When it comes to investing/trading there seems to be two camps.
- Huge risk for potential huge rewards. Ideas, startups, venture capital. Where a small investment can grow to millions. Or even an idea can make the creator billions (Facebook, etc)
- Smaller risks for almost sure gains but those gains are not as big. Investing in already established companies for expansion capital. Here you are talking about an almost sure thing as the company is established and simply wants to expand. But those gains will probably not be in the 10,000%+ ranges.
Retail seems to like option 1
The smart investors, the Ultra wealthy, whilst dabbling lightly in option 1, focus in option 2.
Think of it like a casino. You have the punters, the addicts, the desperate, the fun seekers chasing high odds for the chance of a big win.
Then you have the casino owners. The ones behind the business. Knowing it’s a pure numbers game and sure profits. And they have an exit plan. They can operate the business for a number of years and exit in the form of a private or public sale.
You need to shift away from option one into option two. Be it investing in private companies or trading US equities. Focus on almost sure things.