Strategy advice needed for 150k - don't know what to do

[BayView]

LAA,

I understand exactly what you're talking about about. You're preaching to the choir dude. My point is that not everyone has made money in property that way.

I have made plenty of money buying and selling property and know a couple of other that have as well. I'm sure there are thousands out there that have done the same.

A term deposit is not the only alternative to a buy & hold strategy. I have channeled profits from property into my previous and current business and the stock market and made plenty more than i would have on the properties by holding them.

By the way; I wouldn't recommend a term deposit as an investment. I used that as an illustration that it is not an investment (well; maybe for some, but I think most of us here would say not).


I think you are relating you're own experience and thats cool. But its not everyones.

hey Evand,

I agree, you can make money buying and selling.

But what I'm getting at is the real long-term wealth is made in buying the asset and holding it. The asset can be the share, the business and/or the property.

You have done exactly what I've said; but the combination of vehicles is mixed; you've gone from property to shares and businesses.

That's cool, but the point is you're still holding the assets in various forms, and that is the key in my opinion.

 

[steveadl]

But what I'm getting at is the real long-term wealth is made in buying the asset and holding it. The asset can be the share, the business and/or the property.

.

Agree. You can definitely make a profit buying and selling assets in the short to medium term, but the larger profits come from keeping them longer term (obviously there are always exceptions to the rule when you see co's go bankrupt etc).

Even on large scale deals this can be illustrated eg. Murdoch buying MySpace for US$580M 2yrs back. The founders made hundreds of millions of dollars in profit by selling out at a profit. But if they had held onto that asset, it is worth multiple billions now. And the revenue and future profits alone the co. spins out will be equal to what they sold for, let alone the future value of the company itself.

That's not to say the founders were wrong to sell. I'm sure they've since re-invested and made millions more elsewhere, now granted this is an extreme example - but you can see the greater value (when it's a good asset) is in holding it longer term.