Investment is all about making money work to generate returns. Traditional investor’s patterns are very focused be it on real estate or on the stock market.
The reason for being focused is very justifiable as it needs years of skills, experience, time and material to master and get to a comfort zone of investment strategy be it real estate or the stock market.
But on the flip side, one gets caught in between situations which are completely out of any investor’s control. Which leads to capital blockage or money not working to generate returns. To give some example:
In Real Estate: Season plays a very important role. Dependency on contractors, banks for funding, government permissions, finding the right buyers or right tenants at a right price all leads to waste of time trickling down to capital blockage.
In Stock Market: Bear market conditions due to corrections, geopolitical reasons or major sell-off leads to capital blockage. In our strategy, we do not have a capital loss. But the good part being it’s not seasonal. Stocks can be liquidated for cash at a press of a button to have cash available anytime. Anyone maintaining Net Worth over 100% can walk away with cash anytime with no loss.
As an investor one would look at making money work EVERYDAY if possible. Passion is ignored in this assumption.
Investor’s limitation boils down to skill set and knowledge. And it’s valid for both real estate and stock market investment.
But in our suggested hybrid approach of investment if one can make money constantly is the IDEAL situation. Which means if investors can minimize capital blockage happening from either real estate or stock market would automatically generate the velocity of money (VoM).
So having an open mindset of investment is the key here.