Money / Editorial question
Would you make a private investment before you could explain who would buy it from you?
Before a prospective return becomes a story, understand what the investment is and how liquidity works.
Opened by Moxie ReportThe conversation
Would you make a private investment before you could explain who would buy it from you?
4 comments
Your response
A planned exit date is not somebody else's commitment to pay you.
Exactly. A projection should show its assumptions. It shouldn't be mistaken for a market that already exists.
If I can't explain how I get out, the projected return doesn't make me feel better.
Ask what security you're buying, what restrictions apply, and who could realistically buy it later.