After identifying his “needs and dreams,” Paul Schroder had to figure out what to do next. Putting emotions aside, he needed to get the best options to identify with the required amounts of liquidity at the right time. As Schroder thought through the issues, he looked at his company, Travel imagination as a key to its goals. He could continue to manage and own the business, but he was concerned about the asset class concentration and unpredictability in its portfolio. While he was confident … Read more »

After identifying his “needs and dreams,” Paul Schroder had to figure out what to do next. Putting emotions aside, he needed to get the best options to identify with the required amounts of liquidity at the right time. As Schroder thought through the issues, he looked at his company, Travel imagination as a key to its goals. He could continue to manage and own the business, but he was concerned about the asset class concentration and unpredictability in its portfolio. While he was successful confident that the direct mail company could face the challenge of internet, he was worried that he might be wrong, and that he suspend his family, too much risk. He knew that he had too much wealth concentrated in this one company, and bad things can happen to good companies. Its future support for his daughter Emily depended on it. This case describes a hypothetical investor with the challenges of asset allocation, diversification, family, risk and leverage face.
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from
George Parker,
Alan Rappaport,
Jaclyn C. Foroughi
Source: Stanford Graduate School of Business
6 pages.
Release Date: 11 October 2013. Prod #: F306B-PDF-ENG
Schroder family (B): strategy and asset allocation HBR case solution