Avoid volatility every chance you get. Invest in private equity, because it outperforms the stock market over time. The first reason is the lack of volatility. The second is that by the time companies go public, the money’s already been made. Billionaires typically have only 10% to 15% of their portfolios in stocks and bonds.
Late-stage private companies are less risky because they’re already established, often with valuations around a billion dollars. They’re unlikely to go out of business or see a significant downside. Ideally they’re close to a public offering, which gives you liquidity, or likely to be acquired by a larger company, which gives you a liquidity event that way. Ticker Tape does many of these pre-IPO deals, and we invest in real estate and other segments too.
Key points
- Private equity avoids much of the stock market’s volatility.
- By the time a company goes public, much of the money has been made.
- Late-stage companies with valuations around $1 billion carry less downside risk.
- Liquidity comes through an IPO or an acquisition.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
