Alternative Investments: Pros and Cons
As with any other investment, understand the risks before putting money in the pot.
Successful entrepreneurs--especially those who have sold companies or taken them public--are frequently offered investment opportunities that most investors can only read about in the paper.
And I can't say those alternative investments aren't tempting. After all, who wants to settle for the kind of lukewarm returns that you typically get from putting your money in a large-cap mutual fund when you can invest your money in a fund that may produce the next Google or Microsoft? And why should you sit in the bleachers with the other retail investors when you can put your money in private equity deals alongside pension funds and university endowments that have the inside track?
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