51–60 of 100 posts
Earlier quoted context omitted.
> In 10 - 15 years you'll have a small fortune. More specifically, if you invest $150k per year for 15 years and get a 7% return, you'll end up with right around $4 million.
What percentage of people, even in this industry, can afford to invest 150k a year?
Earlier quoted context omitted.
> In 10 - 15 years you'll have a small fortune. More specifically, if you invest $150k per year for 15 years and get a 7% return, you'll end up with right around $4 million.
What percentage of people, even in this industry, can afford to invest 150k a year?
Do you really want to invest in early stage, high risk ventures that have a low probability of return? Open a Vanguard or Fidelity account. Buy index funds. Invest regularly. In 10 - 15 years you'll have a small fortune.
Specifically recommend buying SPY (tracks the S&P). Then with a smaller subset you can speculate on individual companies/stocks after doing research.
USG bonds may be a worthwhile investment over the near term. Invest less in equities right now so you can average down further and faster as the market cools. Or invest outside of the market (there is crowd funding for small businesses like nextseed)
Do you want to invest, or to gamble? At your level of available funds, investing in startups is gambling, because you can’t spread your bets widely enough to hedge them and increase the likelihood that gains on one will make up for the losses or break-even on the rest. If you want to invest , I recommend index funds.
> you can’t spread your bets widely enough to hedge them What does hedging mean in startup investing? I'm used to the meaning in securities where you take an inverse position to limit losses.
Taxi industry may fail entirely? Sell puts on car max because market will soon be flooded with depreciating assets (cars) from drivers who no longer taxi. Hedge.
Hedging is not an inverse, it is protection on your original investment. A lot of the times this is simply an opposite investment such as calls to puts or puts to calls. But nothing saying you can’t protect your FB (Libra) Or JPMorgan bets by buying bitcons, etc. Hedge.
Otherwise, make this your full time job and make sure you have enough income to wait 8-10 years before you start seeing return.
You can also invest in a first time fund, where the manager will charge 2% management fee and 20% carry (success fee).
Getting access to entrepreneurs depends on your geography but generally if you make yourself useful to entrepreneurs, with or without investing, you can start generating dealflow.
Start with small checks, you will mess up in the beginning, so make these mistakes less painful.
Read venture deals and watch all the videos from YC investor school.
Do you want to invest, or to gamble? At your level of available funds, investing in startups is gambling, because you can’t spread your bets widely enough to hedge them and increase the likelihood that gains on one will make up for the losses or break-even on the rest. If you want to invest , I recommend index funds.
> If you want to invest, I recommend index funds. This. I've gotten this question from family, and the answer's just pair VTI and BND at some ratio you're happy with (or buy a target date fund) and wait.
That ratio needs to be tweaked at least monthly maybe bimonthly through the rest of this year (lots of uncertainty coming up)
Earlier quoted context omitted.
But there's clearly a lot of people who still seek funding but can't find it, so how does that mesh with the idea that "there's too much money and not enough places to put it"?
Because most people doing things are not worthy of investment (i.e. crappy ideas, bad execution, not ready for investment, etc)
Please come to me with $100k and I’ll offer you simply a guaranteed 0% return (no loss on investment) so I can pad my bank account and make “real” investors interested because it makes us look like we can manage our money.
It’s all smoke and mirrors and I wish I could get access to the same cheap money big corps get. $300k at 6, 7, or 10% interest is just robbery when public companies and home owners are walking away with 2-3% APRs
That's enough to start Angel investing in in the UK at least. My first round clip size is about 25k and I keep some back for the invetible future funding rounds. Being doing this for around 4 years and looking at my first exit next week (about 2.5x net). Learnt so much aside from any money I might make and my contacts list has exploded. Reach out if your UK based and want some some tips.
Earlier quoted context omitted.
Specifically recommend buying SPY (tracks the S&P). Then with a smaller subset you can speculate on individual companies/stocks after doing research.
At all time highs? sure investing today will guarantee a return in 15-30 years.. but there are smarter ways to diversify your gains (and losses) USG bonds may be a worthwhile investment over the near term. Invest less in equities right now so you can average down further and faster as the market cools. Or invest outside of the market (there is crowd funding for small businesses like nextseed)
Do you want to invest, or to gamble? At your level of available funds, investing in startups is gambling, because you can’t spread your bets widely enough to hedge them and increase the likelihood that gains on one will make up for the losses or break-even on the rest. If you want to invest , I recommend index funds.
> If you want to invest, I recommend index funds. This. I've gotten this question from family, and the answer's just pair VTI and BND at some ratio you're happy with (or buy a target date fund) and wait.
The analogous fund for BND is VBTLX.
There are some big caveats to watch out for with target date funds like increased expense ratio vs holding the underlying funds directly and the glide path. I avoid them personally, but they're not all bad.
[1]: https://www.bogleheads.org/forum/viewtopic.php?t=116581
[2]: https://forum.mrmoneymustache.com/investor-alley/vanguard's-...