Investing Insight – What to ask as an Investor
Posted on August 26, 2024 at 12:00 AM by Brent Haverkamp
Investing is a commitment of current resources in hopes of a future return.
After years of investing and navigating through various investment opportunities, I've come to realize that there are two fundamental questions that an investor should always ask: "What is backing the investment?" and "Who are the people involved?"
What Is Backing the Investment?
The value of an investment comes from its underlying assets, which act as a safety net. The stronger the backing, the less risk involved. At Haverkamp Group, our investments are backed by cash-flowing, appreciating real estate, which are top-of-the-market, institutional-quality assets. These properties are expected to maintain their value and increase over time, providing a steady and reliable return on investment.
Why Is This Important?
The more balanced a backing is, the better. It's the difference between investing in a company with tangible, high-value assets and a company that is floating on hype. If things go south, the former gives you something to hold on to, while the latter can leave you with nothing if the market sentiment turns.
Further Considerations in Backed Investments
In addition to the quality of the real estate, when we talk about Haverkamp Group-backed investments, we look at other factors like the location of the properties, the growth potential of the surrounding area, and the management team's experience in handling said assets. These aspects ensure that the investment is safe and has growth potential.
Who’s Involved?
The second fundamental question concerns the people behind the investment. This includes the management team, the developers, and everyone involved in the decision-making process. Their track record, expertise, and even their reputation in the industry can tell you a lot about the potential success of an investment.
Critical Points in Evaluating Company Leadership for Investment
When evaluating an investment company, look at the leadership team's experience. Have they managed similar investments in the past? Do they have a history of making wise, profitable decisions? Also, consider their strategic vision: does the company have a clear, achievable plan for the future? Finally, assess their integrity and transparency. Companies that communicate openly with their investors are seen as trustworthy and reliable.
In summary, before diving into any investment, evaluate the substance behind it and the individuals steering it. At Haverkamp Group, we focus on providing solid, real estate-backed investments managed by a team of seasoned professionals. This approach offers a balance of security and growth potential that can make all the difference in investing.
Whether you're a seasoned investor or just starting, keeping these questions in mind will help guide you toward more secure and potentially lucrative investment decisions.
- Brent Haverkamp
IMPORTANT HAVERKAMP INVESTMENTS, INC. DISCLOSURE
This article was written by Haverkamp Group. This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell, or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person. This material may not be reproduced, distributed or published without prior written permission from Haverkamp Investments, Inc. or Haverkamp Group.
The views expressed are those of the author and the comments, opinions and analyses are rendered as at publication date and may change without notice. Please consult your accountant or tax advisor as tax laws may have changed.
All investments involve risk, including possible loss of principal.
Investing in private markets and alternatives, such as private placements and private funds, is speculative and involves a risk of loss, and those investors who cannot afford to lose their entire investment should not invest. Returns are not guaranteed. Private placements often are speculative, typically have higher fees than traditional investments, often include a high degree of risks and are appropriate only for eligible, long-terms investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase volatility and risk of loss.
Interests in private placements are distributed by Haverkamp Investments, Inc. (“HI”) and are not FDIC-insured; are not deposits or other obligations of HI or any of its affiliates and are not guaranteed by HI and its affiliates. Past performance is not indicative of future results. Diversification does not ensure a profit or protect against a loss in a declining market. Haverkamp Investments, Inc. is a registered broker-dealer, member FINRA/SIPC.
Categories: Investing 101