Topic: Pool strategy of investment for wealth multiplication. (Read 578 times)

As soon as money is introduced to a relationship the dynamic immediately changes and not for the better, if you are the boss and you just hired a stranger for the job the only thing you need to do is to order them to do what you need and they will strive to accomplish that goal, but with a family member things are much different as if you gave the order with the same tone this may be the beginning of a big fight and you will always have to walk on eggshells with them, making your work way harder and dropping the efficiency of your business.

Yeah, true. I would never go into business withy any money that my family members have, it just doesn't make sense. Even strangers are better because I can talk reason with them, but when you are dealing with family members it becomes an issue.

My spouse has some family money stored away, we have never touched it even on our worst day, literally when it was health reasons and we needed to pay medical bills we never touched it, because we knew that if we did, then our parents would have kept reminding that and would cause a lot of drama in the house,  so we took debt and got loans and maxed our credit card and did alright, instead of doing anything that would hurt us in the end, this was much better choice.

So this is what is most feared in this case, namely the risk of conflict between fellow capital holders in a business that can make a business that has been growing rapidly experience a decline again due to the conflict that occurred. Even business destruction can occur if internal problems arise among the owners of capital.

I've seen something like this and it's absolutely horrific. One of my friends had the idea to start a business but he lacked capital and finally he decided to raise capital by working with some friends he knew.
At first everything went smoothly and business boomed. But when the business is really advanced that's where problems start to arise. Well, mutual suspicion arose between my friend and his friends. They started talking about who should be boss and started arguing about profit sharing. My friend's position is really at a disadvantage. he who had the business idea but his friends who also helped with the capital turned out to be asking for a bigger share of the profits.
And in the end there is a fight and a bit of a fight. eventually the business became poorly managed and ended up bankrupt. Everyone split up and started their own independent businesses but all failed. And my friend is currently starting to pioneer other business ideas, but this time he started with his own capital. He does not want to continue the business idea that was successful with his friends. because surely there will be other problems if the business is continued.
These are just some true stories that I have seen in life. There are still several other stories that make me personally never start a business by collaborating with other people. Especially if it's in investment. So when a loss occurs I'm pretty sure one of the parties will protest and start asking for accountability. Fraternal relations can even be destroyed in this case.

The fact for me is that 98% of people shouldn't start any business with either their family or friends. We know how emotional and illogical humans can be and also because they could find it very hard to separate personal relationships from business decisions leading to  problems, conflicts and complications.

This is  not always the issue though as you have mentioned the Winklevoss twins which in my estimation falls in the 2% sector of people shows that it can work if handled properly.

Before a person fathoms starting a business with family or friends, they must sit down  and clearly define the roles, the  compensation, equity, and boundaries in a contractual manner. Once this can be achieve we are certain any conflicts that may arise in the future would have been nipped in the bud. I would also add that they should be able consider the unbiased advice and of seasoned professionals in the industry when it comes to making critical decisions about the business.

When using pool investing, you need to believe in a fair distribution of profits. Those who manage the pool may have their own not entirely honest goals. Of course, if the pool is based on smart contracts, there is more trust, but otherwise it is worth forgetting about.

I don't think, pool strategy investment is good for someone to grow in wealth in the society because something can happen that will make one shareholder not to be truthful in the business, which it can lead to the collapse of the business or reduce the income that is coming into the investment, and it can also destroy the unity of the family. Any investors that want to go far or multiple in wealth in cryptocurrency investment should learn how to invest alone in cryptocurrency investment, because it will help he or she to exercise patience in holding whenever there is a bearish season. Corporate business is only good for people that truly trust themselves before going into such assets investment, and it will help them to grow fast in wealth because there is a trust among themselves which will be very easy for them to achieve their goal on time.

Corporation do sucks.

Nothing beats out if you do go on sole proprietorship on which you wouldnt really be tending to have some share up with other investors because this is where argumentation would really most likely to happen.
Despite on having those agreements and write ups, it cant really be avoided that there would be some suspicion and questions about inbound and outbound transactions which it would really be raising up some question which it might lead to some possible problems on the time that one of those members would really be taking it seriously or would really be that too impulsive when it comes to emotions.

I do understand on why there are some investors or business owners who would really be tending to create one is that if possible then going solo would be the key but there are ones who cant really be able to established on their own on solo funds because its not enough and this is why it would really be ending up on pooling up those funds via corporation.Im not saying that it would be a guaranteed chaos if this one happens but there are really problems which are inevitable specially on having a business with having lots of business partners on which i dont really recommend.
If you dont really have no choice but you are really that eager on building a business then you have to dealt about these possible problems.

Sometimes to have a Cooperation is good but I believe in one man squad in any business any business or investment that is above two individuals always result out negatively at the end because one person most be claim to be superior among others and they most be definitely cheaters in a cooperative business. My advice to people who want to combine and get a one particular asset is that you most at least try on your own to ensure that you have raised a little fund to start a personal business instead of depending on a joint business, because one person might made away with everyone effort because of greediness, on my own personally I don't agree in such that I can combine with people especially my friends to establish a firm, because I know quite well that at end the business will separation among us.

In a way I can understand the people that want to do this as there are no other people in which you trust the most than your family and friends, but by only choosing from those two groups of people your options get really limited, it is better for anyone looking to start some business to do it with people that are capable and which can make the business grow, now you must still trust those people, but trust can be developed relatively quickly while the skills necessary to start a successful business take years to master.

The thoughts of every individual is different from others so when two or more people are involved in mutual business or trading then there will be lots of conflicts between them.

I think it will be better to use our own money rather than using mutual money because in this strategy you will be dependent on other's decisions.

I think one should be free to take decision and other benefit of self investment is that no will be there to blame you if unfortunately you take some wrong steps.

This is the kind of deal which demands a lot of mutual trust among the participants. I really admire when it works even inside a family clan, as mentioned on this thread the arabian family as example, because on most cases it doesn't seem functional and I take my family as an example of that, due to knowing there would be a lot of conflicts and mistrust among brothers, uncles, cousins and so on. After all, each person prefers to have their own investments without mixing it with others. That is what I've learned where I live by seeing how people around behave, so I'm not an enthusiast of the idea presented on this thread of pool investment strategy.

In my opinion, combining funds is not that easy, if one of the investors does not really understand percentages in managing finances. Because people who have succeeded in achieving that success have commitment, compact agreement and of course the distribution is carried out in a structured way on paper and its implementation. Therefore, in order to realize a fund pooling system, the main thing that needs to be emphasized is agreeing on the management of implied and explicit profit sharing. And if someone deviates, sanctions have been prepared for that person.

And in essence it is better to avoid this one way. Because even though the cooperation in merging the funds initially went smoothly and well. But when the money that was collected started to be invested and then suffered losses, I was more worried that it would destroy brotherhood and friendship as a result of this. So it would be better if we prefer an independent path that can still allow us to manage our business or investment freely according to our wishes. Even though our business and investment starts with small capital, if it can make us more free in making choices then I think it will be better for the comfort of our lives.

But if it turns out that the situation leads us to this way then well doing it with our relatives will be much better and more trustworthy. And of course we have to have a written agreement between us and our brothers regarding profits and losses and the like. so that everything can run without conflict in the future.

I agree with you on the emotional risks of mixing personal and work ties. In charge, you know where to go. Let's examine this differently. Business synergies exist. Two heads are usually better than one. Greed alters the outcome? It's awful. However, well-managed advantages remain. Clear terms and conditions can help in these circumstances.

You invest well! Altcoins are wild. High-risk, high-reward... or failure. Diversity is my topic again. Balance risk and return by investing in multiple things. But you're right. We all need to study a lot.

Having a business partnership with your friends or even relatives are all good until they all get greedy and evil because of the profits you guys are making.

I'd rather make my own business, or even investment so that I could sleep well at night knowing that my money is safe. It's better to hold your own money than to trust someone to handle it and wait for profits. Also, investing in altcoins is a very risky thing to do, not all of them could give you profits in short term or long term process, so always do your own research first.

This is why I would never do this because there aren't that many people that I would be believing to do something like this. I would feel that I am about to get screwed over and that's why I rather not do it at all. I have once did it in my life as a "wager", like I gave my money to a friend who said he could double it and said that if he can't then we all knew that he had enough money to pay me anyway, and he did, and proved it as well like not that he put his money on top of it, and even then I was scared like crazy.

I did it because it was a bet between friends, not really care about the outcome of it to be fair, I just wanted to bet with a friend, and if I felt like that with a friend, it would be impossible for me to do it any other way.

This may work for some especially for a family and blood related people but this mostly won't work for everyone. I have seen that these types of relationship don't last if it's about finance related matters.

The fight between each other is always startled based on what each person that is involved with this pool funding of assets and investments. There's always the disagreement that happens for each one of them thinks that they're better than the others.

From there, the argument grows until they won't work again together. So for those that are able to work this well, that's good until it lasts.

Just throwing this out there:  business and family/friends generally don't mix.  And OP, what you've described is not exactly a revolutionary new idea.  There are many examples of family members pooling their wealth to invest in whatever ventures they're into.  The Winklevoss twins come to mind immediately in the context of crypto.

Plus if you just want to pool your wealth with others to invest in things like stocks, mutual funds exist solely for that purpose.  In general though, I really don't think it's a good idea to get involved with a business transaction with someone close to you--if things go sour with money, they can easily go sour with the relationship, and IMO money just isn't as important as family and friends in life.

When we are making decisions on this kind of instance, we need to focus on both the present and the future consequences of taking such decision in working together with people, not everyone likes a joint or partnership investment because the later end will always looks shady amidst the fellow investors and everyone finally partways, anything that has to do with money must be on a sole proprietor business ownership and not joint task, but there are situation whereby some business could actually requires such, we can take the risk in starting even though the relationship with them in doing business together may not last, joint effort is discouraged in some situations and some settings awesomely welcomes such an idea.

Why do it? Bitcoin and other crypto can be bought without pool investment. The increase in profitability both in single investment and in the pool (each receives a share of the profit depending on the share from the total pool) will be the same.

But there are some nuances.

Which of the friends and brothers will keep the crypto bought in the pull? Although, this is solved by creating a multi-signature (in case of btc), so that access to these crypto assets requires the presence of all members of the family-friendly pool.

How long to store crypto in this investment pool? Some will want to sell earlier, others later, which will be a cause for disagreement.

As is often the case in life, any financial and monetary relationship with friends and relatives turns out to be a test of the strength of relationships, which most often end in scandals, quarrels and breakups. You should think over everything many times if you want to unite in  investment pools.

In my opinion, there are no pluses from merging into investment pool, but there are enough minuses.