Neil Patel here. Earlier this week, I shared a few of my favorite ways to bring in cash while I wait for my angel investments to mature.
Let’s dig into what that means. A recent study by the Angel Resource Institute showed that the average angel investment takes approximately four years to mature.
Over the course of those four years, the average cash-on-cash multiple returned to investors is about 2.5X. Of course, that average includes countless thousands of investments made by inexperienced angels with no idea how to choose their portfolio companies wisely.
As a result, these figures may be skewed low. For example, my portfolio has done almost twice as well as this average (the same goes for many of my peers).
Still, say that a few years from now, you’re just about even with that industry average. You’re still beating the stock markets by a canyon-wide margin.
I mean, imagine making 600%+ gains each year on a publicly-traded stock. It’s about as likely as landing on “tails” 30 times in a row.
Without those big returns, I doubt many of us would be willing to wait four years to get our money back. It’s the incredible multiples that make angel investing worthwhile.
Regardless, most people can’t just sit on their hands for years at a time. Not only is it awfully boring… but it’s also just tough to survive without some kind of capital coming in each month.
That’s why I do my best to deal in a diverse array of asset classes.
Angel investing is my main squeeze. It’s how I’m able to travel the world, own multiple gorgeous homes, and (eventually) pay for my daughter’s education. To put it simply, angel investing is what allows me to live well.
But other forms of income are what allow me to keep the lights on – to buy groceries – to put gas in my car and pay for my Ubers. Getting that monthly influx of cash means that I always know I can cover my regular expenses.
Perhaps the most effective tool in my arsenal these days is Tom Gentile’s Money Calendar. I told you a little bit about this last time we talked, but I know you still have questions about what this system is capable of.
I’ll give you one example. Last year, the Money Calendar identified a stock (Biotech Spyder, or XBI) that was about to make some big moves.
And, as promised, XBI rose more than 8% in less than a month. That’s a pretty good gain for a typical month in the stock market… but it’s not good enough for Tom Gentile.
Subscribers who followed his strategies on this particular trade made almost triple their money back over the same time – a whopping 179% gain.
It should come as no surprise to you, then, that the Money Calendar is my kind of tool. I don’t like to waste my time on those sub-10% gains – it’s just not my style. I’m here to make 2X, 3X, even 10X my money. Those multiples are rare and extraordinary – but they’ve happened often enough for me to build my entire life with them.
And who knows? They could happen for you, too.
Until next time,
P.S. – While we’re on the subject of income trading… there’s one more important thing you should always keep in mind. Trading based on what’s going on in the mainstream media is a decent strategy. Sometimes it even works. But the biggest windfalls go to those people who can see through what the news is saying – and get straight to the truth of what’s really happening. Being able to see and exploit the “gap” between the two versions could mean bagging five big winners in just five trading days. Click here to get a FREE copy of D.R. Barton’s special report, Seven Market Illusions Hiding Real Profits from You. You’ll be instantly signed up to receive more information by email – including how you can get actionable trade recommendations right away.