The Pitfalls of Investing in a Friend’s Business

Unless you are a really savvy and experienced investor, I am not a big fan of investing money in a business of a friend unless you are going to be an owner operator yourself. The majority of the time, it will take you three times as long to get your money back if you are lucky enough to get it back at all. Almost 15 years ago, I invested a decent sum of money in a rock quarry business that a friend of mine was running up in Wisconsin. The business was doing very well and in 2006 they had the opportunity to sell it for a 10-times return on my money.

Ted Jenkin

Full Story: http://blogs.wsj.com/experts/2014/11/13/the-pitfalls-of-investing-in-a-friends-business/