There was a time when smooth-talking brokers from flashy investment firms could walk into a room and dazzle an audience of investors, with their debonair attire and stories of untold wealth. That was so pre-2008. Nowadays savvy investors are conducting their own research with the help of search engines and social media, to determine whether an investment is everything it is made to sound like. The bottom line is that investment-seekers are looking past flashy figures and inflated promises and are demanding meaningful reasons to invest.
So, if promises of great profits and little (or no risk) are not attractive to investors, what is? Most investors have learned that an element of risk accompanies nearly every investment opportunity and that the rate of return is likely to be reflected in that risk. As such, the investment community is seeking more transparency in their investing opportunities, as well as a strong commitment from investment providers that they will be forthcoming with projections and forecasts and work hard to provide the best investment experience to their investors. This is becoming increasingly more important to investment-seekers, than the promise of sizable returns or unrealistic profits.
Nowadays investors want the confidence of knowing that they are making an educated decision about where to invest their hard-earned money. Often this can come from information found on the Internet or through a recommendation from a trusted professional or close friend. Either way, investment-seekers want more than just promises from so-called industry experts, to base their final decision upon. The reasons to invest in any endeavor must clearly demonstrate the offering’s commitment, transparency and accountability to the investment community. Without these important ingredients, they have nothing more than a recipe for disaster.