Choosing which Assets to Invest in is not the Hard Part

There are people who make money trading in rare postal stamps, fine art or Aboriginal paintings. However, they are usually the dealers who sell postal stamps, fine art and Aboriginal paintings. The reason for this is simple. The dealer puts a sizeable mark up on each item (usually 100% or more), and you have to hold it for some time just to make up for that before you can sell at a profit. Collect paintings for pleasure by all means, but we believe there are only two assets an investor should invest in : real estate and shares in productive businesses - both assets with known values which can readily be bought and sold on accessible markets, and both asset classes with very strong historical growth trends over time.

Note, real estate and shares, not real estate or shares. This is because we believe that it does not make too much difference whether you invest in real estate or shares - because if you pick the asset wisely, time will do the rest. So in spite of the fact that you can Google 'real estate vs. shares? and come up with at least 50 web sites telling you to do one or the other, we always tell our clients they are welcome to do either, because there is a place for both in any investment portfolio.

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