Venture Capitalism For Pennies
You know what real wealth looks like.
Big yachts, exotic vacations and fancy dinners.
A carefree attitude towards everything and everyone.
Yes, it’s no secret private high-net-worth investors have all the fun.
But becoming one isn’t easy and private companies aren’t easy to invest in. You have to qualify and you need to invest a lot.
To be fair, private investors also risk a lot. Depending on the company they’re involved in, there’s a bigger chance they’ll get no return on their investment.
But when private equity investors strike it big, the payoff is huge.
Here’s the best part.
I’ve uncovered an easy way you can tap into this money stream whether you’re a millionaire venture capitalist or just getting started on your path to real wealth.
Let me explain.
There’s a corner of the market as close to private investing as you’re likely to see.
The gain potential is enormous, without the risk of losing your shirt.
I’m talking about business development companies.
Business development companies, or BDCs, have been around since 1980, but not a lot of investors know about them.
That’s a shame because BDCs are among the highest-yielding stocks on the market. If you’re an income-focused investor, you need BDCs in your portfolio.
BDCs were authorized by Congress in 1980 under the Small Business Investment Incentive Act to address the need for small businesses to raise capital more easily.
Today, BDCs are publicly registered companies that provide financing to small and midsize businesses.
They are essentially publicly traded closed-end funds that make investments in private companies with a transparent portfolio of loans.
It’s a nice hybrid between private equity and venture capitalism — for regular folks like you and me — they pay some of the fattest yields on the planet.
Now let’s look at one of my favorites.
Lock In Your 8% Yield Right Now
Goldman Sachs BDC Inc. (NYSE: GSBD) is one of the best run BDCs in the world.
GSBD generates income through direct originations of secured debt including liens, unsecured debt and select equity investments.
Forecasting ahead, Wall Street analysts expect GSBD will report full year sales of $147.21 million for 2018. Next year, the Street expects GSBD to post sales of $159.12 million per share.
GSBD also pays a hefty dividend yield of over 8% and it has raised this payout the past two years.
Growth and yields like that are an income investor’s best friend.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch