Top 5 Mistakes Most Investors Make

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Ticker Tape Investments is a loose affiliation of nearly 200 individual investors who pool their money, time, and expertise to find and evaluate investment opportunities. The partners have invested in all areas of high technology, cryptocurrency, commercial and residential real estate, hotels, healthcare, and much more.

Ticker Tape works to educate its partners on how to avoid common mistakes and focuses on identifying a pipeline of favorable investment opportunities to help increase diversification. In our travels, we have observed…

The Top 5 Mistakes Investors Make:

5. Insufficient Due Diligence We’ve all made this mistake. Life gets busy and we don’t have time to adequately research companies before we invest. I had a client that bought an ice cream store and never even opened the boxes of financial records the seller gave him. I know another guy that invested in a memory care facility that was under construction without even visiting the site. It happens. Part of the reason Ticker Tape was created was to help investors leverage their time so they can conduct more due diligence in fewer hours.

4. Too Little Diversification. Small caps, Large Cap Growth, International stocks, Bonds. You’ve probably heard all of those terms and have been told you need all of them in your portfolio. At Ticker Tape, we talk about other areas in which investors can diversify, including hard assets like real estate, oil & gas, and precious metals, as well as cryptocurrencies, early stage companies, high-yield debt, pre-IPO deals, and other ways to increase diversification.

3. Not Negotiating a Lower Price. Individual investors typically do not have sufficient “buying power” to negotiate a better deal when making investments. The primary reason Ticker Tape was created was to allow investors to aggregate their capital to negotiate better investment terms. This concept is particularly important in pre-IPO deals because sellers are willing to charge a lower price per share if the buyer buys a larger block of shares.

2. Not Investing in Early Stage Companies. Any investor who meets the SEC’s definition of an “accredited investor” should have a portion of their portfolio invested in early stage “angel” or “venture” deals. While having a higher risk profile, early stage companies can deliver much more bang for your buck. Building a diversified portfolio of promising early stage companies can make a significant difference in your overall portfolio returns. This can be done by evaluating lots of individual companies, or by investing in an early stage or venture capital fund. We created the Ticker Tape (zero fee) funds to assist investors with building such a portfolio.

1. Not Investing in pre-IPO Unicorns. This is a relatively new mistake because pre-IPO Unicorns did not exist ten years ago. These opportunities have arisen because successful companies are waiting longer in their life cycles to take their shares public. The reason is that the insiders (VC funds, founders, early investors, and officers) want to capture more of the company’s upside rather than giving it to public investors. 25 years ago it was all but impossible for individual investors to get access to a significant volume of IPO shares, but that was the most lucrative segment of the markets. Today, accredited investors can buy an almost unlimited number of shares in pre-IPO companies with a billion+ valuation. Ticker Tape puts together single-purpose entities and allows investors to pool their cash to gain more buying power and negotiate better deals on the shares.

Ticker Tape has put together 20+ deals over the past two years, and has 200 individuals that invest alongside us. We always put our capital in every deal we discuss.

While past performance is not indicative of future results, the TTI partners have generated phenomenal returns in pre-IPO deals. Contact Rita Karpel at rita@ttifund.com or 832-459-7335 for more information.

DISCLAIMER: No information presented constitutes a recommendation by Rita Karpel, Tom Schmidt, Galago Partners, Ticker Tape Investments, or Ticker Tape 2, or its employees or management, to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities, nor should it be considered an offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy.  You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.  You should hire an attorney, an investment advisor, and an accountant to assist you in making investment decisions.