An Easy Way To Invest In Privately Held Companies

A big part of what we do at Reality Check is follow trends. We look at what’s going on with politics, the economy, and the people around us.

Trends are important, whether any of us agree, on a personal level, with the rationale behind them.

For example, a decade ago, I was the managing editor of a shorting service. At the time, some people wrote in to say it felt wrong to bet that a stock might fall. Then the mortgage bubble burst, along with the idea that hope could keep stocks afloat.

Others saw that when all signs point to something big coming and you get positioned just in time, the more money you can make.

Right now, certain consumer trends are gaining momentum faster than ever. But you might not see an obvious—or simple—way to play them.

Today, I'll show you where to look.

A Timely Vehicle for Investing Early

Sometimes, a trend that we want to play doesn’t have any viable public investments. You saw that recently with DuckDuckGo and RoadBotics.

Sure, if you have enough money, you can invest in anything. Plus, nowadays there are websites that allow you to trade pre-IPO shares if you can prove you’re an accredited investor.

There are some opportunities to get a little more creative. I’m talking about ways to access privately held companies through the public market.

One example is by using a Real Estate Investment Trust, or REIT. These are essentially vehicles for investors to pool their money together to invest in real estate assets.

Here's a Cool Way to Invest in Hot-Button Sectors

Say you wanted to take advantage of the explosion of brick-and-mortar cannabis dispensaries that have popped up over the past eight years.

Innovative Industrial Properties (IIPR) became the first listed cannabis REIT in 2016. That was marijuana legalization’s biggest year… one-fifth of the country lived in a state that had made it legal in some way.

No matter where you or I personally stand on this topic, it was clear that some states were moving forward. All the companies that would come and go over the next crucial years would need physical space to grow, process, and sell product.

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Disclaimer: The Mauldin Economics website, Yield Shark, Thoughts from the Frontline, Patrick Cox’s Tech Digest, Outside the Box, Over My Shoulder, World Money Analyst, Street Freak, Just One ...

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