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I’m buying $1000 worth of Blackstone (BX) in 5 minutes November 19, 2009

Posted by deminvest in Blackstone, BX, growth stock, investment, investment strategies, Single stocks, stock I own, stocks, stocks that pay high dividends.
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Blackstone is a huge Private Equity fund.

Private Equity… or PIRATE EQUITY?

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.

Comments»

1. deminvest - November 19, 2009

I did it. My November stock investment is :

Blackstone (BX)

Executed Size 66
Executed Price15.2

Total amount spent: $ 1003.2

2. andrew - November 21, 2009

What are you using to track your portfolio? It appears that there hasn’t been any activity with icarra, and I’ve been looking for another tool.

Was playing around with stockalicious.com lately. Problem is, it doesn’t have all the tickers available, so your portfolio cannot be completed.

any suggestions?

3. Deminvest - November 22, 2009

Thank you Andrew, I have been looking for something like stockalicious.com for ages. I’ll check it out and I’ll Post abouit it!


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