What are investors tactics for finding new investment opportunities?
Where do investors look or who do they talk to when they are interested in finding someone or something to invest in? (For private investments not for publicly owned companies) Do they join an angel network? Or their Chamber of Commerce? And are there any good sites that list info on what investors look for in a opportunity in regards to a private investment?
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Answer by Ron John
When investors are looking to place their money in something other than publicly owned companies, they move into the arena of alternative investments. These include privately owned companies (angel investors), venture capital funds, private equity funds, hedge funds, forex, commodities, stock options, residential and commercial real estate, private notes, tax liens, working interest in oil and gas deals, farmland, and managed accounts.
Based on my 10 yrs of experience in alternative investments, the main things to look for in a private investment are rate of return (ROI, CCR, IRR, NPV), transparency, liquidity, scalability, privacy, and control. In my opinion, finding a higher performing professional trader in the commodities, forex, or stock options arena who does managed accounts for people is the best way to go for maximum transparency, liquidity, scalability, privacy, and control. Just make sure that they have several years of track record. The best scenario is to have multiple professional traders that perform above a benchmark of 6% return per month, with each trader in a different market (stock options, commodities, forex), and with different trading strategies that react differently to market changes. That way you diversify away not just specific risk but also market risk. Futhermore, if you hold the managed account through brokerage firms located in different countries, and those brokerage firms have segregated funds, then you can also manage sovereign risk and brokerage risk.
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2013-05-16 Russell Investments Center
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2013-05-16 Russell Investments Center
Orignal From: What are investors tactics for finding new investment opportunities? and 2013-05-16 Russell Investments Center
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