Comment by whataretensors
9 years ago
A better thing to do would be to campaign the SEC to remove the accredited investor regulation so that we can choose what we want to invest in, instead of forcing us all into this America bucket while the rich and connected get first pick on every opportunity.
I'm tired of sitting back and seeing companies that I liked but couldn't invest in become > 500m market cap successes. If I spent 4 years at one of these companies I could get _common_ stock, but I can't spend 1k to buy some preferred stock.
The whole startup system is rigged. People are going to start realizing it.
Why do you think these companies want your $1k? There's an absurd amount of capital floating around as it is.
That already happened, though, didn't it? JOBS Act III?
It did not. No company I know of seriously implements it. I'm consulting for a startup now. I suggested they implement it and got laughed at.
Enough do that you can build a solid portfolio of startups. https://wefunder.com/ (YC W2013) has many to choose from, and they make the mechanics of investing easy (it is a substantial amount of work if you invest directly).
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Sure, but that's not because of the SEC, is it?
This would have more of a case if the average American were already maxing out on equities allowed by the SEC (and in more than just retirement accounts).
It also seems to give much more credence to luck than statistical evidence (Random Walk) that diverse passive investments outperform active investments, especially when accounting for costs.