Want to trounce the stock market by 916% (or more) over the next year?
If so, I’ve got some advice for you:
Don’t invest in the stock market!
After all, if you invest like everyone else does, your returns will be average.
And who can afford to earn average returns? Especially when the stock market returns an average of just 6% per year.
At that rate, you might have to wait 50 years before you have enough to retire.
In order to do better than average — in order to beat the market by 916% (or more) — you need to look outside the market.
More specifically, you need to look at private equity.
The Most Profitable Investments of All Time
If you’re a longtime Crowdability reader, you know we’re not big fans of the stock market.
That’s because the biggest returns come from elsewhere:
They come from early-stage private investments.
For example, Google’s early private investors earned 3,000% on IPO day...
Facebook’s first investor pocketed 200,000% when the company went public…
And on average, a portfolio of private investments has historically returned 55% per year — to put that in perspective, that’s 916% higher than the stock market average.
There are extraordinary gains to be made in this market. However, until recently, these gains have been reserved for a small group of “insiders” — the professional investors known as venture capitalists, or VCs for short.
VCs are some of the wealthiest investors in the world.
And today, I’m going to introduce you to one of them… look at some of his most profitable investments....and show you how they’ve turned him into a billionaire.
And finally, I’ll show why his success is GREAT news for you!
“The Midas List”
Each year, Forbes Magazine publishes its “Midas List.”
Like old King Midas, the investors on this list supposedly have the gift of turning everything they touch into gold... in a proverbial sense, at least.
The folks on the Midas List are the top VCs in the country.
They’ve used their knowledge about technology and early-stage investing to turn tiny investments into millions — and sometimes billions — of dollars.
Take Chris Sacca as an example...
Chris is a VC. But he doesn’t live in a tech epicenter like Silicon Valley. Instead, he lives near Venice Beach in Los Angeles, California, and he spends a good part of his day just biking on the boardwalk.
But Chris is no beach bum. He proved himself to be an astute investor by investing in a series of early-stage deals that became massive home runs.
For example, he backed Twitter and Instagram when they were just tiny startups.
Twitter went on to become a multi-billion dollar publicly traded company…
And Instagram was taken over by Facebook for $1 billion just two years after it launched.
Through his venture fund, he also owns multi-billion-dollar stakes in other high-flying ventures like Uber and Stripe.
Nine years ago, Sacca was essentially worth nothing. Today, Forbes pegs his net worth at roughly $1.2 billion.
In addition to Sacca, there are roughly 10 other VC billionaires on the Forbes list — and here’s why that’s so important for you...
If They Make Money, Their Investors Make Money
Venture Capitalists don’t invest their own money.
Instead, they raise money from others — generally, ultra-rich individuals and institutions — and they manage that money by investing it.
VCs earn their living by taking a cut of the profits they generate. Generally, they take 20% of the profits. So if they don’t make big money for their investors, they don’t make big money for themselves.
But when they do make money for their investors, they can do extraordinarily well…
For example, in order for Sacca and the 10 other VC billionaires on the Forbes list to be worth $1 billion each, they had to make at least five times that amount — $5 billion — for their investors!
Good News and Bad News
This explains why the ultra-rich love investing in venture capital funds:
They can put up relatively small amounts of money — and watch it turn into a fortune.
Unfortunately, you’ve been left out of this profit bonanza.
For one thing, for the past 83 years, only extremely wealthy investors were legally allowed to invest in venture funds.
But that’s all changed now. Thanks to a new set of laws known as The JOBS Act, for the first time in nearly a century, all investors can now invest in venture capital.
That being said, other hurdles are still keeping you out of this lucrative asset class. For example, the minimum investment to get into one of these funds is generally six to seven figures…
So at a minimum, it’ll cost you at least $100,000 just to get your foot in the door!
Also, because of their stellar performance, getting into these funds is fiercely competitive…
So unless you have a connection to someone on the inside, there’s no way an ordinary individual investor is getting into one of these funds.
Your Chance to Profit Like a Venture Capitalist
Matt and I have been busy working on a special project…
It’s a way for you to get access to a new type of “venture capital fund.”
But with our project, there are no high investment minimums…
And you don’t need any “inside connections.”
We’ll explain more next week — so stay tuned!