March Madness…it’s that time of the year! I’m so into it that my 9 year-old daughter just gave me a framed poster that reads in colorful script that, “It’s the most wonderful time of the year!” With all apologies to Andy Williams, March Madness is my most sacred of holidays.
Bracketology…even the most casual NCAA basketball tournament observer has become familiar with the term. It’s all about filling out those brackets and winning your pool. Which 12 seed will beat a 5 seed? The 8 vs 9 seed has been virtually 50-50 over the past 20 years. Going chalk long term tends to get rewarded, but if you pick the wrong 1 seed to go down before the Final Four, you’re done.
How many years — and let’s be honest — has your bracket been busted by the end of the first weekend? If you say anything less than 75%, you’re flat out lying. Bracketology is a hard course to master. The NCAA tourney is called March Madness for a reason…it’s flat out chaos…often totally unpredictable.
A private company investment portfolio often feels like a busted bracket. All those investments — those picks — that seemed promising go a different way. You can do all the research, due diligence, and listen to the experts that you want, but there are always those variables that failed to be accounted for. Yep, too much that can go wrong…too much variability…too unpredictable.
That is what scares people away from private company investing — such unpredictability, such uncertainty. It’s Bracketology in the real world. A busted tournament bracket will mainly cost you only your pride and a few bucks. A busted private company investment portfolio will certainly cost you more than that.
In my previous post, I discussed my three pillars of value in private company investing — Potential, Growth and Predictability — which elicited quite a bit of commentary and feedback. People got the potential and growth angles, but had a hard time understanding the predictability one. Can you really have a decent grasp of investment parameters such as expected holding period and annual return? Can you really attain some sort of predictability in private company investing? Can you keep your portfolio from looking like a busted bracket?
I’m here to tell you that the answer to those questions is yes. Drop me a line at [email protected] to learn more.
About Merrette Moore: Merrette Moore is the Managing Partner of Tidewater Investment Company, overseeing the operations of the firm. Merrette has over 25 years experience working in finance, company management and innovation. He has been involved in over 50 private investments, serving as the lead investment representative for many of these deals. Merrette has participated on the boards of several privately held companies either as the executive chairman, director or an observer.
About Tidewater Investment Company: Tidewater Investment Co. is a North Carolina investment firm focusing on small company direct investment as well as healthcare venture capital. Tidewater provides unique access to subordinated debt, small company private equity, growth capital, and venture capital investments for high net worth individuals, family offices, and small institutional investors. The firm’s investment platform allows investors the flexibility to invest on a deal-by-deal basis without any upfront commitment of long-term obligation.
For More Information, please visit our website: www.tidewaterinvestco.com.
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