Since everyone's trying to steal my Chief Blogger thunder, here is another article:
http://www.nytimes.com/2014/05/31/your-money/the-affluent-have-an-increasing-interest-in-private-equity.html?ref=business
This article examines the risky, but potentially extremely lucrative, practice of investing in private equity and mutual funds.
This was an interesting article--very unorthodox investment style. However, I think it is important to note that most of these equity investors have a very large amount of wealth that affords them the flexibility and security to invest in high risk asset classes
ReplyDeleteThis sounds like a pretty risky strategy. Hopefully these people are diversified enough to preserve their wealth. I think investing in diversified funds is a good idea for passive, long term investors.
ReplyDeleteI agree this seems like a pretty risky strategy. I find private equity to be a very interesting area of finance, though, and would not mind working there for some time. Unlike some other professions like trading, I feel that at least with private equity one has the potential to build value in a company.
ReplyDeleteSanjay, that is a great point. Private equity definitely is risky as the article mentions, however there is the potential to create value for the company and society. I personally do not see myself working or investing in private equity, but I think I would do that over trading.
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