Kris’ note: As we’ve explained before, the Casey “10 x 10” Approach really is the secret to building long-term wealth. It involves dividing your investable wealth into approximately 10 groups… and then selecting around 10 investments within each group.
You can do that with small-cap stocks, gold stocks, cryptocurrencies, energy stocks, tech stocks, or almost any type of investment you like. But there’s one type of asset – arguably, above all others – that you should add to your “10 x 10” portfolio…
And that’s pre-IPO deals.
Investment expert and Casey Research friend Teeka Tiwari believes that investors need to look outside traditional stock investing to make the biggest returns. That’s why he is so passionate about alternative investments like cryptocurrencies and pre-IPOs. In fact, his pre-IPO recommendations have gone as high as 2,193% since going public.
For that reason, when we saw the following essay from Teeka, we just had to share it with you. Plus, as an extra bonus, on Wednesday, October 6 at 8 p.m. ET, Teeka is holding an emergency briefing for his next pre-IPO deal. If you’ve never invested in pre-IPO shares and want to find out how to add this asset class to your investments, then you don’t want to miss it.
By Teeka Tiwari, editor, Palm Beach Daily
For years now, I’ve been telling anyone who would listen that if you want to accelerate your wealth-building… you have to think outside the box.
Interest rates are at historic lows.
The rate on the 10-year Treasury note is 1.4%. If you bought $10,000 worth of them today, the yield would be $140. That’s not enough to pay your monthly car note.
And if you’re trying to hit it big in the stock market – think again…
Even if the S&P 500 rises 20% per year for the next five years… it won’t be enough to bridge the financial gap between the life you have and the retirement life you want.
Since 2008, the S&P 500 has averaged 10% gains annually. If you put $10,000 in the index at the start of the bull market, it’d be worth $65,700 today. The lack of high-growth options in traditional markets is why even some of the old guards are now looking for alternative investments.
Take Warren Buffett…
He’s one of the most successful – and conservative – investors in history. He’s made money buying conservative, blue-chip stocks like Bank of America, Apple, and Coca-Cola.
Today, Buffett is worth $100 billion, and he’s the 9th richest person in the world. But over the past few years, he’s missed out on the explosive growth in alternative assets.
But now, he’s investing in the very same ideas he once mocked… The same ideas I’ve been pounding the drum on for years.
Buffett Changes His Tune
Longtime readers of Palm Beach Research Group know I’m a big advocate of alternative investments like cryptos and pre-IPO shares.
As a reminder, an IPO – or initial public offering – is when a company goes public on an exchange like the New York Stock Exchange (NYSE) or Nasdaq. Pre-IPO shares are private shares in a company before it goes public.
They’re the lowest-risk, highest-reward ways I know to potentially turn tiny grubstakes into life-changing gains.
For instance, just $1,000 invested at the time of my past crypto recommendations would have grown into as much as… $151,000, $357,000, $484,700, and even $1.5 million in as little as 10 months.
And my pre-IPO recommendations have rocketed as high as 264% and 2,193% since going public.
But here’s the thing… Buffett is now investing in both assets.
This is a stunning about-face for a man who once slammed bitcoin as “rat poison squared”… and a few years ago said, “private equity [is] not as good as it looks.”
Yet in June, Berkshire Hathaway (Buffett’s multinational conglomerate company) made a $500 million pre-IPO investment in the parent company of Nubank – a digital bank based in Brazil. Nubank says it has 40 million customers… making it the largest digital bank in the world in terms of the number of clients. And it will soon offer those clients bitcoin services.
Buffett once compared buying hyped-up IPOs to trying to win lotteries. But since then, he’s gone on a pre-IPO shopping spree.
According to CNBC, Berkshire Hathaway invested in Brazilian fintech StoneCo within days of its IPO in 2018. During that year, Berkshire Hathaway also bought a stake in India’s largest digital payments startup, Paytm, which has since filed for an IPO.
And in the third quarter of 2020, Berkshire Hathaway bought $250 million worth of Snowflake stock at the IPO price.
Friends, I can’t tell you how bullish this is for the pre-IPO space.
The last major IPO that Buffett bought before the recent spree was the Ford debut back in 1956. So this isn’t something he does lightly.
Now, I don’t know Buffett personally.
But when I see one of the most legendary – and conservative – investors in history turning to pre-IPOs… it confirms this is the next area of exponential growth…
The Clock Is Ticking
In the private pre-IPO market, early investors can get into companies for pennies per share and sell them for tens of dollars. That makes it one of the few places left where you can make crypto-like gains.
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 like Warren Buffett, it’s difficult to get in.
You can’t buy pre-IPO deals from your brokerage account. Your investment adviser probably won’t ever tell you about them, either. And without hundreds of hours of research and teams of analysts, it’s difficult to separate the good private deals from the bad.
That’s why on Wednesday, October 6, at 8 p.m. ET, I’m holding an all-hands-on-deck emergency briefing for my next pre-IPO deal.
The man behind this deal is one of the most successful venture capitalists of our generation. Insiders compare him to Elon Musk and Richard Branson. And his previous 11 deals have built his billion-dollar fortune.
Now, you can take part in his 12th deal – before its planned IPO on the NYSE.
Here’s why this deal is so urgent…
My last pre-IPO recommendation at an event like this filled up in less than 12 hours. And it’s possible this deal could fill up even faster. That’s why I’m holding this urgent buy alert on deal No. 12.
The smart money has bought up eight figures’ worth of shares… And could take out the rest of the deal at any moment.
This deal is available on a first-come, first-serve basis. And considering my last deal was taken out in less than 12 hours, it’s critical you attend on Wednesday, October 6 at 8 p.m. ET.
Friends, the IPO market is the hottest it’s ever been in history. There’s already been more money raised this year than in the dot-com boom… With $175 billion raised across more than 500 IPOs as of early September.
Investors like Warren Buffett recognize this. And that’s why he’s shifting to alternative assets like pre-IPOs. So join me at 8 p.m. ET on Wednesday, October 6.
And I’ll give you all the details on how you can get in on the ground floor with this legendary venture capitalist.
Let the Game Come to You!
Editor, Palm Beach Daily