Topic: Pool strategy of investment for wealth multiplication. - page 3. (Read 578 times)

I do not advise a group of relatives and friends to get together and buy high-risk assets, including Bitcoin. You start investing from a low-risk asset, medium to high, and not the other way around.The reason for this is that all types of investment entail risks that may not be borne by everyone, and thus cause social problems among the family. It is better to divide the investment so that it is in different sectors and in varying proportions so that high-risk investments do not exceed 30% to 50% in the worst case, with a good diversification of investments and asking specialized people to reduce risks and maximize profits. Such partnerships are always the problem in the mechanism of providing liquidity when someone needs it in making decisions.

I just wonder, what difference does it really make if you are investing with a group or doing it individually? Especially when it comes to Bitcoin or cryptocurrencies where you can buy with anything you have as long as it is more than $10, and even if there are 4 people combining $10 each to buy $40 worth of the asset or everyone buy $10 worth of it individually, when the price of the asset goes up, everyone will still have the same profit value.

So in my opinion, it is not really worth it, and someone should rather make their investment on their own instead of doing it with a group of people. If I was to decide, I would never do it with a group unless I knew that I can't reach the investment threshold on my own since I don't have enough money.

Pooling funds together for investment can have potential benefits like bigger capital so running the business will be smooth and can get into bigger sale but I want point of that it is Too complicated since we need to trust the partners which you know it is not under the control of you as an individual.

Do you know someone who can trust you with your life and also interested in your business as a partner then you got to be lucky and no need to hesitate while it is not going to happen for everyone since we are living a life among selfish people.

Well there are some things you need to keep in mind while pooling funds with others

• Establishing clear agreements, and documenting responsibilities
• Maintaining open communication are vital to avoid conflicts and misunderstandings
• Each participant in the pool must have a clear understanding of their financial responsibility and risk appetite
• Decision-making Process is cruel and decides how it should be based on

I will not partake in such centralized business for a decentralized cryptocurrency especially for bitcoin. Building a family business because of lack of fund which will make the gathering of resources essential, needful and important for such huge project to grow. But bitcoin or other cryptocurrency doesn't require such huge fund before investing so what is the point to create future rift when everyone would have lived peacefully if they didn't pull resources together. Running a partnership business is suppose to be in black and white on the conditions of coming together, operation and contribution, liabilities including losses and profit, not just by the affinity sake alone without terms and conditions written out.

This goes against the spirit of bitcoin, now it is true that if you can find a group of reliable people to do this strategy you could profit from it, however that is a huge if, where are you going to find those people? How are you going to make sure one of them does not run with the money of everyone else? And in the case this happens how do you avoid legal consequences for yourself as this was your whole idea? At least to me this looks like a lot of work for almost no gain and a risk that is too high.

No it's different, In Arab culture there is no paper agreement or signing a contracts. It's just words between families and relatives. They put their money all together, use only credit card for their expenses for all the person inside the house. So the only thing they hold for that agreement is their words, blood, and relationship. So altogether they pool their money.

The same thing happened in crypto space, People gathered their funds in one project or account and they trade it as if they think their fund is enough to be whale, or to affect the volatility of an asset.

That is very hard to meet, I mean how could you get together with bunch of people and pool your money together and trust them? It would be pretty difficult and I believe that there will be some troubles. This can't really be done perfectly when we are talking about just the regular people and only a few of them getting together, it's just not that easy to handle and we need to arrange something totally different.

It is not going to be much of a big deal but it also can't be done any differently. I believe that we can't really have anything major, but it can't also be done in a way that would be different neither. I hope that we can move on and do something much bigger, and we can't really change it that much.

In investing in crypto and stocks a combination of investments is definitely not a good thing to do. Because in this type of investment, large funds are not required to enter it. But if it is in the investment property of land or buildings such as apartments and the like, you need more funds to enter this type of investment. Then the pooling of capital can clearly be done. The bottom line is combining capital for investment is only more logical if it is done for investments that require large capital. or can not be done with small capital.

Correct most times just as you said they solely depends on their parents and how they handle their families, there are lots of parents (mother and father) who weren't able to bend their children to live and love each others, especially to be respectful and adhesive to whatever their elderly ones instruct them in the family.

If they were are able to corporate during the investment period then I must say such parents are good people for putting efforts to unite their family despite having living together they were able to maintain the investment to maturity and yet was shared evenly between them.

This would be only possible if all of your brothers are really that having their own source of income or having those funds which are intended for investment but if not? Then it cant really be possible on

having this kind of set-up.I agree on some mentions on here that trust would really be a big problem on this specially when it comes to money and investment because we do know that everyone could
really changed up on point on the time that they would be dividing their sharings. Its really that truly possible that this thing could be done but this would be only good on having those agreements
in between siblings but also could be done on other people but it would really be that hard to be applied on this method because just like i said where trust and confidence would be the main issue on this one.

If possible then i would really be that much preferred on having that sole proprietorship on which it do really lessen out the headache on having that corporation style which it isnt really that my liking.

I was thinking if the upbringing of the children in a family could also determine if they can agree to such an idea, in the first instance.
It is not obvious that these brothers were raised to love and respect each other, for them to first live together and invest together.

I believe the brothers in my story made a targeted investment and it is the profit they get from the investment, that is used to acquire property and share evenly among themselves.

Be opened to pair and to connect to what feels good for you in people but do not be relaxed and eager to emulate what works for others because what works for others might be a disappointment to you.

I would describe this topic "Pool strategy for wealth multiplication" as a pond or a structural layout that demands the tactical ideologies and the technicalities of spreading your investment wings to reliances for a financial exploit in an investment sector.

Walking and working with those on the same mission as you has a highily potentialities to fit you possess your possessions on that that field.

When two or more person's  are conjoined against lesser numbers of persons, there is a potential of conquering but not numbers that counts but individual capabilities and abilities.

So, you don't have to look in counting of numbers to succeed in your business or cooperative affairs and it is not reliable as a sole business because trust issues do exist.
You only align in a partnership when you don't have enough capital to kickstart in your investment as long as you have your investment skills.
Corporative investment is accompanied to have internal tussle which is tantamount to breakdown businesses.

Benefits for partnership are >>
1) Low capital raised per person for easy establishment
2) Collective ideas are layed
3) Larger Capital is achieved by contributions.
4) Magnetizes connections
5) Large wings spread.

Benefits of a sole business>>>
1) Simple management
2) Trust free
3) Privacy is obtained
4) Confidence operations
5) Personal decisions.

Summary>>>  If you think you are fit in to build and handle an investment of your own, it's best way for you but if you think you don't, only then you need to be partnered.

Sometimes it all depends on families how organized they are and how corporative the brothers is, there some families that are envious of themselves whereby they won't even think of doing a collective investment or team together to produce a yielding results from whatever investment they have ventured into.
So, for this Arab family, there's love and unity and this may not be that common with africans as I believe they are too jealous of themselves, such family may find it very difficulty to growth in terms of wealth creations.

From my way of reasoning, wealth creation doesn't come from diversifying your investment, diversifying investment sometimes can be likens to be a way of wealth preservation whereby you are securing wealth from being in the risk of collapse or losing values. A targeted investment is enough for for wealth creation.

Cryptocurrencies like Bitcoin make it even more difficult to talk to your loved ones about money. The concerns raised by the wallet/keys analogy, the potential security breach, and the resulting lack of confidence are all valid. But hear me out, the great thing about Bitcoin is that anybody may have their own wallet and keys because of the way it's built. To protect against a single person absconding with the funds or a single key being compromised, we may set up multisig wallets that require more than one key to authorise a transaction. Even if there are difficulties specific to firms run in partnerships, there are also opportunities, risks, and benefits that are not available to sole proprietorships. Even among families, it's important to have clear ground rules and written contracts in place to avoid animosity and disputes. It's the twenty-first century; you may expect some strangeness.

This is not the case in the cryptocurrency market where everyone is able to buy a fraction of what they can afford. You are missing the big picture here.

It is truly rather absurd at best. Pooling a cryptocurrency investment fund would complicate the whole idea and process. The profit/loss portion sharing for each member and especially the way how to keep the coin. Theoretically, you can use a multi-signature address, but on the first hand, there is nothing to gain by pooling the funds. I even could not think of any positive effect. If what you mean is someone just depositing money and another person handling the investment, the pooling strategy of investment is the wrong term.

The main problem is that we must have people we can fully trust to be invited to work together in growing the common economy including in investment and the like. Working with other people I think is quite difficult. because building trust with other people is quite difficult. but the example reported by the OP is 4 siblings from Arab countries. and I know that brotherhood in Arabia is very close so they can build mutual trust well. Maybe if my brother is willing to do it with me. so I can think of this idea too.

But I will only do it in certain fields. like working together to buy a large land property. Because land property can be distributed evenly after purchase. even land ownership documents can also be broken down into several names. so in this investment field maybe I think this idea is pretty good. but for other investments like not suitable.

The pool strategy you are describing could help for building a "brick and mortar" business, but it doesn't make sense in the financial world.
Not in the crypto financial world, at least. I know that such investment pool schemes exist for decades, but they are mostly used to buy stocks or real estate properties.
What's the point of gathering the money of a bunch of people in order to buy a financial asset(like Bitcoin), when they all could individually buy the same asset? I'm not a big fan of such "pool businesses" because sooner or later conflicts will start and the pool will collapse.
I know about family businesses, that are destroyed because the family members had a scandal and started lawsuits against each other. 

For this strategy to work depends on the family background. A rifty family can not practicalize this idea because of what they believe in. By the way, this idea is not suitable for any digital investment such as crypto currency (bitcoin to be precise). A bitcoin require a wallet and keys which should be kept in a safe place. In such situation, who will take possession of the wallet? Or should they all have access to the wallet? For the former, one person must definitely be in control of the wallet and he may temper with the funds if care is not taken. If the answer to latter is yes then the security of the wallet is threaten already.

Both online and offline, partnership business is faced with some challenges that not everyone can manage. It has created unending enmity among family and relatives who attempt to practice it. It might work for some family thou if it is physical investment but I don't subscribe to such idea if it has to do with bitcoin.

Just like @Nwada001 said, family is best when they live apart. It is perfect when everyone invest on what personally suit them.

If i am not wrong you are refferring to same video i have watched in which those brothers are sharing their money as, one brother is doctor, another is construction worker, one is engineer and all of them has gathered their money and bought cars, house etc. And their women are living a luxury life in the house by become housewives. If that video is same then those brothers did not invested their money by combining them they used the money to buy things by sharing each other money (by combining).

And believe me we Muslims prefer this way, like when i came to know about "getting out of house" is a thing when you have to leave you parent and house after turning 18, i was like what! because we as Muslims loved to take care of our parents and wants to live with them so that we could take care of them as they did when we were child. (i could share hundred of stories like these which are 100% true).

We as Muslims loved to pay Black Tax, if you know what it is, a topic is already created here before you could look into it by searching it on any search engine (like here on BTT or on Google). 

We should live together like a family and help each other, but you have to be careful because if you are living together then your wives might not like that idea so convince you wives and if you are not married then ask you finance about the idea of living together. Because this is the main thing that would become a reason for fight but in most cases the problem is solved. Well, you have to be careful while making such relation because you have to make this relation for the sharing or love only not because by living together we could buy anything because such thoughts and idea will only become a reason of fight.

Trust needs to be considered in investing by combining several people's funds into one. If some people say they are all brothers, they can trust each other to invest by pooling their funds, buying Bitcoin regularly, and holding it for the long term. It is a good thing if you can trust each other and the investment should be made by people who can trust each other.

The capital collected will be even bigger but apart from that, they must also understand that the risks will also be bigger. In terms of investing in Bitcoin, they must know the risks where price fluctuations will continue to occur so that is the biggest risk they have to face. That would be great if they could all stay calm when those price fluctuations come. Otherwise, it would only lead to divisions between them.

It would be even better if they decide to invest in Bitcoin and make purchases of Bitcoin regularly so that the amount of Bitcoin will be even bigger. And when the price of Bitcoin starts to increase until it can make a peak price again, that means the profit will be even bigger and of course, the potential for profit sharing will also be even bigger.