How To Make Money with the Fortress Investment Group

Randal Nardone, Wesley Edens, Robert Kauffman, Peter Briger, Jr. and Michael "Novo" Novogratz, founders of Fortress Investment Group became paper billionaires in February 9, 2007 when they began trading their initial public offering (IPO) in the New York Stock Exchange.

The company runs private equity funds, hybrid/credit funds and liquid hedge funds. For 2008, it reported a net income of US$ 322.3 million.

The group's private equity business is focused on acquiring assets and companies at low investment capital, rehabilitate these companies and sell or manage them for profit. They have interests in financial services, senior living, real estate, media and leisure as well as transportation.

They also manage two companies, New Castle Investment Corporation and Eurocastle Investment limited. Both companies are involved in real estate loans, real estate securities and operation.  These companies are publicly traded.

Right now they are getting involved in the acquisition of banks, insurance companies, money management groups and other hedge funds. In short, Fortress Investment Group is a viable company worth looking into if you want to invest.

Before you invest your hard-earned money in stocks here are some general guidelines to help you in your search for the right one. The rule is you invest to earn.

  1. Check which industry the company is in and if the industry is in the current buzz market or the industry is already flooded and just managing to get along. One site you can check is MSN Money. Type the name of the company you are interested in on the search box on the top right.
  2. Find out what products the company sells. A good ballpark figure is to base your choice on a company with at least a last quarter sales of US$10 million. Then find out how profitable the company is by checking the company's return of equity (ROE). This is the ratio of the company's net income for a 12-month period against the shareholders' equity based on book value. You should also check the ROA or return on assets. This is computed as net income over total assets and liabilities. You can see this in stock quotes pages.
  3. Check the company's gross income and savings. A good company should have more income than spending. Check also the income-debt ratio. A good gauge to use is financial leverage ratio-total assets divided by shareholders' equity. A higher ratio shows that the company has more debt. A company with a financial leverage ratio of one means it has no debt. Avoid companies with a leverage ratio equal to five and above.
  4. Read the financial papers to monitor market news and check on companies' performance. You also learn to follow the stock market forecasts.
  5. Once you have made your decision, you have to enlist the service of a stockbroker who can give you advice on which companies are "hot", which have future potential, how many shares to buy based on your capital, when to buy and when to trade.
  6. Monitor the shares you have bought. Do not leave everything to your broker. You should also do your own monitoring on how the company you invested in fares in the market. It is to your advantage to keep abreast of financial news and market swings.

Investing in stocks is one of the many methods to make your money grow instantly. As a stockholder, your investment grows as the company grows. Just be sure to safeguard your investment/s by proceeding slowly and seek professional advice.


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