Let’s face it. Everyone wants to know how to invest their money to make it grow substantially. Some investors throw their money at crypto and other high-return investment expecting it to go up. Other investors like to focus solely on individual stocks. The problems with both of these investment activities are that they are not diversified. In other words, if the market crashes, you are out of luck. Diversification is a hedge against the market crashing. In the upcoming sections, I’m going to be breaking down my top five stock alternatives and why they are at the tip of my list.
Brookfield Asset Management (BAM)
Brookfield Asset Management is one of the best asset managers in the world. With just a little over $285 billion under current management, the firm focuses its investments into real estate, renewable power, private equity, and infrastructure. BAM has an interesting business model that has beat the market for years and years. It is where they grow their businesses to substantial size and then spin them off. While doing this, they are still able to maintain control. The firm has increased funds from operations by over 29% over the past year. Back in 2017, the firm was able to rake in $12 billion in assets. The firm also has over $25 billion in capital ready to invest.
Blackstone Group (BX)
This firm has around $434 billion in assets under management. Back in February, the firm announced that they would be getting a new COO. This new executive has a proven track record in the markets that I would highly suggest you look into. In 2006, he bought Equity Office Properties Trust. Basically what happened was the firm sold everything in the trust and the investors ended up making three times their money over an eight-year period.
Ares Management (ARES)
Even though this asset manager isn’t as popular doesn’t mean you should glance over it. Back in February, the firm announced that it was going to convert from a partnership to a corporation. Bak in 2017, the firm’s assets under management had increased by 12%. Its total net income increased by 31%. The good news for Ares is that credit investments are becoming more and more popular these days.
Oaktree Capital Group LLC (OAK)
The good thing about this AUM firm is that they are more conservative to their investing approach. In fact, 20% of the firm’s AUM is waiting to be invested. The largest thing that the firm invests in is debt with 68% of assets under management going towards debt. In the end, the firm is bearish about the stock market. If you think the overall market is going to continue to grow in the next 2-3 years, I’d suggest not investing with these guys.
KKR & Co. L.P. (KKR)
In 2017, the firm increased assets under management by 30%! Part of this is due to their buyout of RJR Nabisco. In the end, this shows that the business is healthy.
Finally, investment does not always have to pay dividends in dollars. Sometimes an investment of your time into a charity that you care about can end up being the most rewarding investment of all.
Paycom (PAYC) CEO Chad Richison is also the founder of the payroll and HR technology company that landed on the market in 2014 and start trading on the S&P in 2020. Chad Richison is a member of The Giving Pledge.
Chad Richison joined The Giving Pledge recently in an effort to give away more than half of his wealth to charitable causes and foundations during his and his family’s lifetime.
To Chad Richison and his family, giving back to the community that has already given so much to them is an investment that pays way more than stock.