Topic: Pool strategy of investment for wealth multiplication. - page 4. (Read 561 times)

I thought you're the only one wrong about this pool investment, but the writer who wrote the article was wrong too.

It's not make sense why you need to use pool strategy when the investment is served for public. Let's say you have $1,000 to invest, why you're not invest by yourself, choose the asset by yourself, set the target and risk by yourself?

It's different if you want to invest in private company, you need to cooperate with the business and other investors.

People can do this only if there is some sort of contractual agreement that everyone signs. Else, I wouldn't let them get my money without that contract so that I'm not screwed if worse comes to worst. We've seen a lot of collaborations involving money with close relatives and friends, and sometimes it does not go as planned. The person in charge of the pool of investments either reasons out and runs with the money, or simply just disappears. On paper, pooling money for better returns seems like a good idea, but you need to protect yourself against people who are out to get your funds and not work with you to riches.

That right, the power of collaboration cannot be underestimated in investing efforts and ultimately enhancing their overall risk management strategy. But it's true as you said, here, it is very important to address concerns regarding private key storage, especially if the person holding the team's assets runs away due to mishandling of the assets.

I think it's rubbish.

Such a 'system' only makes sense in order to access an investment that you would not be able to access individually. For example, if the minimum to invest in something is $5,000 and you only have $1,000, it makes sense for you to get together with four others to be able to invest. But at the end of the day the return is the same. If you invest in something that has an average return of 10%, whether you do it alone or with more people, starting with $1,000, after a year on average you will have $1,100 and investing with more people can have more disadvantages than advantages, especially when it comes to making decisions, such as when to sell. The more people involved, the more disadvantages.

Traditional business and investing in bitcoin are completely different. When you work and do business as a team, everything becomes easier because each person will have their own strengths and will support each other to make things go more smoothly. But for bitcoin investment, you just need to buy and hold, why need the cooperation and capital contribution of many people? Who will keep the private key, and what happens if the person holding the team's assets runs away? This is a bad idea.

Did you mean: mutual fund company? Yes, if you have the ability to manage finances and have credibility and a good portfolio, maybe you can make one. But I don't agree if a mutual fund company will be used for bitcoin investment, in my opinion the risk will be very large. It may be best if your mutual fund company makes investments like any other, usually investing its money in the stock or bond markets. Maybe you can use some of those profits to buy bitcoins and hold them. It's probably a lot safer and has a lower risk

Mutual fund companies will usually distribute dividends periodically, if you invest in bitcoin you will have a hard time when you have to distribute dividends, the price of bitcoin is too volatile and when the market is bad maybe you need to hold bitcoin longer and it can go up for 2 or 3 years, then What are you doing? You will distribute dividends when conditions like this occur?

I would suggest it is better if you will create a joint company and then you should invest your funds in a safer sector. Even though the dividend yield is not that big, if you can pay dividends regularly every month, then your company's investors will have more confidence.

The whole point of joint investments is to surpass an entry barrier that no single partner can surpass alone. One person is not rich enough to start a business or buy a property, but 4 partners together have enough funds to do so.

But it makes no sense to pool Bitcoin investments. You can buy any amount of BTC you want, even $1. There's no upsides and only downsides to this.

It's not an unknown strategy. A lot of people grew money from this technique but in the same note I don't really recommend this to everyone cause first off, you have to have people you trust. Plus points if you have friends, and God only knows how many of us here have gone long enough outside to get friends we'd trust with our money lol. Kidding aside though, Another reason why I don't suggest this to everyone is the mere fact that you're entrusting someone else with your money, meaning you have someone else to blame when shit hits the fan and your investment tanks. It's better to take full responsibility over your money so you have full power and accountability over it. Otherwise if you're not quick to anger and you're willing to share the profit or the loss with other people, then by all means take the pooling method.

This kind of strategy had been practiced for a long time.  though they have different approach, they are the same method like pooling of funds.  Cooperatives acts this way but of course cooperatives distribution is very different than the one stated by @OP.  Another example is partnership and corporation.  So this kind of strategy is not new.


Of course, the main factor here is trust especially when the action is directly controlled by an individual. The story stated by @OP got no issue because the participants are all within the family and it is also possible that they have a strong bond.

Hmm got it the idea of the pool strategy seems to be good, but do you really think it can be practical in social life because no one trusts nobody most of the time, for the sake of consideration let's suppose we've got the right people they trust each other everyone has a different mindset, different ideology so how they can agree on a particular thing this is also impractical most of the times.

If we just apply it to random people who don know each other they just come up with the same idea and they are investing money in an asset that they like will also be called pooling as Bitcoin, But its not like we all are investing the money on the same time as others and profit shares are also dependent on our own decisions. So what you are saying is the basic form and Bitcoin and other digital assets are the Modernize form of Pooling what do you say?

Basically I do not really agree with the use of this pattern in terms of investment, the group method of combining funds to achieve large investments in crypto or bitcoin is not a good strategy, because we can independently engage in bitcoin investment even if we rely on small capital. The consequence of pooling money in a business or investment with a group carries a level of risk that can make the group distrust one another.

How far can you guarantee this will work normally and why not involve yourself in investing independently in bitcoins. I think an idea like this is not quite right and we will be in trouble when the price reaches a sharp decline in the market. In the end one group of friends would suggest selling bitcoins instead of waiting for a sharper decline and eventually the investment went even more chaotic because one of the members was worried about the of bitcoins.

Regardless of how you can build confidence in building capital with a group of friends, I don't think it's the best way and there are still other ways to get to the usual investing ability stage.

This could really be that applicable but this would be only good if you do make out dealings with family members but still having the chance when it comes to trusts issues considering that we are talking about money

on here on which there are really people who cant really be that trusted specially to those people who do been holding up the funds. For traditional investment then it might be applicable and possible since everything could really be having that kind of agreement or signed or notarized basing up on what had been agreed upon, doesnt matter if you are family or total random person who do share up on the same interest or concept in mind about pooled investment. The main argument on which people would really be that realizing is on how they would be making up decisions if ever this one be applied on crypto investment?
Who would be the ones will really be holding those invested amounts considering that you would be holding up for long term? This is why i would say that this isnt applicable on crypto space
but rather into those traditional ones which it is really that realistic.

According to a widely accept believe, pooling resources together for any investment has a high potential and chances of success to an individual financial strength as it avails the required level of capital for expansion. Addition to having different experienced entrepreneurs coming together to share ideas on how to tackle present and future challenges makes it's all easier to face compared to when all of that is coming from one head.

But having a partnership business investment doesn't mean success is sure. Partnership demands people of like minds dedicated to the vision mutually, and humans are unpredictable and can change at anytime should there arise a discrepancy of interest and such change could have a devastating effect in decision making towards the investment. In otherwords, the pooling strategy of investment for wealth multiplication can be stalled when the investors ain't of a uniformed mind and vision, it could be disastrous.

This is literally what I believe investment banks does basically. Not just a few people getting together, but tens of thousands, in some cases even millions of people put their money into them, and they end up using those billions and billions of dollars into making big moves which shapes the market, allows them to basically manipulate it which results with them making more profit. Is there a pool there? Yeap, is there a lot of people investing with that pooled money? Definitely, are they making money from it? They surely do. As you can see it is an idea that works but it does require a ton of money and also requires a lot of powerful people at the top that knows what to do with it. It can work, but not with us gathering couple thousand from a few people.

This story has no connection with coming together and adding funds together to buy Bitcoin. When it comes to Bitcoin investment, there is no limit to what one can buy. Whatever little money you have, you can buy what you can afford and call it your own. Adding money together to buy Bitcoin will even be more confusing, and some issues might arise in the future.
Bitcoin profit is not calculated based on how many people add money to purchase it; it's calculated by the amount you hold, which is how much you can earn in every little bull run.
 
Let me say, for instance:
Four brothers who have $1,000, $700, $800, and $900, respectively, add the money together, which will sum up about $3400, and use the entire fund to purchase Bitcoin. This Bitcoin will always be shared based on the individual's amount invested; it is no different from buying it and holding it individually without even going into that kind of stress.
 
This kind of strategy will only be beneficial in a family where they have been issued general funds that should be split among themselves. If they are not in a hurry to use that money, they can come together and agree on how to invest that money in Bitcoin, from which they will all benefit if there is a profit added to it, and if there is any loss recorded, it will also be shared among themselves.
 
About families living together, both husband and wife and kids, in a big family house, to some point I don't like the idea, but that depends on what people believe. sha If you don't look at society today and the way things are moving and how families are going into conflicts with one another, you will see that it's best for married people to stay far away from each other's families, especially where more than one family is involved. You never know where issues will come from, and when they do, you never know who you are to support or who not to support, whether you will choose your wife's statement over that of your own brother's, and so on. To avoid some kind of drama, it will be peaceful for them to stay in separate homes, provided that each of them can afford to foot their bills. Family is more peaceful in distance. I don't know about the Arabic home, but I talk based on personal experience here in my local.

Partnership is what you mean. In business we have seen so many business that started with partnership but I wouldn't advice anyone to go into partnership to invest in bitcoin because in whose wallet will the coins be in. Remember bitcoin should be store in a noncustodial wallet and which of these partners will have the private keys.

If the person who have the private keys run away how will you arrest him that he is with your coins,when this can not be investigated by the government because the only way one can have his right in any business that he partner with his friend if he is deprived of his right. Is by going to the police but in bitcoin no evidence unlike a physical investment where there are so many documents to proof. I am not cool with this idea. Human is greedy in nature.

What works for them might not be worked for all, trust is key in any investment or business purpose. I learned of partnerships in school as well as limited liability companies and all but I'm not sure if I want to pool resources together with anyone but just have my business and enjoy a quiet life without stressing out about if anyone's attitude will ruin the business out or not.

Yes, the pool strategy of investment doesn't refer to the game of pool, but a method in which a group of persons can come together to agree on combining their funds to invest in a business or acquire asset that is evenly shared or divided among themselves.

I was surfing through my Instagram and saw a clip of an interview, on how an Arab family of 4 brothers, married their wives, live a big house, pool their funds together, invest in an asset and share the profit evenly among themselves. This way, they all had exotic cars and property and the wives and their mom only had to take care of the home while the brothers go do their work.
 This is one way wealth has been replicated for generations according to the  Arab man who granted the interview and I found this revelation quite intelligent and very helpful.

We live currently off the idea of a P2P system, in which  among many other reasons is the fact that it has created a kind of trust between people who on a normal day don't know each other or would want to have anything to do with them on the grounds of race, ethnicity, tribal sentiments, religious beliefs or wealth class.

A group of friends or brothers or relatives or colleagues can come together, buy some crypto asset, possibly BTC because of its credibility and then share the profit after the time agreed upon is due. They could also invest in Altcoins for quick profits on short duration.

What do you think? Let's discuss!

 Link source:

https://www.tribevest.com/blog/how-to-pool-money-together-to-invest-in-5-simple-steps