Browse Tag

investing

4 mins read

Alternative Investments 101: An Overview of Real Estate, Private Equity, and More

Alternative investments are a popular way for investors to diversify their portfolios and potentially earn higher returns. These types of investments are not the typical stocks, bonds, and cash, but rather a range of other assets that offer the potential for higher returns and lower volatility.

Real Estate

Real estate is one of the most popular alternative investments and can take many forms, including residential properties, commercial properties, and real estate investment trusts (REITs). Investing in real estate allows investors to earn income through rent and capital appreciation. Furthermore, real estate can provide diversification benefits as it doesn’t always move in sync with the stock market.

Private Equity

Private equity funds invest in private companies, typically with the goal of taking the company public or selling it to another company. These investments can provide significant returns, but they also come with a higher level of risk. Private equity is only available to accredited investors and institutional investors.

Hedge Funds

Hedge funds use a variety of investment strategies to generate returns that are not closely correlated with the overall stock market. These strategies can include short selling, leverage, and derivatives. Hedge funds are only available to accredited investors and institutional investors, and they typically have higher investment minimums and management fees than traditional mutual funds.

Commodities

Commodities are raw materials that are used in the production of goods and services. Investing in commodities can provide diversification benefits and the potential for higher returns. Commodities can be traded through futures contracts, commodity ETFs, and commodity-focused mutual funds.

Art, Collectibles

Investing in rare and valuable art, antiques, and other collectible items can be a great way to diversify a portfolio. The value of these items can appreciate over time and they can also provide enjoyment while they’re held. Investing in art, and collectibles can be difficult, as it requires knowledge and expertise to accurately value the items.

Venture Capital

Venture capital funds invest in start-ups or early-stage companies with high growth potential. These investments can provide significant returns, but they also come with a higher level of risk. Venture capital funds are typically only available to accredited investors and institutional investors.

Infrastructure

Investing in infrastructure projects such as roads, bridges, airports, and other public assets can provide a steady stream of income through tolls, fees, and rentals. Infrastructure investments also provide long-term growth potential as the economy grows and the infrastructure assets become more valuable.

Private Debt

Investing in loans made to companies or individuals, such as real estate loans or small business loans, can provide a steady stream of income through interest payments. Private debt investments can also provide diversification benefits as the returns are not closely tied to the stock market.

Alternative investments can provide diversification and the potential for higher returns. However, it’s important to note that they also come with a higher level of risk, and they may only be available to accredited investors and institutional investors. It’s also crucial to do your research and understand the investment before putting your money into it.

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4 mins read

10 Proven Strategies for Building Wealth and Achieving Financial Independence

Building wealth and achieving financial independence are two of the most important goals that anyone can set for themselves.

Whether you’re just starting out in your career or you’re well into your working years, there are a variety of strategies that you can use to build wealth and secure your financial future.

Here are 10 proven strategies for building wealth and achieving financial independence:

1. Start by setting clear financial goals

Before you can start building wealth, you need to know exactly what you’re working towards. Whether you want to save for a down payment on a house, build an emergency fund, or retire early, setting clear financial goals will help you stay focused and motivated.

2. Create a budget and stick to it

One of the most important steps in building wealth is learning to live within your means. By creating a budget and sticking to it, you’ll be able to save more money and invest more of your income.

3. Invest in your education and career

Investing in your education and career is one of the best ways to increase your earning potential over the long term. Whether you’re pursuing a higher degree or taking a class to develop a new skill, investing in yourself is an important step towards building wealth.

4. Start saving and investing early

The earlier you start saving and investing, the more time your money has to grow. Even small amounts of money invested early can grow into substantial sums over time.

5. Diversify your investments

Diversifying your investments is one of the most important steps you can take to minimize risk and maximize returns. By spreading your money across a variety of different investments, you can reduce the impact of any one investment that may not perform well.

6. Take advantage of tax-advantaged accounts

Tax-advantaged accounts like 401(k)s and IRAs can help you save money on taxes and grow your wealth more quickly. Be sure to take full advantage of these accounts and contribute as much as you can.

7. Be mindful of fees and expenses

High fees and expenses can eat away at your returns over time. Be mindful of the fees and expenses associated with your investments and try to minimize them as much as possible.

8. Stay informed and keep learning

Building wealth is an ongoing process that requires a commitment to learning and staying informed about the markets and the economy. Stay informed by reading financial news and books, and consulting with financial experts.

9. Take calculated risks

Building wealth often involves taking calculated risks. Carefully evaluate the potential risks and rewards of any investment before you make a decision.

10. Stay disciplined

Building wealth is a marathon, not a sprint. Stay disciplined and don’t let short-term setbacks discourage you. Remember, building wealth takes time and patience, but with a solid plan and the right mindset, you can achieve your financial goals.

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2 mins read

5 Exit Strategies For Angel Investors

Exit strategies for angel investors refer to the methods by which an angel investor can sell their stake in a startup company and realize a return on their investment.

There are several common exit strategies for angel investors, including:

1. Initial Public Offering (IPO)

In an IPO, a company issues shares of stock to the public for the first time. This can provide a big payout for angel investors, but it’s a relatively rare exit strategy for a startup.

2. Acquisition

When a larger company buys a startup, angel investors can cash out their shares. This can be an attractive exit strategy because it provides a quick return on investment and eliminates the risk of the startup failing.

3. Secondary Market

Angel investors can also sell their shares on a secondary market. This can include private exchanges or online platforms that facilitate the buying and selling of shares in private companies.

4. Recapitalization

This is when a company raises new capital by issuing new shares of stock, diluting the existing shareholders. This can be a good option for angel investors to cash out their investment and have a return.

5. Hold

Some angel investors may choose to hold their shares in a company for a longer period, in the hope that the company will grow and the value of their shares will increase.

Ultimately, the best exit strategy for an angel investor will depend on the specific circumstances of the startup and the investor’s own goals and risk tolerance.

It’s important for angel investors to consider their exit options early on and communicate with the startup’s management team to ensure a smooth exit when the time comes.

Additionally, angel investors should be aware of the tax implications of their exit strategy. Some strategies may result in capital gains taxes, while others may qualify for more favorable tax treatment. It is always recommended to consult with a tax professional to understand the tax implications of different exit strategies.

Interested in investing in Black founders? If so, please complete this brief form.

2 mins read

Equity Crowdfunding: A $5 Million Opportunity for Black Entrepreneurs and Investors

In recent years, equity crowdfunding has grown in popularity as a way for entrepreneurs to raise capital and for investors to gain access to a wider range of investment opportunities.

This is good news for Black founders, as it offers an alternative to traditional funding sources such as bank loans and venture capital, which have often been difficult for them to access due to systematic biases and discrimination.

According to recent reports, the percentage of venture capital invested in Black founders decreased from 1.3% in 2021 to 1% in 2022.

Through equity crowdfunding, Black founders can bypass traditional gatekeepers and directly pitch their ideas to a larger audience. As permitted by the JOBS Act, founders can potentially raise up to $5 million in one year through crowdfunding offerings.

Additionally, equity crowdfunding can provide Black investors with opportunities to build wealth by allowing them to invest in early-stage companies that may not otherwise be accessible to them.

Many Black investors may lack the resources or connections to participate in conventional venture capital or angel investing, but equity crowdfunding allows them to invest as little as a few hundred dollars in a company they believe in.

This not only provides the opportunity to potentially earn a return on their investment but also allows Black investors to support and empower other Black founders and entrepreneurs.

Equity crowdfunding is not without its risks and challenges, however. As with any investment, there is no assurance of a return, and there is an inherent risk of loss.

Before committing to a campaign, both founders and investors must carefully consider the terms of the investment and conduct their due diligence.

Equity crowdfunding provides Black founders and investors with a chance to generate wealth, foster each other’s success, and increase diversity within the startup industry through mutual support.

It is important to consult with a legal professional when considering equity crowdfunding as the rules and regulations can be complex and vary from country to country.

 

Interested in investing in Black founders? If so, please complete this brief form.

Are you a founder? If you are fundraising please complete this form.

4 mins read

4 Reasons Why Mobile Home Parks are Recession-Resistant Investments

Mobile home parks (MHPs) are frequently associated with a variety of unfavorable perceptions and the idea that they are unattractive places to live. Many people do not realize that some of the richest people in the world have been investing in MHPs for years. One reason is that this asset class can produce exceptional returns even in the worst economic circumstances. Here are five reasons why mobile home park investments are recession- and inflation-resistant. 1. Mobile home parks are the most affordable housing. During a recession, it is natural for individuals to seek out the most affordable ways to live.

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4 mins read

Why The Car Wash Industry Is Becoming Increasingly Attractive To Investors

Up until about three years ago, the car wash industry wasn't particularly appealing to investors. Private equity firms owned approximately 1% of the nation's 65,000 total car washes and 2% of the nation's roughly 17,000 conveyor-style car washes as of June 2019, according to data from one of the industry's specialized brokerages, New York-based Car Wash Advisory LLC. In the next five years, some industry advisers expect that to change. “We’re nearing the basket tipping point, but there is still a ton of runway to go,” BlackArch Partners LP managing director John Conklin said. “If I think about car wash

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1 min read

She Leads a $20M Investment Fund Focused on Black Tech Founders

In this Black investor spotlight, we’re speaking with Lise Birikundavyi.

Lise is Managing Partner at BKR Capital, a Toronto based, $20 million venture capital fund built to invest in Black founders in the technology space.

When Lise took on this role, she became the first Black woman to lead an institutionally-backed venture capital fund in Canada.

In this interview, Lise shares:

  • What led her to become a venture capitalist.
  • Her view on how capital is dispersed in different regions.
  • An overview of the Canadian VC landscape.
  • Promising markets she’s interested in and why.
  • Advice for those who are interested in starting an investment fund.
  • Whether or not the current economic climate has influenced BKR’s investment strategy.
  • What her game plan would be if she were a startup founder seeking capital.

Tony O. Lawson


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1 min read

Lockstep Ventures, the $50M Fund Investing in Systemic Change

In this Black Investor Spotlight, we spoke with Marcus Glover, the Co-Founder, General Partner & Managing Partner at Lockstep Ventures.

Lockstep Ventures is a $50 Million venture capital firm that invests in overlooked visionaries of color and companies impacting racial disparities in the U.S.

In this episode, we discuss:

  • The current state of Black venture capitalism.
  • Black investors coming together to invest as syndicates.
  • The types of startups that are attracting the most investments.
  • Conscious capitalism and Intentional capitalism.
  • Fair chance hiring and how it influences his investment decisions. 
  • Advice for founders currently raising or planning to raise in the near future.

 

-Tony O. Lawson

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4 mins read

Different Ways to Invest in Black Owned Businesses

When it comes to supporting Black-owned businesses, some research is needed to discover which businesses are actually Black-owned.

Luckily, most public companies do not hide who is on their executive board, making the process easy with a little research. Once you have done some research on the businesses you wish to support, there are ways you can go about investing in them.

If you have the desire to invest in Black-owned businesses, read on for a few ways to do so:

Take to the Stock Exchange

One of the easiest ways to support any publicly-owned business is to invest in the company on the stock exchange. Here are a few companies that have either a Black president or CEO, or have majority Black ownership that you can invest in:

  • Global Blood Therapeutics, Inc.
  • RLJ Lodging Trust
  • Urban One, Inc.

Invest in Companies That Financially Support Racial Justice

Supporting companies that have donated money to support racial justice can also be an option in the stock market. Several large companies have done so over the past few years, and supporting them can help them continue to do so. Choosing businesses such as these to get behind can help also grow your own money while showing your support for said business.

The Non-Stock Ways to Support Racial Justice

While taking to the stock exchange can be a great way to support Black-owned businesses and businesses that support racial justice, there are other methods available to investors as well, such as investing in startups or real estate crowdfunding.

You can join platforms such as The 10K Project, a community of everyday investors who actively fund Black-owned businesses.

You can invest in Buy the Block, another crowdfunding platform, for a minimum of $100. Many of the projects listed on Buy the Block are in historic Black neighborhoods or benefit a local community.

No matter what way you decide to invest, make certain you do your research. With investing in startups and real estate crowdfunding there is the risk of losing your entire investment, so it’s best to be careful.

Rethink Your Bank

Why not consider a Black-owned bank, especially if your current bank doesn’t meet all of your banking needs? Not only are you supporting a Black-owned company by using such a bank, but you can also ask them about any initiatives they have for the African American community to further your support.

Larger banks that are not Black-owned might also have community-focused initiatives as well, and it never hurts to ask, especially if you want to support such initiatives.

There are so many ways that you can support Black-owned businesses. Research the business you want to support, and think about how best you can support them, be it through purchasing stocks in the company or taking part in the company’s initiatives.

-Tony O. Lawson

Want to invest in Black startup founders? Please fill out this short form.

 

5 mins read

8 Ways to Intelligently Invest $500

To ensure future financial stability, the best thing for you to do right now is to intelligently invest your money into profitable avenues.

Contrary to popular belief, you do not need to have thousands of dollars at your disposal to begin investing. With just $500, you can start investing and accumulating real, long-term wealth.

Keep reading to know how you can effectively invest your $500.

1.   Purchase a Certificate of Deposit

If you want to save for a short-term goal, certificates of deposit are a great way to invest your money. They’re safe to invest in as you get a guaranteed return on your investment, irrespective of the economy’s status. Interest paid on your certificate of deposit will be based on the initial deposit agreement you made and not market conditions.

2.   Start a Side Business

If your day job isn’t too demanding or you’d like to do something productive on the weekends, you could start a side business. Doing so will not only give you extra income but can also help you hone any other skills you have. You can buy items for cheap and flip them for profit, freelance as a content writer or graphic designer, sell second-hand goods on eBay or Craigslist, or open an e-commerce store.

3.   Pay Down Your Debt

With $500, you can pay down your debt and save thousands of dollars in interest. Getting rid of your debt as quickly as possible means that you won’t have to pay exorbitant interests to your creditors.

4.   Equity Crowdfunding

Crowdfunding refers to raising money from the public to finance a new business venture. In equity crowdfunding, public investors get a proportionate slice of equity in the business in exchange for their investment. Do some research and invest your $500 in a business that you think will provide lucrative returns.

5.   Set Up a Dividend Reinvestment Plan (DRIP)

Purchase dividend-paying stocks and invest them into buying more stocks. Over time, you will begin to accumulate more money through these reinvestments. Your stock can also increase in value over time and boost your overall net worth.

6.   Use Robo-Advisors

Robo-advisors are automated investing platforms that manage your investments. Many financial institutions let you invest through Robo-advisors. When you sign up for one, you will have to answer questions regarding your finances. Based on your answers, the platform creates an investment portfolio tailored to your needs. When you don’t have too much money, Robo-advisors are a great way to get started on investing.

7.   Contribute to a 401(k) or IRA

Contribute your $500 to an employer-sponsored retirement plan, like a 401(k). Make it your goal to maximize your employer’s match to accumulate more money. Talk to the HR personnel in your company to see if you can make a one-time deposit of $500.

You can also invest your money by opening a Roth IRA (Individual Retirement Account), a retirement savings plan that allows you to contribute after-tax money to your investment account.

8.   Buy Savings Bonds

If you’re a prudent investor, purchasing savings bonds is a great way to invest your $500. Bonds are low-risk investments, which means that the return on investment you receive from them will be lesser than your returns on stocks. Usually, you purchase a bond at face value and receive the principal amount plus interest at the time of its redemption.

Investing isn’t as confusing or overwhelming as it seems on the outside. It doesn’t always take too much time, effort, and money. If you still have misgivings about investing your money, talk to a financial expert and ask them for professional guidance.

 

***Important: Please do as much research as you can beforehand before making any investments.***

 

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