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How to Invest in Market-Crushing Assets for As Little As $100

<strong>A Note From the Managing Editor: </strong>The tides started shifting more than a decade ago. Yet few investors noticed...

It’s not surprising. Since the start of this millennium, stocks have taken us on quite a ride. If you stayed disciplined and followed the steps Alex <a href="http://www.investmentu.com/article/detail/51090/prepare-next-bear-market">outlined Friday</a>, you should be sitting pretty indeed.

<a href="http://wp.investmentu.com/wp-content/uploads/2016/08/080116IU-SP.jpg"><img class="aligncenter size-full wp-image-51106" src="http://wp.investmentu.com/wp-content/uploads/2016/08/080116IU-SP.jpg" alt="080116IU-S&P" width="550" height="381" /></a>

But even as the broad markets have pushed onward and upward, one investment class has provided <em>even greater returns</em>. These plays are the focus of today’s issue, which comes from special guest Adam Sharp.

Adam is the co-founder of Early Investing LLC and an expert in the field of private equity investing. If you’ve got an appetite for outsized gains, pay close attention to his words below.

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When Enron imploded in 2001, it was another kick in the gut for U.S. investors. People were steaming mad about corruption. And rightfully so.

Politicians felt they had to respond. The primary “reform” passed into law was the Sarbanes-Oxley Act (SOX).

Among other things, it required public companies to recruit independent board members and audit committees.

In effect, SOX made it far more costly to be a public company. Especially for small caps and microcaps. See the chart below, from Heritage.org, which shows just how much more expensive.

<a href="http://wp.investmentu.com/wp-content/uploads/2016/08/private-equity-crowdfunding-return-vs-public-return.png"><img class="aligncenter size-full wp-image-51107" src="http://wp.investmentu.com/wp-content/uploads/2016/08/private-equity-crowdfunding-return-vs-public-return.png" alt="private equity crowdfunding return vs public return" width="550" height="276" /></a>

As is often the case, the government’s reaction to this crisis didn’t help much. In fact, its actions caused significant harm to public markets.

After SOX was implemented, a new trend began. <em>Private companies avoided going public for as long as possible.</em>

As you can imagine, this meant that when companies offered stock to the public, it was much later in their growth curves. Since SOX, public market investors have missed out on most of the great U.S. growth stories.

Most of the gains were captured by private market investors. The trend has only strengthened over time.

For most of the past 82 years, to be a private market investor meant you had to be wealthy. The whole situation worked out rather well for the 0.1%. But savvy investors knew they were missing out on the investments with the greatest potential...

So they pushed the government to open up private opportunities to all.

As my regular readers know, in May of this year, the last and most important reform of the <a href="http://www.investmentu.com/article/detail/49496/startup-investing-finally-level-playing-field-for-investors">JOBS Act</a> of 2012 went into effect.

<strong>Finally, all investors can access private markets via equity crowdfunding.</strong>

With as little as $100, anyone can invest in private early-stage companies, startups valued anywhere from $1 million to $50 million.

It’s shaping up to be a beautiful market. One where thousands of small investors can collectively help their investments succeed.

It’s good not only for investors, but also for small businesses and startups. And that’s where real meaningful economic growth occurs.


My partner Andy Gordon and I started our free e-letter, <em><a href="http://earlyinvesting.com/" target="_blank">Early Investing</a></em>, with the ultimate goal of building a research service to help regular investors navigate these private markets.

We had to wait three years for the laws to go into effect, but the day has come at last.

Last week, we launched our service for everybody: <em>First Stage Investor</em>. Now Andy and I will be researching every investment opportunity and recommending the best ones to our members.

Our latest pick is a perfect example. This startup is disrupting a $200 billion market. Backed by top venture capitalists, this round values the company at just $28 million.

The risk/reward here for investors is spectacular. If it continues to execute well, this could easily be a billion-dollar company in a few years.

We’ve also put together a ton of educational material for those who are interested in learning to navigate this market on their own.

Our goal is not just to find the best investment opportunities, but to help members avoid common mistakes.

To learn more, <a href="http://pro1.earlyinvesting.com/539001/" target="_blank">click here</a>.

Once these funding rounds close, the opportunity I mentioned will be gone. There will be others. But this is a choice one. A time to act.

Good investing,

Adam Sharp
Co-Founder, Early Investing
<blockquote>Have thoughts on this article? Leave a <a href="http://www.investmentu.com/article/detail/51105/crowdfunding-access-market-crushing-assets#comment">comment</a> below.</blockquote>