High-yield investment opportunity: middle class need not apply.

[Ilsa]

I got a phone call today, actually a follow-up, regarding a 18-25% annual yield investment opportunity in the oilfield leasing business. The yield is historical, not pro forma. When he asked if I was a "Qualified Investor", I asked his definition of that. He asked me if our net worth was $1 mil or more, total income over $300,000 a year. "No" was my reply, so he thanked me and hung up on me. I was seriously interested reading the prospectus.

This reminds me of the old Steve Martin joke on "...how to make a millions dollars. First you get a million dollars. Then you ..." ha ha ha.

[bbinacan]

1. Don't know the exact rules but

laws require one to be an "accredited investor" because these investments tend to be much riskier.

[brokensymmetry]

2. Be careful...

Being a qualified investor means they don't have
to be as careful about disclosure as they do with
public investors. They can use a variety of legal
shortcuts instead of regular S1 or S18 registration
via the SEC.

Hedge funds have the same sort of requirements - but
that doesn't mean that all hedge funds are winners.
Some of them are big losers, which means their investors
are in the same boat.

[hughee99]

5. Wasn't there a big time bailout of one of the hedge funds

a few years ago? Long Term Capital Management I think it was.

[Yavin4]

6. Yes, There Was A Bailout. I Just Finished A Paper On It for Class

No public money was used, but the Fed herded practically all of the big Wall Street firms together to bail them out privately because of the default risk that they all faced.

[hughee99]

3. High yield usually means high risk doesn't it?

At 18-25% annually, it might be safer to take the Colts over the Bills next week.

[Ilsa]

7. Yep. Higher yield usually accompanies an increase in the

beta or risk of an investment.

[razors edge]

4. 19.8% over the last 9 months.

Thats what I've made so far. And It's not a piece of paper.

[MercutioATC]

8. 20.2% in the last 3.5 months.

http://finance.yahoo.com/q?s=ctsh

O.K., it's a piece of paper, but I've been happy with the return.

[razors edge]

9. Good deal.

I'm just not trusting enough to give my savings for a piece of paper, after what happened to my retired parents when enron went under, but I don't want my apprehentions stop anyone.

:toast:

[MercutioATC]

10. I hear ya. I'm looking into precious metals for next year.

There's a guy at work who happens to deal in silver coin. For Canadian Maple Leaf coins, he's selling at 25 cents over spot...no minimum.

[razors edge]

11. Silver could be next for me too

was about 9.50 in March and now 12.64, not bad if it keeps going.