High Return Investments
ByHigh Return investing
Long-term investments in the stock market typically offer a rate of return around 5 to 10 per cent when you buy and hold for a long time; however, that return is calculated prior to taxes or inflation being factored in. While the return at first glance may seem reasonable, it is actually quite low as most brokers and speculators have taken most of the profits out before you have a chance to. The old investment stratagey of ‘buy and hold’ is no longer seen as the most profitable and stable way of making money. If you want maximum security, or to do little or know study of the market, then a CD or mutual fund may be the obvious choice to place your investments. But for people willing to learn and put forth the research needed for a high rate of return on their investments there are options. Investing directly into a business at the time of startup is another approach. These investors will be able to sit in on meetings with owners of new companies and invest directly into a business that pays monthly or quarterly cash dividends upwards of 25%.
To start investing directly into new projects with local business owners, you must educate yourself about their respective industries and speculation of the local economy. You must also consider the reputation of the business owner. Networking with business owners who are starting projects will allow you to get in on the ground floor of investing. It could be a business owner who is looking to expand their business and requires new capital to buy property or machinery, or it could be a person who has a real estate development project and need funds to sustain it. These projects, while more risky than the stock market offer quite high rates of return for a short term investment.
Direct investing in a business requires a lot of due diligence and much research prior to entering. The first skill you need to learn is accounting so you can look at the overall viability of the project. Understanding financial statements is a must as you don’t want to invest in a poorly run company. Few private investment opportunities will have a prospectus written by teams of lawyers and accountants who have dissected the offer, so you, personally, have to do the work. No matter if this is a relative or a friend, there are people who will steal your money and disappear or people that mean well but are unable to follow-through and build a successful business. In either case, your hard earned money is long gone so you should take great pains to get independent third-party verification of all the facts and history that you can.