Sell Block: Dump Private Equity
Published: Thursday, 15 Nov 2007 | 7:32 PM ET
Private equity companies rode low interest rates as far as they could, buying and flipping businesses at massive profits and working the system to pay as little tax as possible. Then CEOs like Wes Edens of Fortress Investment Group and Steve Schwarzmann of Blackstone Group sold their company shares to a public frothing at the mouth for some of that money. Too bad the ride was over by then.
The guys who run these companies are smart. But the investors who own these stocks? Not so much.Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.