It's much easier for investment managers to have 10-20 rich or institutional clients than to serve millions of small clients. This industry was built for centuries, and it just works.
That's why the best investment opportunities are visible only in private communities of rich guys.
π Because Public Markets Are The Way To Cash Out Whales
IPO performance is often weak because IPOs are used to cash out the early investors and top management.
Even established stocks are often sold by large insiders at market peaks: Elon Musk, Jeff Bezos, Walton family, Mark Zuckerberg, Larry Page, Sergey Brin, you name it.
π Because Private Markets Are Hidden From Hysteria
Money loves silence
People track trading apps like crazy, but there's nothing similar in private markets.
a16z doesn't evaluate their portfolio each second.
Real estate moguls don't calculate the worth of their properties constantly.
That doesn't make any sense.
Thanks to this you can feel safe during the panics.
Stop reading the news, turn off the terminal, and just become rich.
π Because There's an Stellar Growth Potential of Securitization
Global real estate amounts to $317 trillion, but only $10 trillion of that is managed in funds and available to a broader investor base through the public real estate market.