Warning , Warning , Warning , Will Robinson ....Guru Alert

What's the matter?
I've got my eyes closed!

That video has made you my 'poster of the week' haha!
I absolutely love the three stooges, have every episode and grew up watching them!

 

Isn't the property market famous for sprukers or gurus? Also a lot of the share market losses were as a result of the GFC, which ironically was caused by a bubble in the property market in the US and to a lesser extent the UK and a few other countries..

I don't think the share market is that complex or difficult and it can be misleading relying on your own personal circle for financial advice.

 

Yep , the property market is renown for sprinklers and they rarely come here and stay for any length of time , as they ( i assume ) find the forum not that receptive to their message and find better results pitching to the uneducated masses .

The share market isn't that complicated but the main reason most people don't succeed is psychological and that IS complicated

Cliff

 

Your my hero

 

You mean a fully hi luckxy ☺

 

"250 kg of ginger "


lol ......... you must have been drinking clumps of ginger......or you use an old fuel tanker for brewing ?

 

Agree 100%. I too fall in this category of new property investors; just that I'm hoping to do well having started just last year . I get your point. Instead of blindly following a single approach, one needs to understand the basic principles, customize and apply them according to personal needs and aspirations.

I enjoy learning from Gurus valuable experiences and pickup stuff they preach. Be it Jan Somers for Property or Peter Thornhill/Warren Buffet for stock markets. What would I have done without their existence is a scary thought. Not to mention the experts in this forum from whom I have been learning heaps.

However, having read their respective works, it does give me a laugh when Jan Somers slams stock markets and both PT & WF does the same to real estate on the other end of the spectrum. Basic common principle all these experts advise is to be invested for the long term in quality assets.

Personally, I started liking PT work. For novice investors, he picked up ever intimidating, complicated beast of stock market and shown the way how to keep things simple, easy and relatively safe over long term without breaking a sweat.

 

I can almost guarantee you there will be some sweating big time at some point/points. Not saying it wont yield good results, but people shouldn't delude themselves to think its going to be all smooth sailing . The psychological aspect of it is extremely underrated/not understood imo.

Just my 1 cent. (Usually its 2 cents but I know crap all about stocks.)

 

Agree 200% with the psychological aspect. Reminds me of the pain I endured for almost 2 years during the GFC. Having lost almost half of the portfolio value, I was telling myself that I'm totally mad and still went ahead with extra investments inspite of not knowing where the bottom was.

 

wow.. so if you held on despite a 50% drawdown (I cant imagine the mental pain there) how did it turn out to present time? I'm genuinely interested mate.

Cheers

 

Nothing less than spectacular I would say . Not sure if you read in another post. Profits helped me buy a home for my parents & also helped me funding my PPOR purchase to some extent.

Only thing that saddens me is that I had to pull out money from markets after all the hard work due to my plans of migrating here but that's life. Change is the only constant

 

It intrigues me that some suggest investing in Shares requires enormous amounts of knowledge and is a complex endeavour. Nothing could be further from the truth. However psychology and instant liquidity is the enemy. A dose of adrenaline due to excitement or fear and ability to buy / sell with a click of the button is a dangerous combination.

Imagine if Property prices were being flashed across the screen every day like the sharemarket and you vould buy / sell with a click of a button! However high transaction costs and pain in the ar*e long winded selling process can negate bad behavioural tendencies often found with Share investors.

 

This is exactly some of what I got from Thornhill! The understanding that people in the stockmarket behaves irrationally.... you can benefit from it. He goes through his GFC story... kept buying CBA as it went down. This shows that buying in the crashes is the smarter thing to do, even though you may feel nervous. This, as well as a clear guide as to what to buy.

I've also exchanged thoughts with a person I met through another group (MMM) who exactly as Peter said at GFC time and came out of it really well. Saved their butt. Retired well. No complaints from them.

 

Agree Linda. Personally I feel most people won't know how they will react until it actually happens. Then its show time. Will people stick to their plan in the face of massive uncertainty or will they deviate. That's the 64 million dollar question in my mind..

 

True. It's because I've exchanged plenty of messages with someone who did well out of it and I lived through the GFC (was working at Amex at the time and got a very nice redundancy from it) so I feel I can hang on. But admittedly, not everybody will have nerves of steel or you'll find people with that little too much leverage...

 

Yep great point. The fact that we don't see the daily or monthly etc fluctuations is a huge protective mechanism for the overall asset class and is precisely 1 of the big reasons why real estate is generally less volatile than say the stock market. It's also imo why psychologically most people can cope with the idea of real estate corrections and ups and downs because speaking of a correction does not nearly have the same emotional impact on people as watching the daily fluctuations of stock prices.

 

Awesome result mate.

 

When I was invested in Melbourne I checked house prices in the area a lot. I checked house prices a lot more than my share prices. House prices over time are actually very volatile. Prices up and prices down don't make me want to sell. Not property and not shares. I see people posting here claiming you won't know what you will do in a downturn. Well, I do know. I held all my shares and property through the GFC and was at no point tempted to sell anything. I sold my Melbourne property after prices boomed but I still haven't sold any shares. Shares are a long term hold for me. Whoever inherits them can sell them if they want.

 

Are you looking for suitable candidates ?

 

There's a line mate, get to the back.

@Perthguy and I go way back to kindergarten