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    5 Replies Latest reply on Feb 18, 2010 6:44 PM by nwe6233

    What do investors want to see?

    bastron06 Wayfarer
      I'm managing an Investment club. The club has been in existance for 4 months and we're up 39%. It's early, but I'm building what will ultimately be my investment firm. What I would like to know is, how do I convey my results to potential investors in my club? I have spreadsheets, charts, graphs, account balance statements to prove the successes/ failures, but I'm sure of what is most relevant. If you were looking for a possible investment vehicle, what information would you want to see and what kind of performance is considered attractive but not overly ambitious?
        • Re: What do investors want to see?
          How about showing the same stats that mutual funds show in their prospectus-- in the same format? Isn't that what you're used to yourself in making investment decisions?
            • Re: What do investors want to see?
              bastron06 Wayfarer
              We can agree, most prospectus' are full of jargon that is not self-explanatory to the average home-gamer. I've done some research and would like to summarize the key points of a prospectus. If you agree, would you confirm?

              Investment Objectives
              Investment Strategies
              Risks of Investing in the Fund
              Past Performance
              Distribution Policy
              Fees and Expenses
              Fund Management

              This list feels somewhat similar to what I might have in my business plan. I know investors aren't interested in reading a business plan, but maybe larger entities would be.
              • Re: What do investors want to see?
                bastron06 Wayfarer
                More specifically, I'd like your opinion on a method.... I'm developing a plan. In the plan, my team and I look to make a 7%/monthly return on our investments (before commisions). Our current investment begins with $5K. If our plan is followed and we produce the results we seek, is it a turn-off to larger investors because we began with such a small amount? In your opinion, do results matter, or the fact that I should manage large sums of money with the same returns matter more?
              • Re: What do investors want to see?
                ema123 Newbie
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                • Re: What do investors want to see?
                  nwe6233 Wayfarer
                  Maybe your overthinking the whole idea! You know these potential investors right?
                  I tend to follow 7 helpful tips. 1. the potential for solid return 2. A solid management team 3. A good reason to invest 4. A solid business plan 5. A business structured for investment 6. The oppurtunity to be actively involved 7. A viable exit strategy. Now its hard to say if it really matters how much capital you should start with as long as you can show solid return. I believe that it does matter to the individual that your trying to get to invest with you. Ie. 5k might be substantial to you or I but if the customer in which your speaking with deals in millions per day he or she might not give you a glance. My personal opinion is to take the information you have generated with the 5K and scale out to different amounts ie. 10,000 25,000 50,000 100,000 250,000 etc. Then you have basis for all investor platforms, if you can generate solid return on 5k you can definitely do it with a much higher amount with no problems.


                  Hope this helps!
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