HOW TO BUY SHARES IN TIKTOK
One of the best trades I ever made was buying shares of video game giant Activision Blizzard. I made thousands of dollars in 1 night after investing in the company based entirely on my awareness of how popular their latest games were becoming!
Activision were due to report their standard quarterly earnings that afternoon and, after a bit of research into the expected numbers, I could see that no Analyst seemed to be considering the recent success of new game Overwatch or the release of Activisions latest Call of Duty “Zombie Chronicles” expansion pack. Therefore, I believed that the company would deliver profits far above what analysts were expecting and that this surprise would lead the stock price to soar higher.
I thought about the Warren Buffett quote where he likens investing in stocks to being in bat during a game of baseball. The benefit with investing however is that you have unlimited strikes and therefore don’t have to swing until the perfect pitch comes your way; at this point you should swing… and swing big!
Activision Blizzard at that moment seemed like the perfect pitch and I wanted to hit a home run! So, I invested more than usual in the stock and awaited eagerly for the earnings report. Despite my confidence, I was still somewhat surprised when I was proven right and the stock announced a record quarter which pushed the stock price up 25% the following day!
This taught me that trading need not be overly complicated and I believe this shows you just how easy investing can be when you’re able to spot societal or technological trends before the masses. This is why I’m always on the lookout for new hit products or services when trying to identify the best investments on the market.
Alas! What about when you find that product or service and the company behind it is not on the stock market? Whether it’s a new video game like Fortnight or perhaps the latest social media platform TikTok, I’m about to show you how to invest in hit products such as these even when the companies behind them are not available on the stock market:
1) INVEST IN A PRIVATE EQUITY FIRM
A lot of the newest and most exciting companies that you’re probably interested in such as SpaceX, Airbnb and others are staying private for longer. This is because fewer companies find themselves needing to raise money via the stock market thanks to the countless financing offers they get from private equity funds desperate to invest in the hottest new start-ups.
Instead of an IPO, private companies will hold what is called a private funding round where they invite deep pocketed private equity funds to invest in their business prior to going public and joining the stock market. Unfortunately, investors like you and I are not invited to these funding rounds because to be involved at this stage you’ll need millions of dollars at your disposal. However, many equity funds that do have the opportunity to capitalise on such private funding rounds are publicly traded companies themselves and you can get exposure to many startup’s by purchasing shares in a private equity fund that owns a stake of the company you’re interested in.
Some good private equity funds that you can buy shares in right now include:
KKR for example has a significant stake in the popular social media platform TikTok via its investment in TikTok owner “Bytedance”, as does the venture capital fund Softbank. Therefore, KKR and Softbank would be 2 good examples of how you can gain exposure to the likes of TikTok without having to wait for ByteDance to go public… Likely at a much higher valuation!
Buy shares in KKR with as little as $50 and gain exposure to TikTok via the worlds leading online investment platform by clicking HERE!
2) INVEST IN PARENT COMPANIES
Your second option is to do some digging and find out if a larger company owns a stake in the private business that you want to invest in. I guarantee that a lot of people would be surprised how many private businesses are actually owned by the likes of Google, Microsoft and other giant companies that you can buy shares in. For example, Google owns or at least part owns over 400 companies including the likes of Uber, Slack, Waze, Nest, Youtube & Android.
Click HERE to check out all of the other companies that Google own!
Therefore, the next time you spot a breakthrough technology, product or service and you believe that you’ve found the next Netflix, only to realise that the company behind the product is not on the stock market, look a bit deeper and find out where they get their financing from as you may find out that they’re owned by a larger company that you can buy shares in.
Remember if you do decide to gain exposure to private companies this way, you need to realise that your investment will be heavily affected by the overall performance of the publicly traded company and not just the success of the privately owned business you wanted to invest in. For example, let’s say you wanted to invest in Youtube so you purchased shares of Google (Owner of Youtube). Regardless of how well Youtube performs, Google’s stock price may in fact go down if their other businesses perform poorly. As a result, you need to consider not only the prospects of the privately owned business that you’re looking for exposure to but also the broader prospects of the larger publicly owned company that owns it.
So there you go, two relatively easy ways that you can potentially own shares in the next big money making stock without having to wait for that company to go public. Once you've found that rare investment opportunity, you can begin trading shares for free via the eToro app by clicking HERE! In the mean time, be sure to check out the rest of our trading blog for more interesting articles and tutorials!
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