This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Private Equity: 4 Lessons For Value Investors

4 Tips For Investors To Learn More About Private Equity by Tim Melvin, Benzinga

Most individual investors pay very little attention to what’s going on in the world of private equity.

The shadowy world of private equity and buyout investing is seen as the province of large institutions and well-heeled big money types — and of little interest to those looking to catch the next 10 point move in Apple.

It’s of even less interest of those middle of the road investors who have some stock and mutual funds in their retirement plans and just do not spend a lot of time thinking about the markets. While most will never have big money invested in private equity funds, tracking this industry should be at the top of every investor’s regular activities list.

Popularity Is Not Always Key

The first reason is that the private equity mindset is more successful than attempting to day or swing trade the well-known popular stocks. Study after study has shown that most traders will fail. The quoted number most often used is 90 percent of traders “just don’t make it.”

It’s extraordinarily difficult to be a good trader, much less a great one.

Related Link: 3 Reasons To Quit Trying For The Impossible With Your Investments

The simple truth is that, just like everybody who ever put on glove dreams of pitching in the World Series or playing center field in the big leagues, everyone who dreams of being a great trader probably is not going to make it.

Adopting the valuation sensitive, longer time frame of the private equity investor will help most investors earn much higher returns over time.

Opportunity Tends To Show Up Uninvited

The other reason investors should pay more attention to the private equity industry is that it will allow you to spot opportunities and trends before they make their way to Wall Street and into the mainstream media.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AINV $5.89 0.17%
APO $18.66 0.32%
KKR $18.76 0.75%
AAPL $109.50 -1.16%
FB $92.47 0.08%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs