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Perpetuities
Build or Buy
Michael Herlache MBA
Doctorate of Business Administration Candidate 2020
Perpetuities
Build or Buy
Index
I. The Goal
II. Demand for Perpetuities
III. Types of Perpetuities
IV. Examples of Perpetuities
V. Examples of Perpetuities in the Making
Perpetuities
Build or Buy
I. The Goal
Goal is to create/purchase one perpetuity in order to maximize
standard of living while not sacrificing quality of life.
Perpetuities
Build or Buy
II. Demand for Perpetuities
Institutional investors are after perpetuities as they can pay higher
multiples for returns over a longer time horizon
Perpetuities
Build or Buy
III. Types of Perpetuities
Perpetuities can be created from software and other intellectual
property (e.g. designation)
The market portfolio is also perpetuity
Large cap companies with high economies of scale
Perpetuities
Build or Buy
IV. Example of Perpetuities
MS Office, Facebook
CFA Institute
Market portfolio
Coca Cola, Microsoft
Perpetuities
Build or Buy
V. Example of Perpetuities in the Making
Software Perpetuities in the making: DegreeLinked, Asiansbook, M&A
Nexus, FundLinked
Intellectual property Perpetuities in the making: Chartered Investor
Institute (CharteredInvestor.org)
Market portfolio perpetuity in the making: Individual's portfolio from
job income
Perpetuities
Build or Buy
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Perpetuities - Build or Buy

  • 1. Perpetuities Build or Buy Michael Herlache MBA Doctorate of Business Administration Candidate 2020 Perpetuities Build or Buy
  • 2. Index I. The Goal II. Demand for Perpetuities III. Types of Perpetuities IV. Examples of Perpetuities V. Examples of Perpetuities in the Making Perpetuities Build or Buy
  • 3. I. The Goal Goal is to create/purchase one perpetuity in order to maximize standard of living while not sacrificing quality of life. Perpetuities Build or Buy
  • 4. II. Demand for Perpetuities Institutional investors are after perpetuities as they can pay higher multiples for returns over a longer time horizon Perpetuities Build or Buy
  • 5. III. Types of Perpetuities Perpetuities can be created from software and other intellectual property (e.g. designation) The market portfolio is also perpetuity Large cap companies with high economies of scale Perpetuities Build or Buy
  • 6. IV. Example of Perpetuities MS Office, Facebook CFA Institute Market portfolio Coca Cola, Microsoft Perpetuities Build or Buy
  • 7. V. Example of Perpetuities in the Making Software Perpetuities in the making: DegreeLinked, Asiansbook, M&A Nexus, FundLinked Intellectual property Perpetuities in the making: Chartered Investor Institute (CharteredInvestor.org) Market portfolio perpetuity in the making: Individual's portfolio from job income Perpetuities Build or Buy