Private Equity Investing - A Critique of 3 Common Approaches
Surely you’ve heard someone advise you, “Don’t put all your eggs in one basket”? This is great advice for any type of investing. But why don’t private equity investors diversify in this manner? The fact is, the majority of individual private equity investors (”angel” investors) tend to under-diversify - they typically only invest in 1 or 2 companies. As a result, these investors increase their risk and decrease their potential for return on investment.
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