Fund Formation

You seriously need to grow up. Having access to the money does not mean you should access it. If you are actually good at this start with less capital build a track record and raise more money when it will be much easier and you will understand the value of money.

When I was 26 I had a situation similiar to yours and it was not until a cousin of mine in investment banking told me all of the downsides to this.

Also, if you want to do this for years to come a large loss to start out your career will make you look like an amateur
 
I'm not going to buy all facebook when it comes out.
More like take a 25% option stance with some other
investments. Then my clients will have a 1.25% option
position. Their are also other good investments.

The way everyone sounds I should just buy mutual funds
and this is what my finance professor's told me.
 
HAHAHAHAHAHAHAHA (wiping tear from my eye after laughing so hard)

Wow, I don' t post very often, but I couldn't resist this gem.

I do have two serious questions for the OP

1. What criteria will you use in evaluating stocks, other than your belief that "corporations will through money at"
Facebook (maybe you meant throw)

2. Have you ever traded before? What is your current record?
 
Yea, your attention to detail is thorough.

If your really smart you should be able to
tell me what language disorder I have.

Hyperactivity and dyslexia type spectrum.

No, I didn't go to an Ivy-League school.
No, I not telling you were I went to college.
My professor's told me to invest in mutual funds
anyway, so I can sleep better at night.

Track record is 25 shares of google @ 126.
Still have them.

I can develop the fundamental analysis of a company,
but it is not effective for my current investing strategy.
Which is earnings growth forecasting.
Hopefully when I have 100k I will be more conservative.

Why is it LikeThat? Because it gives me peace of mind.
When Facebook or Google is overtaken by a better
product I can say "Yea it was kinda LikeThat company that
lost people money, but now it is like this. I wonder when that
will be overtaken by this." LikeThis people are
VC's with money and/or programming knowledge.
 
If I were you, which I'm obviously not, and I was given that access to capital I would take $2,000 and be hyper-risky with it (your Fbook call options, or some other equity or index options). The odds are you'll lose money big here so why not blow your wad on a small % of your overall portfolio at the outset? And if you do win, you'll add a few % to your overall portfolio so it's a win-win.

On the other 98%, if I could go back to when I began trading I would learn one thing over - patience. I've got great ideas but I always find another great idea while I'm implementing the first one so I end up moving to the second, then the third, etc. Let your trades play out.

Finally, a lesson I learned from a fellow in Manhattan: know the purpose behind each trade, and only let that trade exist as long as its purpose remains intact. For example, if you pick up Google shares expecting a solid earnings report, you should close the position regardless following the report because your main catalyst (your trade's purpose of capturing earnings fluctuation) is complete. Don't turn an investment into a trade or a trade into an investment.

Other than that find your trading style. It'll come with time and you'll find out if you're good or you suck.

All The Best
Dave
 
Well regardless of your learning disorder, congratulations on graduating from college.

I suggest, actually I highly suggest that you continue learning about finance. From your posts, you clearly do not have the level of understanding of the financial markets that is needed to begin considering forming a fund.

Again to make clear, you CAN NOT buy equity in Facebook. Facebook is not a public corporation. I hope you at least understand that.

As far as mutual funds and your professors' advice, ask them about their funds' returns. Also the common misconception that stocks always go up referring to the DJIA is false. Only one original company remains on that list since its inception.

I myself recently graduated college worked with a brokerage firm and left the position. I know there's a better way, which is trading. Many people will never realize this in their lifetime until they're on the other side. I wish you luck because I feel sorry for you. You are proof to the traders here that believe a college degree is a meaningless sheet of paper.

Don't blame your grammar on your disabilities, that's a lack of character.
 
All this LIKE THAT LIKE THIS bull shit is dumb. To actually start out and say Im going to buy facebook when it comes out is horse shit.

Your professor told you to invest in mutual funds because he doesn't know how to get better returns and is more interested in sleeping well at night. if he knew how to trade, he would not be a professor. same old conventional crap. it annoys me sometimes when people say "just put your money in a mutual fund". I just tell them to go fuck themselves. unless you have 100mill in the bank and just want to relax, sure put it in a mutual fund. but if it's 1million, its not worth earning just 70k a year. not even that probably, more like 50k. trade for yourself, you could earn severa hundred percent after you teach yourself this art of trading.
 
I'm kinda insulted, you assume I think Facebook is public.
You're being ridiculous, I wrote get ready for Facebook.
That implied it is not out yet.

Character is based on traits.

Good and Bad
Quick post, Bad grammer
Return / Risk

I like the LikeThat/LikeThis

Facebook on the day it comes out?
Maybe, it depends on the market reaction and my analysis.

About the Fund.
What would be the best tax software?
TurboTax?

College is overated! But informative.
 
Quote from LikeThat:


I want some advice for a start-up fund.
More...

Got a few years? Cause you're very green when it comes to that business. Unless you don't mind losing your parents' money.

I'm still trying to figure out if this is for real.

Look, honestly, you need some experience & learning before you bark up that tree. Managing your parents' money is not going to get you anywhere, you need to get more professionally involved and get real experience. And I'm not talking about Facebook, which is laughable.

That being said, if you want to direct your parents' money into innovative & emerging markets (instead of losing it), send me a PM.
 
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