Category: Investment

Softbank Takes Over Fortress Investment Group

The Fortress Investment Group is a leading investment group that is now being acquired by the Softbank company. Softbank paid about 3.3 Million dollars to make this deal happen and Softbank is based out of Japan. Softbank has evolved from its early days as a computer and software company to in present day having a keen interest in grassroots technology investment firms.

Softbank has been in business for over 40 years and they are able to provide value and expertise across a number of different business arenas. The group’s leadership is excited about the prospects of once again being a private company dedicated to improving investor relations across the board.

Fortress Investment group operating structure as well as Softbank’s will not change much as a result of the union of these companies. Fortress Investment Group was one of the first private equity firms to join the Wall Street Investment stocks publicly and was also the first private equity firm to leave the New York stock exchange too. Softbank has agreed to let the Fortress Investment group operate on its own terms and conditions despite this merger. The Fortress Investment Group will remain based out of its New York City location despite the merger.

Softbank has considerable ties and investment already with another project called the Vision Fund, one of the largest tech based investment projects that has gotten funding from such big companies as Apple. It is the company’s hope to expand their role in this space by opening up a London office where these two companies can collaborate on any and all future projects. The London office will put about 1,000 people to work there which is good for their economy also. The merger will allow the former to take full advantage of the new Asian markets. Softbank hopes to focus its time and attention on maintaining investor and customer relations and also to help meet compliance issues within and outside of its company base.

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Capital Group CEO explains how to earn better return on investment

Chairman and chief executive officer of the Capital Group.Tim Armour, thinks Warren Buffet is right… and wrong. Buffet bet $1 million for charity that he can earn more in one year investing in a S&P 500 passive index fund. Armour agrees that he probably will beat out the hedge funds this year, but says the method isn’t solid over the long-term.

Armour finds many of the current crop of hedge funds expensive and mediocre. He suggests “low-cost, simple investments” purchased and kept for a long-term investment. He concurs with Buffet’s standard approach of bottom-up investing which requires rigorous analysis of potential companies and constructing a “durable portfolio to learn more: click here.

For those tempted to follow Buffet’s example, Armour offers the following advice.

• The labels “active versus passive” refer to an industry argument. Armour says to look for funds that deliver well over the long-term and keep costs low.
• Index funds don’t protect investors fund from market downturns. They are just as volatile as other investment methods.
• A $10,000 investment 40 years ago in any of the top five active funds American Funds (The Growth Fund of America, AMCAP, Washington Mutual Investors Fund, The Investment Company of America or American Mutual Fund) would have netted an investor more than if they invested the same amount in the first S&P 500 index fund.

The now CEO still performs his duties  equity portfolio manager. Armour worked his way up at the Capital Group, starting there 34 years ago as a participant in The Associates Program after earning his BA in economics from Middlebury College. His specialty in equity analysis is global telecommunications and US service companies.

Armour councils investors to look for funds with high manager ownership and low expenses. Doing so over the long-term nets the best return.