I’m buying $1000 worth of Blackstone (BX) in 5 minutes November 19, 2009Posted by deminvest in Blackstone, BX, growth stock, investment, investment strategies, Single stocks, stock I own, stocks, stocks that pay high dividends.
Blackstone is a huge Private Equity fund.
They manage more than $ 90 Billion. Hopefully they manage that sum well. The company earns managements fees even if the value of assets they manage gos down. Forward P/E ratio is a reasonable 15. Main reasons why I buy BX is the fact the middlemen usually gain even if things go badly, the fact that if things go well they gain even more. Last but not least:
- Huge dividend yield: 8%
- Grrowing dividend yield: last year was just 6%
Growing dividends in a sinking economy looks nice. I bet that Blackstone’s managing fees will go up if the Economy continues it current recovery.
Blackstone is also quite active: they completed a major acquisition, buying Birds Eye Foods, US largest frozen food company, for $1.3 billion.
I like Blackstone also because their private equity owns Hilton hotel chain.
Main drawback in my choice is the fact that Blackstone has a major downswing risk: during the worst time of the crisis stock price had gone as low as $5. It is $15 now, so am afraid that I may lose 66% of my invested $1000 if the economy goes goes badly again.