Topic: What are your diversification strategies? (Read 2169 times)

"High end art" is great if you've got millions of dollars lying around ... not sure how many people on this forum qualify ... probably quite a few actually

Im short on the market and gold/silver is just like an emergency holding

But real estate and high end art are my choices besides Bitcoin and Litecoin

Yeah I understand that, but the guy didn't say whether the land value was increasing or not ... not all land increases in value - location, location, location

I'm still selling part interest in gas lease royalties. The original thread it here:  https://bitcointalksearch.org/topic/10-interest-in-royalties-from-90-acre-gas-lease-in-active-drilling-area-392843

Anyone who is willing to fill out US tax information is eligible to purchase. After completion of purchase, owners deal directly with Chesapeake. Here is their owners information site: http://www.chk.com/owners/Pages/Default.aspx

 

So many ways to invest in R.E. and just as many different reasons to. Some want cash flows, are concerned with capitalization rates, expectation for appreciation, actual use or simply want to own a slice of earth.
It's not a liquid asset but certainly an easy one for the average citizen to leverage (though we've seen how badly that can turn out).
Some decide to invest with real estate investment trusts (R.E.I.T.S). I'm not too fond of that method it reminds me of buying gold that someone else holds "for you".
Being a "landlord" is not for the faint of heart. Sometimes you have tenants who treat the place like home and sometimes you have people who do more damage than any deposit or "profit" from rent (if they paid and it didn't cost you a bundle to evict) could hope to cover.
You have to deal with brokers who work on commission so what they are selling you, could be better for them...not you. It's a concern for any investment you're making, with even the most "reputable" of firms.
You're not always being advised, sometimes you're being sold.
Find assets you know something about: the O.P. knows the value of those cards, how to preserve them, where to get the value out of them, I wouldn't even venture it.
Learn at  least enough about the things you invest in to have the ability to chose advisors well.
Maddoff's investors trusted him to know and 'should' have been able to...but couldn't.

Well their are two types of investing in real estate, one if providing a current ROI, like a condo, apartment complex, etc, an income stream.  The other is raw land that doesn't provide an income stream but is increasing in value because of location, land values, etc.  It's not much different than holding a bond vs. Bitcoin.  What is Bitcoin's ROI?  It varies, just like raw land can and does, although genereally not as volatile.  A bond provides an annual ROI, in form of interest.

So is it increasing in value? Any ROI? If so, great. Otherwise .... its not really an investment - might as well stick the cash under the bed

One of the pieces of land I own has no 'improvements' of any sort.  In fact, it is 6 miles from the nearest road.  The taxes are approximately 0.1% of what I know the market value to be, and as of now, it does not produce any income stream.  The nice thing about it is I don't have to do any maintenance, as there is just nothing to maintain.

My mate bought a house for rental return. Seemed fine on paper. Went travelling the world to receive the news the tenants had completely wrecked the place. Destroyed the value. Can't imagine anything more stressful than renting out your own property. I'd be spying on the tenants 24/7

I have spent thousands of hours reviewing real estate investments and my advice is this:

Buy something that is already built and providing a significant and sustainable rental stream that will still be standing in 50 years and people will still want to live in in 50 years.  Try to buy something that returns more than it costs to hold (cash flow positive) in a stable or sustainably growing area. Big diverse cities with a future not little towns with one industry.  Only buy properties you control yourself no forced rental pooling and no short stay tenants.  Don't furnish the property you only encourage turnover of tenants.

For the Magic Cards, it is best to keep sealed booster boxes =)

Do you want to buy raw undeveloped land or property that produces cash flow? As another forum member pointed out, it's best to buy in an area that you are familiar with. Actually it's best to invest in assets that you are familiar with.

Real estate, precious metals, "certain" speculative endeavors and education but I'm upside down, with the lofty "goal" of getting it together enough to file B.K. this year.

I'd like it to be
Multiple income producing properties, Stocks, Precious Metals, interests in privately owned companies, art, classic vehicles/motorcycles and that my days are spent working for a foundation for foster children all the while being very well insured.

Definitely not something to rush into, or you will be sold a plot of land someone else already owns or is worthless for some other reason but opportunities for purchasing land do exist, you just need to do a heck of a lot of "due diligence"

I have come to own land though partnerships, and both parcels that I am involved with I came across though personal connections in my life.  I have also seen similar patterns with my friends.  

I am sure there are guides, but I don't know of any myself.  I think it is harder if you spend all of your time in a city.  It really helps to know an area and then you can be attuned to opportunities.  And - have cash ready to go.

I don't know too much though, I'm sure there are experts on here that could give you much better advice.

1) Find a country where you are legally entitled to buy land as a foreigner
2) Find out land appreciation prices in these countries
3) Hop on a plane to the top three locations

Do you know of a good guide to buying land? I want to get in on this, but have 0 idea where to start.

I am not doubting you at all, just didn't know enough about them to make any comments about diversification!  Just know they are like a commodity, only worth what someone, at some given time, is willing to pay for them, very similar to gold, bitcoin, etc.  It's an interesting concept to have cards as a diversification tool though.  But I would still recommend owning something that has real worth because of what it actually is.  Land, real estate, stock, etc.  More the merrier.

It may sound funny, but high-end magic cards have had a higher rate of return then the dow jones for pretty much every year since they Magic was created over 20 years ago, including this year.  In a way, they've sort of been like the Bitcoin of the 90's.

For a very reliable rate of return, vintage Armagnac is hard to beat.

But in practice my diversification strategy is to buy many different flavors of bitcoin.  May, September, January bitcoins.  At that point, I have nothing left for broader diversification.

It's an interesting diversification of course.  I'm surprised there's no stocks or bonds in there.  Gold is not really an investment although lately (ie, last 10 years) people have used it as such.  It's a hedge.  Look at the return of gold over the long run (not 10 years), and compare it to basically anything, stocks, bonds, real estate etc, it's basically last in return vs. inflation.

I'm not saying it's not good to hold, I think its great to hold, more than 20% of your holdings, probably not.  I don't know enough about artwork or magic card enough to comment on.

land
gold
bitcoin
cash

not much of a paper person...

ALL IN!

Also considering changing one bitcoin to lites, just on the chance that they increase faster. No big loss if they don't.

My rough asset allcation:

20% Land
50% Bitcoin (Started as less than 1%)
5%   Precious metals
10% Index Funds
10% Cash + Bond + Money Market
5%   Other

One thing that differentiates asset classes is the size of the barrier to entry.  Gold is accessible to just about anyone.  $50 would be enough for some gold chain.  Fine art I consider to be on the other end of the spectrum, especially considered you should probably have a few different pieces to be diversified.  If I had the means, I would buy a Stradivarius violin, and then loan it out to a world-class musician.

Bitcoins barrier to entry is mostly the technical know how, although that keeps getting lowered every passing day.

Investing in Fine Arts has proven a winning strategy the last 20 years, but yeah, its a bit niche, like "classic cars". Your examples are much more mainstream ways to diversify

How about real estate? the stock market?
I don't see a lot of people flock to the Fine Arts.

Bitcoin/Altcoins/Gold/Silver/Gemstones

I'm adding Altcoin there because you need to have something in case Bitcoin ever really does come under attack, but that's not a very likely scenario.

Bitcoins, a few select altcoins, and cash. Gold is due for a long hard fall IMHO.

My single largest investment is in my education - tech literacy in a rising technocracy. Bitcoin is only one facet of that. I am deep into automation as well.  

Physical assets are mostly real estate with some shares and bitcoin.  But those are less important in the scheme of things. 

I invest in BTC, LTC, international equities, mutual funds, bonds, a few individual stocks, and stay liquid with cash. Oh and a couple annuities, and life insurance

It used to be that the way one diversified their wealth was to break it into three main parts:
1. Cash
2. Gold
3. Artwork

Along those lines, I've taken to the 21st century version:
1. Bitcoin (of course.)
2. Gold (still strong!)
3. Magic Cards (games are this generation's art.)

That's just me though.  How are you all diversifying YOUR holdings?