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During the course of the last week there have been two major events that have affected all public companies. We’ve hade big changes from Admins many times before, but this time they have changed the way companies operate in a major way. The second event is the epic fail of t’jelle bank.




In this article I will talk about how these events affects Ghinsberg Group as a company, and us – the shareholders.

First, lets talk about the 25% bonus for companies owned by citizens and located in their home country. This means a lot of thing, but mostly that the era of hughe international corporations is over. General managers must decide in what country they want to conduct business, and stay there. If they want to get involved in foreign markets they will have to export, tough they will always be hiring from the same pool of employees, meaning there is no way to locate in markets with lower wages.

This is not all bad, I’ve never been a big fan of huge corporations, since I cant understand how they would be managed effectively unless there’s hired managers, and that’s not very often a good solution in the long run. Personally I have turned down tons of offers for investment, since I do believe in running a mid sized business, but make sure it’s a top performer, providing maximum shareholders value.

Ghinsberg Group will be going through some change because of this. Since I’m Swedish and around half the companies are located there I will focus business in my home market. This is not negative, but the market isn’t big enough for a 2000G worth of companies. At least not for now. Therefore we will sell of around 3-400G worth of assets over the coming months, and here comes the good news – pay the cash out as dividends or a share buyback. Tough I want to make a point, in this game it’s tough to make long term plans since rules change all the time. So it’s not a promise, but unless there comes some great investments or changes that’s what will happen in the next couple of months.


ERX DEFAULT

So, that was the good news. Here comes the bad news - t'jelle bank and ERX have failed, bigtime! Not just a regular default where investors get a % of their money back – but a big fat epic fail where the responsible people have managed to loose every single gold. It is clear that t’jelle have been publishing highly misleading financial statements for a while. Only a short while ago things seemed better than ever. I will leave my judgements at that until the dust have settled and we know more about what exactly happened.




It’s not only a fun part of the game that is gone, but also a lot of gold. Thousand of deposited gold from investors and General managers is all gone. Obviously, we had some shares and cash on ERX, tough I have always preferred to manage my own money, rather than invest in other Corporations. This is also my job, when people invest in Ghinsberg Group, they invest in my capability to provide shareholders value. For me to invest GBG in other companies would be strange.

Thus GBG haven’t lost that much money. The total loss is around 128 Gold, of 1930 Gold worth of assets (not counting gold or currency in companies), all in all, the loss is 6.7% giving us a new value of around 1830. You can see the latest financial statement I made here from around two weeks ago (before the ERX crash) where it says 128 Gold is invested in ERX.




So, GBG is still standing strong. My main headache right now is to get the list of all my shareholders fron t'jelle so that I can continue to take care of all my shareholders in the future. Some Corporations might take advantage of the opportunity to rip of theirs, but I will not. So, lets all just pray to that the t’jelle administrations at least have the decency to give the honest companies that were listed on ERX the chance to take care of shareholders.

Also, I will work out a decent way to buy and sell GBG shares, but in the meantime just send me a PM if you want to buy or sell shares and I can act as a middleman. All shares sold or bought will have be reported to me, so I can keep note of who owns what shares for future dividends.

This is all for now, feel free to send any questions you have as PM or comments.


Kind Regards
Yossi Ghinsberg
Chairman
Ghinsberg Group