Setting yourself up in this explosive asset class … how real wealth is made … an invitation to a live event tonight with Matt McCall to learn more
We begin today’s Digest with a reminder to join Matt McCall tonight at 7 PM for a special live event.
What will Matt be diving into?
Well, let’s start with a question …
If you want to make enormous wealth — the kind that sets up your kids, even your grandkids for life — what’s the best asset class for that?
If you answered “stocks,” you’re partially right.
Given enough time, they can create vast riches. And certain high-fliers do, in fact, soar overnight.
To that end, I’ve watched our InvestorPlace analysts help their subscribers generate returns of many-hundreds of percent in just the last several months alone.
But if we’re talking life-changing wealth that’s many multiples greater than your initial investment amount, and that doesn’t take decades to amass, you should probably look beyond the traditional S&P 500 stock.
So, where to, exactly?
Well, let’s look at the Forbes billionaire list.
You’ll see names including Jeff Bezos, Bill Gates, Larry Ellison, Mark Zuckerberg, the Walton family members, Larry Page and Sergey Brin, among others …
***What do all these individuals have in common?
They own highly successful businesses.
Now, notice something else …
Who’s not on that list?
Well, Grammy-winning rock stars … Oscar-winning actors … MVP-winning athletes, and pretty much everyone else.
Even if you’re at the top of your game in a highly-paid, center-stage profession, your financial payoff probably doesn’t compare to that of the business owner who’s at the top of his/her game.
Take Jay-Z.
He is one of the most successful rappers of all time.
But it wasn’t until he grew his empire to include a music streaming service, liquor, art, real estate, and stakes in other companies that his net worth topped $1 billion.
His music catalogue itself — what made him famous — is valued at about $75 million. That’s less than 10% of his overall net worth.
Point is — being a business owner trumps just about everything else when it comes to generating obscene wealth.
***Now, there’s an obvious problem with this
Most of us don’t have the time, financial resources, or vision to launch our own incredibly successful business.
But all hope isn’t lost.
That’s because, thanks to recent changes in regulations, we can now invest in small, private companies that could grow to become the next Microsoft, Google, or in Jay Z’s case, his old clothing line, Rocawear (sold in 2007 for $204 million).
Here’s our private equity specialist, Matt McCall, with more:
Backing private businesses is often the highest upside investment you can possibly make …
… more and more money is flowing into private deals.
This news just got better this past week when it became official that the Regulation CF (one of the recent legal changes) will increase nearly 5X from $1.07 million to $5 million.
This will open up the floodgates for new opportunities.
More entrepreneurs will have the ability to raise money via the crowd.
And we, the crowd, will have more opportunities to find the life-changing investment opportunities.
Matt is referencing recent regulation changes that open up the world of private equity investing to just about everyone.
You see, historically, this asset class was limited to just wealthy “accredited” investors. To be an accredited investor, you must have earned more than $200K a year for the last two years, or have a net worth of over $1 million net worth excluding your primary residence.
No longer.
This corner of the market — and its potential for huge returns — is now available to you and me.
***Join Matt this evening at 7 PM ET to learn more about the exciting world of private equity investing and how it can transform your portfolio
In a recent update to subscribers, Matt wrote how these changes help put the opportunity for life-changing wealth at investors’ fingertips.
That’s because these private deals are very similar to how a venture capitalist buys into an early stage startup … or a private equity investor takes over a private business.
They’re potentially very lucrative, yet not available on the traditional stock market. Matt will be diving into the details of how it all works tonight at 7 PM ET.
***The wealth-building potential of private equity deals
Let’s return to Matt to illustrate what’s possible in this world of private equity investing:
The first investors in publicly traded Facebook stocks are now up 5X.
But that isn’t even close to how private Facebook shares performed … they saw a 1,200X gain!
It’s no secret why private venture investing is hugely popular with America’s rich. The common cliche is true … the rich grow richer while most everyone else struggles to get ahead.
But now, instead of being mad about not being in the top 1% that can get in on these deals, you can use the same strategy that has helped America’s wealthiest families grow richer … year after year.
***One reason why making huge returns with private equity can be easier than making similar returns in a stock
Let’s say you follow a stock recommendation and your “buy” timing is perfect.
You’re up 15% in a week … then 30% … 80% …
Within three months you’re up a whopping 185%.
What do you do?
Most of us would probably be tempted to sell and lock in those gains.
But let’s say you feel strongly about this stock’s strength, so you hold.
It keeps climbing, but volatility begins creeping in — you stay up in your position, but you see your gains eroded some … then you get a nice surge … then more weakness.
But the investing gods are on your side, and within a few more months, you’re up 400% even after some white-knuckle moments.
What then? Do you sell?
Most of us would sell at least a portion. After all, being up that much only to watch those gains collapse would be hard emotionally.
And this brings us to a reality of investing …
***It can be very difficult to let our winners ride
When we see the gains piling up every day in our brokerage account, we get nervous. We feel an itch to sell and make that money “real.”
Research company DALBAR has studied investor behavior for years. It has found that the average investor tends to hold on to losers too long (an unwillingness to accept a loss), while selling winners too early (an eagerness to capture a gain).
Unfortunately, when we sell a winner early, we kill off any chance at a return that’s up in the thousands of percent. So, the potential for returns that can really make a difference in our lives is cut short.
Investing in private equity helps sidestep this problem.
That’s because you’re not buying a stock that has a market value which you see every day in your brokerage account.
These smaller, private deals are more like real estate. Their values aren’t as easy to calculate, so they’re not in front of your face all the time. They tend to grow quietly in the shadows.
This often ends up being a huge benefit to investors because it gives the investment room and time to grow.
So, rather than being thrilled to lock in, say, 300% on XYZ biotech, you might find yourself making a 2,750-fold return, like early investors in WhatsApp, the free messaging application for smartphones.
A $25,000 investment in its private seed round would’ve turned into $68 million … a 2,750-fold return.
***Join Matt tonight to learn more about this fascinating and explosive corner of the investment markets
As mentioned earlier, the event begins at 7 PM ET. It’s going to be both exciting and educational. At a minimum, join us simply to learn how the recent rule changes have opened up this explosive asset class to far more investors.
I’ll give Matt the final word:
Backing private businesses may be the highest upside investment you can possibly have.
I hope you’ll click here to register now and join me Tuesday for details on just how to get in on the exciting opportunity and put another tool of the wealthy to work for you.
Have a good evening,
Jeff Remsburg
