The world has changed forever…
Sure, we’ve seen market crashes and economic crises before – and plenty of booms and busts over the years.
But the novel coronavirus has swept across the global economy with a swiftness never seen before.
From its all-time high on February 19, the S&P 500 plunged 34% by March 23. It was the fastest market crash in history.
The pain isn’t restricted to the financial markets, either.
One million Americans have been infected with COVID-19… and more than 55,000 have died.
Meanwhile, unemployment is skyrocketing – with more than 26.4 million filing jobless claims. That’s more than all jobs created since the end of the last recession in 2009.
Stepping outside, you’ll see empty streets, malls, shops, theme parks, stadiums, airports, and cruise terminals.
It’s no surprise that retail sales were down nearly 9% last month – their biggest monthly decline in three decades.
But as the old saying goes, it’s always darkest before the dawn. And as battle-scarred investors, we know this, too, shall pass.
Of course, we can’t predict what the future holds. A second wave of the coronavirus could hit this fall or winter… bringing a new set of setbacks for the global economy.
But no matter how dark things may seem, at PBRG, our focus is to put you in the position to survive and thrive in a post-COVID-19 world.
And we’ll do that by finding innovative companies helping society deal with the new normal.
Four Traits Companies Will Need to Thrive
Longtime readers know Daily editor Teeka Tiwari and I travel the world to find the best moneymaking ideas for our readers. We put our boots on the ground to find you life-changing ideas.
This crisis is unprecedented, so we knew we would have to change our strategy.
That’s why we’ve been monitoring it since the World Health Organization announced the pandemic as a public health emergency in January 2020. And like nearly 90% of the country, we’re sheltering in place, too.
We’ve reverted to pounding the phones, videoconferencing, and even using old-fashioned snail mail to conduct our research.
And it’s paying off…
You see, Big T and I were pinpointing companies with high growth potential before the coronavirus pandemic.
But through our research, we’ve found some are doing even better amid this crisis.
They’re deemed “essential services” by the government. And demand for their products and services have skyrocketed during this pandemic.
It’s acted like a shot of adrenaline injected into these firms. At this point, they’re all-hands-on-deck… hiring in droves… and trying to keep up with demand.
And even after the pandemic recedes, they’ll continue to grow at double-digit clips (at least) each year.
To find the best companies to invest in during this crisis, we looked at four criteria:
- Well-funded and already growing before the pandemic
- Getting a boost from their goods and services during the pandemic
- Will continue to thrive when the pandemic passes
- Have 10x or more potential upside
These are the types of companies you want to own now. But you won’t find many that fit these criteria in the public markets.
Opportunity of a Lifetime
Most of the companies we’re looking at are in the private markets.
They’re called Regulation A+ offerings. And they’re open to the general public – not just accredited investors. In some cases, you can buy into these private deals with minimums of $500–1,000.
At PBRG, we call them “sweetheart deals.”
That’s because they offer the kinds of setups that were usually reserved for exclusive golf courses and private jets… or made in reserve boxes at sporting events and top-floor meeting rooms at five-star hotels.
But new rules from the Securities and Exchange Commission now allow ordinary investors to invest in private companies before they go public.
And they’re a game-changer.
Take Harvard Medical School professor Timothy Springer, for instance.
He invested in a private biotech company called Moderna (MRNA) in its early years. When the company went public in 2018, his $5 million stake skyrocketed to $320 million on IPO day.
And in just two years, that windfall turned into more than $800 million – a 17,000% gain to be exact.
Now, I know most people don’t have $5 million to invest. But a $500 stake in Moderna at the same time Springer made his investment would be worth $85,500.
That would be enough to go on a vacation, pay the kids’ college tuition, or buy your dream car.
A few wins like that will give you financial freedom to do whatever you want.
And there’s even more reason to love private companies in these trying times…
The best companies built substantial war chests before the pandemic. And their business models are so strong that they’re still getting funding in the worst market conditions since the Great Depression.
So their real beauty is the flexibility they enjoy. They have options public companies don’t: If the market remains volatile, they can stay private until the conditions are more favorable to go public.
This helps them use their war chests to meet the four criteria I laid out above.
Plus, by targeting firms fighting to end this pandemic, we can actually help them in their mission.
I understand the natural tendency for most investors in a crisis is to hunker down – especially when faced with the brutal, cold-blooded efficiency of COVID-19.
But as adept investors, we can’t close ourselves off to the world.
Though it may seem counterintuitive to say this now, years from now, we believe you’ll look back at this moment as the single-best time to be an investor. You won’t see opportunities like this again.
If you want to test out investing in private markets, consider crowdfunding platforms like SeedInvest and MicroVentures. They list dozens of promising private companies raising money from everyday investors. In some cases, you can get started with as little as $100.
Remember, always do your due diligence before jumping into any opportunity and don’t risk more than you can afford to lose. Just a few hundred dollars could be enough to deliver incredible gains.