Some investments may be attractive to some and not to others. If I were a betting woman, I would say that given my profession in real estate, most would assume much of my wealth was derived from real estate, but that is not true. Real estate investments allowed me to leverage my investment strategy –another topic.
My secret to investing is having the willingness to take a chance on an investment that seems logical with the perceived probability of success. Let me unpack the logical and probability statements with a few of my investment strategies.
Grass-fed beef is often lower in fat and does not contain growth hormones commonly used in other beef production. The global market value of grass-fed beef amounted to approximately 12.4 billion in the United States in 2023 and is expected to increase to about 20.4 billion in 2024. Would you consider this a logical investment with the probability of future success? I did – so I invested in grass-fed cattle.
Let’s talk about something a bit less morbid. Throughout history, gold has been seen as a valuable commodity. Today, owning gold can hedge against inflation and deflation and be a good portfolio diversifier. Gold was not on my investment radar due to the investment not being income-producing and lacking luster until you are invited to an 80-year-old dormant gold mine that someone wants to put back into production. Now you have my attention. Walking the gold mine and seeing the exposed veins of gold on the surface was all the logic and probability needed for a 10% stake.
This next investment strategy is a bit more complex to understand because my reasoning behind doing it is not all about the profit. That is a weird statement – I know, so let me explain. All investments come with risk, but how many investments have a tax benefit? Let me ask you a question. If you could pay taxes and never see that money again or make an investment to avoid paying the taxes with the chance to see the money again, plus potentially more at a reduced tax basis, which would you pick? Pay the IRS or invest in yourself. I do not like to burn my money on the sidewalk, so I seek investments in oil and gas towards the end of each year to reduce my tax payments with the chance to earn more in the future. Keep logic and hopeful probability in mind - not all oil and gas ventures pan out as you would hope.
Let me switch gears from alternative investments to a more traditional investment strategy with mutual funds and stocks. The logical side of me says that healthcare is a defensive sector, which means it generally provides stable earnings that are uncorrelated with the overall stock market or economy. As such, healthcare tends to outperform when the general market is weak, or the economy is slowing.
Ending an investment blog about some of my investment strategies without talking about real estate as a staple in my overall investment strategy would not be a fair depiction. Real estate has come in many forms, from my 20s (do-it-yourself) to my 30s (passive investment) and 40s (building a portfolio to sell in the future). It is in my blood.
Being unlicensed to give investment advice, I have refrained from mentioning any of the companies, mutual funds, or stocks that I invest in.