological advances within the financial milieu including ICO/ITOs, mobile payments and blockchain technology.
Paul Mampilly believes that these new financial trends are heralds of a future investment atmosphere that differs from previously accepted concepts and traditions. Consequently, he spends time gathering pertinent information about the new trends and publishing them in his flagship Profits Unlimited newsletter. Any person who is interested in exploring new financial avenues is welcome to find out more information about the professional services he offers.
Paul Mampilly began his impressive financial career at Deutsche Bank, A German global banking firm, in 1991. He was also a portfolio manager at Bankers Trust before it was purchased by Deutsche Bank. In addition, he managed accounts for the Royal Bank of Scotland and investments for Kinetics Asset Management, LLC. His vast experience as a hedge fund manager earned him more than one award. In addition, Mr. Mampilly won a distinguished Templeton Foundation competition. For the past few years, Paul Mampilly has been invited to appear on several television shows including CNBC and Bloomberg TV. As the founder of a newsletter called Profits Unlimited, Paul Mampilly provides his opinions and advice for investors who are interested in cutting-edge financial investments.
In the publication, Paul Mampilly offers 60,000 subscribers his top picks. He also writes about the best time to sell particular investments for making more profitable gains. In addition, he advises investors about periods when they should avoid investing money in stocks and other investments. His open investment portfolio serves as a guide for people who are unsure about which investments to choose. The portfolio illustrates highly profitable gains in several of his stock picks. In addition to Profits Unlimited, Paul Mampilly provides informative details in two other Banyan Hill Publishing company publications entitled True Momentum and Extreme Fortunes. As a prolific writer on financial topics, Paul Mampilly also writes enriching articles for the Winning Investor Daily.