One of the most common ways people end up in bad investments is what we call the brother-in-law effect. If you’re an accountant or attorney focused on your career and not actively looking for deals, you might see only three or four opportunities in a decade. When one comes from a friend or your brother-in-law, and it’s the only deal you’ve seen, you tend to invest in it.
At Ticker Tape, for an apartment complex deal, we look at 20 or 30 opportunities before investing in one. With pre-IPO companies, we’re at least briefly evaluating hundreds before making one or two investments. Without that, you miss seeing all the bad deals that teach you what a good deal looks like.
Key points
- Busy professionals may see only a few deals per decade.
- Investing in the only deal you’ve seen, often from family or friends, is risky.
- Ticker Tape reviews 20 to 30 apartment deals per investment.
- For pre-IPOs, it screens hundreds of companies for one or two deals.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
