Ask not how much money you'll make from a speculative investment. Instead, ask how likely you are to lose your risk capital. Most investors will find better odds wagering their money in Las Vegas, Macao or Monte Carlo than being angel investors to private companies.
Private company speculation is far riskier than betting on stocks to appreciate in value. Your money will be in jeopardy for years. There's no liquidity in a private company speculation. You can't sell it to another investor! Worse still, if you don't meet your private company's expanding needs for risk capital, the company is likely to fail. Angel investors should reflect on the Uncle Remus' tale of Brer Rabbit and the Tar Baby. The more you put into the company, the more "stuck" you become.Even if your private company is profitable, you won't recover as much money as you would from stock speculation, because public shares almost always trade at a multiple of the balance sheet value of the company.A Sensible HedgeIf you are considering risking your hard-earned money in a private company speculation, send us a copy of the business plan for review. If we can't find anything seriously wrong with it, we won't charge you for the review. If we can't suggest ways to reduce your risk, we won't charge you for the review. You have nothing to lose in having us review the business plan. We can usually save you the loss of some or all of your risk capital. If you have invested your money and lost it, we may be able to suggest ways to recover part or all of it.Public Company Private PlacementsAs an Accredited Investor interested in high-risk speculations, you are better served risking your money in public company private placements. However, there is no shortage of crooked public company private placement investment opportunities. At best, the U.S. Securities and Exchange Commission may act against the public company swindlers long after you have lost your money. We can help you avoid the swindlers and offer you structuring suggestions that will reduce your risk of loss and enhance your potential profit. The folks seeking money rarely write investment contracts that are favorable to those folks supplying the money. It's usually in your best interests to rewrite the contract before you write the check.The Semi Swindles to AvoidYou can't win in any speculation where the organizers of the investment opportunity will make money as you lose your money. If you are being offered membership in any sort of venture capital group, club, partnership, mutual fund, etc we can help you determine if the purpose of the group is to make money for the organizers or the members.Arm Yourself with Proper ToolsWe operate a Venture Capital Club The speculative tools that we offer our members have uses beyond risking money in Non-American public companies trading their shares in the United States. If you are an accredited investor, consider attending one of our orientation breakfasts.We offer you a chance to look before you leap into any speculative investment. If you aren't concerned about the losing aspects of most business plans, you won't find the few winners among the many losers. Knowing the risk is essential to winning the game. We can help you recognize the investment risks.To contact the author email: beowulfinvestments@earthlink.net
Five Myths About Inflation
A classic definition of inflation is any increase in the money supply. Understanding inflation is vital to anyone seeking investment profits or attempting to build a successful company. As with most basic issues of the global economy, inflation is surrounded by myths and misinformation.
Recession Planning
The clouds of a 2006 Recession are starting to form on America's horizon.Politicians know that Recessions or Depressions are bad for their reelectionchanges. Bad economic times tend to create unemployment among the nice folksholding office at the time of economic stress. You can expect the Governmentto do everything possible to delay a Recession until after the November 2006election. However, the American economy is currently caught in an upwardmoving inflation and a Recession would still the fires of a runawaycurrency. The Real Estate Bubble may be about to burst. And, America'sfinancial institutions appear to be in increasing trouble over failedderivative bets.
African Aid
Africa, like everywhere else in the world, has its fair share of honest, intelligent; hardworking people who want to see their families have a better standard of living. Unfortunately, most of these people are living below the poverty line. The reasons that Africa, with all of its natural resources, is an economic basket case are complex. They start with the 16th Century Africans' failure to adopt an effective immigration policy. The result was the European immigrants divided up the continent without regard to historic tribal boundaries. The modern result has been tribal wars waged with modern weapons from the Sudan to Rwanda.
