Green Thumb Capital Investments
I want you to make capital investments differently. Often the common recomendation has been “invest for long term growth” and then you are told to place your investment capital in blue chip stocks or some other retail market option.
This is what I hate about that idea. Most investors are rather passive in their investing activity. By passive I mean that investors secure their options and then hope for the best, kind of like a gardner planting a crop and then waiting for it to grow.
Here is the rub with that action when investing. A farmer plants the crop kind of speculatively, he tills, plants, waters and fertilizes and then lets providence take care of the rest. Yet at certain times his garden is vulnerable. Too much rain or not enough, or a tornado just before maturity can distroy his crop. But it’s more often that his investment will grow and get harvested without a serious incident. So he speculates each season on normalcy.
The stock market does not grow like a crop. First of all, it may or may not grow. It is more common that it will surge in one direction and then in the opposite direction on a daily basis. Speculating this way on your retirement portfolio just doesn’t add up for a passive investor or for a gardner. It certainly would for a day trader because the trader can change his options as the market fluctuates. A passive investor can not. His or her job is somewhere else.
Add to that, when investing in a market priced asset you are buying retail. You are buying the final crop not the seed. So there is no built in leverage warranting an increase. That kind of “Let’s try this” approach just doesn’t make sense when your retirement is in the balance.
Let’s consider at some alternative investing. There are many types of investments where you can buy wholesale like a farmer buying seed and expect a constant yield as a farmer would because it is built into the contract.
Investing in a real estate loan might be one example. Buyers of paper never buy at face value (retail) they buy at a discount in order to ensure their yield. The first position mortgage is usually leaning against an alternative asset that is worth at least twenty percent more than the face value of the contract, so the worst that can happen is that you get your investment capital back without gain.
Even if the market goes south you are holding paper that is at least backed by its retail value. What normally happens is that the mortgagee pays on the loan and then refinances or moves and you get your principal back – of course, all the while, getting a yield on your principle investment.
There are no wild swings in value therefore growing your wealth like a gardner can provide you with consistent growth of your capital alternative without the volatility. This makes much more sense to me than buying into the stocks market where they could be worth less that what you paid for them the day after. At least you know what you are getting upon maturity.
There are many other capital investments where you can get up front leverage, a consistent yield and where you are protected on the downside if something goes wrong.
I would consider looking into various other investment options by going to Capital Investments Alternative and looking over what’s there.
If you are a passive investor proceeding more like growing a garden makes much more sense.
