Rachel’s note: Here at the Dispatch, we’re always looking to pass along ways for Main Street investors to get the whole cake… not just Wall Street’s crumbs.
And Teeka Tiwari, our colleague over at Palm Beach Research Group, has the same mission.
Why? Because he worked on Wall Street for years… and knows how the little guy can get screwed.
So Teeka has pinpointed a major new investing trend that will create a new wave of IPOs.
And he says the biggest gains will come from getting in on private deals before a company goes public.
Finding good deals isn’t easy… and this strategy was once reserved for the financial elite. But on Wednesday, September 9, Teeka will show you how you can “buy the next Amazon for pennies…”
By Teeka Tiwari, editor, Palm Beach Daily
Let me ask you a question…
Did you invest in Amazon… Google… or Uber… while they were still private companies?
If you’re like 99% of people, the answer is no.
You couldn’t. You never had the chance to. You probably didn’t even know they existed.
The reality is only the rich and connected – venture capitalists and Wall Street insiders – get a shot at investing in startups before they go public and blow up into a billion-dollar brand.
I know because I’m one of them…
I’ve made millions investing in private companies.
It’s how I saw a less than 10-cent-per-share investment reach $1.03… a 12-cent investment reach $161… and another less than 10-cent investment reach $3.43.
Now, most people know me as the analyst voted “No. 1 most trusted person in crypto.”
But I actually cut my teeth at the brokerage houses of Wall Street’s top investment banks.
In 1991, I was the youngest vice president in Shearson Lehman history. And for anyone who doesn’t know, Shearson Lehman was a key player in the initial public offering (IPO) market for a century.
From Shearson Lehman, I went to Cowen & Co. And it was recently ranked one of the top IPO banks in the world.
Here’s why I’m telling you this…
I’ve been watching the IPO market closely since 2019. And in January, I told you we’d see a mega wave of companies going public this year.
After a brief setback due to the COVID-19 outbreak, the IPO market is taking off exactly as I predicted…
A New Tech IPO Boom
An IPO is when a private company lists its stock on a public exchange. It’s a major milestone for most companies.
Going public lets a company tap into a deep pool of money on the exchanges. It also makes it easier to use shares for buyouts and employee compensation.
The last mega wave of IPOs came during 1995–1999. We saw companies like Amazon, eBay, and Nvidia go public. Today, they’re some of the biggest names in the world.
But I predict the next wave will be even bigger…
You see, the tech boom sparked the last wave. But I believe the COVID-19 outbreak will create the next one.
I’m talking about innovators who provide products and services that’ll help us adapt to social distancing and working and learning remotely.
In the next few weeks, we could see some of the top private U.S. tech firms go public.
Names like data company Palantir… software firm Snowflake… and delivery companies DoorDash and Postmates.
Combined, these private companies have a valuation of over $50 billion. If that holds, 2020 would rival the IPO tech boom of the 1990s.
But here’s the important lesson I learned from my time on Wall Street…
The gains you make from IPOs are crumbs compared to what you can make investing in companies before they go public.
Do You Want the Whole Cake – Or Just the Crumbs?
Above, I asked you a simple question: Did you invest in Amazon… Google… or Uber… while they were still private companies?
Here’s why I asked that question…
The tech boom made a lot of money for a lot of people… even for folks on Main Street.
But the real gains – the truly life-changing returns – came from investing before these companies went public.
Main Street investors made 31% when Amazon went public. But pre-IPO investors walked away with 9,165%. We saw the same thing with Google: An 18% gain for Main Street versus a 1,500,000% gain for private investors.
Silicon Valley insiders made a 64,200% gain on Uber – in one day. Enough to turn $250 into about $161,000. But public investors still have yet to make a dime on Uber.
Friends, that’s the difference between pre-public investing and post-public investing.
Like any good merchandiser, Wall Street has conditioned you to think making a double or triple in a day is a lot. It isn’t.
But in the private equity market, early investors can get into companies for pennies and sell them for tens of dollars.
This market can be wildly lucrative. According to one study, “private” market investing has made almost four times the return of “public” market investing over the last two decades.
And I’ve personally made millions of dollars from private deals… as have many of the folks in my professional network.
The problem with private equity is, unless you’re already rich or exceedingly well connected, it’s difficult to get into.
It’s frustrating, because it traps investors into always paying “retail.” What I mean by that is, private investors are able to get in early and buy their shares at the equivalent of “wholesale” prices.
Now, ordinary investors have been locked out of these moneymaking opportunities for decades. But now, thanks to a rule change by the Securities and Exchange Commission, you can get in on the action.
They’re called Regulation A+ offerings. And they’re open to the general public – not just accredited investors with a net worth of over $1 million. In some cases, you can buy into them with minimums of $500–1,000.
But finding the best deals isn’t easy. There are a lot of bad deals out there. It takes real research to separate the good from the bad.
The other drawback is, you can’t buy private startups from your brokerage account.
That’s why I’ve been working my network of insiders for the past year – looking for the best private deals for 2020. I don’t have the space to go into all the details in this essay, but the newest one I just uncovered is in the No. 1 sector in the country.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. Like I said above, this private deal is in America’s No. 1 sector. And a billionaire contact in my Rolodex has just invested in it. And now, you can, too…
It could go public on the Nasdaq at any moment. And when it does, I believe it could mark a turning point in your financial life.
This opportunity could be the difference between a drop in the bucket… and a tidal wave of money.