Trade Alert: Some Crowdfunding Investment Ideas
I suppose the stock markets have bounced just about the 2% move which is what I’d expected them to do after the 3-5% pullback I was expecting into the election took just one intraday collapse like yesterday. That said, you know I’m not really trying to game the near-term market moves and am mostly letting my positions and hedges do their work as we keep “sitting” to once again quote Edwin Lefèvre, Author of Reminiscences of a Stock Operator:
“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I’ve known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine–that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.”
I think we will get some better buying opportunities in the stock market in days or weeks ahead. So patience is cool, even if it’s not exciting. In the meantime…
I’ve mentioned before that I was recruited to become an advisor to what is probably the leading crowdfunding platform in the world, Republic. I like the idea of crowdfunding and letting mom’s and pop’s invest in what could turn out to be some good companies when they’re way too small to have gone public but have established themselves as real businesses with potential as high risk but high potential reward investments.
Of course, one of the key terms in the above paragraph is “high risk” and I don’t want to downplay the fact that investing in startups is an order of magnitude more risky than investing in the publicly-traded stocks that we usually deal with. And to be clear, if you’re going to invest in the name I’m talking here today, please don’t put very much capital into it — I’d say for the average investor that you shouldn’t invest any more than maybe a total of 1% of your portfolio in crowdfunding assets.
So in this case, maybe about 1/10 of 1% to 1/2 of 1% is the most that most people should allocate into any of these companies here. Maybe allocate a total of 1% of your portfolio to crowdfunding ideas, across 8 to 10 different companies. There are several on Republic.co right now that I like and am considering putting a little bit of money in. Some of the names I like and have either already or am likely to invest a little tiny bit of capital in include:
AltoIRA – The Alternative IRA for investing in crowdfunding, PE, VC, crypto & more.
Intellivision Amico – A new video game system that’s redefining entertainment with family and friends.
Wayzn – Leading the way in smart door and window technology.
Linen App – Future equity in Linen App for early members (You have to download and use the app, which I might try to do at some point personally).
COI Energy – Digital energy platform that detects, eliminates and monetizes energy waste.
Here’s the whole list of companies on the Republic platform and there might be another one or two on there that might strike your fancy, so take a look. Here’s the complete list on Republic.co right now.
There are more companies raising money on the Republic platform all the time so I might flag a few more of these again sometime as new companies come available in coming weeks and months.
And once again, I want to drive home the point that these investments are WAY more risky than our normal stocks and investment ideas (though some might have big potential upside because we are be getting in so early on them). Risk matters and if you’re risk averse, you don’t have to invest in crowdfunding startups at all. Also, to be clear again, I am an advisor to Republic and I have a little bit of equity in the company.
As for the stock markets, I’m continuing to research new ideas, new trends, new companies coming public. But patience rules for now, as it often does.
