Investing: If you’ve done your homework and due diligence and you feel confident that your principal is safe, and you have a chance to make a profit, you are investing.
Speculating: If you are placing capital into something that has uncertain stability and offers little or no control, and you have a chance to make a profit, you are speculating.
“An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” –Benjamin Graham
Not necessarily. As long as you’re clear on what your strategy is, why you’re investing, and you understand the risks. It’s completely up to you on what you want to invest in.
It comes down to risk versus reward and understanding volatility.
The values of Bitcoin have had MAJOR fluctuations lately, at times dipping down 40%+ in a matter of a few days and then bouncing back up to new highs. It’s like riding the 2008 financial crisis in hyperspeed! If you want to invest in an asset class that is this volatile, you’re welcome to it, but it may not be wise to invest your entire nest egg or make this your only investing strategy… Just imagine a real estate portfolio dropping 40% + in 72 hours!
When we invest in larger commercial/residential real estate primarily because we can often influence or even control many of the factors that will lead to the success of the real estate portfolio. A few examples include:
Could you do this with Bitcoin or other traditional investments? Not a chance. But to be fair, could your real estate portfolio go up 1,400% in just a few years’ time? I think not.
The Bottom Line: It really comes down to YOU and what YOU’RE looking to achieve. At Direct Source Wealth, we offer complimentary strategy sessions to find out what your goals are, what your needs are, and what your risk tolerance is. If we’re both a good match for each other, we’ll look for opportunities and strategies align with your needs and goals.
We help clients achieve generational wealth (wealth beyond your lifetime for generations to come) and TIME freedom (The freedom over your time AKA Financial Freedom, so you can do more of the things you want to do in life, without having to sacrifice your time for money). We are able to achieve both of these for ourselves and for clients by acquiring and vetting cash flow and equity real estate projects. We invest our own capital into these projects and we invite investors to invest alongside us for the ride.
To learn more about Diversifying your portfolio, check out our webinar on Diversification.