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From the linked article in the OP:
"And why invest in a private company? The US Stock Exchange lists more than 3,500 companies covering all types of ventures and businesses, from household names to confusing ones."
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It all depends on the nature of the business and its prospects.

My biggest, or 2nd-biggest holding, is stock in a locally-owned bank in a fast-growing suburban area in a nearby city. It was incorporated in the year 2000, and my father was one of the original shareholders, as was my sister #3.

Dad died 5 years ago, in 2016, at which point the stock had tripled in value. So that's a 200% return in 16 years, which sounds terrific, but it's less than 10% per year, compounded. The stock is not publicly traded, but the bank holding company unofficially makes it their policy to make a market in their stock for people who want to sell.

When Dad died, my sister #1 and I bought his shares from his estate, as the other siblings were not interested in it. We were also the executors of the estate, so our lawyer made a project out of dealing with the conflict of interest. (She had to do something. I did most of the real work.) Since then the stock has gone up another 50% in 5 years, which doesn't sound great considering what the stock market has done the last year. But you put that together and it's a stock that's worth 5 times original cost in a 20-year period. And the annual increases have not been volatile at all.

It may be a private company, but it's worked out better than Merrill Lynch or Sears Roebuck.

Bill
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