A special note for 2014-2015
Not only are we going to allow others to duplicate the processes that have led to 60%-200% average return each and every year, we are hoping to partner with others to work directly with charities and philanthropic organizations to show them how they can use these processes to increase their internal funding abilities. People can make more money and help more charities at the same time.
Overview & History
The original founding members were successful businessmen and entrepreneurs and the initial plan was to increase the wealth of the group by purchasing businesses and companies, then using the cash flow to fund the various philanthropic projects the group wanted to create. Though a Mergers & Acquisitions/Business Consulting process was put into place and continues to be active (see HERE), a much simpler and easier method was discovered and developed.
Through much research, followed by a lengthy trial and error period, the process of using private traders in the U.S. stock markets emerged as the profit vehicle of choice. Many safeguards to protect each individual member were put in place along the way, many of which are detailed below. The result was a funding model that has returned between 60% and 200% each and every year since full implementation in 2001. Utilizing private traders worked perfectly, as most members had no knowledge, ability, or success in the stock market. And this process became so simple, easy, and automated that more could be spent on creating and working the projects.
The original founding members wanted their story, their projects, and their most unique funding model to be released to the public after they had all passed away. The year 2012 was chosen, as they all knew they would each succumb to their individual illnesses by that time (refer to the thinktank website for their incredible story details). Again, because of the volatility of the Presidential elections and fiscal cliff, along the time-consuming process of going to the public with our story, we didn't allow anyone to participate in 2012. Though the traders still made trades and had continued great success, 2013 & 2014 are positioned for substantially better results.
The great profits of this process had to come with tremendous safeguards before the original members were willing to participate. To protect against the risks of the stock market and the use of private traders, the following were put into practice:
1. No monies are "pooled" together. All members will have their own individual accounts with SEC-regulated brokerage firms.
2. Members automatically "mirror" the trades of the professional traders through the brokerage firms. The traders will not have direct access to any individual member's account.
3. Each individual member will have complete control over their own account, including starting, stopping, cancelling, or altering any trade. Though this is not recommended, the power to do so will be absolute.
4. All members will have access to multiple traders with varied trading philosophies. All members are encouraged to use multiple traders to mitigate risk.
5. All traders in this process will use trades of highly liquid stocks in U.S. stock markets only.
Getting individual results of between 60% and 200% sounds incredible, but how exactly did this happen? As mentioned, there was a large amount of research and trial and error in choosing which traders to "mirror".
When most people think of private traders in the stock market they picture money managers who invest an extremely large pool of money collected from a huge number of individual investors. It is very difficult and cumbersome for the money managers to move these huge pools in and out of trades.
The private traders we have followed over the years are able to make more frequent and better trades by allowing only hundreds of people to mirror the same trades instead of the tens of thousands of members who have pooled their money together. These private traders usually advertise by word of mouth only. Also, when there is success anywhere there are also imposters and scam artists. Many of the original members' processes were developed over time to distinguish between the best, the worst, and the downright scammers.
As mentioned, members are encouraged to use multiple traders to spread out the risk even more. Go HERE to see more exact details, results, and examples.
Making Profit and Funding the Projects
Remember, the whole reason this came about was to fund the business, educational, philanthropic, and "pet" projects of the Thinktank. The group is unique in that it has not asked for donations to do philanthropic or charitable activities. Instead, the role of the group is to increase individual wealth within the group and accept pledges of all or a portion of the new wealth to fund the on-going Thinktank projects (which are found on the bizhelpers/schoolhelpers page here).
Members are allowed to use the years of research, trial & error, and most importantly, the success of earning profits to create new wealth in their own individual accounts in exchange for a pledge of all or a portion of the new wealth to be used to fund the Thinktank projects... plus any other favorite philanthropic endeavors the individual may choose. So, individual members get to enjoy both great profits and the great feeling of helping others.
The original members of the Thinktank were successful entrepreneurs, business owners, or "C" level business professionals. The funding model was created, researched, and perfected based on their individual account sizes of $100,000 - $900,000.
Starting in the second half of 2014, there will be models based on much smaller individual accounts so that more people can participate in directly funding the projects. Though the profit percentages can be affected more adversely in smaller accounts (from $5,000 - $50,000 in size), the goal of 2014-2015 is to allow more individuals and small groups to make a difference.
How much lower do we expect the profits to be in these smaller accounts? Based on the fixed costs of executing trades and paying the traders, the 60%-200% annual returns in the larger accounts would have translated into 40%-180% returns if the same accounts were between $5,000 & $50,000 in size.
The bottom line is, the process and execution illustrated in the results and examples of this website are the same in all the accounts, no matter the size. It is the fixed costs of the traders and brokers that will adversely affect the smaller accounts to a bigger degree than the larger accounts.
Also - Because 2012 was such a divisive and volatile election year, we did not allow anyone to utilize this funding model. We allowed the success of business owners to fund the projects for the year (click HERE to see how that worked). We continued to closely monitor all traders and witnessed another very successful year for the collection of traders we have followed and used. For 2014-15, we will resume our goal of allowing others to duplicate the successes of the original members.