The Demise of PE: Advertising

by Mr Juggles

Some investors consider sales and marketing expense to be a real investment. If a company is building its brand, it’s building its barriers to entry. Now we know why the private equity funds are doing so poorly. Cerberus and Sears (NASDAQ: SHLD) (now Eddie Lampert’s investment vehicle) have been decreasing their advertising spend…their barriers to entry must have come down shortly thereafter. Looking at the top advertiser through, PSAs, I am confident that Government and wish-washy non-profit organizations will continue to grow…their moats are getting larger.

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POSTED: 09/23/08 10:50 AM
Comment (22)


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Comments

  1. Bootsy Call
    September 23rd, 2008 | 11:55 am

    oh come on – that’s just TV. surely Cerberus & Sears will get more bang for their marketing bucks by hiring roving teams of shot-gun wielding buzz-agent/security guards to assist shoppers at point of sale, thereby more effectively patrolling their moats? I’m sure it’s just the consumer testing on the branding of their uniforms that’s delaying the rollout

  2. Pleb
    September 23rd, 2008 | 1:31 pm

    Isn’t Cerberus the three-headed dog that guards the gates of hell?

    His presence on this list is remarkable. He may be Satan’s Own Wittle Supernatural Canine Schmuffins, but at the end of the day he’s still just a frickin’ dog who licks his own fire-and-brimstoney ass and gets fur on Beelzebub’s suits.

    I’d go really long on Purina Hellhound Chow (he’s got three heads, ferchrissakes), short Friskies and Fancy Feast. Consider holding Snausages and Sperry (Top Siders, not the Unisys predecessor) if any of those heads look like Black Labs.

  3. Anal_yst
    September 23rd, 2008 | 5:36 pm

    I’m looking for a 10x+ leveraged ultrashort Cerberus etf or something like that. Anyone got any idea where I can find such a security?

  4. Hans Moleman
    September 23rd, 2008 | 7:38 pm

    I guess if you’re into moats, you’d long Ford and short GM. Not sure what you’d do if you’re into profits though.

  5. Coruscation
    September 25th, 2008 | 1:08 am

    Crossbranding is the solution. I read it here first in 2006.

    ‘Wamu checking brought to you by JP Penny ?’