I believe every investor should have an alternative section of their portfolio.
When you talk with people about these kinds of holdings, they often give you strange looks.
That’s a sign you’re on the right track.
Because this part of your portfolio should be filled with things that most people…
- Are unaware of
- Or are afraid of.
Bitcoin certainly fits the bill, as it’s intimidating and misunderstood.
But remember, alternative investments can be many things: first-edition books, real estate, emerging market stocks, startups, wine, firearms, precious metals, etc.
You don’t have to put a large percentage of your portfolio into the alternative section. But you should absolutely put some into it.
The S&P 500 Index used to be good enough, but now it’s expensive and simply not growing very fast. To keep up with taxes and inflation, you need the kind of juice that only risky assets can provide.
Fortunately, there are excellent options available today.
Finding life-changing investment opportunities requires patience and diligence. If you do it right, you’ll invest in new assets only once every few years.
I can count the number of great ones I’ve seen on one hand, the most notable being…
- Bitcoin and other cryptocurrencies (which I’ve dubbed “crypto”)
- Equity crowdfunding
- 2009 tech stock bargains.
Only the first two of those are viable alternative choices today, because they’re both still relatively obscure. Tech stocks, on the other hand, have had a great run, but the party is likely winding down.
How many people do you know who own Apple or Google stocks? Almost all of them, if they own any mutual funds at all.
Could these stocks double from here? Maybe… but your alternative investments should have the potential to increase in value 10X – or better yet, 100X.
I’m not saying you should dump your tech stocks. I simply don’t think they have crazy growth potential at this point.
Now ask yourself how many people you know own bitcoin or any other cryptocurrency. Probably not a lot. What about private startup equity? Probably equally as few.
These opportunities still have legs, and they’re long ones.
Putting In the Time
Profiting from these sorts of opportunities requires a significant time investment. You need to understand and digest hundreds of potential choices.
If you’re willing to do that, great. With cryptocurrencies, you can start at CoinMarketCap.com. It lists the top 200 cryptocurrencies and has detailed information about all of them.
If you’re looking for some guidance, however, we’re constantly researching today’s top alternative investments. I just released four crypto picks to members of our research service First Stage Investor, and we’re already up 20% on one of them.
These assets are on an absolute tear. It’s unlike anything I’ve seen before in any market.
On the startup side, we have a new recommendation coming out soon. It’s a young solar company that already has millions of dollars in revenue, and we think the upside is tremendous. (This is in addition to a number of other startups in our portfolio.) The minimum investment is just $100.
With First Stage Investor, you get the best of both worlds. Check out our latest presentation to learn more about our service and to get a head start on the alternative section of your portfolio.
Founder, Early Investing