Single‐domain particles of 40:60 cobalt‐iron alloy have been prepared with a median diameter of 200 angstrom units, a median elongation of 5.4:1, and an intrinsic coercive force of 1950 oersteds. By compacting these particles to various packing densities and degrees of alignment, shape anisotropy fine‐particle magnets have been made with magnetic properties duplicating those of each of the Alnico permanent magnet alloys, including maximum energy product values above five million gauss‐oersteds. It is concluded that the Alnico alloys and the fine‐particle magnets derive their properties from very similar, but not identical, shape anisotropy effects.