Episode 67: Our 4-Step Process for Investing in Companies

Episode 67: Our 4-Step Process for Investing in Companies
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The concept of investing directly in a company is not as commonly done compared to simply buying stocks. Finding private investment opportunities to make money is a great way to unlock additional income. There is more risk involved, but the opportunities allow you to gain above-market returns and influence the business direction. Investing in a company can be a fantastic way to build wealth. But before you do that, make sure you have a concrete process. Professional investors need playbooks to replicate their success and learn from their mistakes. If you dont already have your own process, here is Sharrans’s 4-step process for investing in a company. Its pretty simple, but it works! 

Enhance your investing skills by listening to related episodes below: 

 

“We don’t look at contracts as a way to enforce something. 

We look at contracts as a way to memorialize our agreement.” 

– Sharran Srivatsaa

Timestamps:

00:00 Why do you need a playbook

01:39 Mistakes can be costly if you don’t have a playbook

02:22 Sharran’s framework is an excellent guide if you’re considering investing in a business

03:32 Discover the origin of Sharran’s FOUR GOODS process

04:36 Good people – referrals are not enough; working relationship and history are necessary to get to know people

09:37 Good intentions – is this person friendly, helpful, and collaborative?

12:55 The two kinds of people – the person in the middle is a very dangerous person

16:46 Good rationale – the deal has to work on a simple spreadsheet; No spreadsheet, No deal!

19:16 Good contract (a Memorandum of Understanding can also work) – don’t proceed with the contract without good people, good intentions, and good rationale

 

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