This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

4 Ways Crowdfunding Can Make You a Better Investor -- Just Ask Buffett

3. Frankenberger: Manage risk

These advantages from crowdfunding allow for superior risk management, too, which is the critical factor according to Andy Frankenberger, who beat gambling legend Phil Ivey in the World Series of Poker in 2012.

Frankenberger, a former derivatives traded, stated about his victory, "It's all about risk management. If the market goes against you and you're wrong, you get out. A lot of poker players don't know how to do that because it looks weak."  

4. Einhorn: Start small

On the same note, Dom Einhorn, founder of crowdfunding platform Born2Invest, added, "While any early-stage investing, including crowdfunding, is risky, it is mitigated in crowdfunding because of the ability to allocate small amounts to specific ventures. This results in a front-row seat with limited financial exposure, allowing for gauging the viability of the project before committing larger funds."

All investing is about putting the odds in your favor.

Crowdfunding can improve the investing skills, and returns, of an individual investor. And those benefits can apply to the stock market too.

That's not arcane financial theory. It's the proven result of investing legends such as Peter Lynch and Warren Buffett.

>>Read More: Netflix Has an Enormous Opportunity Sitting in Front of It

>>Read More: Microsoft Knows Where It Is Going, but Who Will Follow?

>>Read More: Foot Locker and Hewlett-Packard Lead 9 Stocks Pre-earnings

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BRK.A $196,501.00 -1.58%
BRK.B $129.64 -1.90%
FB $88.26 0.12%
AAPL $109.27 -1.00%
GOOG $600.70 -0.92%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs