What are the Best Assets to Buy?

What Are the Best Assets to Buy?

Many newbies ask me this question. In fact, I receive such kind of queries every week in my mail address. If you ask this question to anyone except me than most of the financial planner will tell you the two oldest things.

For the long time horizon, Equity is the best while for short to medium term, Debt is the best asset class. Another advise they will give you is that, if you are risk taker investor than equity is for you and if you are a conservative than the debt is for you.

But well, I am not at all agree with this advise. According to me, The Best Asset for you is the asset class which you understand more and work it with everyday.

Let me explain you this by examples. Let us discuss the example of Real Estate Agent. Suppose if you are a Real Estate agent than do you think that Equity is the best asset class for you? You are working on to find best real estate deals for your clients at least 10 hours a day and you know each and every fine details about the real estate market than why not Real Estate is the best asset class for you?

Let me give you another Example. One of my friend is USA is buying and selling Vintage Guitars. And he understands the market of Vintage Guitars very well. So Why can’t he invest in Vintage Guitars only because he is doing this for years and he has a sound knowledge of this market. Will you advise him to invest in equity because everyone else is doing this?

Let us discuss about Internet Entrepreneur. If someone is a Domain and Website Flipper than why can’t he invest his money to build his own Domain Names and Website Business portfolios? He spends more than 10 hours a day on the Internet and he knows everything about the real estate of the Internet (Domain Names) than why not to invest in the real estate of the Internet (Domain Names) rather than the real estate of the real world?

Well, see. The risk is involved in every kind of Investment. Fixed deposits are also not safe because inflation and tax erodes its value. So Why not invest in those assets that you know very well than any other assets?

Investments in the assets that you know very well give you highest return in the long run than any other asset class. So just find out that which is your suitable asset class? Find out that which is the Asset class with which you work daily since years? That asset class is the best asset class for you.