Investments with returns up to 20% per year are more common than you imagine

Many solid small businesses operate at margins of 15 to 30%.

They don’t suffer from heavy competition because they are not the main players in the market. For example, companies providing services within the ecosystem of local b2b providers. It doesn’t take millions to setup such companies, so they are rarely in debt. They don’t aim at coming global or regional players because local firms prefer to rely on local suppliers.

Why would they raise capital? Simply put: because they fall of the radar of big investment banks and because traditional commercial banks don’t have any longer a dedicated desk where competent people analyse and understand the needs of small businesses. Small injection of capital can help such firms to increase the ability to serve local or regional clients. Another reason is that the original investors, who usually have been running the business profitable since the beginning, could easily benefit from selling a small percentage of shares which would allow the firm to grow while maintaining their personal dividend. It is a win-win situation, but banks are not the answer.

An investor purchasing a 3% or up to a 15% of such an established small or medium enterprise could easily benefit from dividend paying from 5 to 20% annual returns, while maintain their invested capital intact. Would the investor need to recover the capital, all that is needed is to resell the shares. Considering that a deposit account may provide an interest of 5% and that inflation rates are above 15%, the net growth of the capital is negative. Investing in shares of small medium enterprises having a portfolio of recurring consolidated contracts with clients means that year by year their prices will adjust to inflation (maintaining the capital in line with inflation rates) PLUS it will provide a dividend on the profits which can range between 5 and 20% extra. For example: invest 50thousand euros in a consolidated small service provider with a stable portfolio of clients. Your dividend could be 900 euros per month, leaving your capital intact. No saving account would give you that. Current data on real estate investment indicate that European rental yields range between 2 and 8%. Still far away from the 15 or 20% you can enjoy by purchasing shares of consolidated small and medium enterprises.

We are uniquely positioned because we consult for such firms and we know inside out their solidity, their history and their potential. We basically understand and know what decades ago the local commercial bank would have known.

Contact us if you wish to discuss investment opportunities and, based on the capital you wish to invest, we will recommend investment opportunities. Join in the profits of small and medium enterprises.