This post entitled ‘billionaire boys club part 5’ is an unedited reproduction of some DD posted by u/BadassTrader on Reddit. KenGriffinLies.com does not endorse nor guarantee the accuracy of the information presented within. This article is for entertainment purposes only, and is being backed up to the HIVE blockchain to preserve it to ensure it cannot be censored.
Billionaire boys club part 5: The Foundational Strategy
DISCLAIMER: I am not a financial advisor, and I do not provide financial advice. Many thoughts here are my opinion, and others can be speculative.
Everything I am highlighting here is asking questions about publically available information and not an accusation of any wrongdoing of any parties mentioned.
Also... I'm not financially trained, so feel free to correct me if I miss something or get something wrong!!
Last time we spoke, we talked about Charter Schools and questioned the reason why SO MANY Billionaires we're interested in investing in them.
I'll let you make your own interpretations: PART 4
This time... we are going to talk about the OTHER thing that Billionaires all love to pump money into...FOUNDATIONS
Now... don't get me wrong here. I'm sure there are lots of foundations out there that do a lot of good. This is merely an examination of the FUNCTIONALITY of these foundations and why they potentially get so much attention from the super-rich.
Let's start with one we all know...
The Bill and Linda Gates Foundation
Now... maybe you already know this, maybe you don't... but Non-Profit Foundations get significant tax breaks from the government... but they still need to report to the IRS through what's called a FORM 990.
So I decided to look at The Bill and Linda Gates Foundations FORM 990.
Specifically, their last filled one which was sent in 2020, for year 2019.
So let's take a look-see...
The Gates Foundation:
Received $3.3 BILLION in Contributions (Makes sense so far)
Earned $826 million from Dividends and Interest from Securities (Wait WHAT?)
The Gates foundation is trading securities?
Am I the only person who didn't know this?
Gross Sales of all assets of $260 BILLION
Net Profit from Sales of Assets of $2 Billion
Capital Gains Net Income $6 Billion
Net Revenue $6.4 Billion
Net Investment Income $7 Billion
And then what are their expense?
THE BIGGEST ONE...
Total contributions paid: $5.8 Billion
Meaning...
Their NET INCOME was just $320 million
But their NET INVESTMENT income is $6.9 BILLION?
So they take money in... invest it... pay it back out... but keep the investment profits?
+ They don't have to pay capital gains tax as it's a charitable foundation.
+ Total Tax Paid on their investment side was $25.6 Million of $7 Billion in Profits!!
+ That's a 0.3% tax rate!
But this COULD be just speculating on high-level numbers right?
NAH...
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They actually break it down for us...
- Investments in Government Obligations: $8.9 BILLION
- Investment in Corporate Stocks: $33.5 BILLION
- Investment "Other" (WTF?): $5.8 Billion
TOTAL ASSETS $50 BILLION
(That's more than Citadel has AUM)
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And they ACTUALLY list this...
Net Value of NONCHARITABLE-USE ASSETS for 2019? $47.6 BILLION
So MOST of their assets are not actually for Charitable use???
Fuck me...
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How much investment has gone into the Gates Foundation?
- Mr William H Gates? Management Fees $64 million
- Mr William H Gates? Securities $452 million
- Mr William H Gates? $55 Million
- Mr William H Gates and Melinda French Gates? $10.8 million
- Mr Warren Buffett? $2.7 BILLION
Non-Cash Property Given? Class B Berkshire Hathaway Shares valued at… $2.7 BILLION
So really… Warren just put in $2.7 Billion of Shares as Assets on their books? I wonder why… ?
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What CONTROLLED ENTITIES have they Contributed to?
- The Global Good Fund $100 Million
- GreenBriar Equity Fund $6 Million
(These are the only ones they are obliged to document)
Contributions from CONTROLLED ENTITIES?
- GreenBriar Equity Fund? $174 million
Hang on… lol. Did they just report that they gave GreenBriar $6 million and GreenBriar gave them back $174 million?
Nice returns.. lol
Lol… I’m not wrinkled brained enough to know what that means really… but lol.
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I've taken on board the feedback that my last BBC was a little depressing... SO
Here's a puppy Break to cheer you up...
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They EVEN LIST THE STOCKS that they are invested in…
(Gamestop is not one)
But look who has got $11.3 Billion? Berkshire Hathaway
(Remember Warren only invested $2.7 Billion)
Disclaimer: I fucking love the shit outta Warren Buffett
Other big numbers:
- $1.5 Billion in Canadian Natl Railway
- $1.6 Billion in Caterpillar
- $1.3 Billion in Walmart
- $2.2 Billion in Waste Management Inc
What do these stocks have in Common? They are NOT Berkshire Hathaway stocks… because that would be WAY to obvious. But LOOK like they are nice safe, solid, FUNDAMENTALLY sound positions. I’ll say no more.
They list their Corporate Bonds too, but nothing stood out to me. Feel free to take a comb through
------------------------------------------------------------------------------------------------------------------INVESTMENTS OTHER
This is an interesting little section in the Form 990.
They actually break down their other investments, which if you remember was listed as a total of $5.8 billion.
Some wrinkle brains should def go through this, as I have no clue what I am looking at, but here are a few points that stood out to me:
- Citadel is listed on there as a Bank Loan, but for only $1.5 million. Breadcrumbs...
- Bridgewater Pure Alpha Lead was given $87 million listed as a partner? Interesting…
- Canada Housing Trust was given $752 million as a Foreign Government Issue
- China Government Bond and Treasuring were given $750 million, listed as Foreign Government Issues
- 100s of Millions went to different pools that I don’t understand
- 700 million went into buying PHYSICAL Gold Bars -- WTF Bill? Lol
- $223 million went to GreenBriar as a partnership? (Remember GreenBriar were the ones that donated $174 million earlier)
- 100 million went to GTI 8 Institutional Investors (Whoever they are)
- $805 Million went to Mexico CETES what ever that is?
I think you get the picture right?
NOW….
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There are a couple of sections in this document that for some stupid reason are printed SIDEWAYS…
(Maybe they want these to be more difficult to read?)
But I did read one of them…
This is TITLED:
Net Gain or LOSS from Sale of Assets not on Line 10
- Ok, so first up wtf with this as a title?
- Is this additional revenue that they just don’t have to list at all?
- How it’s required is just listed as purchased or donated
- Date Acquired is just listed as VARIOUS
- Date Sold is just listed as VARIOUS
But… remember that number I threw out right AT THE START OF THIS POST???
(Go on… check… I’ll wait - See if you can figure out which number I am referring to?)
I said…
Listed as having GROSS SALES OF GROSS SALES PRICE OF ALL ASSETS?
That number was $260 BILLION…
Take that in for a second…
The total AUM of Citadel is $35 Billion
$260 Billion is 7 times that size!!
(I did the math)
Well that $260 BILLION is also listed on one of these SIDEWAYS PAGES that they don’t want us to read… under Net Gain from Sale of Assets Not on Line 10???
They even break this down for us! (On a SIDEWAYS PAGE of course)
The big numbers… (The ones in the billions) are:
- $11 Billion in Equities
- $87 Billion in Fixed Income (How is this amount a fixed income)
- $162 Billion in Cash Equivalents
WHAT THE ACTUAL FUCK?
AND THAT”S THE END OF THE REPORT!
SOURCE: https://apps.irs.gov/pub/epostcard/cor/911663695_201912_990PF_2021021717709925.pdf
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So it’s safe to say… that JUST LIKE THE CHARTER SCHOOLS, these foundations are all REALLY in the business of making money right? - Just MY OPINION of course…
But let’s check if the pattern holds true…
I tried looking up different foundations… and lot’s of the WELL KNOWN foundations, I couldn’t find ANY Form 990s on.
(Sometimes these foundations are known by one name, but listed as a different name)
But here’s the ones that I have and show a similar pattern:
Example: The Lynn & Stacy Schusterman Foundation is ACTUALLY listed as Charles and Lynn Schusterman Family Foundation
(Charles is the Father, who was an oil Tycoon)
- Donations: $5.7 million
- Dividends and Interest: $34 million (They invest both directly in companies and through Stocks)
- Net Gain from Sale of Assets: $151 million
- Total Revenue $207 million
- Net Investment Income $197 million
- Total Assets: $2.2 BILLION
Reference: https://apps.irs.gov/pub/epostcard/cor/731312965_201912_990PF_2021021317706329.pdf
-- IMPORTANTLY HERE… this example lists their PAYEES. Alot of which are foundations themselves.
Want MORE examples?
Charles Koch - Koch Industries
The Charles Koch Foundation (Christ, they all name them the same)
- Donations: $128 Million
- Dividends $15 million
- Revenue $168 Million
- Investment Income $39 million
- “Other” Investments Balance $617 million
- Total Assets: $685 million
- What are the “Other” investment?
- Elliot International Fund $50 mil
- EFPRP (What ever the fuck this is) $535 million
- BAIH (What ever the fuck this is) $60 million
Source: https://apps.irs.gov/pub/epostcard/cor/480918408_201812_990PF_2020012117047703.pdf
I’m not going to go through ALL of these foundations, because 1… they are hard to track down due to naming variations… 2… My Head hurts from reading this shit and being shocked.
But I think it’s safe to say that it most CERTAINLY is possible that other foundations are doing similar right?
So let me get this straight…
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Rich People, Create Foundations to avoid tax, take in donations, Invest the donations, make profit from the investments, and then donate the incoming donations out to Charter Schools (Which Make them profit), Political Campaigns (Which Gain them influence) or other Foundations (Which likely do the same kind of shit)... and maybe help some people along the way too for some good PR?
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Is this the world we’re living in?
Who else has a foundation?
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But first... PUPPY BREAK!
Aww... look it that little cute smile on him!
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Kenneth C. Griffin Charitable Fund - Couldn’t find anything on this… (I Checked all variations I could think of)
The Citadel Foundation - There is money going through here, but not being invested
Source: https://apps.irs.gov/pub/epostcard/cor/364482467_201812_990PF_2019032916200160.pdf
(Lots of Educational Donations though)
Michael “Milky” Milken… you can bet he’s got some.
The Milken Family Foundation $100 million in assets and you can bet he’s trading through here too… (Lots going through Apollo)
https://apps.irs.gov/pub/epostcard/cor/954073646_201911_990PF_2021040817913329.pdf
But of Course…
He’s got the Milken Institute aswell…
$500 million in assets
He’s trading Securities through it, with Gross sales of $37 million, and $230 million directly invested in securities,
He donates through it (Lots of Educational),
Source: https://apps.irs.gov/pub/epostcard/cor/954240775_201912_990_2021040217865675.pdf
The List Goes on Apes I’m Afraid…
So I’ll be brief with these:
- George Soros Has the Open Society Foundations
- Charles Feeney has a foundation
- Intels Gordon Moore has a foundation
- The Broad Family has a foundation
- Renaissance Hedge Fund Manager Jim Simons has 1
- Mark Zuckerberg and Priscilla Chan have 1
- Michael & Susan Dell have 1
- Leonard & Ronald Lauder have 1
- Oil and Banking George Kaiser has 1
- Hedgie Julian Robertson (You remember him right?) has 1
- (Yup… I checked, it follows the pattern)
- Ted Turner Founder of CNN has one called the United Nations Foundation - And he’s trading securities through it!
- (The UN can not raise funds itself)
The list goes on Apes…
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AM I SAYING THAT ALL FOUNDATIONS DO THIS?
Most certainly not.
AM I SAYING THAT IT IS POSSIBLE THAT FOUNDATIONS ARE USED FOR PROFIT THROUGH INVESTING AND TRADING SECURITIES?
Most Certainly - In my opinion at least and from what I can see in these Form 990s
The entire series is listed below:
| Part 1: Is this the final boss? | Read On Hive |
| Part 2: The Inner Circle | Read On Hive |
| Part 3: The Big Boys | Read On Hive |
| Part 4: Recess is over | Read On Hive |
| Part 5: Foundational Strategy | Read On Hive |
| Part 6: Smile for the Camera, Kenny | Read On Hive |
| Part 7: What DAF F**k is This? | Read On Hive |
| Part 8: The Chips are Stacked Against Us | Read On Hive |
| Part 9: Steve Cohen | Read On Hive |
| Part 10: Vacation of a lifetime | Read On Hive |
| Part 10.2: Cayman Island Getaway | Read On Hive |
| Part 11: Buy Borrow Die | Read On Hive |
| Part 12: Specialized Purpose Entities | Read On Hive |
This post entitled ‘billionaire boys club part 5’ is an unedited reproduction of some DD posted by u/BadassTrader on Reddit. KenGriffinLies.com does not endorse nor guarantee the accuracy of the information presented within. This article is for entertainment purposes only, and is being backed up to the HIVE blockchain to preserve it. We take no credit whatsoever for this article. Please read our legal disclaimer.
This information is not financial or legal advice, and is presented for entertainment purposes only. See more about the community at KenGriffinLies.com