Posted by: The Soaring Eagle | June 11, 2012

Investment Partnership™


The world of investing is full of variables, risks, challenges, surprises, and of course, rewards.

Most people delve into that ocean, preoccupied by the lure of quick riches, overnight fortunes. They turn a blind eye to the other side of the coin; the risks, the great potential of losing one’s money, or part of it.

That’s why, the first rule in mindful investing is: Never Lose Money (Ben Graham). In other words: Preserve your capital, take reasonable, calculated risks.

One way to tackle this paradox is to work with an expert. That won’t be a money or fund manager. It’s a partner, who would go with you into that ocean, and help you reach the island of safety, and prosperity.

An “Investment Partnership™” is not a very common phenomenon. Actually, it’s rather rare, if not unique in the investment world. That’s why I consider it a new and innovative concept. The way it’s presented here is covered by the copyright provisions of this blog.

You and the expert set some terms and conditions. But the key idea is this: The client provides the investing money (principal), and the expert provides the time, the work, and the expertise. They are partners in both profit and loss on a 50/50 basis.

If they made profits, it got divided between them. On the other hand, if they lost, the client would lose his/her money (or part of it), and the expert would lose his time and effort. Most often, they would make profits, since the investment activity is based on careful strategies that take into account the potential risks, and provide safeguards to minimize them as much as possible. Preserving the client’s capital is the highest priority of the partnership.

The big and clear advantage to the client would be peace of mind, and freedom from the complexity and details of the investing process. Additionally, he or she would enjoy high profits without spending any time or effort.

The expert, on the other hand, who brings his expertise, time, and energy into the activity, doesn’t work as an employee. Rather, he is a partner. He only gets paid if he makes a profit. This gives him the right motivation and inspiration to choose the best possible investments. That’s how he generates his income, and at the same time, maintains and improves his credibility as a trustworthy and reliable investment professional.

Happy Investing to All…

The Wealth Maker

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