[Republic Weekly]
Republic Insider
September 02, 2020
ð¥ Ending soon: [CallingDr]( and [Glyph](
Startups: the ultimate long-term investment?
Many of the most well-respected investors in the world believe that taking a long-term perspective has been key to their success.
Legendary mutual fund manager Peter Lynch put it this way, âThe real key to making money in stocks is not to get scared out of them.â
Warren Buffett once said that investors should, âOnly buy something that youâd be perfectly happy to hold if the market shut down for 10 years.â
Buffettâs partner at Berkshire Hathaway, Charlie Munger, famously said that âThe big money is not in the buying and selling, but in the waiting.â
Today U.S. investors do not appear to be following this traditional âbuy and holdâ advice. [According to Reuters]( the average holding time of U.S. shares on the NYSE is now at a record low of 5.5 months. Thatâs down from 8.5 months at the end of 2019. Back in 1970, the average holding period was over 5 years, according to NYSE and [U.N. data](. It has steadily trended down since then, and just hit a fresh new low.
It appears that a short-term mentality has taken over the investing world. But thereâs one asset class where a long-term perspective is still going strong.
Startups: long-term by nature
One of the most unique aspects of investing in startups is its long-term nature. Once you invest in a private company, youâre committed to it for a while. Startups are considered âilliquid assetsâ, meaning they canât be easily bought or sold until an âexitâ opportunity comes along (IPO or acquisition). Some investors view this illiquidity as a negative. They want to be able to buy and sell on demand.Â
Others view the long-term nature of startups as a positive thing, because it enforces buy-and-hold discipline. With startups, you donât have to worry much about taking profits too early, or panicking during a downturn and selling too low. Youâre already committed.
The result is that when you invest in the early-stages of a private company, it has years to grow and mature, providing the opportunity for substantial gains over the long-term. Of course, some startups will fail and not return capital to investors. This can seem intimidating at first, but should be expected in the early-stage investing world, and is the reason why venture capitalists like Fred Wilson say itâs [wise to spread risk]( out across multiple startups.Â
The big idea behind startup investing is that a few long-term winners have the potential to make up for losses, and more. For further insight into diversification, see our article from earlier this year, [The importance of startup diversification](.
And speaking of diversification, we currently have [51 live deals on the platform]( Take a look, and you might find a few worth adding to your long-term portfolio.Â
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Launched this week
[588 1597541648](
Digital energy platform that detects, eliminates and monetizes energy waste
[View COI Energy](
[595 1594756897](
A flexible, high impact learning system for closing the gap in elementary math
[View Levered Learning](
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ð¥ Startups closing soon
[CallingDr]
CallingDr is about to close!
$270,032 raised · $100 min. investment
Connecting doctors with patients anytime, anywhere
[View CallingDr](
[Glyph]
Glyph is about to close!
$105,621 raised · $100 min. investment
Highly versatile shoes developed with digital knitting technology
[View Glyph](
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Startup updates
[Nada](
[Nada: Nada Product Release BETA Testers needed! -- Sign-up to test + chance to win free Google Nest! ð¬](
[Wearwell](
[Wearwell: Get to know us! ð](
[Janover Ventures](
[Janover Ventures: One small step for Janover Ventures, one giant leap for commercial real estate finance! ðð](
[Backyard Soda Co.](
[Backyard Soda Co.: Backyard Partners with Ironton Distillery for Home-Delivery Cocktail Kit](
[Levered Learning](
[Levered Learning: A new learning pod perk to celebrate hitting 100% ð¥ and more!](
[PuffCuff](
[PuffCuff: Welcome PuffCuff TEENY](
[Elemeno Health](
[Elemeno Health: Dreamit Ventures Invests $250k; Elemeno Advances in National and International Competitions](
[Flexable](
[Flexable: Flexable grows revenue 600% in August and finalizes key sales/partnerships!](
[TEMPLE I](
[TEMPLE I: NYCE x Budgetnista Real Estate Webinar: 5 Terms Every New Investor Should Know](
[HelloWoofy.com](
[HelloWoofy.com: ð ~$5,000 Away from Hitting $100,000!!! Thank YOU for the LOVE and Support! Consider Increasing Investment NOW ð](
[Insense](
[Insense: ð¡ð Cleanly leverages Insense creators to grow their Ad Click Through Rate 2.1x](
[Asarasi](
[Asarasi: Asarasi & Anheuser-Busch Goose Island Brewery Collaboration!](
[Smart Soda Holdings, Inc.](
[Smart Soda Holdings, Inc.: Smart Soda Broke All-Time Sales Records in the Last 60 Days!](
[CallingDr](
[CallingDr: CallingDr gets a $250,000 white label contract with specialty clinics](
[1World Online](
[1World Online: 1World August Webinar (Recording)](
[It's By U](
[It's By U: A hero's tale...](
[Glyph](
[Glyph: August was our Highest Revenue Month Ever](
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[Whatâs the inspiration behind Gesture? In my own personal experiences with flower and gift delivery, I was constantly let down by unre...](
[Investing in startups through an IRA](
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Investor education · Aug 27, 2020
[Over recent years it has finally become possible to invest in private startups through a âself-directedâ IRA. Investing in startup compan...](
[Melissa Vitelli, Jar Goods](
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