Big Troubles, Big Opportunities

Big troubles would certainly be turned into great opportunities. I remember the dotcom bubble period where the talented took the task of turning the hardship into a success and which eventually became a big success for many of the companies which were budding at that time. Attitude is the one which determines the success percentage of a corporate.

For someone with the right experience, there is no such thing as a bad time to make money. Throughout the history of the world, people have made money regardless of what was happening to the economy. It just takes the right experience and faith in your abilities to sort the wheat from the tares.

I think economic recessions don’t even exist; it’s only in the minds of the majority right now. Risk is always out there and we can’t eliminate them, we can only minimize them. Experienced investors knows well how to survive in bad economic situations, and being proactive would help you surpass all of these challenges to come.

I think its good to be optimistic in times like this, or even think of what kind of business should be right in this current situation, I remember watching in History channel About a certain Siberian businessman who live in the US and after the civil war(of Siberia), came back home and put up a computer business and become successful, just imagine what it look likes during those times. The place was just starting to rebuild itself .

Making disadvantages your allies. We should really move forward and not backward specially at times like this. I remember my mentor who said tole me to instead of just looking at the risks, we must also study them. I think that's the key to survive with this kind of economy.

I definitely see the potential in being aggressive in uncertain times such as these, but at the same time, it's a scary thought. However, in business you don't succeed by being scared. If you pay attention, then definitely some great deals can be made.

Some people don’t just recognize the opportunities that are coming their way. This is what separating the achievers from the losers.

I don’t want to boast but I am glad to say that I am able to find a niche that is not yet saturated during the times my family and I am mourning because of my brother’s demised. I am not happy with my brother dying but I am glad that I am able to recognize the niche that I have been missing the whole time.

hi machida..that was inspiring ..i mean in the midst of mourning you found a good opportunity .. you are still lucky i guess..

Exactly. That's scary thought. On the way I see it, that's the thought being implied on the minds on the general consensus. If that is so, then those who sees this should seize the opportunity. And yes, you really don't succeed in business by being is scared. Risks are inevitable so might as well you/we move forward, because I don't think everyone else would do so.

I think the challenge posed by today's economy is felt at pretty much all levels of investing. I know people who've bailed on their somewhat modest mutual fund accounts, taking the loss from fear of incurring more loss of their nest eggs.

I assume it gets more tense as the amount of your investment and speculation rises.

Yes but we must always keep in mind that failure is something that makes us better. Loses may be there but the will to go on is something that is much important and will definitely lead anyone's to success.

Yes! A lot of great companies were launched during recession. Early stage investors who funded these businesses all ended up with some nice coins in the pocket. When it comes to investing, it's all about “buy low, sell high.”

Reminds us of Warren Buffet. Some of his fundamentals work beautifully in angel investing:

1. Be fearful when everyone else is greedy and be greedy when everyone else is fearful.
2. Buy companies for less than you think it is worth.
3. Invest in companies and industries you understand.

A highly informative post! I like this part of it the most: “Where others see doom and gloom, they see flickers of light that could turn into bright flames.” I guess this attitude could do us good in other areas of life too, not just investment. I am really glad that the Asian countries are doing well economically. Being from an Asian country myself, it really warms my heart to know that my country is, at last, on the way to economic well-being.

you laid out a good points here how can you be a winner if you can;t embrace opportunities and if you can't adopt to small changes how can you adopt to big ones it's all about coping up with the challenges that faces an investor

good points. how can you be a winner if you can't embrace opportunities.

Nicely put. Seasoned investors love to invest during recessions because company valuations are low. Like you said, risks exist in both good times and bad; we can't eliminate them but we can minimize them, and this is where due diligence comes in.

Great story. Thanks for sharing.

As an investor, you'd want to carry out due diligence, or study the risks, once the term sheet is signed. We'll cover this topic in more detail in future posts.

Sounds like both of you are destined to be angels

Risks come with the angel package – a company with low level of risk can easily get their hands on bank loans and low interest rates. There’s not the case for start-ups, however. Investing and lending to new companies are risky because a high percentage of start-up companies will fail. To recover from failed investments, angel investors often seek out high-return investment opportunities, usually those that could yield a 20x to 30x return on their original investments within seven years.

Yes you are right but bad things can always turn into good things and if you have experience you can always make money easy.

That's our favorite too. Carl articulated it very well.

With this big amount of trouble if you are really a skilled angel you can turn this into big opportunities, there are a lot of resources all around us that can be used thinking that these are waste but in turn this will turn into big money.

I agree with the points put forth above, and I'd add that if someone's getting close to their retirement age, they would probably want to selectively manage the amount of money they invested in the ventures referred to above, based on their overall portfolio.

I have a few acquaintances who may not have the required comfort level for the necessary risk involved. Plus they may be looking for a return before one may be expected from these more speculative opportunities.

I also think there are people who will always want these investments as part of their financial endeavors.

True, seasoned angels often look at economic downturn as a great opportunity to shop for startups that are going on sale.

Sorry to hear about your lost, Machida. It does take a certain quality to recognize opportunities as they're often disguised in undesirable circumstances. We're glad that you can look pass the negative situation and focus on the future instead.

Your logic is sound but majority of angel investors are in the 45 to 54 age bracket, according to the most comprehensive angel investing research conducted by Dr. Scott Shane.

You're right about risk tolerance. Angel investing certainly isn't for everyone as it's a high risk, high reward activity.

Sorry to hear about your lost, Machida. It does take a certain quality to recognize opportunities as they're often disguised in undesirable circumstances. We're glad that you can look pass the negative situation and focus on the future instead.

Your logic is sound but majority of angel investors are in the 45 to 54 age bracket, according to the most comprehensive angel investing research conducted by Dr. Scott Shane.

You're right about risk tolerance. Angel investing certainly isn't for everyone as it's a high risk, high reward activity.

When your down there is no other way than up, that's what other angel investors should be thinking. Opportunities arises when a lot of people looks as if there is no hope.