Profile Of The Local Investor

“The impersonal hand of government can never replace the helping hand of a neighbor.”
-Hubert H. Humphrey

“All will concede that in order to have good neighbors, we must also be good neighbors.”
-Harry S. Truman

As the COVID-19 pandemic raged in 2020 and as tempers flared in Washington over what to do about it, it was local businesses that paid the price from widespread government-imposed stay-at-home orders and lockdowns – with non-essential services and companies like restaurants, bars, and brick-and-mortar retailers seeing disastrous drops in business.

As 2020 wore on, there was a movement across the country that reminded me of what makes this country great: local communities picking themselves up by the bootstraps with neighbor helping neighbor through their support of local businesses. Who better to save a community than those who live in it?

This community spirit is what drives the local investor.

WHAT IS THE PROFILE OF A LOCAL INVESTOR?

They are advocates of local markets. Local investors are the biggest boosters of their local communities. Supporting local ventures is their way of improving their communities and boosting the local economy, infrastructure and jobs.

They question the integrity of Wall Street. They believe the value of something should reflect the need it fulfills in the market. They’re skeptical of Wall Street pricing, which often never demonstrates the value of the underlying company. Pricing is often more about the latest buzz on social media and the Internet.

They live by the mantra of an honest day’s work for an honest day’s pay. They’re uncomfortable with profiting from the foolishness of others. Just because someone is willing to pay a higher price for something doesn’t make it right. If they’ve made something better or met a need in the market, only then are they comfortable profiting from their efforts.

They like the transparency of local investments. They like having access to and working directly with the principals of local passive funds vs. nameless, faceless out-of-state fund managers. They have particular investment objectives, and access to local principals ensures their objectives align with those of the companies they invest in.
They look to make an impact on future generations. They invest with an eye on creating multi-generational wealth. More than money, they are motivated to leave future generations their legacy of knowledge and hard work. They also invest in creating and sustaining passive income streams not only for their heirs but also for causes and charities near and dear to them.

They value local relationships. Fostering local personal and business relationships puts the local investor in the loop to find diamond-in-the-rough opportunities and allows them to put a finger on the pulse of their local community to anticipate the community’s needs trends.

They’re skeptical of elites. To the local investor, government, big tech, and media elites are only interested in helping themselves. They avoid investments that these elites can manipulate. That’s why they invest in local, illiquid tangible assets that are immune from manipulation. This goes back to an honest day’s pay for a fair day’s work. The price of something should reflect its actual value – not the invisible grubby hands of elites.

They genuinely believe they can make a difference. Local investors don’t just accept things as they are. They control what they can control and do all they can do and trust everything else will fall into place.

Here’s what drives the local investor:

  • Investing locally contributes to the prosperity, economic growth, and long-term viability of the community.
  • By investing locally, they can influence for the better the makeup of their community.
  • Investing locally keeps jobs local.
  • Investing locally keeps money in your neighbors’ pockets and not those of anonymous institutional and foreign investors.

What drives you?

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About the author

Kyle Jones is a co-founder and Key Principal of TruePoint Capital, LLC. Kyle is responsible for the company’s strategic planning, investment decisions, asset management, and overseeing all aspects of the company’s financial activities, operations, and investor relations.

Kyle obtained a Bachelor of Science degree from Texas State University – San Marcos, where he also played Division 1 Baseball.