As a lawyer, Tom represents many investors who have lost money in deals, and the biggest mistake he sees is not doing due diligence. But it isn’t fair to blame a brilliant heart surgeon for skipping it. He may not have the time or the expertise. You can’t invest without due diligence, and you can’t just not invest.
The answer is to find people you can rely on to do it. One way is a venture capital or private equity fund with a track record. Another is a group like Ticker Tape. We put our own cash into every deal, so you know at least that we believe the due diligence was good. Just don’t bet the farm: don’t put your whole portfolio into any one fund, group or entity.
Key points
- Skipping due diligence is the most common way investors lose money.
- Busy professionals often lack time or expertise, not intelligence.
- Rely on funds with track records or groups that invest their own cash alongside you.
- Never put your whole portfolio into one fund or group.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
