Last week, we looked at how financial companies are feeling the pain of lower fees.
But I hinted at one group of financial companies that is not feeling the pain.
It’s one of my favorite groups to own. So when the market sold off last month and these stocks began falling towards a Cost of WAR of less than one, I was pretty excited and ready to break open some bubbly.
Unfortunately, the decline halted and stocks have rallied back, so I did not get a new opportunity to buy them. The numbers are getting there, and I hope that before too much longer I can send Heatseekers members the call to arms with buy recommendations of these powerhouse firms.
This group of financial companies is private equity firms.
It’s hard for most of us to invest directly in a private equity fund, since most require you to be an accredited investor and have minimum investment levels of millions of dollars. However, we can buy shares of private equity firms and reap the benefits of the high returns they earn.