“Follow the leader” is a simple strategy, and it’s one that can pay off if you do it right.
Still, in my opinion, following other investors blindly is not the way to go.
Here’s why: When you invest in a startup, you’re making a highly personal decision. Every angel investor’s philosophy is a little bit different.
For example… I’ll sometimes invest in a startup not because I care about the potential return but because I think I have something to learn from the entrepreneur. Other times, I’ll throw in a small investment just because I’m feeling lucky.
For me, those reasons are as good as any. But they might not be for you. Most angel investors – especially those just starting out – are after the biggest and best returns they can possibly get (and I can’t really blame them).
For those people, I suggest investing under the guidance of a well-defined strategy, rather than simply duplicating someone else’s portfolio. And the absolute best strategy I know of to maximize your potential returns is my 1,000X Formula.
It’s a super-simple algorithm I use to determine whether or not a deal has the potential to return 1,000X my money. It is simple yet elegant – and it’s never let me down.
Just click here to learn what it is and how to use it.
Until next time,
Neil Patel
Follow @angelsandentrepreneurs
