A promise to buy shares back at a set price, or any claim that sounds a little too neat, is a reason to do extra due diligence, not to move faster. Tom used to say Ticker Tape looked at 50 deals before investing in one. He now puts that number in the hundreds. He has lost count of how many opportunities the group has turned down.
That includes at least 10 SpaceX-related offers that were not an actual purchase of shares the seller owned. They were a promise that shares would be delivered later, by someone who didn’t currently own them. Other deals were rejected because the fund structure hid fees that only showed up in due diligence.
Key points
- Claims that sound too neat, such as a guaranteed buyback at a set price, call for more due diligence, not less.
- Ticker Tape now looks at hundreds of deals for each one it does.
- At least 10 SpaceX-related offers were turned down because the seller didn’t actually own the shares.
- Hidden fees in a fund structure are another reason a deal gets rejected.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
