Why Investing in Startups May Be Too Risky | Phil Town

1. Question for you: Have you ever considered investing in a startup? If so, did it stand up to our Rule #1 requirements? Leave a comment below.

   And if you want to take advantage of the recent fluctuations in the market caused by the COVID-19 outbreak, download this free guide: https://bit.ly/2J9Xog0

2. Would be great to have videos about the last news of the market and covid19. Market is down again after i put all my money in swing trades. I will never be rich lol

3. Great points as always. HUMAN condition– "belief" in something compared to what the reality really is . Most humans "believe" in one of the many gods we were given when young and science has explained we evolved and not "created". BUT, most can never let go of these beliefs and do so much harm too defending them. The Market is the same. We "want" a stock to succeed and buy lots and it fails as we didnt really think of the reality of the quality of it and the current and projected cash position and how many competitors they have. I found a stock which will take huge advantage of the downturn and in fact the worse the mess is and people hurt, the more they will profit. BUT,do i put all my cash into it? NO, because any company can fail and we still dont know how this will turn out and the board could be infected and die?? likely? This virus is everywhere now and all bets off as to if it mutates and becomes more deadly before they can get medicine against it and control it in a year. Clock is ticking, so its a race. Virus could also suddenly stop and go away like some of the other deadly ones that hit hard then dissapeared, but this one seems different.
   Something i learned was to always spread your money especially on the penny stocks. Temptation is to put it all in one stock. The book says DONT and most traders have gone against the maths and got hurt. You have to spread the risk as any stock can be "Apple" but the other 99 will wipe you out if you put it all in one of them.
   So stick with the maths and select carefully the best cheapees and i usually put the MIN $500 buy in 10-20 of these carefully vetted and you can sleep at night a lot easier. Most will fail but a few will pay and profit over the others.
   In this CRASH mess of over printing, there more to go down yet, so down be in a rush to buy in yet, only buy what is due to take off anyway as with companies shut down, where are the earnings? Isnt the market run on earnings? and only going up because of the bail package which will wear off next week and my prediction of down to 50% will happen as all crashes reach and maybe 70%? This is an everything bubble, so no way to rescue it as the endless printing wont just destroy the currency, the congress/ senate? will eventually put a stop to all this printing. THEN…

4. Why u not making any video of current situation " Carona Virsu"?

5. Quiz Question based on the Video For Fun : "Why do we want to look at 10 years worth of data when evaluating a company as a potential investment?"

   a) 10 is a lucky number
   b) The company will have built a perfect Management team
   c) The company will have likely weathered a recession
   d) Most new companies only last 5 years

   I'd love to see Quiz questions in Investing videos, and I don't, so I thought I'd try making one myself. If anyone has one, I'd love to give it a shot.

   Happy investing gang. Hope you're all healthy and safe.

6. Speaking of Apple, they were definitely special and different from the beginning and it was fairly easy to see. They pioneered pretty much everything about the computer we know today, and had a completely different vision from Microsoft and IBM. They could be had for less than $2/share back then. I wouldn't put them on the same level as other 50/50 chance of survival startups.

7. Love Warren, but does he really understand Apple? He's been invested in the company for a while now as their biggest shareholder with something like 5% of their shares, yet he only recently got a smartphone. Warren has been teaching us to invest within our Circle of Competence, but I have to wonder how much he actually understands about iPads, iPhones, Macs and the interdependence inherent in the Apple ecosystem. Could this be a case where Warren is deferring to younger members of his team for investing insight? Is Warren perhaps investing more in his confidence of Management than in his understanding of the actual business? Just wondering if Apple might be an exception to Warren's rule of investing within one's COC.

8. Great topic Phil, I always stay away from start ups, because they are very risky and you can not value them easily!

9. Depends!

10. Lee Kwan Yue was founder of the world’s greatest startup in 1959.

11. Uncle phil this is an exciting time in the stock market and you barely do videos about it….quality control uncle phil!

12. If there is good startup company at good business, for sure i will allocate like 5 % of cash there ,, if that 5% lost it is not big problem

13. Great videos as always ..There is always something very important to learn from…Rule #1 book is the best.

14. Pets.com anyone? LOL

15. Thanks Phil.

16. Investing in a startup can be risky but the right team can lower the risk. ?

17. I have outsourced this startup theme. My friend Masa is doing it for me. The next BABA is coming soon. Go Softbank!

18. is forex swing trading a good way to grow your wealth? Long term investing seem not to cash flow enough in my opinion

19. I just risked it all and bought everything that I could afford last two weeks. Starting at March 15 already up averaging 10%

20. Doesn't seem like the right time to get into a start up at all. Prob should stick with quality established companies until we are over this pandemic.

21. Know before you go ?

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