Investing in Tech... and Friends

[rareboy]

I can honestly say that I have never made a dollar investing in new tech as an angel or early investor.

But today I asked our broker to blow off some free cash in a company that has now been recently listed on NASDAQ that a young friend of ours is working with so that I can tell him when they come for dinner in early March that we are in because we believe in their vision (not sure if do). We certainly didn't bet the farm on it and have no intention of holding any more or less shares then we purchased.

Have you or would you invest in friend's company to demonstrate faith in their work?

 

[unloadonme]

Unlikely. I'm very conservative with my finances.

 

[lockeroomguy]

No. I stick with boring index mutual funds, bonds and CDs. No single stocks. Not exciting, but the track record of returns shows it to be better than stock picking in the long run.

 

[rareboy]

So I am pretty sure the small time day traders are going to make this a penny stock in no time....checking on the volumes and prices over the last 5 days...it is definitely being traded by the people looking to make about $10 bucks on the spread.

My broker.investment manager had a good laugh with me and thanked me for making it clear in writing that this was not made as a 'real' investment.

I just hope that our friend didn't have family and friends who bought in early with any significant investment because otherwise....AwwwKKKwAAArd.

 

[Alistair]

I’ve had a few times that someone has recommended investing in a new tech, I never did but sure wish I had

 

[rareboy]

So I have lost 10% of the value of my investment in the first 2 weeks.

As I noted to another friend, the stock is basically worthless until they have sales so the day traders get in there with thin trading and are likely making their cash with shorting it.

 

[belamyi]

This thread is sounding so much like that taboo site of suited gay hos...

 

[rareboy]

So we are back to breaking even, but I am howling at these small traders trying to drive share prices up or down to score a $20 profit on the day.

 

[rareboy]

Well, we will see won't we. As of today our investment has doubled....but I think it is being artificially propped up.

It will make dinner conversation with the chief science officer more relaxed though this week when they come to dinner.

 

[belamyi]

This thread is sounding so much like that taboo fetish site of suited gay hos...

Damn it

 

[rareboy]

Don't worry. I will let you all know when we lose all of our original investment

 

[belamyi]

Don't worry: we will know at the same time you do, if not even before...

 

[NotHardUp1]

I avoid doing business with friends unless purchasing items over the counter. Otherwise, if purchasing services, trying to manage excellence can be damaging to personal relationships.

I'd never invest in a friend's business. Not above donating to friends to help, but not invest.

 

[rareboy]

It was hilarious last evening when we had our friends for dinner.

He of course can't even talk about anything about his company that could even hint at insider trading and took the ribbing about the volatile share price with great grace.

The fun was lessened though because over the last week we had made an (temporary I am sure) gain of 80% on the original investment so I couldn't rag about how we had lost our retirement savings and would have to move in with him and his wife.

 

[Latimer]

I haven't invested in a friend's company, but my partner helped finance a niece's movie and then her trip to Cannes to try to sell it. It proved to be just about the worst movie ever made--with the exception of a movie a cousin of mine made in film school financed by his parents.

 

[rareboy]

Financing friends' Films or theatrical ventures is the best way to get a tax write-off. They are invariably awful and never recover their costs