The reader replied:
“Gary Another great piece. I think the situation we have now is different to anything I have seen before (70’s, 87, 92 and so forth) and MUCH more dangerous. I was very happy with a gradually increasing portfolio of bonds and cash on deposit and I learned a lot. What I have now is defined as ‘low risk’ and in view of the situation we have in the world – worries the pants off me.
“You are so very right with land, timber and water. There has always got to be a good buy in shares somewhere if you can find it and better yet if you can
catch a currency gain as well……real estate – must be the same – I just
do not yet have the courage.”
HERE IS MY REPLY.
First, in times of high inflation everything gets turned upside down.
What is generally low risk (cash and bonds) becomes high risk because they are guaranteed to lose purchasing power.
Second, understand that we are in an even more precarious position right now because inflation is high but interest rates are still low. This doubles the guarantee of buying power loss.
The hard fact is we are forced to make inflation fighting investments in times of high inflation such as real estate, shares, and commodities. They are actually safer than bonds.
However bonds can become like a share if you enjoy trading bonds.
The important is not your courage but what you know and enjoy. Merri and I enjoy property. We love every part f the process…he search…the negotiation…the fixing up and design…the building…and decoration. We seem to know pretty well what t do as well or we have had a lot of consistent luck. The property we have bought and fixed has almost always appreciated nicely.
Ditto for commodities that are related to land. We own quite a lot of timber and water that is regularly and we hope we’ll never have to sell it…and leave it to the kids.
So for us investing in land…water…timber that we can also tie into our seminar business is a joy. So though I research, know and wrote about shares, as stated at this site often, I personally am not a big share investor.
This may or may not be the best way to make money in the world…but perhaps this is not so important.
Perhaps the most important key to investing and business is doing something that you love and know and that makes enough for you to live and get ahead. Don’t worry if there is something better or more profitable.
Following a balanced approach to investing and business is usually the best way for most.
Until next message i hope you always feel balanced.
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