I hope you will like my sharing today. Feel free to drop your comments.
I drove past a billboard for Charles Schwab on the expressway this week, "First rule of investing. Investors rule". As I talked with 10 or more start-up companies over the week, I thought how many founders should note this perspective. I would venture to guess that every founder I spoke with would agree with this statement when it relates to their own stock portfolio. Your personal portfolio may have Waste Management, Apple, and Coca-Cola in it. As long as the stock prices are rising, you’re happy. But what if the stock prices are heading downward or holding at the same level for seemingly forever, what do you do? Do you continue to keep them as the price is heading south, do you buy more on weakness believing that it will shoot upwards in the future, do you sell and move your money into what something more promising? If I asked the same question to the founders about whether it holds true for angel investors or venture capitalists, they would hesitate to answer, somewhat unsure of the startup investor’s perspective.