The Winning Investor Guide to Becoming a Master Investor
When starting out, beginner’s advice and low-risk moves are great. However, if you want to get your money’s worth (literally!) out of an investment, what you really need is to know yourself as an investor.
When you master investing, you’ll already know your goals, risk level, and industry trends. Then, you have to do is apply the knowledge you already have!
Great investors have a brilliant mixture of passion and knowledge for the project or company, as well as the ability to think pragmatically. They know how to reduce big moves down to 3 main ideas:
1. What is your risk tolerance?
2. What’s your ideal rate of return (IRR)?
3. What’s the time frame for the investment?
How risky are you as an investor?
The great news about investing is that there’s no single “right” strategy – there’s just the strategy that works best for your investment style!
When it comes to risk level, there are 3 main types of investors:
Conservative – These investors place a lot of value on always maintaining their purchase power. They like low-risk options because they want to keep their investment portfolios steady and secure.
Successful conservative investors see steady returns for their investments over a long period of time.
Moderate – A moderate investor values the same thing a conservative one does, but they’re more comfortable with taking risks if the opportunity seems promising. They’re willing to lose a set amount to grow their money, and like having a diverse portfolio.
A great moderate investor will like the variety of an even mix of stocks and bonds.
Aggressive – Aggressive investors have the highest tolerance for risk, and usually have volatile portfolios that they have to keep an eye on. They use their knowledge of the market to make smart decisions for big opportunities.
They’ll do well managing a portfolio of mostly stocks that they’ve hand-picked for success.
What Are Your Asset Types and Niches?
Once you figure out your exact investment goals and risk/reward approach, the next step is to figure out your favorite asset types, and what industries you prefer to invest in.
Asset types tell you the type of risk/reward the investor is looking for, while the industry is the sector where the asset type comes from – usually, investors choose industries they know well and like learning about.
For example: A gamer with a lot of video game knowledge might invest in the video game industry, like choosing EA Sports or Gamestop. As an active consumer, he keeps up with market trends and information, so he can give knowledgeable feedback to majority shareholders.
Additionally, he can choose the asset type he likes most. If he’s a conservative or moderate risk type, he’d want to invest in an EA Sports or Gamestop stock, which is safer than investing in its corporate bond, IPO, or NFT.
With this example, the main factors in choosing types of investments are:
1. Are you knowledgeable about and/or a consumer of the product or industry?
2. Which asset fits your risk-to-return ratio?
Potential IRR Range for Each Asset Class
Bonds: 4%-9% - Conservative
Stock: 9%-14% - Moderate
Real estate: 10%-35% - Conservative
Cryptocurrency: - 10%-1000%+ - Risky
IPOs : 100%-10,000%+ - Risky
Equity crowdfunding : 100%-10,000+% - Risky
Accredited vs Non-Accredited Investors
(Approved Accreditations!)
Our goal is to help as many of our clients become unaccredited to accredited investors.
Why is that?
Most (not all) accredited investors are individuals with a net worth over $1M (minus their home) or who made $200k+ for the past 2 years and expects the same this year ($300k if joint with a spouse)... To know all the accredited investor qualifications, click here!
Accredited investors have some amazing advantages, like access to high-net investments and insider knowledge.
These people are the ones that get to invest in IPOs & startups before anyone else. They also have access to exclusive, off-market deals that have high-potential returns, which are not open to the general public.
If you want to learn how to invest in high-profiting investments like these, click here to learn more on how to become accredited quickly!
What Are Your Ideal Investing Platforms?
There are many investment platforms these days: Robinhood, Coinbase, Wefunder, Acorns, Crowdstreet, and many more.
With the explosion of FinTech and financial education in these last few years, it’s easier than ever to find a platform and/or company willing to customize based on your investment needs, including non-accredited investors.
Now more than ever, companies are trying to revolutionize the free market again using innovative knowledge and investment vehicles.
Whatever platform you choose, it should offer you options catered to your level of experience, risk tolerance, and preferred asset types.
This is why it’s a great idea to know your own investor profile before you do anything else. When you know what you’re looking for, you can reverse engineer all the details that you want to find in an investment platform.
Investor Network Pools
Do you plan to network with other experienced investors?
Do you plan to syndicate?
Do you want to work with angel funds?
Do you want to be a single investor?
Or do want to jump into a new space, maybe with other established investors?
These are the types of questions that experienced investors ask themselves when they want to work with other investors.
There are plenty of huge benefits of why working with other seasoned investors matters in the finance and business world. Here are just a few:
1. Raise more money, faster
Working with a small group, the amount you can raise is limited. When you have a large, diverse pool of strong investment connections, you can raise more money at short notice.
2. Diversify risk
When the pool is large, the risk is spread out evenly over everyone. This is a great strategy for high-risk investments, as it’s one way to manage potential loss.
3. Better yields
You can make bigger moves with a bigger investment pool! Working with multiple investors lets you get in on new levels of success in the market.
4. More flexibility
With just a few investors, you’re highly dependent on each one. Having many investors pooled together gives you more flexibility because your dependency on each one is far less.
5. More negotiating power
With a big network pool, you have far more influence. You might find you have more success with getting better terms than ever before, like a lower interest rate.
6. Access to more resources
Each investor brings their own resources, advice, and connections to the table. When you have more people at the table, you’re increasing your access to all those resources.
7. Build future connections
While information is powerful in investing, knowing the right people is just as crucial. Working with more investors increases the likelihood that one of them will be able to support you with new customers, advice, or partnership in the future!
8. Create brand recognition
If you’re working with a large pool and making bigger moves on the market, people are going to notice. Working with a pool can build your reputation among the people who matter most.
9. Greater credibility
A network pool is the fastest way to signal your legitimacy and value to other people. Your success in the market can translate to more customers, better terms, and more!
The Keys to Becoming a Master Investor over Time!
- Develop a strong creative mind that is ruled by logic (math, science, data, etc.)
- Know your preferred investment types (bonds, stocks, NFTS, etc.)
- Have a defined IRR & timeline goals
- Have strict investment parameters and make few exceptions
- Work with great advisory & due diligence teams (legal team, financial advisors, M&A advisor, etc.)
- Always seek expert knowledge in your industry space (fashion, tech, food, etc.)
- Network with other investors in pools, funds, networking events, etc.
- Connect with C-Level officers & corporations
- Follow Warren Buffet’s best investment advice: Mostly choose investments that even fools can’t mess up!
Conclusion: Customizing An All-Time Winning Portfolio
Becoming a successful investor is a step-by-step process, getting you closer and closer to reaching mastery. Before you do anything else, you should know your investment risk type: what your goals are, and what level of risk you’re comfortable taking.
Once you do that, you can choose an industry that you’re knowledgeable in and pick asset types that fit with your risk level.
Depending on if you’re accredited or not, you can proceed with the investment.
You can also be on the lookout for a platform that fits your needs, network pools that can increase your success, and connections that will help you build a stronger portfolio!
If you’re ready to get started, you don’t have to do everything yourself. We’re ready to create a customize strategic investment plan for you today!
All you have to do is click here, and we’ll help you find your path to investment mastery!
Disclosure. Attention readers: this newsletter is for educational purposes only and should not be taken as financial or investment advice. We recommend consulting with a financial advisor for any financial decisions. We may include links to services and products we believe may be beneficial, but these are not intended to be endorsements. All commission-based services or products (excluding our own) will be noted. All readers are expected to do their own research and due diligence.
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