Question
I recently invested a five digit sum and it turned out to be one of the worst deals I ever made. I'm not a classical investor or VC and currently I don't have a lot of money to invest, but I really want to learn how investors/VCs think and act.
This would help to avoid investing hard-earned money in junk projects and also to learn how great business opportunities can be identified, whether that is in the startup scene or in other avenues.
I want to learn the metrics of investing into businesses and how to separate "wheat from chaff". I realize this platform is more for helping entrepreneurs, but apparently there are some people in here who are both, i.e. entrepreneurs and investors.
So what is the best way to learn the art of investing in businesses? How do you become an investor? How do investors spot and analyze business opportunities? Any tips? Any books or websites out there?
Answer
Hi. Since your question is quite broad its difficult to give specific advice. however dont let the fact that you made one bad decision demotivate you. The main factors when considering investments are broadly; 1. Type of investment 2. Risk to reward ratios 3. Financial performance of the company/asset you are considering investing in. 4. Sustainability of the investment etc. As i said earlier its a bit of a broad based question so quite hard to give a specific answer. However with sound advice and fact based investment decisions its quite safe to assume that you could make safe and secure investments in many markets around the globe. I would like to discuss this with you further to understand your situation and expectations in order to provide more specific advice. Regards
