Coinbase Hits Wall Street but is the Stock Market My Only Investment Opportunity Explained by the Family Business Fund

Coinbase hit Wall Street on Wednesday and is the largest cryptocurrency exchange platform in the United States. However, at a $100 billion valuation, is it a stock worth owning?

Many people wonder if the stock market is their only vehicle for investment. Many brokers are asked this very question but many only offer investment instruments they got paid on, such as mutual funds, index funds, options, etc. There are many other ways for people to invest beyond the stock market, allowing them to capitalize on opportunities to increase their profit exponentially.

One tweet from anyone in a position of power has the ability to turn markets volatile. Our company, the Family Business Fund, was founded on the idea of developing a platform where investors could control their money and lend it out to small businesses directly on short-term cash advances. My wife, a JP Morgan Credit Risk employee, would underwrite the loans, and the in-house broker would get the end-user clients. This concept took off like a rocket and gave regular investors the opportunity to invest and enjoy returns that were much higher than 12.5%. The question to answer was, "How am I going to reduce the risk of default?" The answer lied in the underwriting process, which counts for everything. Our company will not fund loans greater than six months, the company must be in business for at least two years, and the industry we advance to is weighted heavily. 

Although net returns of 6% in the stock market are better than having a 1.75% money market account, it is still far less than can be made with alternative investing. As of now, our personal portfolio is composed of 40% stock bonds mutual funds indexes, 10% cash, and 50% alternative investment vehicles. The rate of return is much higher than the average 6% return on my portfolio of stocks and bonds, with little increased risk compared to my returns on investments.

For help navigating these options or alternative funding opportunities, please contact the Family Business Fund and discover how to get started on the road to continued success.

About Family Business Fund

The Family Business Fund was founded in 2018 to help ensure that small businesses have access to the resources needed to thrive. Founded by small business owners for small business owners, we provide alternative funding to small and mid-sized businesses in need. For more information, contact Douglas Muir at douglas@familybusinessfund.com or call (888) 884-6442 ext. 3.

Source: Family Business Fund

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Categories: Business Finance

Tags: alternative funding, alternative investment, coinbase, high-yield investment, stock market