The irony here is that this revolution is actually taking investing BACK 100 years. Before Wall Street took over our investments, people with money to invest would put money into their own community.
Investors would buy shares in the local bank. The bank would loan money to a growing family hoping to build a house. The family would invest in the local mercantile because they knew they would be shopping there regularly.
This ‘new’ investing is probably how your grandfather and your great grandfather invested! Only now it’s much easier, due to the new technology platforms and the Internet, and there are thousands of low-risk opportunities both locally and nationally. This Is About Taking Control Of Your Money
The best part of this investing revolution is that it’s reestablishing something we lost long ago: control over our investments.
Maybe it was when Wall Street took over our retirement.
Maybe it was when people started to believe that the government was responsible for our retirement.
Maybe it was when credit cards took over and cash virtually disappeared.
Whatever it is, we’ve literally and figuratively lost control of our money. We’ve been told to send our retirement funds off to some Ivy League money manager – since we’re not NEARLY smart enough to understand what he’s doing.
And if you’re lucky, they might just send back a little more than you sent them. Maybe.
What if you could actually CONTROL your investments? What if you could reestablish a connection with your money?
What if you could invest in assets that will NEVER go to zero?
What if you could have some consistency with your investments instead of worrying about the next stock market crash?
What if investing was actually FUN and FULFILLING? Wouldn’t it be nice to do things with your money that actually felt good, actually helped people and small businesses, while still making a great return?
I believe this revolution in investing comes down to three little words that will change your financial future forever: CONTROL WITHOUT COMPLEXITY. How to Invest Like a Billionaire
Here’s what we know: the rich are different. To get and stay rich, they invest in things that are outside of the normal financial channels. They open their minds to new things, invest in hard assets, and take their wealth into their own hands.
They know something the poor don’t: it’s called ‘asymmetric risk’. We’ve all been taught that to get a higher return, you need take more risk. The rich know this isn’t true.
Billionaire Paul Tudor Jones who owns huge hedge fund, has his 5:1 ratio: He only invests a dollar if he’s certain he could make 5 and but can’t lose his 1. He does this by investing in assets that have a huge upside but cannot go to zero like so many stocks do.
Asymmetric risk means the upside is high but the downside is protected. So how do you protect the downside? You invest in things in hard assets that will never go to zero. You spread your risks among many opportunities that have unlimited upside, knowing that a few of them will return 100x your money and will make up for the losses of the other investments.
And you invest in private placements that aren’t traded on a stock exchange. Before now, you had to know the ‘secret knock’ at high-flying hedge funds and private equities. And you often had to be willing to invest at least $250,000 to get in the door.
Now, thanks to the law passed in 2012, all that’s changed. You can run your own personal ‘hedge fund’, book the same consistent 15, 20 and 25% returns that those funds get, all the while investing as little as $5000.
Imagine telling your spouse, your friends, and your coworkers about the amazing returns you’re getting, while investing in projects and companies that are FUN. It can give you more freedom, more control, more consistency, and more peace of mind than you ever thought possible with your money.
The Smart Money is Moving to Private Investments
A recent presentation from Andreessen Horowitz, shows where the real money is being made. Billionaire and millionaire investors AND the companies they invest in are sick to death of market corruption and government intervention.
They’re looking for better ways to grow their money.
The returns are private now, companies are making money for private investors – not the public markets. The graphic above shows in stark terms how companies no longer trust the IPO markets. And the returns investors make are all BEFORE the IPO:
The real money is made long before the IPO, and many companies will never have an IPO. The problem has always been private investors never had the change to cash in on these private companies because you had to be accredited. No more. Welcome to the future.