How does property compare as an investment vehicle compared to other forms of investment?

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Permalink Reply by jacquesk on July 18, 2008 at 12:44

Hi Miffy
I have some investment in Perpetual Protected 3 (Managed Funds investment scheme). As a long term investor rather than a trader I do not use short selling or options or CFDs. I think given that I tend to hold shares for decades the cost of insurance would eat too much into profits (err if any of my shares were turning a profit ).

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Permalink Reply by Miffy on July 18, 2008 at 13:02

Hi jacquesk,

Probably for the best - trading is a fast way to lose money if you don't know what you're doing! (like most of us, including me)

I'm not an insurance fan (in the sense of paid insurance), particularly for investments - I think you're best served diversifying as a way of insuring yourself, and investing over the long term.

How is the protected investment going? Have you had it long?

[And thanks for fixing the title - my mother is a librarian and she turned me into a pedant over the years. ;) ]

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Permalink Reply by jacquesk on July 18, 2008 at 14:44

Hi Miffy
By sheer coincidence I am a librarian by training if not employment. Diversification is a beautiful thing. I have not had the protected investment long enough to comment. In fact it only really begins later this month. My financial advisor put me onto it. Like yourself I am not a great fan of insurance. I have it for the house and car but that is about it.

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Permalink Reply by Bandwidth on July 18, 2008 at 15:11

My main reference to insurance is in the area of investment property. I recently had a house burnt down and will soon have a practically brand new house. I have had tenants do major damage to a property and skip without paying the rent, once again insurance kicked in.

In the stock market, when trading, deciding at what price you are going to exit when your purchase decision goes the opposite way to what you expected is the best insurance. The problem is few people can take a loss.

Developing a plan and a system is THE way to invest, once they are deveoped sticking to them is the challenge.

I do not short the market but even so in recent times have managed to profit by not being greedy and sticking to my plan. BTW I only trade a weekly system

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