Early Bird Investing?
Posted: | Categories: finance | Tags: investing
There is a idea that the biggest returns belong to the investor who discovers a business before most others. Find the company before the market notices it. In hindsight, this looks obvious. The early investor gets the biggest part of the move, while everyone else is left paying a higher price after the story becomes established. The earliest stage of a business is also where uncertainty is highest. For a retail investor, especially one without access to differentiated information, trying to consistently front-run these opportunities can amount to taking a large amount of business risk for a relatively small informational advantage. Read more...