One of the most pleasing outcomes of being a long-term investor is that history has demonstrated that the rewards of owning an excellent business in a tax-efficient manner can be life-changing. This sentiment was summed up by legendary investors Warren Buffett and Charlie Munger at the 1996 Berkshire Hathaway meeting when they commented, “If you find three wonderful businesses in your life, you’ll get very rich.” One year later, in 1997, Warren remarked, “The single biggest recurring mistake I’ve made has been my reluctance to pay up for outstanding businesses.”Read More
(1) High average returns
Angel investors have returned 2.5 times their original investment over a period of about four years.
(2) Potential for super returns
Peter Thiel, cofounder of Paypal, turned his $500K investment in Facebook into $1.6bn. Jeff Bezos turned $250k into $1.6bn on Google.
(3) Affect life changing solutions
Startups can change the world for many people. Think of the connections Facebook has fostered.
(4) Job creation
Supporting the next big thing has impacts far beyond financial returns and innovation, but into the wider employment side of the economy.
(5) Get involved
You will have the opportunity to influence and impact the future direction and prosperity of the startup.
(6) Tax incentives
Many countries offer juicy investor tax incentives for supporting startups.
Here are the things to look for:Read More