Where would you invest 750k USD?

[kalel]

Hi guys,
I just sold part of my SaaS. Currently have 750k USD in my new LLC in Citibank US.
What would you guys do with that amount in terms of investment? Mid-High risk high returns?
Would love to hear from you guys? Also if you have some interesting biz ops would love to talk 1on1.

Cheers.

 

[wellington]

5% BTC, 3% ETH
10% Gold

Remaining Farm Land, Bonds, [ dividence payment commodities companies]

5% cash in the bank (will debase)

 

[JohnnyDoe]

Hi guys,
I just sold part of my SaaS. Currently have 750k USD in my new LLC in Citibank US.
What would you guys do with that amount in terms of investment? Mid-High risk high returns?
Would love to hear from you guys? Also if you have some interesting biz ops would love to talk 1on1.

Cheers.

There are a few good ideas in this forum that go beyond the usual stocks/bonds/crypto/gold/real estate

 

[OffshorePhantom]

I am in a similar situation, with even more capital at my disposal, around $2-3M, and would like to know if there are some other good opportunities apart from stock & bonds which might be worth considering.

I am doing some Real Estate investments ion Dubai and I have already a stock Portfolio of around $2M but I also want to diversify in other jurisdictions/assets if possible.

 

[denniz07]

It is a trick question. The general advice is something like 70/30 etf portfolio in stocks and bonds. (I'm not an expert)

After doing some thinking about it, in my opinion a good mix might be
- 10-30 % in real estate
- 10-50 % in short term bonds / Fixed Term Deposit
- min 50% in stocks / etf's
- 10% < maybe some crypto as well

My reasoning. You should diversify.
Real estate is not bad and you can touch it. Although returns are often not high.
Short Term Bonds / Fixed Term Deposits. Right now you get about 4% risk free and you can invest it later if the market drops and we get a long recession.
Stocks/ETF's, it is unclear which direction it goes. So I would invest slowly and use the Cash, Short Term Bonds for it. Maybe later it makes sense to go to a higher rate if the interest rate drops again.

Regarding all that, you have to consider tax as well. There are a lot of choices. I will personally go for something like S&P 30%, BRKB %30 (very tax efficient), MSCI EM %30, Some Stocks %10 with potenzial like GME

PS: As said not sure if it is a good advice. Maybe someone with more expirience can comment.

 

[void]

Right now you get about 4% risk free

stop joking about risk free yield - somebody could take you seriously and get hurt

 

[denniz07]

stop joking about risk free yield - somebody could take you seriously and get hurt

tbills are risk free

 

[void]

tbills are risk free

yes, and pigs fly all around

 

[JackAlabama]

tbills are risk free

that made my day.

 

[OffshorePhantom]

Guys, tbills are generally considered risk free (not by me but by the market itself), the only risk is a default of the US government, but if the US government defaults then the risk that comes with tbills is the least of your concern. US is not Argentina.

What are the Risks of Investing in Treasury Bonds?

Read about the risks of investing in U.S. Treasury bonds, including interest rate risk, inflation risk, and opportunity costs.

www.investopedia.com

 

[CyprusLawyer101]

I think what you are looking for is a more active investment with a high upside, like investing in a start up of an established business idea or investing in a start up of a new business idea, or buying in new profitable businesses with additional upside anticipated. Once the scales are small you have more visibility and flexibility of how you position yourself in an investment as well as things look simpler and with little common sense you can more easily estimate which business can be sucessful and which not; as you can do your own little numericals and safe assumptions with higher accuracy.

 

[FantomOffshore]

Hi guys,
I just sold part of my SaaS. Currently have 750k USD in my new LLC in Citibank US.
What would you guys do with that amount in terms of investment? Mid-High risk high returns?
Would love to hear from you guys? Also if you have some interesting biz ops would love to talk 1on1.

Cheers.

$META and I will tell you why.

VR feeds perfectly into the remote work trend and on top of that you get Instagram, WhatsApp and Facebook for 11 P/E. Also, costs of goggles will go down exponentially as the world is driven by exponential functions nowadays, and once VR becomes mainstream $META will have a big lead.

In terms of exponentiallity:

- $AAPL realized telephone costs went down, Apple became one of the most successful companies on earth. Ballmer missed this and got ousted as $MSFT CEO (when telephones were still too expensive to be viable).
- $MSFT realized cloud costs would come down, Satya realized and created Azure (when cloud was still too expensive to be viable).
- $TSLA realized battery costs would come down, Elon realized and created Tesla (when eCar was still too expensive to be viable).
- $META realized VR costs would come down, Zuck realized and create Meta (when VR was still too expensive to be viable). ????

Seems to me like a great, if not amazing, play in terms of risk / reward. Too many companies died because their CEOs were complacent and were not going to risk a steady business to remain competitive a decade from now, like Kodak for example.

 

[denniz07]

- $META realized VR costs would come down, Zuck realized and create Meta (when VR was still too expensive to be viable). ????

I think META is not bad. They are still making a lot of cash. But don't buy it that they can win VR. MSFT invests in this area as well. You have apple as well and they may bring something out and just kill it.

Apple's mixed reality headset could be announced in spring at the earliest, top analyst says

Apple's widely expected mixed reality headset won't be announced until at least spring 2023, after delays, top analyst Ming-Chi Kuo predicted.

www.cnbc.com

Just thinking that META is not a hardware company. Right now it is more of a hardware problem I think.

Regarding investments, I'm a bit more convinced to invest in EM / CHINA more. Maybe wrong, but they have low p/e ration. Have underperformed and there might be some value there. Will also go into S&P500 but slowly since FED is unpredictive right now.

 

[FantomOffshore]

I think META is not bad. They are still making a lot of cash. But don't buy it that they can win VR. MSFT invests in this area as well. You have apple as well and they may bring something out and just kill it.

Apple's mixed reality headset could be announced in spring at the earliest, top analyst says

Apple's widely expected mixed reality headset won't be announced until at least spring 2023, after delays, top analyst Ming-Chi Kuo predicted.

www.cnbc.com

Just thinking that META is not a hardware company. Right now it is more of a hardware problem I think.

Regarding investments, I'm a bit more convinced to invest in EM / CHINA more. Maybe wrong, but they have low p/e ration. Have underperformed and there might be some value there. Will also go into S&P500 but slowly since FED is unpredictive right now.

META can absolutely win. Their current goggles are 10x as cheap as their competitors, while Apple does not even have a working VR goggle yet. They are probably at least a year behind. And maybe Apple while come out with a great goggle, it will be later in the game and at a much higher price-point. If Meta can capture the metaverse ecosystem, they will be golden. I think Microsoft realized this, which is why they struck a partnership with Meta: Microsoft Partners With Meta to Bring Teams, Microsoft 365, and Other Apps to Meta Quest Devices |.

MSFT's HoloLens has been plagued with issues like its co-creator stepping down and the US army stating it could have gotten them killed: 'The devices would have gotten us killed.' Microsoft's military smart goggles failed four of six elements during a recent test, internal Army report says.
Also, I would not count on Apple too much this decade, they are borderline monopolistic and increasingly an annoyance of Meta, Google, and Microsoft.

That leaves one competitor, Apple, which doesn't even have a VR-goggle yet, although I do respect them. However, Apple and Cook don't really represent innovation for me and I doubt they can pull it off given the utter lack of inventiveness displayed in the latest x amount of iPhone releases.

Of course there are more competitors like HTC, but I think META is on its way to at least win the goggle war. They might not be a hardware company, they do currently offer one of the best goggles at 1/4th the price point of its nearest competitor, and they bought plenty of hardware companies.

 

[freeburgher]

In my work I come across many people in similar situations..

There are a bunch of good ideas in this thread and across the forum. In addition to them, I might add you should invest some of it in residence/citizenship diversification. Additional residences or citizenships are great avenues to improve access to new markets, reduced fiscal burden, and increased personal freedom.

Many interesting countries offer advantageous investment options that return easy visas or passports. If you want we can chat 1v1 about it.

PS I've seen people mention a few financial investments. My suggestion is to stick as market neutral as possible. Pick the cheapest, highly liquid broad market ETF or index fund and forget about it for a few decades. Any other more active strategy is pure gambling and is proven to perform worse.

 

[JohnnyDoe]

My suggestion is to stick as market neutral as possible. Pick the cheapest, highly liquid broad market ETF or index fund and forget about it for a few decades.

this is the exact contrary of a market neutral strategy, which is for example arbitrage (something completely beyond the ability of retail investors).

 

[Sols]

Congrats on the (partial) exit!

You're a good entrepreneur. Have you considered using it to start a new business? You know yourself best and know what you're passionate about, and what problems you can solve.

I think what you are looking for is a more active investment with a high upside, like investing in a start up of an established business idea or investing in a start up of a new business idea, or buying in new profitable businesses with additional upside anticipated. Once the scales are small you have more visibility and flexibility of how you position yourself in an investment as well as things look simpler and with little common sense you can more easily estimate which business can be sucessful and which not; as you can do your own little numericals and safe assumptions with higher accuracy.

Investing in promising start-ups is a very good suggestion, especially if you can bring something of value more than just money to the business.

It might seem hard to find opportunities but just look around. There are probably networks or organizations for angel investors and seed investors you can get into. They might also know about small, profitable businesses looking for an exit.

It's riskier than buying a balanced portfolio of securities, but the payout can be far greater and regardless of how it goes, you will have acquired new skills and connections.

 

[freeburgher]

this is the exact contrary of a market neutral strategy, which is for example arbitrage (something completely beyond the ability of retail investors).

You're right. Let's say "broad market" strategy instead

 

[JohnnyDoe]

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[Cabin14]

Depends on your age and time frame.

Something to consider is investing a chunk (30-50%) in a top performing VC fund. The rest - in an S&P500 ETF. The VC will lock up your cash for up to 10 years - but will typically outperform all other asset classes.

I had a large exit a few years back and I sit in a mix of direct startup investments, broad market ETFs, high yield ETFs (I live off my dividend income), REITs, and alts like art, whisky, and soon maybe farmland.