In a revolving business world where capitalism runs dominant, private firms grow exponentially through the Internet, and the stock market dives and rises unpredictably and often precariously, investors become wary of where to invest. The growth trend of private equity firms is not likely to stop any time soon. The business world is predicated on economic and public trends and many companies and investors see private equity firms as a safer place to build a stronghold.
There is a vast difference between private equity investment and public equity investment. Public equity trading is confronted with constantly revolving stock ownership often resulting in liquidity, but is easily subject to volatility and bad press, while private equity is often more controlled, less liquid and as a result, these stocks are more often stable in growth. It is because of this difference that the price of private equity more accurately reflects the actual value per share and growth of a company or investment, rather than the reflection of the mood of the markets.
Many analysts see an increase in private equity investing as opposed to investing through the public markets. There are several contributing factors affecting this shift as investors are becoming more familiar with the benefits and also the noted risks, of each investment type.
The Greek philosopher Heraclitus of Ephesus was credited with noting that nothing endures but change. This is especially evident in today’s ever changing business environment. Most recently, the “99%” ideology, commonly tied with the “We are the 99%” slogan, is rapidly adjusting how business is conducted around the world. Banks are obtaining buyouts and mega-corporations are seeing slipping profits and proposed mergers with larger corporations. The climate is changing, and investing money poorly can lead to remarkable mistakes.
This book highlights some of the benefits, risks, and overall investing strategies seen in the current business environment. Some of the most fundamental differences between private and public equity investing are explored objectively. Both private and public investments are fascinating and potentially rewarding; public trades hold a tradition international commonalities and liquidity, while private equity instruments are now re-emerging as a potentially more trusted method of investing.