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Unless you’ve been living under a rock for the past two weeks, you’ve probably seen the headlines about GameStop (GME) by now.
Basically, after thousands of individual traders banded together to push the stock higher, shares quickly shot up by more than 1,800%.
But now the “big boys” of Wall Street are back in control. And like many pundits predicted, GameStop’s stock price has crumbled. It’s down by roughly 75% in the past few days.
But here’s the thing…
Not everyone lost money when GameStop’s price crashed. In fact, it’s likely that one small group of investors still made a killing on this company.
Today, I’ll show you what their secret is — and I’ll show you how you could use it to earn a fortune in any stock, no matter what direction its price is headed.
Profits in a “BOX”
To kick things off, look at this chart for cloud-based data storage provider, Box (BOX):
Over the past two years, Box’s stock price has dropped by more than 25%. So investors who got in at the peak have now lost a quarter of their investment.
But here’s the thing…
A different group of investors has made a fortune here.
These investors are currently sitting on an estimated profit of 1,429% — even AFTER Box lost 25% of its value.
Here’s another example…
Welcome to the “Profit Club”
Here’s a chart for alternative financing company, Lending Club (LC):
As you can see, this stock has dropped like a rock — losing more than 90% of its value since its IPO.
But once again, instead of losing money, a small group of investors is sitting on some serious profits with Lending Club.
They’re sitting on estimated gains of 4,128%… and possibly far more.
It’s All Fun and Games for Some Investors
And a small group of GameStop investors has likely seen returns that are just as big.
These folks watched GameStop’s stock fall off a cliff. But they didn’t care one bit — because they were still sitting on a massive profit.
So, what’s the “secret” here? Why did some investors lose 25%, 75%, even 90% of their money…
While a different group of investors booked profits of 1,400%, 4,100%, or even more?
Let me explain…
Early to the Profit Party
The folks who made a killing even when these stocks crashed had one thing in common:
They didn’t invest in Box, Lending Club, or GameStop in the stock market…
Instead, they invested in these companies before they went public. In other words, they invested in these companies when they were still private startups.
You see, by getting in early — while these companies were still at the ground floor — these investors were able to get their shares at extremely low prices…
Far lower than they ever traded on the stock market.
Meaning, even though these companies experienced dramatic declines in their share prices, declines that forced other investors to suffer crippling losses…
These pre-IPO private market investors were still sitting on handsome gains.
And Now You Can Join Them!
Unless you’re well-connected and wealthy, it’s unlikely you had a chance to buy shares in these companies when they were still private.
That’s because, for more than 80 years, it was literally illegal for you to do so.
But thanks to a new set of laws known as The JOBS Act, all investors — regardless of how much they earn or who they know — can now invest in early-stage private startups.
In other words, now you can get into companies like these at the ground floor, too.
But to be clear, this type of investing doesn’t come without risk.
For example, it’s difficult to tell which early-stage startups will turn into big publicly traded companies down the road… and which ones will fail and go out of business.
Which is why we created a number of free educational resources for you.
These reports and guides will quickly get you up to speed on private market investing…
And give you tips and “tricks” for limiting your risk, and potentially maximizing your returns.
If you’d like to explore these free resources, you can find them here »
Happy investing!
Best Regards,
Wayne Mulligan
Founder
Crowdability.com
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