If you had 200k cash to invest what would you do with it?

If you had a spare 200k that you didn't need access to and looking at a 5 - 10 year outlook what asset class would you invest in?

I would not want to invest in another property due to land tax issues.

Term deposits and online saver accounts are out of the question.

If a further large correction occurred in the oz share market then that would be an opportunity to jump on. International share markets are out of the question at the moment due to the low aussie dollar- too much currency risk.

What are your thoughts?

 

So you want no risk, good returns and have ruled out most asset classes?

I would have recommended some of the Etfs otherwise

 

What about buying property in another state to avoid land tax issue?

 

oil stocks
dyor

 

I think you've come to the wrong forum

 

Well somebody in another thread said black, so I'll be contrarian and say red.
Seriously though, I got some money to invest too, but nothing outstanding appeals right now, so offsets will have to look after the funds for now.

 

The real question is what is your expectation of returns?

 

200k can go a long way invested in a fast growing business, be it a privately owned SME or a public unlisted one so that woulf be where id put it personally

 

Maybe you can use that to add on what you already have. Example Reno (not the whole 200k), building up if single storey, adding granny flat, or subdivide if able to

 

I'd pay it into my PPOR loan , then debt recycle it back out and use it as 10% deposit and costs on 4 properties.

 

Can you give any example please?

 

Sure. Last year and again earlier this year invested in a company called vgw (virtual gaming world), they are looking to ipo on asx in a few months. Last month alone revenue was nesrly 900k which is pretty good considering the product only launched about a year ago. First investment in it was at too high a price 10c, 2nd one 4c, 3rd one 5c with free 5c oppie at a 48m valuation. Im hoping for a 150m val within 6 months which, once free oppie taken into account should see 7x gain on last lot and overall about 4x gain averaged across the 3. Certainly not without risks, in hindsigjt shouldnt have participated in the first raising but 2nd and 3rd made sense.

There is another tech startup im investing in atm which looks promising. It's an all or nothing one imo, i could lose 100% or could make 20x my money, im hopeful of a good result but wont see any liquiditu for at leaat 2 years i suspect

Last year invested in a friend's distribution business. This one im most confident on as i have direct involvement and it's growing very quickly

 

Are you an angel, Sanj?

 

My mum thinks so

 

Hehe must be the gold shirt

I meant as in Angel Investor

 

I dont know, possibly but not in any formal capacity.

 

At the end of the day the greatest opportunity lays in private companies that you can take a decent stake in and be involved in. This is where real money is made, and where I'd put the 200k.

Expecting to find a magical asset on the open market offering fantastic risk adjusted returns is naive. The market is pretty efficient and there is lots of lazy money looking for a place to park and make a fortune .... So the opportunity is arbitraged away to a large extent in public markets.

As per Sanj's example he has specific knowledge in these areas and has done well. But, the country is littered with people who thought they had specific knowledge until they blew themselves up and their investments went to zero or worse. (Making a point Sanj ) If you need to ask as to what the opportunities are and get tips then you are on the outside and are dumb money.

So in order to achieve outsize risk adjusted returns you need ;

- specific knowledge / capability and or
- off market opportunities were the value hasn't been arbitraged away

Failing this, we introduce significantly more risk and buy;

- unloved cyclical stocks, perhaps energy right now.
- take punts on other individual stocks, turnarounds, story stocks etc.
- use a trading system. (Results may vary )

In conjunction with applying leverage to magnify gains...or losses.

This is how to achieve market beating returns. Or, you could accept market returns (for a given asset class) and focus on cash inflows, reducing expenses and thinking long term. Historically this has worked well.

So it comes back to what is OPs expectation ?

 

Thanks for all the replies. If the aud was not so low I would invest in Fbook and / or google, Amazon, Apple. The return on the FANG stocks on NASDAQ will be considerable in the next few years I predict.

 

I wanted to do this so i checked out some startups founded by uni friends but nothing really stood out. Parked my cash in managed funds for now, will be on the lookout for more SME opportunities

 

Hi @The Falcon this may be a stupid question but where do you find private companies that need injection of funds?