A Novice Investor’s Guide to Undervalued Stocks

May 10, 2021

What Makes an Undervalued Stock?

An undervalued stock is a stock that trades for less than what it is worth. That means the share price does not reflect the fair value of the underlying company. Stocks generally tend to be undervalued or overpriced, as the share price often does not reflect their true value. There are a variety of reasons as to why this happens.

The stock might be undervalued because of some negative news that came out recently. Remember when Zion Williamson’s shoe exploded on national TV? Nike shares fell the next day. In the same way, a stock could be overpriced if investors are hyped about an unproven technology being developed by the company.

These events tend to have an effect on stock prices, and investors seize the opportunity and buy quality companies that now trade below their true value. As the decline in price tends to last only for a while, investors make a profit when the stock returns to its fair value.

What is Not an Undervalued Stock?

Undervalued does not mean cheap. It just means that the current stock price does not reflect the true value of the assets, growth potential, or profitability of the company.

For example, if two stocks trade at $13 and $225 per share, people would think the first one might be undervalued, as it is cheaper. The first stock is General Electric, the American multinational conglomerate. The second one is Fiverr, an online marketplace for freelance services. In fact, Fiverr is an undervalued stock.

The stock price alone doesn’t tell you whether the stock is undervalued or overpriced. Because it’s not just about the stock price, it’s more about what you get for the price you pay. Investors refer to this as the intrinsic value of a stock.

What is Intrinsic Value?

Intrinsic value is a measure of what a stock is actually worth. The intrinsic value of a stock is derived from analyzing the fundamentals of the underlying company. Financials (earnings, assets, free cash flow, etc.) and business fundamentals (business model, target market, management, etc.) are studied to determine the intrinsic value of the stock.

Investors generally use intrinsic value to determine whether a stock is undervalued or overpriced.

How to Find Undervalued Stocks?

You can start by using a stock screener. It allows you to filter companies based on unique parameters. You can choose various parameters including financial ratios (P/E ratio, EV/EBITDA, etc.), industry, and market cap among other factors, to narrow down your search. Once you have a very specific list of stocks, start your due diligence on each. Also, undervalued stocks work best with the value investing strategy.

What is Value Investing?

Value investing is an investment strategy that is focused on the intrinsic value of a stock rather than the stock price. Value investing focuses on buying undervalued stocks, at a discount. As the market moves up and down, the stocks might go on ‘sale’ during a particular period, that’s when value investors buy their favorite undervalued stocks. To quote Seth Klarman, billionaire value investor, ‘We define value investing as buying a dollar for 50 cents”.

Margin of safety is an important aspect of value investing. It is buying undervalued stocks on a discount, so the money you pay for a share is significantly below its intrinsic value.

Imagine you found Apple to be undervalued when it was trading at $55 per share when it was actually worth $65. But instead of buying it for $55, you wait for the price to come down. And, you buy the shares when the stock price comes down to $35. You will have a profit of $30 per share, just by waiting for the stock price to reach its intrinsic value, whereas if you had bought the stock at $55, the profit would have been reduced to $10. On top of that, if the company makes more money, your profits will increase. And in the case of Apple, currently, the stock trades at $134 a share.

Value investing can be especially beneficial when you are trying to build long-term wealth. Warren Buffett, one of the richest people in the world, is the best-known value investor today.

So, if you want to know more about value investing, check out The 8-Step Beginner’s Guide to Value Investing. Even if you are new to investing, this book will help you understand how value investing works and how you can build long-term wealth.

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4 Trends that CEOs Have to Take Seriously This Year

May 10, 2021

The past year has been a difficult time for all businesses. Some businesses have not managed to evolve to the changing landscape. Whilst others have been nimble enough to play to their strengths and come out on top. In many ways, the pandemic has weeded out the bad CEOs from the good ones.

But as we approach the back end of the pandemic, it’s important to look back, learn from the experience, and put in place a plan for the future. No doubt, the post-pandemic economy will be as unsteady and dynamic as it was during the corona-crisis. Here are the top 4 trends that we think CEOs need to be thinking about as they look to lead their companies out of the pandemic.

1. Artificial intelligence

Although it’s not always obvious, almost every single business relies on some form of artificial intelligence. We are in what some specialists refer to as an ‘Artificial Intelligence Revolution’. What differs from business to business is how sophisticated the AI is. Some companies will only use basic forms of AI (such as Google’s services) to support a few elements of the business, whilst others will deploy highly sophisticated AI software that is instrumental to the company’s operation.

But as markets develop, so do the tools. The limits of artificial intelligence are endless and groundbreaking software is developed every day. CEOs and company leaders must keep a watchful eye on emerging technologies that could support the growth of their business. Being the first to adopt early technology can make a massive difference to a company’s performance. In some cases adopting undiscovered AI tools can open the door to unexplored segments of a market. Being the first to make the most of groundbreaking AI could easily propel a business to a leading market position.

2. Digital over physical

The global restrictions brought on by the pandemic have redefined traditional ways of working and doing business, showing the true potential of digital. CEOs and company leaders have had to put measures in place to ensure working staff are able to continue working efficiently. Whilst many CEOs were initially reticent at the thought of operating entirely digitally, the outcome has been unexpectedly positive. Not only has the financial cost of working dramatically decreased for employees and employers alike, but opportunities for new business have also emerged.

The focus on all things digital has demonstrated that companies can operate efficiently without the need for many physical elements that were once deemed essential. This is particularly valuable to companies who have business in other countries or are looking to expand internationally. As we gradually return to a pre-pandemic life, CEOs and company leaders should not preemptively abandon all-digital connectivity efforts. Instead, they must take a step back and carefully evaluate what physical elements are essential to the continued success of the business and if any cost-effective digital strategies can help.

3. Deal flow generation

As the world changes, so do markets. This is why CEOs and company leaders must keep their ear to the ground and be ready to strike when new lucrative business opportunities emerge. Generating deal flow is a ceaseless challenge and it requires constant, vigilant attention to new market trends, industry changes and economic influences. CEOs who stay disciplined about continuously scouring the economic environment are the ones who will end up seizing opportunities before they are ever even communicated to the wider market. Take for example the Beachbody CEO, learn more about Carl Daikeler and his tactics that got him to the top.

This can have a profound impact on the success of a business. Being the first to hear about and subsequently act on a lucrative investment opportunity can propel a company to new levels. It can be the difference between being a market leader dealing with the very best in your industry and fighting for leftover deals that yield little reward. When it comes to deal flow, the ‘early bird gets the worm’ certainly holds true and having a strategic communications plan in place is vital to generating new deal flow.

4. Environment and ethics

ESG and CSR is a hot topic at the moment and this is bound to increase. It isn’t just a fad and ignoring this trend can have profound consequences for businesses. The past year has brought into perspective the fragility of life and the level of inequality that plagues the world. The short of it is people care considerably more about health, ethics and the environment. CEOs that embody similar values in their companies will see a deeper relationship with consumers, employees and business partners.

Competition is high and stakeholders only want to be associated with companies that embody morals they can resonate with. Even though it may have nothing to do with the business, CEOs who stay abreast of current affairs and proactively demonstrate that they care will end up having a competitive edge. Being able to better attract deal flow, bring in top talent and open doors to new business opportunities.

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Impact Investing – What is new now?

May 10, 2021

By Peter Lorange Chairman Lorange Network and S. Ugelstad Invest President Emeritus, IMD, Lausanne

Introduction

Today, there is ever-increasing awareness of the need to factor environmental concerns into investment decisions. But what specific criteria do investors and asset managers need to take into account when creating their portfolios? Peter Lorange sets out the issues and outlines some general approaches.

Since its “officially” tracked inception back in the mid-1990s, or at least when it started to be of significant interest, impact investing has seen dramatic growth. According to many, this trend will continue upwards due to increasing climate problems, government and business commitments to these, and the increasing voices of younger-generation investors who are statistically more conscientious and concerned with “making a difference” and who want their investments to make more than money (these are often referred to as “personal values investors”).

In this note, we shall discuss the following aspects of the impact investing phenomenon:

Climate deterioration as a key driver behind the development of impact investment.
Emission of atmospheric pollutants, including CO₂.
Implications for:
- investors
- asset managers
- corporations
The challenge of reporting.

At this point, it should also be noted that there are several “competing labels” to impact investing, “responsible or socially responsible investing” (which reduces harm) or “sustainability investing” being perhaps the most commonly used alternative, or even “regenerative investing” (which increases capacity). However, in this article, we’ll use only the impact investing label.

Global warming – the key driver

Recently we have been seeing dramatic changes in the world’s climate, mostly for the worse. Examples: temperatures have gone up significantly, almost everywhere, and the ice formations around the North Pole, including Greenland and in the oceans of northern Russian are melting at an alarming rate. To a lesser extent, we see this also in the far south. Hurricanes are becoming more abundant, with major instances of damage from flooding and/or strong winds, perhaps most noticeable in Central America, the Gulf of Mexico and South East Asia. Large areas of our earth are experiencing sustained extreme drought, perhaps above all in areas of Africa, and so on. We could go on and on. Most scientists, as well as politicians, seem to agree that our Earth’s climate is deteriorating.

There have been noticeable responses, but so far without much tangible result. First of all, there seems to be general political agreement that the climate challenge is a global phenomenon. A small minority of politicians seem to deny this, such as ex-President Trump in the US. However, the almost general acceptance that climate deterioration is a worldwide dilemma is noticeable.

Second, there have been at least four global conventions (such as the COP25 United Nations Framework Convention on Climate Change (UNFCCC), the World Climate Conference, the WHO Global Conference on Health and Climate) where this phenomenon has been the topic, and where revised targets and ameliorating actions have been discussed and even agreed upon, so far without much effect. The first such conference, held in Rio, was followed by global meetings in Kyoto, Doha, Copenhagen and Paris, and another such global meeting is scheduled for Glasgow in 2022.

The meeting in Paris was indeed different from previous ones, in that the so-called Paris Agreement (UNFCCC) was agreed to by the majority of delegate nations, including all of the world’s large powers. Specific CO₂emission targets were set (see next section), and deadlines established. A differentiation between the so-called developed nations and the developing ones was introduced, whereby some lesser-developed nations were granted more time and greater emission quotas, so as to guide their economic development. The bulk of the economic burden was to be carried by the developed countries, the US in particular.

As we know, the US withdrew from the Paris Agreement during the reign of President Trump. However, it is noticeable that all the other world nation signatories remained. Further, significant “polluters”, such as China, have committed themselves to specific ameliorating emission targets, such as to become carbon-neutral by 2060 in the case of China. And the US has rejoined the Paris accord and even established a cabinet-level position to deal with the climate issue, headed by former foreign secretary, presidential candidate and senator John Kerry.

The key driver: emissions of pollutants, such as CO₂

The emission of polluting gases into the world’s atmosphere seems to be at the heart of the problem. The best-known is CO_2. However, there are many other potentially dangerous pollutants, such as oxides of sulphur (SO_x) and of nitrogen (NO_x), and carbon monoxide (CO). Noticeably, the emission of ozone gas a few years ago was curtailed, through a worldwide agreement, mostly among industrialised nations. Spray bottles, then-conventional refrigerators and so-called “reefer” ships were forbidden or significantly curtailed. Alternative technologies were developed. The result seems to have been a significant improvement in the so-called ozone hole in the atmosphere around the South Pole.

The major challenge, however, is to limit the emission of CO_2. The statistics regarding the global emissions are not encouraging. According to the EU Commission’s EDGAR (Emissions Database for Global Atmospheric Research), “the global GHG emissions trend has increased since the beginning of the 21st century in comparison to the three previous decades, mainly due to the increase in CO₂ emissions from China and the other emerging economies”. EDGAR reports that, compared to 1990 numbers, in 2019 CO₂ emissions from the power industry saw a 78% increase, from other industrial combustion by 67%, from buildings by 8%, from transport 78%, and from other sectors 100%.

Where are these emissions coming from now? Are there specific industries? It may be useful to distinguish between types of firms that are directly contributing to CO₂emissions, in contrast to firms that might indirectly be close to the source of this problem. The eco-experts claim that the fuel, agriculture, fashion, food retail, transport, construction work and technology industries rank as the seven most polluting industries. A few more comments to consider:

Direct polluters – Perhaps surprisingly, a very significant source of CO₂emissions is cattle. We are accordingly witnessing a gradual change in eating habits, away from meat, in part to reduce health risks, but also to help reduce CO₂emissions (plant-based hamburgers, etc.). The shipping industry is also a major source of CO₂ Stringent new rules for emissions in this industry are coming into effect in 2022. In the airline industry, new engine technology is leading to important reductions in CO₂. In general, technological advances are critical. Coal-fired electricity power plants are still a problem. However, new natural-gas-powered power plants are no less expensive! Thus, we see positive effects from alternative used of fuel to burn.
Indirect polluters – CO₂ emission results, in most cases, from the burning of materials that are carbon-rich, such as oil, coal and/or wood. Thus, major indirect polluters are oil-producing companies, as well as coal mining firms.

So, what are some of the key implications of these pollution-related issues? We shall now discuss these for three stakeholder groups:

1. For investors

The key for most investors will be to restructure their investment portfolios, with less focus on direct and/or indirect polluting entities. Many investors are utilising so-called index funds for shaping their portfolios. For them, it will be critical to be able to identify good alternative index funds which avoid the direct/indirect polluters, while nevertheless providing satisfactory promised investments returns. In general, it appears that there are indeed such funds available, i.e. which do not “impose a penalty” on investors for “going green”!

2. For asset managers

Examples of major asset management firms that have pioneered the development of impact investing (avoiding heavy polluters) are Blackstone, BlackRock, UBS, Credit Suisse and others. These firms tend to pursue two avenues:

They tend to offer specific “clean firm” investment opportunities.
They tend to offer funds that are “light” or totally devoid of polluting firms, based on indexes that are similar.

Many asset managers are also following through in the way in which they rate their specific holdings when it comes to companies that might be dealing with pollution challenges. Are such firms specifically making progress in implementing strategies that would result in their becoming “cleaner”? And/or are top management, as well as boards of directors, also showing clear commitment to the avoidance of pollution? While such rating behaviours on the part of asset managers do not typically lead to specific changes in strategies, board compositions and/or top management positions, such ratings can often send important signals to the investment community, to politicians and to employees alike. So-called activist investors are increasingly following suit when it comes to these rating actions.

3. For companies

As already alluded to, corporations will now typically want to develop strategies that specifically take into account how to reduce environmentally dysfunctional effects, such as pollution. And, in most cases, this will also be reflected in these companies’ reporting (to be discussed in the next section). Examples of how (formerly) heavy polluters have changed or are changing their strategies are:

DONG, a Danish publicly traded company formerly controlled by the Danish government, which used to be the major Danish company active in the country’s offshore oil sector and now is the world’s largest owner of offshore wind turbines for electricity generation.
BP, the major UK-based oil and gas producer, which has declared that no dividends are to be paid in the foreseeable future, so as to make use of this liquidity stream to diversify instead.
Food companies, such as Nestlé, Tyson and Hormel, which are becoming active in plant-based “meats” (hamburgers, sausages, chicken, etc.).
Yara, the world’s largest producer of fertilisers, based in Norway, which is reactivating its 100-year-old technology of developing fertilisers through electricity (non-CO₂-polluting), away from the oil-based conversion (CO_2-emitting).

There is, of course, a potentially major challenge for many firms to implement a viable strategy away from being fundamentally “dirty” to becoming “clean”. While technological solutions often exist, these might be expensive, and at times excessive. To support the transitions of such firms, a special financing investment has been developed: “pollution-reducing restructuring bonds”. This has been offered in particular by Credit Suisse, as well as by Goldman Sachs. Also, blue bonds are a recent type of sustainability bond that finances projects related to preserving ocean biodiversity and general ocean conservation. Another example is the earlier-introduced green bonds, a type of fixed-income instrument specifically earmarked to raise money for climate and environmental projects.

A related issue is the fact that so-called “dirty” firms will be faced with rather more expensive costs of capital for their financing of new investments. We see this already, and this evolution is likely to continue. Thus, it will become less and less viable to remain “dirty” for many firms. This is quite significant for the bulk of such firms, which commonly tend to be faced with large, new capital investments (oil exploration, coal mine development, etc.).

Reporting

There is a clear trend towards more explicit reporting of environment-enhancing corporate efforts. For instance, the world’s previously largest accounting firms have, together with the World Economic Forum, developed a set of standards for this. Some countries, New Zealand being the first, have mandated such reporting, including now also the early adoption from Switzerland.

A key “problem” with this is the fact that it may be difficult to come up with stable criteria for what constitutes severe pollution:

Take the electric car industry, for instance. Most observers might classify this type of industry as non-polluting, in that it significantly reduces the burning of fossil fuels in conventional engines, thereby contributing to significantly reduced CO₂ But the manufacturing of batteries for electric cars typically involves significant open-pit mining malpractice. To find the required rare earth metals thus involves significant damage to Mother Nature. Perhaps even worse, many such open-mining ventures employ child labour.
Consider the manufacturing of Teflon coatings for kitchen accessories, pioneered by DuPont. At the time of its development, DuPont research paid little to no attention to potential health risks. For them, at the time, the key was to come up with a successful type of fibre for this purpose. And they did! It became clear only much later, however, that there were serious dysfunctional health effects. So, what we see is that the discovery process in many corporations might only gradually become sufficiently cognisant of such dysfunctional secondary effects.
The evolution of so-called steel-studded tyres for cars provides a similar picture. Initially heralded for dramatically easing the difficulties of driving during icy conditions in such regions as Scandinavia, Canada, etc., it became clear that the effects regarding wear and tear of asphalt roads were severe. Therefore, most countries prohibited these types of tyres. It was subsequently realised that the emission of relatively small particles of dust from the studded tyres’ grinding effect on asphalt would be highly dangerous for people’s health, i.e. from the cancerous effects of breathing in this dust. While this has been the reality all the time, it was not fully understood until much later! And it is not the particles from only steel-studded tyres that are toxic, but rather those from all tyres (these are called “tyre and road wear particles” (TRWP), and are the tiny debris produced by the friction between tyres and the road surface.

Clearly these types of challenges make it difficult to come up with broadly accepted measures for what constitutes pollution enhancement. What are the good measures for investors as well as asset managers to follow regarding the selection of non-polluting assets or of indexes on which to base their judgements when it comes to index-based investment vehicles?

Conclusions

Impact investing is clearly on the rise. This is driven by a much more universally accepted realisation that pollution and CO₂ emissions are a reality! While, for many years, there seems to have been a wide-spread recognition regarding this general challenge, in a more abstract sense, there now seems to be more urgency and specific actions regarding these issues. The United Nations says the need to reduce carbon emissions by 7 per cent a year is urgent, and many climate scientists advise that we have to limit temperature rises to 1.5 degrees Celsius for a liveable and safe climate. We see this, therefore, not only at the governmental level, but also when it comes to corporations.

Perhaps most important of all, a broad base of investors seem to be following suit! According to the Global Impact Investing Network’s 2019 research, “there are over 1,340 active impact investing organisations across the world who collectively manage US$502 billion in investments intended to bring about positive change.” Since then, the numbers have risen further. As sustainable businesses lead the way into a better and safer future, both next-gen leaders and investors can integrate sustainability into their strategies and projects.

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About the Author

Peter Lorange, after having sold his shipping company in 2006, has been a successful entrepreneur and owner of a highly diversified family office. He has been regarded as one of the world’s foremost business school academics, holding the position of President at IMD, Lausanne for 15 years, as well as several positions on shipping company boards. His entrepreneurial journey spans across key areas such as education, shipping, investments, and pre-dominantly Family Businesses. Peter founded the Lorange Network, a digital learning and networking platform, in 2017. Peter is Norwegian, residing in Küssnacht am Rigi, Switzerland.

5 Ways to Streamline Your Office Costs

May 10, 2021

Running a cost-effective office is one of the easiest ways to cut back on your monthly overheads, which is something all businesses need to do during these strange and unforeseen times. Luckily, there are at least 5 effective ways to streamline your office expenses without compromising on your output.

1. Work Remotely

If this pandemic has taught us anything useful about our working lives it’s that so many of us can do our jobs from home. I strongly suggest drastically cutting your office overheads by working remotely or at least downsizing your office space. With the right equipment and a smaller space, you can successfully run even the largest enterprise. All this pandemic did in this instance is accelerated the shift to working remotely but bear in mind that this is not suited to all types of companies, you will need to use your discretion here.

2. Efficient Equipment

Make sure your office has the correct equipment that your employees need to do their jobs efficiently. Enterprise printers are designed for business workspaces and can be tailored to the needs of your company. This means your employees won’t have to waste time waiting for an inadequate printer to finally finish printing the documents they need, resulting in more time for your team to make you money instead of costing you money. Enterprise printers are simple and easy-to-use solutions that benefit your employees as well as enhance corporate productivity. However choosing the right printer for your office is one of the keys to having a practical office atmosphere. The multifunctional printer can reduce waiting time for employees and it will be used for more important tasks. It can be used not only as a copier but also as a scanner and fax machine too.

3. Paperless Solutions

Running a completely paperless operation is a costly exercise but there are ways that you can greatly reduce your paper consumption by investing in smarter technology. Scanning documents to a cloud-based server will not only reduce your printing costs but will also result in all of your important documents being in one convenient location that everyone can readily access. Going semi-paperless is cost-effective and kinder to the environment so it’s good for your pocket as well as your conscience.

4. Cut the Junk

Supplying junk food for your employees is not only bad for their bodies but it is also bad for your bottom line. Consider supplying cheaper, healthier alternatives like popcorn and nuts. This change will likely result in some unhappy campers for a while but they will ultimately end up thanking you. Companies waste hundreds of thousands of dollars each year by supplying sugary foods that often make their employees sick and lethargic.

5. Hire Interns

Interns are often grossly overlooked during the hiring process when they shouldn’t be. Having a young, energetic staff member is a blessing and you should consider hiring a few. Interns are more than willing to work for less money just to gain some much-needed corporate experience. Don’t take this as an excuse to pay them peanuts, but they do earn substantially less than an experienced worker would. Keep in mind that hiring an intern is a give and take scenario – you get to pay them less but in return, you need to provide them with valuable working experience so they can climb the ranks at a later stage.

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Understanding The Most Common Driving Behaviors and Why Avoid Them

May 8, 2021

Way back in the 1980s and before, most people enjoyed driving. Owning a car was a privilege that not everyone could afford. Your vehicle was a part of you, and you treated it as such.

The people and the cars around you seemed to respect one another. It was a safer time to be a driver. Vehicles were cared for deeply, and America took pride in the way they were driven.

In the early 1990s, the term “aggressive driving” came to the forefront of traffic safety concerns. The world got itself in a hurry. No longer did vehicles brake to let people in or slow down for yellow lights. People forgot how to respect the road and those who share it. This is not to say that aggressive driving did not exist until the 1990s; it most likely has existed since the onset of motor vehicle travel, but it did not become an overwhelming issue until then.

Arizona is one of only 11 states to have specific laws targeting aggressive driving. These laws define aggressive driving as speeding and at least two of the following: failure to obey a traffic control device, passing on the right out of regular lanes of traffic, unsafe lane change, following too closely, failure to yield right-of-way and is an immediate hazard to another person or vehicle. The GOHS devotes funding to law enforcement agencies to combat aggressive driving through overtime, unmarked enforcement vehicles, and speed-detection equipment. In Arizona, aggressive driving is a Class 1 Misdemeanor, With up to 6 months jail, three years probation, $4,575 in fines, and the potential suspension of your driver’s license, aggressive driving is more than just a traffic ticket. If you got involved in a car crash and the potential reason is aggressive drivers on the road, you´ll need help and advice from the best car accident lawyers in Phoenix.

Today, aggressive driving is the most significant issue on the roads. According to the AAA, 51% of drivers purposely tailgated last year. That’s over 100 million drivers going out of their way to drive aggressively.

American drivers are worse than they have ever been, and the statistics are overwhelming. Other behaviors such as yelling at drivers, honking out of spite, making obscene gestures, blocking vehicles from changing lanes, speeding, and cutting people off have also set record numbers.

The leading cause of the rise in anger and aggression can be attributed to the number of drivers on the road. Every year, there are more people on the road than the previous. In 2018, there were 228 million drivers in the nation. In 1990, there were 167 million drivers. In under 30 years, there was an increase of 61 million drivers.

Congestion of roadways is obviously a huge factor, but the NHTSA says 66% of traffic fatalities are caused by aggressive driving. The statistics are alarmingly high, but still, every day, people continue to drive aggressively.

To help you combat that issue, here are the most common behaviors aggressive drivers exhibit and how to avoid them.

Tailgating

Another typical aggressive driving behavior that usually stems from traffic is tailgating. Tailgating is when someone is extremely close to the rear of your vehicle. Aggressive drivers do this to “push” the driver ahead of them into changing lanes or speeding up.

It is a dangerous habit that can result in a severe auto accident. The following distance between vehicles should always be at least a car length. The higher speed you go, the farther back you should stay from the driver in front of you.

Far too often, people tailgate because they believe they will get to where they need to be faster. Usually, this is not the case at all, and you’re only making the people around you angry. The Insurance Information Institute says it takes a vehicle traveling at 60 mph a minimum of 240 feet to come to a safe stop. Many variables make this change, but if you’re tailgating a driver that needs to stop suddenly, you will not have the reaction time to stop.

To avoid tailgaters, simply let them pass you. It is not worth the accident or the headache of dealing with angry people.

Overspeeding

Speeding is the most noticeable aggressive driving behavior. It is involved with nearly a third of all motor vehicle fatalities. Speed limits around the country vary; the majority of interstates have 75-80 mph limits, while most roads have 45-55 mph limits. The overall speed limits of roads have gotten far higher in the past decades. Some believe this to be the main factor in the increase in speeders. However, even if the speed limits did decrease, people’s behavior most likely would not.

Speeding is the most common form of aggressive driving, and it can be seen every time you get in your vehicle. Traffic congestion is an apparent contributor to the issue; admittedly, going 15 mph in stop and go traffic for an hour is frustrating, but that is the price we pay for the number of drivers on the road. It is also not a good reason to drive erratically.

Some drivers speed because they are “late” for something, which happens far too often in traffic. To combat the issue, leave earlier for work and try to listen to music or a podcast that you enjoy. Changing your mindset in the vehicle will help you relax and go the speed limit.

Sudden Change of Lane

Arguably, abrupt lane changing is the most dangerous form of aggressive driving. This is true because it involves multiple hostile behaviors. A person who is suddenly switching lanes and weaving in-and-out of traffic are usually also speeding and tailgating drivers. The combination of these behaviors is a deadly mix.

The danger with sudden lane changing is the cars around you who may also be changing lanes. At any point, a sideswipe collision could occur when someone is weaving through traffic. Slowing down and letting these aggressive drivers pass you is the best way to avoid them. Responding to them is the opposite of what you want to do. There is no need to risk your life to prove a point.

Running the Red-Lights

In 2017, 890 people were killed in crashes that involved aggressive drivers running red lights.

Often, those fatalities are pedestrians and drivers who are stopped in traffic. Red-light cameras have put a dent in the number of people who are willing to run lights, but the problem still exists. The issue, again, stems from drivers being in a hurry. Before you get behind the wheel and drive recklessly to get somewhere on time, think of the people (and their families) around you who may be harmed due to your careless actions.

If you know you’re going to be late, give your job/meeting/event a heads-up. Leaving earlier to get to where you need to be is the easiest way to avoid being in a rush.

Blocking

Blocking is much less severe than any other form of aggressive driving. It usually doesn’t involve any other dangerous behaviors, which makes it less frequent to cause severe accidents. Yet still, it is not safe driving practice. Blocking people from getting into traffic, changing lanes, or exiting off interstates will only create more problems. Letting a car in here and there will not make you late to where you need to be. Be kind and let people in, even if they aren’t the best drivers.

A Petition to Calm Down

A simple way to combat aggressive driving is by taking a breath and calming yourself down. Anger is an emotion that everyone experiences; some just handle it in better ways. Life can be demanding at times, but taking anger out on other drivers is not the answer. Sometimes the best thing to do is release it before you get on the road.

We’ve established that being in a rush will result in something dangerous. Know that traffic is going to happen, especially if you live in a large metro area. Don’t let the things around you affect the safety of your driving. Next time you feel yourself getting angry on the road, turn on your favorite song, and take a few breaths. Don’t let your emotions get the best of you, and you’ll get to where you need to be safe and sound.

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About the Author

Jason M. Ferguson, the founder of Ferguson Law Group, started his career working for an automobile insurance company as a trial attorney before owning his injury law firm for over 20 years. Attorney Ferguson has a unique experience, having tried cases on both sides of the court system in personal injury trials, unlike many other lawyers. Mr. Ferguson also served over 14 years as an Army Reserve officer and the Georgia Air National Guard. The Albany Herald recognized him as one of southwest Georgia’s “40 under 40” in 2010.

The Immediate Steps You Can Take When Your Property Gets Foreclosed

May 8, 2021

Buying our first home is the biggest dream for the majority of individuals. This is a difficult process in the current times, considering the high costs and expenses involved in this as well as the legalities of the process. Although when you get the keys to your place you instantly feel like the work is over and concerns are over, being able to maintain the mortgage payments can be an issue. Life changes and so does our financial situation, most times without warning.

No matter what your financial situation is and what is causing your monetary issues, once you stop making the payments, you risk facing foreclosure. Foreclosure is the legal process in which a lender takes possession of the property and sells it to use it as collateral for the payments. In this article, we will discuss the immediate steps you can take when your property gets foreclosed.

Understand What is Happening and Know Your Rights

A foreclosure is an overwhelming event and it can bring out many negative emotions for you and your loved ones. Evidently, the possibility of losing your home is distressing and it involves planning for an unknown future. People in this situation often focus on the emotional aspects of the situation and forget to think carefully about what is going on. Make sure that you understand the process clearly so that you know your rights when it comes to foreclosure. Start by reading your mortgage documents and learn about the foreclosure laws so that you understand what is in your lender’s power in case you fail to make payments.

“The laws regarding foreclosure varies from country-to-country but it’s worth noting that lenders (who are the first to initiate the process) are often reluctant to initiate the process. Repossession (as it’s called here in the UK) is often a last resort as mortgage companies realise the real costs of undertaking the process are more expensive than working with the borrower to come to a solution,” comments Ruban Selvanayagam of the Property Solvers Auction House.

Do Not Ignore The Problem

One of the biggest mistakes for many people is to ignore the problems when they are first faced with it. It is in human nature to avoid anything that does not make us feel positive. You need to act as soon as you receive a notice about foreclosure or a warning, to avoid bigger problems. This will also enable you to start taking action against the foreclosure and avoid your property being taken away from you.

Seek Legal Guidance

As soon as you receive a warning or a foreclosure notice, it is pivotal to seek guidance from a legal expert. You may think this is not necessary as once you receive a notice, there is nothing you can do for your property.

However, this is not true. Whether you are at the beginning of the process or already fighting a foreclosure case, legal experts can support you and fight for your case. You must consult with an attorney in your local area; for example, if you live in Florida, then consulting with Florida foreclosure defence lawyers is a smart move because different areas will have different guidelines and laws when it comes to property. Doing this will increase your chances of resolving this issue so you do not lose your home.

Call Your Lender

As soon as you are aware of the problem, contact your lender. More often than not, lenders do not want to take your home and they will happily discuss your options with you. As mentioned above, you must not ignore the issue at hand and take action as soon as you can so that you prevent bigger problems. Lenders can provide you with alternatives to help you meet your payments and avoid repossession of your home.

Consider Filing for Bankruptcy

One of the most common (and effective!) ways to prevent foreclosure is to file for bankruptcy. When you do this, the law states an ‘automatic stay’, which stops creditors from starting any efforts to collect debts against you or your home until the matter is resolved. Although this option will release some of the stress and worries about losing your home, it will also have a long-lasting impact on your credit and financial health. You must carefully think about this and consult with a legal expert before going with this option. An attorney will be able to advise whether this is the right option for you.

Review Your Finances

Foreclosure is usually the result of failure to maintain the payments of the home as agreed. In the majority of cases, this is due to financial difficulties or a failure to budget appropriately. Even if you have successfully filed for bankruptcy, you will still need the money to make the payments that have been missed and any future ones. Make sure to review your finances carefully and put your mortgage at the top of the list of priorities.

Facing a potential foreclosure can be devastating, but you must not let this affect you to the point you do nothing about the situation. Make sure to follow the immediate steps discussed above that you can take when your property gets foreclosed, to prevent this from happening.

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Are the Services of A Public Adjuster Essential?

May 7, 2021

A lot of people will usually start an insurance claim by calling their insurance provider and providing all necessary details. Their next move, in certain situations, may be to contact a private insurance adjuster. Unlike the company-assigned adjuster, the private adjuster operates with you, the policyholder. Given that the insurance adjuster is ultimately responsible for determining the cost of the damage, it might be beneficial to have an experienced advocate by your side. The majority of residents are unaware of the role of a public adjuster and will be unaware of whether to hire one after a deficit.

Types Of Insurance Policy Adjusters That You May Work With

The insurance claims adjuster is likely to be the specialist with which you can interact the most in the insurance claim phase. Insurance compensation adjusters are classified into three distinct categories.

The first, and most familiar to the majority of policyholders, is a business adjuster—alternatively referred to as a personnel adjuster. They work with insurance companies. This is the kind of insurance claims adjuster for which the majority of customers can work with their insurance claims.

The second kind is a third-party agent hired by the insurance company known as an independent adjuster who works in managing the claim on their behalf. Occasionally, while an insurance provider is dealing with a high volume of outstanding claims—for example, after a natural disaster—it may not have an adequate number of in-house adjusters to meet demand. The provider will contract with credible and accredited independent adjusters located outside of the impacted region to handle policyholder allegations.

The third kind is an adjuster who devotes his cause to the policyholder, and he or she is referred to as a public adjuster. The public adjuster is another professional and impartial insurance adjuster who is employed by the policyholder and works on their behalf in the appeals process.

Many states mandate that these public adjusters must be certified. Certain states, however, really don’t need this procedure. Consult the state’s insurance commissioner or the National Association of Insurance Commissioners (NAIC) for particulars.

Filing an Insurance Claim With a Public Adjuster

When you suffer damages to your house or vehicle, or your property is thieved, you can find yourself in need of filing an insurance claim. When an insurance report is filed, then it is advisable to hire an experienced public adjuster like allcityadjusting.com who analyzes the loss to determine what best can be collected from claimed amount.

Although making an insurance claim may be time-consuming which can result in potential insurance premium increases, when it comes to auto crashes or natural disasters, the majority of insurance policyholders may opt to make a claim and incur the penalty rather than shoulder the whole financial risk of the damage themselves.

Utilizing The Services of A Public Adjuster

There are still a lot of individuals that prefer to not hire a public insurance adjuster and their insurance provider offers one as part of the policy’s incentives. Additionally, they might be unaware that certain facilities are accessible to them. If you appoint a public adjuster, include them as much as practicable in the claims phase. Although the company will have to provide an adjuster, it pays if the public adjuster communicates with them throughout the initial fact-finding period.

Due to their rates, public insurance adjusters save you money. Each adjuster would have a fee plan outlining their base and additional fees. The majority, on the other hand, would bill a proportion of the gross settlement number.

In comparison, adjusters assigned by insurance providers are usually employed by the insurer or owe their payments to the agency if they are working as private contractors.

Justifications for Hiring Public Adjusters

Numerous explanations exist for why certain policyholders prefer to employ their own public adjuster. In situations where substantial or complete damage claims are possible, the public adjuster can assist the policyholder in obtaining a greater amount to restore or reconstruct the land.

When an individual believes their company’s designated insurance adjuster is not acting in their best interest, or when there are disagreements about the premium determination that have not been settled by the provider, having a public insurance adjuster is a viable alternative for obtaining a second opinion and attempting to secure a favorable claim payout.

Occasionally, the policyholder feels as if the company’s adjuster is not dealing with them effectively. They may be in conflict with the business adjuster’s decision—for example, they believe the adjuster did not do a thorough analysis of the lawsuit or that penalties were overlooked.

Certain policies, especially commercial policies, may be complicated. A municipal insurance adjuster assists the policyholder in comprehending these complicated records. They would review the costs of repairing or replacing buildings or their contents, as well as any company expenses lost.

Additionally, someone can employ a public insurance adjuster solely to avoid having to deal with the claims process. The adjuster may finalize and log the lawsuit, as well as discuss a resolution.

Can The Services of The Insurance Provider’s Adjuster Be Enough?

Although hiring your personal public insurance adjuster will seem ideal, it is not always essential. Insurance is controlled, and if you’re really unsure about what is or is not insured, you can still contact the insurance agent for guidance and assistance.

Insurance firms operate diligently to adjust claims because that is their responsibility to do so equally. The grounds for coverage or denial should be explicitly stated in the policy language and insurance plan and should be dependent on the policy’s limitations.

Under today’s dynamic environment, you may often obtain assistance by contacting your representative. If you have difficulties, request to meet with superiors at the insurance agency as this can assist in resolving the situation.

If you continue to have concerns with how the claim is being treated, you may seek assistance from the state insurance commissioner’s office or the insurance company’s ombudsman.

It can still be good to begin by observing how the insurance provider’s claims procedure works as well as their company adjuster. There are still so many highly qualified and ethical insurance adjusters employed with insurance agencies who can handle the policyholder’s insurance claim almost as well as a paid public adjuster could. Ultimately, it is you who will decide on what will be best for you and how you want your insurance claims to be handled, so better if you can assess both sides properly.

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How Employers Can Support the Forgotten 55s

May 7, 2021

By Steve Butler

Supporting older workers has never been more important. The pandemic has had a big impact on us all, but some mid-career employees have been forced to rethink plans and, in some cases, delay retirement.

A YouGov poll published the end of last year highlighted that 13% of over 55s are planning to delay their retirement due to the impact of the virus, while 52% of all UK adults are concerned that they won’t afford their current lifestyle^[i].

Other data from the English Longitudinal Study of Ageing[ii] (ELSA) which surveyed over 6000 workers aged 50-plus, showed one in eight (13%) have changed their retirement plans because of covid, with 8% planning to retire later and 5% planning to retire earlier.

Older people have also been disproportionately bearing the brunt of redundancy. Analysis of Office for National Statistics (ONS) data by over 50s web site Rest Less^[iii] found the number of jobless over 50 has increased by a third in a year.

They found a significant minority of more mature people working before the crisis have now retired: 6% of those aged 66–70 and 11% of those aged 71 and older. Some may have planned it this way, but over half had not intended to. Had the coronavirus caused them to do so?

Other factors influencing this decision could be the impact of stock market fluctuations, declining annuity rates and low interest rates.

It is becoming increasingly clear that businesses will need to do much more to support older employees to ensure they are as financially prepared as possible to retire.

The forgotten 55s

Our own research shines a light on the lack of support there currently is in the workplace.

Last year we surveyed[iv] more than 300 businesses on their approach to financial wellbeing and found 61% do not provide any pre-retirement or financial guidance to employees approaching the age when they can access their pension pots (55+) – leaving many in the dark when it comes to planning their financial future.

This is despite the fact eight out of ten employers said their company and people would benefit from being better informed about all things financial; and retirement planning topping the list of what employers believe would be most valuable to their staff.

A lack of financial advice and neglecting this cohort of workers could lead to poor financial decisions which could also put people’s retirement plans into jeopardy.

Data from the Financial Conduct Authority (FCA) [v] published in October last year suggested that tens of thousands of savers with large pensions are making withdrawals at such rapid rates that they risk running out of cash in retirement. The 2015 pension freedom reforms made it easier for people to withdraw cash from defined contribution schemes and with no caveat in place to insist on people taking financial advice first, employers have an opportunity to step in and plug the advice gap.

With one in three of employees forecast to be over 50 by 2025, this is a large section that employers should not ignore.

Strategies to support older employees

We also recommend employers carry out ‘Midlife Reviews’ – formal discussions with staff who are at a mid-point to consider the rest of their working life.

These focus on career, wealth, pension plans and health and help ensure people can continue contributing as much as possible, for as long as possible.

They are designed to help employees gain a clear perspective on what they want from their future, but might not have thought through, and for employers to safeguard their business and not lose key people who they have invested in over the years and who still have much to offer.

From a financial perspective, discussions could involve looking at whether colleagues have enough money to make their pre-retirement lifestyle aims possible, for example working fewer hours ahead of stopping altogether, while ensuring there is enough money in the bank to do so.

Financial advice should be offered to help staff understand their pension options and the impact that drawdown – taking money out of their pot may have on their future income. This can help them avoid taking unnecessary risks with their nest egg.

At a time when there is so much uncertainty, offering financial and career support is something most older workers will find enormously valuable.

To enable employers to provide financial support for their workforce, Punter Southall Aspire has launched ‘Aspire to Retire,’ a technology platform to help staff plan their retirement with more knowledge to hand. It offers them interactive tools, helpful resources, videos, communications, and articles to help people visualize – and plan – for the kind of retirement they desire.

For more information visit: www.psaspire.com

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About the Author

Steve Butler is CEO of Punter Southall Aspire, a UK workplace pensions and finance planning business specialising in retirement services.

References

[i] https://www.personneltoday.com/hr/pandemic-retirement-pension-plans/#:~:text=This%20is%20according%20to%20a,to%20afford%20their%20current%20lifestyle.
[ii] Microsoft Word – ELSA_Wave9_FINAL (filesusr.com)
[iii] https://restless.co.uk/press/the-number-of-unemployed-over-50s-has-increased-by-33-in-just-a-year/
[iv] https://stories.puntersouthall.com/story/financial-wellbeing-2020-survey/
[v] https://moneyweek.com/personal-finance/pensions/602109/dont-overdo-pensions-drawdown

Price Volatility of Digital Currencies Cripples Blockchain Development

May 7, 2021

As blockchain becomes increasingly popular as a technology that is needed for the future digital economy, many businesses worldwide are looking into building their own blockchain-based platforms to bring down costs in transaction fees through a tokenized payment system, create universal databases and streamline various processes that provide transparency and security. However, the volatile nature of popular digital currencies, such as Bitcoin Core (BTC), is hindering blockchain development.

“So, when we talk to businesses, we don’t even mention about Bitcoin or Ethereum or anything like that. We are just talking about blockchain technology. And we really, really have to be careful at what time we are mentioning Bitcoin and that we have first described everything—the possibilities and the good thing with blockchain—and then we can say, ‘But we are using the real original Bitcoin blockchain not BTC,’” Stephan Nilsson, founder and CEO of the Norway-based enterprise blockchain platform UNISOT, said.

“The price volatility is a huge distraction and my focus is always on the application of the technology. But having said that, I think there are still a lot of people who don’t actually understand the difference between blockchain and cryptocurrencies. Sometimes they can confuse the two, and the reason I say that is because I was one of those people right at the start of my journey. I didn’t know what the difference was. But once you do understand the difference, you do understand that blockchain is actually a technology, it’s an application, it’s a different way of doing something. And in my opinion, it’s a far more trustworthy and efficient way to do a process that’s already existing,” Sukhi Jutla, co-founder and CEO of UK-based online jewelry platform MarketOrders, added.

Nilsson, an experienced blockchain developer who has successfully revolutionized the seafood supply chain, advises Jutla, a blockchain believer hoping to improve her own jewelry supply chain. Jutla is planning to create a tokenized payment system to avoid the high transaction fees her company is incurring because of the many third parties in the supply chain. She also hopes to create a system that will make RFIDs communicate with the blockchain to better track her high-value products and provide transparency to the system. This kind of blockchain development will certainly transform the jewelry industry for the better.

However, the reputation of BTC as being volatile leads businesses and investors to believe that blockchain technology is also unstable, making it hard for developers like Nilsson to propagate blockchain adoption.

“For my part, when I go our to customers, it’s hindering me because the only thing they’ve seen and know about Bitcoin is the price [going] up and down. And then they say, ‘Oh, we cannot use that thing because it’s so unstable,’ and so on,” Nilsson shared.

Hence, there is a need to educate people about how to delineate between digital currencies and blockchain technology, as well as which blockchain is truly stable and sustainable. For one, it is a fact that the BTC blockchain is unusable because it is not scalable—meaning it cannot handle a huge volume of transactions and has expensive transaction fees, defeating the entire purpose of using blockchain technology. According to Nilsson, Bitcoin SV is currently the only blockchain in production that meets all her needs—not BTC and not Ethereum, which are both unscalable.

There is a lot of misinformation about blockchain technology, and the only solution for those interested in adopting it for their businesses is to read more and speak to experienced blockchain developers before making a decision. Nilsson also suggests watching the Theory of Bitcoin episodes as they provide crucial knowledge directly from Bitcoin creator Dr. Craig S. Wright.

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Pre-IPO Investing Guide: 7 Ways to Invest in Tech Startup pre-IPO

May 7, 2021

The biggest companies in the country, with current market valuations above $1 trillion, all share one thing in common: they are all tech startups. This is perhaps one of the most crucial reasons why experienced investors are looking for future pre-IPO technology startups.

Given the ever-changing nature of technology and its clear argument for significant financial benefit, it is not shocking that tech startups are springing up left and right during this time, and this trend is surely going to produce multi-million dollar worth companies in the future.

For these same reasons, these high-growth firms are excellent investment prospects, and investing in a pre-IPO technology startup is an even better decision that can yield many benefits. Before we get into the intricacies that define how we can invest in a startup, let’s understand what exactly is a pre-IPO startup.

What is a pre-IPO Tech Startup?

Pre-IPO stands for “pre-initial public offering. This is the point at which the founders of the company sell shares of their technology startup before they are listed for trade on the stock exchange. Investing in the early stages of a startup empowers the founders to obtain more funds for operational and business expansion purposes.

If early investments sound too risky for a certain set of investors, they may choose to invest in pre-IPO proposals in the second or third round of fundraising. This approach enables investors to have a better understanding of the marketability of the (tech) startup in question. Now that we are acquainted with the intricacies of the pre-IPO concept, let’s have a look at 7 ways through which investors can pour in funds in a pre-IPO tech startup.

7 Ways to Invest in Pre-IPO Tech Startup

Although there is risk in investing in pre-IPO tech companies – just as there is in the stock market – the perceived benefits outweigh the possible risks, especially in the industry that dominates the business world and has broken the trillion-dollar barrier. That being said, here are the 7 ways through which you can invest in pre-IPO technology startups.

1. Look out for pre-IPO tech startups

Banking establishments, lending companies, and accounting firms usually have a pre-existing clientele of early age startups who are looking for early age investors. These entities can help investors in identifying potential investment opportunities.

If you are a seasoned investor, you can also get in touch with your stockbroker or investment consultant who can help you in investing in early-age tech startups. Also, there are trading and broking companies that specialize in identifying pre-IPO tech startups and assisting investors in putting their money on the right bet.

2. Establish a robust business network

When you intend to invest in pre-IPO technology startups, sophisticated market connections are integral. These market connections can connect you with leaders of the industry and, subsequently, lucrative investment opportunities in the near future. Startup incubators and accelerators are excellent channels for your investment in high-performance tech companies and for participating.

Established startup projects from major companies such as Y Combinator and Quest Ventures have paved the way for growth for some of the largest technological names, such as Airbnb and Dropbox, and have an excellent track record of generating immense value for the investors.

Also, if you’re part of these business networks, you might hear something before others regarding companies moving towards an IPO. There is often a lot of rumor in the stock market. A prime example can be seen with the suspected redwood materials IPO that has been talked about endlessly ever since the CEO said he wouldn’t rule out going public. If you were part of the right network you might be able to get a jump on the IPO planning or, indeed, realize that it’s something that will never happen and instead look to purchase the stock privately.

3. Analyse the startup directories

When you decide to invest in pre-IPO technology startups, analysing startup directories is extremely worthwhile. In addition to the opportunity for identifying new cutting-edge startups, these directories can often help you to witness first-hand how well the goods and services provided by the startup are received by customers.

Of course, a few startup directories are less reputable than others and, as a result, technology entrepreneurs become less reliable and less reliable by their association with them. With that being said, investors need to perform their due diligence to analyse tech startups that are listed on reputable startup directories such as Crunchbase, ProductHunt, and similar.

4. Leverage crowd-funding platforms and secondary markets

Crowd-funding platforms such as AngelList, Republic, and Webull, along with secondary markets provide a transparent picture behind the intricacies and the processes of a pre-IPO placement to potential investors.

Pre-IPO investors can also analyse market news and other relevant information regarding a startup that is underway going public. Additionally, investors can also reach out to the founders directly to offer financial incentives in exchange for the shares in their company.

5. Attend startup pitching events

Startup pitching contests are crucial for early-age startups to secure valuable investments from seasoned industry veterans or established market players. These pitching competitions provide the investors with the opportunity to get a brief idea regarding the startup in which they want to invest.

Moreover, investors also get a brief idea about the business plan, go-to-market strategy, revenue models, risks, and an analysis of the target audience during such events. Attending these events is perhaps one of the most enticing investment avenues for an investor looking to invest in early age startups.

6. Become an angel investor

With the right approach and appropriate planning measures, becoming an angel investor has become a relatively simple endeavour. And once the investments of an angel investor go public, they stand to reap tremendous benefits. If you are already in the circles of accredited angel investors, the path to becoming an accredited angel investor becomes relatively smooth.

Only accredited angel investors are allowed to participate in pre-IPO or security offerings. Angel investors also need to specify the percentage of their portfolio that constitutes angel investments. This is crucial as angel investing reaps the rewards in the long term when the startup reaches its potential.

7. Look out for a syndicated angel list

A syndicated Angel List represents a realistic way for investors to reach other like-minded angel investors and raise the capital required to promote a certain pre-IPO technology startup. In strict contrast to venture capital (VC) firms who pour in millions of dollars in the hopes for a higher ROI, syndicated angel list investors usually cap their investments (usually a few thousand dollars) which makes it sensible for the startup community.

One of the advantages of being a unionized angel is that you are not a single investor. Therefore, you have to do less paperwork. Building a tech venture alliance raises your visibility as an angel investor with other firms you have invested in. These founders will then refer you to other pre-IPO tech startups, which might meet your requirements. Through this approach, you will also discover the startups with the greatest potential for success.

Conclusion

Pre-IPO technology startup investments definitely pay off financially. But still, there is some kind of risk involved, just as with any other investment avenue. You must take the time to examine viable opportunities to find the best pre-IPO technology startup. Furthermore, this investment approach will allow you to remain at a pace, so you don’t invest too much too early.

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