Nierenberg Stearns

Bear Stearns’ Michael Nierenberg Shares His Tips for Investment Managers’ Success

Michael Nierenberg is the CEO of New Residential Investment Corp. and has a number of innovative investing views and ideas. His background covers notable companies in the U.S. and his wealth of experience as an investment manager is notable. Online publications about investment management and CEOs have featured him, as well. Among the information provided in these features was a particular product he was working with for investment in real estate. Also included were his investment management philosophies regarding how to be successful in that business. It’s a mindset and one that Nierenberg shares in an effort to help and encourage others to follow the investment management and real estate path.

Nierenberg Offers Advice on Investing in Real Estate

Being educated about choices is the biggest issue for real estate investing. When a person invests in a REIT (real estate investment trust), for example, it’s important to know what to expect.  Nierenberg suggests that people who want to invest in a REIT consider that they’ll be investing in properties or mortgages, and in residential or commercial properties. They can choose what they want to invest in, in many cases. Some people just add to the investment and allow the people to manage it to choose, but that’s not always a good way to have the investment perform well. More serious or savvy investors will want to focus on the specifics of their investments and choose options and opportunities for themselves.

The residential real estate market has become more complex since 2000 and has continued to grow and develop. There’s a $25 trillion value on the housing market, and it’s important to make sure that investing in that is being done right. By making their own choices but working with a skilled advisory and management team, Nierenberg points out that it’s easier to get into a REIT and the residential housing market successfully. The goal of investments is to make money, and doing that can be easier when there’s a good understanding of the process and a proper collaboration between the investor and their advisors. While an investor can certainly “go it alone,” it’s generally a more financially sound decision to have others who can help along the way.

Accomplishments and Learning Are a Part of Nierenberg’s History

Nierenberg graduated from Amherst College and has earned a doctoral degree. He focused on mortgage-backed securities and has worked with Lehman Brothers and a cancer research foundation since the 1990s. The development of adjustable-rate mortgages at Lehman Brothers was something he worked on, and he was an integral part of its success. In 1994, he became a board member at Bear Stearns. He held a number of roles while he was with that company, and was always on a trajectory of upward mobility and advancement. He worked as head of foreign exchange trading and interest rate, co-head of structured projects, and co-head of trading in mortgage-backed securities.

The year 2006 saw him appointed to the company’s board of directors. He was with Bear Stearns for 14 years and was notable as a senior leader during that time. Nierenberg accomplished a number of goals with the company before moving into a management committee role at J.P. Morgan. In 2008, he also started serving with Bank of America Merrill Lynch, where he worked as the head of securitized products and global mortgages. Since the beginning of his career, Nierenberg has been focused on the financial and investment side of things, advancing companies and the people in them while making strategic moves to ensure he could continue his own growth and development while still helping others. 

Nierenberg Focuses on Three Specific Pillars for Success

By 2013 Nierenberg was the CEO of New Residential, and in 2016 he became chairman of the company’s board. The company is publicly traded and listed on the New York Stock Exchange. It’s based in NYC. According to Nierenberg, his wide-ranging experience in the markets is what allows him to succeed in investing and redefine how he wants that success to look to himself and others. He shares a number of examples of this, such as working with a lot of different companies and how that taught him to truly see the value in teamwork. For management firms, teamwork is an important and often overlooked priority. With all the changes taking place in the industry today, though, teamwork is critical to properly capitalizing on those changes.

Throughout the years, Nierenberg has worked very hard to help people see their importance and the value they can bring to their organizations. He’s also focused on how people can add their unique experiences to the experiences of others through teamwork. He cultivates his own ability to work well with other people, in order to have the opportunity to address any problems that could occur in his business and personal interactions. By valuing teamwork and showing that outwardly, Nierenberg helps others to also start to value what being part of a team can offer.

Mentoring younger people and working with a variety of talented individuals are also very important to Nierenberg, as he knows that it’s the younger generation that’s going to be taking the reins in a few more years. The more he can teach them, work with them, and learn from them, the better off everyone involved will be in the long run. Productivity is another pillar that he’s carefully focused on, along with teamwork. By being productive and prioritizing the things that matter most to him, Nierenberg has been able to successfully build companies and his own reputation at the same time. Operating efficiency is a huge part of his productive nature since he knows that this efficiency is one of the best ways to reduce costs and increase profit margins where real estate is concerned.

The third pillar for promoting success in the world of real estate investment is diversification. Nierenberg has worked very hard over the last few decades to master this issue, so he can expand his knowledge, holdings, and abilities. More profit can be gained by diversifying because companies are able to draw profits from more sectors. This diversification is a way to minimize losses, too, which helps ensure a stronger company with a higher level of success. Taking ideas and putting them into plans that are actionable is the way Nierenberg has been able to bring so much value to Bear Stearns, New Residential, and other companies where he’s worked in the past.

Nierenberg takes his work seriously, but he also understands that there are joy and value in the work he’s doing. That helps him be an even bigger asset to the companies that hire him, and the people who work with on a daily basis. His three pillars of success — teamwork, productivity, and diversification — are a large part of his ability to focus on the goals that matter to him and continue to address any issues that arise as and when they come up. He’s sure to continue to be a valuable part of any company he works with in the future, and will also continue to teach young people about the important things in life and the business world. By addressing proper ways to invest in REITs and other aspects of real estate, Nierenberg gives back to society and encourages financial growth and stability for all the people he helps.

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