2022 is not off to a great start for investors.
The Nasdaq and S&P finished with their worst week since the beginning of the pandemic…
Bitcoin – along with basically every other crypto – tanked…
The SPAC ship is sinking (according to the Wall Street Journal)…
And inflation looks like it’s here to slay your savings as gas, food, and rent all soar.
For those searching for ways to improve their financial situation, it can seem like the sky is falling.
But before you start to panic, let’s take a moment to review some investing fundamentals.
Why Portfolio Construction Matters Most
As humans, one of our single biggest flaws is our desire to “get rich quick.”
Even though we intellectually understand that eventually the house always wins when you’re gambling…
We just can’t help ourselves when there’s the allure of easy money.
Especially if we’re in a situation where it seems like the only way out of our mess is with the proverbial (or literal) roll of the dice.
But no matter how many “lottery winner” success stories you see from the mainstream media, influencers, and gurus…
Your chances of striking it rich from “stock picking” are extremely low.
If your goal is to create sustainable wealth, statistically speaking, that happens by building a well-balanced portfolio of assets.
Why?
Because professional investors are obsessive about managing risk.
And even though we have a bias here towards speculative asset classes (i.e. Pre-IPO)…
When we’re looking at companies to bring onto our platform, we are basing these decisions around three things…
- Our frameworks for finding deals that help us get exposure to what we consider our “Best Ideas”…
- An opinion on how to properly value (and price) those deals…
- And an understanding of how speculative assets may fit into a long term portfolio strategy.
That last point might be the most important of all…
Why? Because markets can – and do – go crazy.
And when that happens, if we don’t have a long term plan, we as humans can get overly emotional and do dumb things with our finances.
Ironically, one of the potential benefits to investing in illiquid assets – like Pre-IPO stocks – is that you can’t panic sell when things get nutty.
Here at Equifund we offer the ability to invest in select early-stage and pre-IPO opportunities. We undertake weeks of due diligence on each company on our platform to ensure each company meets our strict standards.
For a current list of investment opportunities, click here.
Sincerely,
Jake Hoffberg – Publisher
Equifund
