2024-02-21 07:00:00 ET
Summary
- Ares Management Corporation has seen a total return of about 80% since March 2022, outperforming the S&P 500's total return of 15%.
- Ares Management was initially considered "expensive" compared to other companies, but its strong growth and earnings quality justify the premium.
- Investors should avoid selling great companies too early for quick gains, as it limits long-term wealth-building potential.
This article was coproduced with Williams Equity Research ("WER").
Since recommending Ares Management Corporation (ARES) in March 2022, the stock has a total return of about 80%. That's good. But it's nothing short of great versus the S&P 500's (SP500) total return of 15% over the same period.
The most common comment received about ARES back in Q1 2022 was that it was "expensive."
Without understanding ARES at a deep level, that was a reasonable conclusion.
In terms of price-to-earnings ratio, it was significantly more expensive than the likes of The Carlyle Group (CG) and even a little pricier than the Blackstone Group (BX)....
Read the full article on Seeking Alpha
For further details see:
Ares Management: The Train Has Left The Station