Alternative investment

Hi guys,

How many of you invest in managed funds as well as property for diversity and spreading out the $.

Matt

 

Nah wouldn't even consider it.

I'm a big fan of the theory that diversification is all fine when you don't know what you're doing - but if you have the skills, experience and strategy then its best to focus on what you have specialised in.

 

Do what you good at, no point diversify into something you have little knowledge
I have both shares and properties but I am pretty good at both but as the year goes by I tend to move more into the stock market.

Properties are good when you have little cash and take up large leverage but once you got a lot of capital properties is a headache and low return.

Properties are also low volatility so it suits a lot of people who just want to buy and forget
and hold for say 10-20 years

Stock market required a different set of skills and you got to be on the ball else you get trembled when thing get tough with all the headlines about multi-billion wiped off the market etc...

Some people have a lot of capital and still stayed with properties because that is what they good at and love doing and nothing wrong with that.

I got friends with few properties and he wants to try the market, seems simple enough he said, he tried and got frightened and got out hahaha. I told him well at least you know your limit so stick to the stuff you know best

 

I'm with you on that. Only 'diversification' I do is within real estate its self but all still within my own niche area. That's what works for me.