Five reasons to Invest in Private Companies

It is now well known that investors coming from a varied spectrum of wealth nets and, thus, aiming for different investment targets, tend to prefer investing in public companies rather than in private ones, as publicly offered entities usually serve a much wider catalogue of investors, despite their experience background or capital possession. But while it is actually true that private companies do generally demand a certain number of requirements to complete the investing process, there are still some specific advantages that only they are able to provide. Let's take a look at the benefits of investing today in private companies such as Konzortia Capital, that will eventually make you rejoice tomorrow...

  1. Public companies are inevitably too focused on Quarterly Results: A major problem with Public Companies is that they’re usually much more focused in the short-term quarter results in order to meet Wall Street’s expectations, and leave long-term possibilities outside their equation design. While for day traders this might not be a problem, for investors who are aiming to look at the long game, this can become a huge disadvantage.
  2. Better Management: Most Public Companies tend to be closely attached to Wall Street and its typical investment procedures. While this isn’t a bad thing, it is frequent that investors who are involved in it don’t really care about valuable, creative opportunities that might take years to accomplish a solid position within the market. Typically, a company that goes Private increases its productivity and, with it, develops better-qualified management tools.
  3. Better Overall Profits: Public Companies tend to make more than private companies based on the fact that anyone can trade public stocks. However, as an investor, your money is evenly distributed between all of the other shareholders and your investment might not even pay dividends, meaning that all of your profit is retained. On the contrary, within private companies all the accumulated earnings go straight to the owners, which mean that your take at the end of the day will completely depend on your position inside the company. Better positioned, higher profits.
  4. Better Control Over Money: Investing in private companies takes a much bigger sense of compromise. However, with responsibility comes privilege, and becoming a part of a private company means knowing where your exact money is at, where will it go, and what will be done with it. This implicitly grants the investor a percentage of the company’s management, and a strong desire of succeeding in the market.
  5. Looser Corporate Laws: Typically, the Securities Exchange Act overlooks public companies and their financial transactions, making sure that certain rules are being adequately followed when it comes to trading, investing, and earning. Private companies, in advantage, don't really need to go through those tedious processes, since every transaction is contractual and, as redundant as it may sounds, is private. This allows investors to achieve a greater sense of freedom and flexibility, while also becoming involved in the company they are now betting for.

As you might have already acknowledged by now, although public entities may have great advantages when it comes to investments, private companies are as well, if not better, hugely beneficial investment alternatives. In fact, private companies such as Konzortia Capital, are now taking the lead towards a genuine, solidly founded and compromised new financial paradigm. And it seems that they won't be waiting much longer. Step in now, and let your tomorrow-self rejoice gladly.

Learn more about Konzortia Capital and our vision in konzortia.capital

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