Neil here. We’re fresh off our second anniversary here at Angels & Entrepreneurs, which happens to line up almost perfectly with the year’s midpoint.
Two quarters into 2021, and it’s hard to wrap my head around just how fast this year is going. I’ve never seen a more active year in the startup world, and if the last six months were any indication, the rest of the year will likely be just as chaotic (in a good way).
But news aside, the halfway point of the year is a great opportunity to take a step back, analyze your own angel investing strategies, and refine your technique leading into the end of the year. After all, the best time to dive into the investing scene is today.
So, here’s what we’re going to do. I’m going to line up three different trends I expect to define the next six months and beyond. And then, I’m going to share one solid strategy that can help you play each one.
Ready to dive in? Let’s get into it.
It’s easy to get wrapped up in the chaos. I get it. Getting back to normal is first on everyone’s “to-do list” this year, and it’s only natural to want to spend more money on lost experiences.
But as an investor, be careful. I still maintain that the best investments aren’t in travel, or clothes, or any other kind of post-pandemic revenge sector. I’ll always stick to investments like apps and software, because they have the best shot at making the most of my cash.
Why? Because they’re capital efficient.
They don’t need to take on ridiculous overhead costs to scale, expand, and become more profitable. And that means there could be more money left over in the pot to kick straight back to your wallet.
So, what’s my take? Forget about revenge spending and remember your basics. Your portfolio will thank you.
Yes, startups can put you closer to the mammoth, long-term gains that can make you a fortune… But it’s important to play the short game, too (or at least, the shorter game).
This year, I’ve got my eye on blue-chip stocks. It’s not a “breakout trend” necessarily, but they’re worth considering for every single investor at every single skill level.
A blue-chip stock is a massive company that’s gleaned a great reputation as both a business and an investment. I’m talking Johnson & Johnson, Disney, Berkshire Hathaway… the big guys with market caps in the billions.
The cool part about blue-chip stocks is that they’re known to have dependable returns, so much so that many of them deliver dividends to their investors. And by targeting the right market patterns, you can get in and out of a blue-chip stock trade with a shot at big and fast gains.
How to play it right now? The Money Calendar.
I’ll let my colleague explain what it is here, but from what I can see, this looks to be one of the most effective, reliable, and consistent ways to play these blue-chip price patterns.
Check it out over here.
But that doesn’t mean you haven’t had successes. Maybe you invested in an electric vehicle tech startup, right when the industry was gaining steam. Look at the headlines now – from Tesla to GM to Honda, the biggest names in the game are jumping into the EV ring.
Maybe you developed a really great professional relationship with one of your portfolio’s founders. What is it about that founding team that really sold you on the company? Use that to your advantage when you’re searching for your next greatest investment.
The bottom line is that no matter what, you’re learning something with every single decision you make here in startup land. Take a moment to reflect on those lessons and use what you learned to influence what you do next.
With these three strategies, you’ll be way more likely to see the biggest bang for your buck, in both the angel investing world and beyond. Read up on them – twice if you have to – and get ready for two more quarters of fantastic return potential.
Do you have any favorite strategies in your back pocket? I’d love to hear ’em. Drop me a line below, and let’s start a conversation in the comments.
That’s all from me for today, but stay tuned. I’ll be back again soon with another update.
Until next time,
Neil Patel
Two quarters into 2021, and it’s hard to wrap my head around just how fast this year is going. I’ve never seen a more active year in the startup world, and if the last six months were any indication, the rest of the year will likely be just as chaotic (in a good way).
But news aside, the halfway point of the year is a great opportunity to take a step back, analyze your own angel investing strategies, and refine your technique leading into the end of the year. After all, the best time to dive into the investing scene is today.
So, here’s what we’re going to do. I’m going to line up three different trends I expect to define the next six months and beyond. And then, I’m going to share one solid strategy that can help you play each one.
Ready to dive in? Let’s get into it.
1. Capital efficiency is key.
Revenge spending is taking the country by storm as businesses from all sectors begin to open back up and return to some semblance of pre-COVID normalcy.It’s easy to get wrapped up in the chaos. I get it. Getting back to normal is first on everyone’s “to-do list” this year, and it’s only natural to want to spend more money on lost experiences.
But as an investor, be careful. I still maintain that the best investments aren’t in travel, or clothes, or any other kind of post-pandemic revenge sector. I’ll always stick to investments like apps and software, because they have the best shot at making the most of my cash.
Why? Because they’re capital efficient.
They don’t need to take on ridiculous overhead costs to scale, expand, and become more profitable. And that means there could be more money left over in the pot to kick straight back to your wallet.
So, what’s my take? Forget about revenge spending and remember your basics. Your portfolio will thank you.
2. Find a reliable way to diversify your portfolio.
Any seasoned angel investor will tell you that the single best way to set your portfolio up for success is to diversify outside of startup investing.Yes, startups can put you closer to the mammoth, long-term gains that can make you a fortune… But it’s important to play the short game, too (or at least, the shorter game).
This year, I’ve got my eye on blue-chip stocks. It’s not a “breakout trend” necessarily, but they’re worth considering for every single investor at every single skill level.
A blue-chip stock is a massive company that’s gleaned a great reputation as both a business and an investment. I’m talking Johnson & Johnson, Disney, Berkshire Hathaway… the big guys with market caps in the billions.
The cool part about blue-chip stocks is that they’re known to have dependable returns, so much so that many of them deliver dividends to their investors. And by targeting the right market patterns, you can get in and out of a blue-chip stock trade with a shot at big and fast gains.
How to play it right now? The Money Calendar.
I’ll let my colleague explain what it is here, but from what I can see, this looks to be one of the most effective, reliable, and consistent ways to play these blue-chip price patterns.
Check it out over here.
3. Round up your past successes… And use them to your advantage.
Chances are, if you just got into the angel investing game, you likely haven’t seen many (if any) returns yet. After all, angel investing is a long-term game. It can take anywhere from three to 10 years for an investment to mature.But that doesn’t mean you haven’t had successes. Maybe you invested in an electric vehicle tech startup, right when the industry was gaining steam. Look at the headlines now – from Tesla to GM to Honda, the biggest names in the game are jumping into the EV ring.
Maybe you developed a really great professional relationship with one of your portfolio’s founders. What is it about that founding team that really sold you on the company? Use that to your advantage when you’re searching for your next greatest investment.
The bottom line is that no matter what, you’re learning something with every single decision you make here in startup land. Take a moment to reflect on those lessons and use what you learned to influence what you do next.
With these three strategies, you’ll be way more likely to see the biggest bang for your buck, in both the angel investing world and beyond. Read up on them – twice if you have to – and get ready for two more quarters of fantastic return potential.
Do you have any favorite strategies in your back pocket? I’d love to hear ’em. Drop me a line below, and let’s start a conversation in the comments.
That’s all from me for today, but stay tuned. I’ll be back again soon with another update.
Until next time,
Neil Patel
Follow @angelsandentrepreneurs
Neil, Like you have said to all of us about diversification, I took you advise about investing in SSSS and GSBD stock when you presented it to us for the main reason of receiving the dividends. To thoughts I added KKR which is also paying a nice dividend. I am speculating with INND as I got it at $0.0021 and at present it is $.018. I also have some crypto and I could not believe what I made off of DOGE. I bought 22,052 at $0.0034 for a total cost of $74.95 on 12/04/2020 and sold it on 05/11/2021 at $0.5013 grossing $11,278.94, a net of $11,203.99. If I had paid attention when I first went to sell it but forgot to complete the transaction I would have sold it for over 14K. It pays us to listen to you and your knowledge. Since I joined A&E I have invested in 41 startup’s. It was the best action I have ever taken!