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Indeed. Nobody should limit their investments to just these. For every $1,000 you put into a crowdfunded company, you should be investing at least $4,000 in mor
by wilfra 14y ago
Indeed. Nobody should limit their investments to just these. For every $1,000 you put into a crowdfunded company, you should be investing at least $4,000 in more traditional and safe investments. And 20% is even a lot. That assumes a young person who has high future earnings potential and a high risk tolerance. 5-10% would be more reasonable for most people.
That said - this is certainly an asset class one could beat the S&P500 with, as long as you aren't just throwing darts and are actually investing in companies you know a lot about and understand.
- jwallaceparker 14y ago> traditional and safe investments This made me chuckle. The "traditional" investment vehicles of US stocks, real estate and bonds are anything but "safe" these days.
- wilfra 14y agoThe last few years are not representative of the long term. Over the long term stocks, bonds and real estate - in aggregate - rise in value. If you don't want to risk short or medium term fluctuations and black swans, the ultimate traditional and safe investment is a savings account. If you're the type that thinks fiat currency is only worth it's weight in toilet paper, then buy gold. For any of these investments you'll have more left at retirement than if you put 100% of your capital into startups that ended up going out of business.