Looking for another path to invest.

[WebBoard]

From: Fernando Loprete


Now that it has become less attractive to invest in real estate, ie:less yield and maybe less cap growth, and with the equity markets more and more volatile, i am at the cross roads of where to go next. I was thinking of some sort of business venture, but am unsure what to look into. Has anyone here got any suggestion or past experience of the problem that i have. I have a few ip's already but on stock portfolio, as i don't think it is the appropriate time to go longterm in shares yet. Thank you in advance.

 

[grebyn]

Reply: 1
From: Greg Mowat


Fernando,

If you're already an experienced property investor why not just try varying your strategy somewhat. If your concern is yield and/or capital growth why not wrap a property or two hence locking in both factors.

Being in business for myself unless you are already an expert in an area of business then (this is only my opinion based on experience and the statistics that 95% of businesses fail within 5years) the risk factor is higher than either shares or property in this climate.

Combine both business and property.

In uncertain times I feel more comfortable sticking with what I know but maybe changing a few factors to suit the environment

Cheers,
Greg

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi Fernando

There is no right or wrong answer here.

Trust you heart, intuition and/or gut feel. Rarely will the intuitive side of you lead you astray

Ta

Rolf

 

[Anonymous]

Reply: 2.1
From: Anonymous


Hello,

Don't discard shares all together. Remember, buy in gloom, sell in boom. You couldn't get much gloomier than at the moment.

Gerry

 

[Alan H]

Reply: 2.1.1
From: Alan Hill


Gerry said...

"Don't discard shares all together. Remember, buy in gloom, sell in boom. You couldn't get much gloomier than at the moment".

I think Gerry's comment raise an interesting point when it comes to investments in general, and that is .....the 'psychology of investing', or how YOU react to certain investment climates.

Sure we need to do the figures, set up good structures, find good brokers, good accountants, research our markets etc., but HOW we respond to changing investment climates is also of interest.

'Analysis Paralysis' is often a term we hear on the Forum and is something I'm sure we all have experienced to some extent, at some time, but it's really interesting to see HOW your average investor reacts in a strong or poor market......be it Property, Shares or other....

It's the easiest and most obvious thing in the world to say "Buy at the bottom and Sell at the top", but how often do people really do it?

How often in a 'boom' do we continue to 'hold on' because it just might keep on going up, or 'the experts' are saying it's a great time to invest in this sector anyway?

How often in a 'bust' do we hold off buying in case it might even go lower, or 'the experts' are saying it's a poor time to invest in this sector anyway?

Certainly some of the times we are currently experiencing are a great opportunity to learn something about ourselves and our reactions to 'extreme' investment climates.

I have little doubt that some of the more experienced members of this Forum learnt some of their greatest lessons during the 'extremes' of various investment climates.

Since you raised it Gerry, with the current sharemarket, here's another great opportunity to test our mettle and to gauge our reactions. Property will undoubtedly give us the same opportunities in the years to come.

I guess one of the important lessons for investing besides the obvious 'know your market' is......'KNOW YOURSELF'!