These “private shares” have trounced the S&P 500… But up until now, only the ultra-wealthy could get in… In the mailbag: “The current version of capitalism in the USA is leaving far too many behind”…
It’s a way you can trounce the stock market… with less volatility… in one of the most profitable market niches on the planet – tech startups before they go public.
I (Chris) believe it’s one of the best money-making ideas we’ve ever shared with paid-up Legacy Research subscribers.
So, we’re going to dedicate today and tomorrow to a deep dive on this opportunity here at The Daily Cut.
And at the end of our two-part series, we’ll reveal a simple way you can get involved.
First, let me spell out why you’re going to want to pay particular attention to today’s and tomorrow’s dispatches.
It depends on what kind of investor you are… and how deep your pockets are. For already wealthy investors… it’s potentially worth millions of dollars.
But even if you’re just starting out, you can still make between 15% and 25% a year over the next decade.
On a $10,000 investment… that compounds (meaning you’re earning profits on your profits) to between $40,455 and $93,132.
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And good luck finding out about it from your broker.
For years, a small group of billionaires and multimillionaires has dominated this market.
I’m talking about folks who invest in “private shares” in companies with explosive growth – aka venture capitalists (VCs).
These are the guys and girls who stump up cash to fund private firms with explosive growth potential in exchange for a stake in those companies.
Take Peter Thiel.
He was the first outside investor in Facebook when it was still a private company. In 2004, Thiel funded Facebook to the tune of $500,000 in return for equity. That investment is worth $2.5 billion today.
Another top VC is Reid Hoffman. In 2003, he cofounded LinkedIn. He went on to provide early-stage funding to Groupon, Digg, Airbnb, Flickr, Zynga, PayPal, and Facebook. He’s now worth roughly $1.9 billion.
Or take Marc Andreessen, who’s worth about $1.4 billion. He co-wrote the code for Mosaic, the world’s first widely used web browser. And early in his career as a VC, he provided early-stage funding for Facebook, Foursquare, GitHub, Pinterest, and Twitter.
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Take a look at the chart below. It shows the Cambridge U.S. Venture Capital index, which tracks the performance of the average VC fund over different periods – one year, two years, and so on.
And it compares this with the performance of different stock market indexes – the Wilshire 5000 (an index of all public stocks traded in the U.S.)… the S&P 500 (the 500 most valuable U.S. companies)… the Russell 2000 index of small-cap stocks… and the tech-heavy Nasdaq.
As you can see, over the long haul – 20 to 25 years – the average VC fund has more than doubled the returns of these indexes.
Now, like I said, these types of gains are usually reserved for the Peter Thiels and Marc Andreessens of the world.
But thanks to research by the team at our Palm Beach Letter advisory, we’ve discovered a way into this market on better terms than even the wealthiest VCs in the world get.
Today, we’re proud to publish 22 investment research advisories under the Legacy banner.
They include tech investing advisories (The Near Future Report and Exponential Tech Investor)… trading advisories (Delta Report, Palm Beach Trader, and E.B. Tucker’s Strategic Trader)… and crypto advisories (Palm Beach Confidential, Crypto Income Quarterly, and Disruptive Profits).
We also have an advisory focused on commodities (International Speculator)… as well as advisories that help you profit from the big-picture trends shaping the markets (The Casey Report, E.B. Tucker’s Strategic Investor).
We even put out advisories (The Bonner-Denning Letter, Crisis Investing) that help you protect and grow your wealth under crisis conditions.
But of all of them, Palm Beach Letter – headed up by Teeka Tiwari and Grant Wasylik – is the most unusual.
Since it launched in 2011, the stock recommendations in the model portfolio have given subscribers the opportunity to make market-beating gains.
For instance, 120% on food and beverage maker J&J Snack Foods (JJSF)… 112% on health insurer Anthem (ANTM)… and even 550% on specialist chipmaker Nvidia (NVDA).
But regular stocks are just a small sliver of what Teeka and Grant do at Palm Beach Letter.
They also bring their readers “off-Wall Street” investment ideas you won’t read anywhere else.
For example, Teeka was one of the first guys in our industry to identify the potential in cryptocurrencies. He added Bitcoin – the world’s first cryptocurrency – to the model portfolio in early 2016. And today, it’s up by about 1,110%.
Teeka and Grant also recommended a special type of high-yielding bond that helps fund businesses run by U.S. military veterans.
They’ve even recommended a way to acquire properties from folks who fail to pay their municipal taxes (known as “tax lien certificates”).
And now, Teeka and Grant have their sights set on the next opportunity to boost your retirement without taking on too much risk.
Remember, the type of gains you can get through VC firms are usually reserved for the ultra-wealthy… and they don’t want to let individual investors like you get a bite of the apple.
Here’s how Grant explained it in the March issue of the Palm Beach Letter (paid-up Teeka and Grant subscribers can catch up in full here)…
VC firms look for early-stage companies with hopes of landing a 10x – or higher – return. But if you had the money, you’d still need to know someone important to get in. All the billionaires want to invest with the smartest VC firms in the world. But even they can’t always get access.
Then there’s the fees. Most VC firms charge a 2% management fee… plus 20% of all profits. Some charge as much as 3% and 30%, respectively.
The ugly truth is regular investors are blackballed from these amazing opportunities to invest.
But that’s all changed. Because Teeka and Grant have unearthed a way for their paid-up subscribers to access the VC space. Grant again…
It allows our subscribers to invest alongside the world’s best VC firms, the largest institutions, corporate tycoons, and billionaires. And it’s cheaper, safer, more transparent, and more liquid than even the VC funds offered to the uber-wealthy.
We believe it will outperform public equity markets by roughly two to six times over the next 10 years. That means we think you can make between 15% and 25% per year over the next decade.
Teeka and Grant are so convinced of this opportunity’s profit potential, Grant took a 5,166-mile roundtrip in 24 hours to check it out in person.
Tomorrow, we’ll be sharing with you what he learned.
We’ll also show you the specific play Teeka and Grant have uncovered that lets you invest like an ultra-wealthy VC.
Like I said, it’s one of the most valuable ideas in the investment world right now. And it has the potential to transform your wealth over the next decade.
So stay tuned for that in your inbox tomorrow at our usual time of 5 p.m. ET.
Today, in the ongoing debate over socialism versus capitalism, one of your fellow readers sets out to dispel some “myths” about both economic systems…
Democratic socialism is what built modern America by way of unions. Famously, Margaret Thatcher coins “The problem with socialism is sooner or later you run out of other people’s money.” Guffaw, snort, chortle, laugh! And the problem with unfettered corporate capitalism: “Sooner or later you run out of third-world populations to exploit!”
The current version of capitalism in the USA is leaving far too many behind (40 million on food stamps) whereas, China – regardless of your view of their politics – has lifted 800 million people out of poverty in the last 40 years. Their middle class is growing while America’s is shrinking. The Chinese find no time for war. They work at trade deals.
The myth that socialism has failed everywhere is just that, a complete myth. And the myth that free market capitalism will solve every problem in society is also a huge myth. Entrepreneurs must be supported and developed, and the middle class must be supported, as well.
Bill Gates became the richest man in the world through his genius, talent, and the opportunity afforded him by his parents and the society he grew up in. Take a man with Bill Gates’ talents and stick him in a country like Zimbabwe, and let’s see if he could still achieve the level of success he did.
Democratic Socialism nurturing and supporting capitalism, and vice versa, is the only solution that will work for all.
– Terry J.
Is there truth to the “myths” Terry J. mentioned above? Do you agree that Democratic Socialism is the solution to the problems of pure capitalism and pure socialism? Write us at [email protected].
Regards,
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Chris Lowe
May 1, 2019
Miami Beach, Florida