We like to get into a company at the late stage, right before it goes public. That way we’re investing in a private company that isn’t subject to public market volatility. We sell those shares as soon as the company goes public, take the profit and reinvest it in two or three more deals.
We might put 20% or 30% of the profit into a real estate deal, with the other 70% going back into pre-IPOs. Every investor has a different time horizon, income level and outlook for future income, so the mix will vary. But we believe the pre-IPO asset class matters for just about every investor because of that quicker turnover. You can reinvest the proceeds and grow your nest egg faster than you typically would with mutual funds or stocks alone.
Key points
- Invest late stage, sell soon after the IPO, then reinvest in two or three more deals.
- A portion of profits, such as 20% to 30%, might go into real estate, with the rest back into pre-IPOs.
- The right split depends on your time horizon, income and future prospects.
- Quicker turnover is what lets the nest egg compound faster than mutual funds or stocks alone.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
