08/09/2022
If you put 10K or more in the stock market each year…
Do NOT take your money out of the stock market right now. Keep it in for when it rebounds.
But…
If you’re looking for another, more stable place to put your money, a place that’s not subject to being buffeted by the uncertainty of the market during these volatile times, we recommend angel investing. It is an option for accredited investors. https://www.investopedia.com/terms/a/accreditedinvestor.asp
3 problems with investing in the stock market:
1️⃣ You need to invest in the total market to beat the average
2️⃣ Stock prices often don’t reflect the company’s performance
3️⃣ Mob mentality mucks things up, especially in volatile, uncertain times like the present
Why angel investing is different:
1️⃣ We invest because of the prospects of the company and its team, not just price per share
2️⃣ We get to actively influence the value of the company through our mentorship
3️⃣ Investing as a group means strength in numbers - lots of smart people in the room who can jump in and solve problems
4️⃣ Angel investing grows and mentors local companies that directly impact communities you care about
5️⃣ Volatile times mean lots of entrepreneurs start innovative companies to solve problems - it’s when they’re at their best!
And we STILL beat the average thanks to diversifying our portfolio. According to the Angel Capital Association (ACA), “The average return of angel investments in this study is 2.6 times the investment in 3.5 years— approximately 27 percent Internal Rate of Return (IRR). This average return compares favorably with the IRRs of other types of private equity investment.”
Interested? Want to talk with us about how angel investing could help your portfolio? We can help you navigate the challenges. Set up a Zoom or coffee meeting with us: [email protected]
Want frequent updates on the investment activities of the WRBA? Join the mailing list at https://midwestwealthventures.com/subscribe-to-the-angel-impact-newsletter/
Learn more about investing with the Wisconsin River Business Angels, Central Wisconsin’s only angel investing group at: https://midwestwealthventures.com/