Only investing in property?

[seano87]

Hi all,

I've started reading Jan Somers' book 'Building Wealth thought Investment Property'.
It's quite clear that her view is quite negative on investing in shares, cash and securities. What I wasn't so sure about, was her philosophy that having all your eggs in one basket is completely acceptable, as long as you keep a close eye on it.

What are your thoughts on ONLY investing in property? What are the negatives with this strategy? Any advise on this would be great.

Thanks

 

[agent007]

What I wasn't so sure about, was her philosophy that having all your eggs in one basket

Is it a matter of putting eggs in different baskets or slicing an egg in different baskets?

 

[oracle]

What I wasn't so sure about, was her philosophy that having all your eggs in one basket is completely acceptable, as long as you keep a close eye on it.

Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing. -Warren Buffett

Sums it up nicely. Use diversification when you are unsure about your investment decisions or have very little interest in investing but would like to invest for retirement.

Cheers,
Oracle.

 

[OKFFW]

^^^

Dare I say it but I'm not so sure I agree with Mr Buffett on that one.

If one is diversifying for diversification's sake alone and to "protect themselves" then yes. If one is buying asset classes based on perceived value at the time of purchase then it is very likely one will end up diversified anyway simply because different asset classes move in different cycles.

As to the original question, I don't think diversification into other classes is going to help unless one has proficiency and skill at investing in those other classes. Personally I would rather invest my money in what I know and understand the best and am therefore likely to get the best return from.