Your Startup Investing Playbook: Two Trends to Avoid, Two We Love
July 18, 2020 at 05:00 AM EDT
In the months (years, even) leading up to the COVID-19 crisis, I saw many investment opportunities that left me feeling skeptical. Their valuations were high. There was overly optimistic thinking surrounding their potential. It reminded me of Warren Buffett's adage of "be fearful when others are greedy, and greedy when others are fearful." What I see today is much better: many high-quality startups available at highly attractive valuations. In other words, it's an excellent time to be greedy as others are fearful. History supports the timing. During the last market downturn - the Great Recession - some of the greatest tech startups of the generation began... Uber, valued at $5.4 million in 2010, now with a $58 billion market cap... Instagram, acquired by Facebook for $1 billion in 2012 and now valued at $100+ billion... WhatsApp, valued at $1.5 billion by 2013 and then acquired by Facebook for $19 billion just one year later... and many others. And those who invested as early as 2008 and 2009 had the benefit of investing at a much lower valuation than those who invested before and after the Great Recession. Before diving into startup investing, there's one more key step. In order to maximize our returns, it's important to examine the trends that defined Q2 2020 (April through June), the first full quarter during COVID-19. We need to determine what shifts in consumer (or business) preference will be short term vs. long term in nature - which trends will persist as we adjust to a new COVID-affected life, and which may reverse. Here are two trends to avoid and two giving us excellent startup profit potential today... Full Story The post Your Startup Investing Playbook: Two Trends to Avoid, Two We Love appeared first on Money Morning - We Make Investing Profitable . Here are two trends to avoid and two giving us excellent startup profit potential today... Tags: Technology Article To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2020 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.