A short video (or clip) of Ramit Sethi describing his experience with angel investing: he allocated a small portion of his portfolio (~5%) as "fun money" for angel/alternative investments, expected no returns, lost money on most angel investments, and decided to stop angel investing and instead invest in the S&P 500 as a more profitable, boring option.
Maybe 5%.
Maybe 5%. I would use it for what I call fun money. And this would be something I would invest. Typically angel investing. Somebody's startup that I happen to know and have access to, I would put some money in there. Here's the key. I didn't expect a return. And if you do these alternative investments like your friend's freaking Greenpoint bar, you're probably not going to get a return either. In fact, I lost money on most of my angel investments, and I've basically said I'm not doing that anymore. I'd rather just put the S&P 500. It's a way more profitable and way more boring, which I love.
