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Who is investing in anything non-boring in other words. Countless threads on stocks, TFSAs, etc. etc. but where are the threads on 'how to invest in gold' or 'how to invest in antiques' or 'how to earn high returns investing in a franchise', and so on.

I knew a guy from the UK who invested a modest amount (10-20k GBO) in a bar on a greek island. He got a decent return on his money (around 10%) each year and was also able to write off 4 trips per year to 'check on his investment.' That's what you call a win/win.

I knew another guy who got a lump sum contract payment at the end of the contract and put it all into a franchise. Not as the operating partner but as a silent partner. Again, +10% return.

Are there really no 1%ers here and only the 99%er sheep?
 

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other than stocks, i invest in gold, bitcoin (started recently) and a small business with another partner.
i do not invest in bonds....sold my last bond in 2009, never went back in.
i do not invest in franchises or rental properties/real estate because I want to be a passive investor.

that's me...everyone is different...
 

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There's a few threads on these topics here and there on CMF.

My impression is that most are either struggling to learn how to invest, have other areas they prefer to spend their time on or they don't want the competition.


Cheers
 

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Who is investing in anything non-boring in other words. Countless threads on stocks, TFSAs, etc. etc. but where are the threads on 'how to invest in gold' or 'how to invest in antiques' or 'how to earn high returns investing in a franchise', and so on. Are there really no 1%ers here and only the 99%er sheep?
No, it's not necessary.

As Mawer says, "We like boring. It works."

Signed,
1%er
 

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Well, I’ve got stocks, a few bonds from the early days, real estate a couple of unrelated companies...always looking at other opportunities.

Probably would never do a franchise, though I’ve looked into it, even picked a couple of sites which turned out to be very profitable for the people who eventually put it in, but I don’t like the restrictions or the fact that it would be more work than I want to do at this time of my life...actually it’s more work than I probably would ever have wanted to do.

I’m pretty lazy, prefer not working...always tried to set things up so I could do as little as possible.
 

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Longtimeago, it's a good question, but can't you pose the question without trying to insult everyone in the process?

Here's my view: I have other pursuits in life, so I need low-effort investments. I absolutely don't want the kind of investment that requires me to fly around the world checking on the status of Greek nightclubs or dealing with regulatory paperwork in Singapore. This doesn't sound fun to me at all.

I store/grow my capital in a portfolio of assets. Here are my key requirements for selecting the primary investment assets:

1. Something that cannot go to zero (vaporize)
2. Liquid or reasonably liquid
3. Passive or low effort

The obvious things I've found that fit this are stocks, bonds, gold bullion. I agree that REITs also fit the requirements, but I don't have any. Real estate also isn't for me because it requires lots of effort (fails #3).

Many things get ruled out by my requirements. Bitcoin doesn't have any history that gives assurance that it won't be totally wiped out, and in fact it can become worthless if certain algorithms are broken, or computing advancements are made (e.g. if SECP256K1 is broken). To me this is way to weak a basis for a core investment asset. We don't even know who the creator is, or their motivation for chosing the offbeat SECP256K1 algorithm.

Stocks & bonds, assuming you index or use a properly diversified portfolio, have very long histories and there is just about no chance that a well structured portfolio of stocks & bonds will get wiped out to zero. The exception is hyperinflation or currency collapse risk, but gold helps address that -- something that I think many conventional investors are missing.

Commodities are another thing that I've ruled out. These are not accessible investments in practice. While it's true they can't go to zero, and are liquid, they fail #3 passive or low effort. These are various commodities brokers that provide managed commodities accounts, which are basically a scam. Because commodities use futures, they are inherently leveraged and a lot of skill is required to properly manage a diversified account of commodity positions. In recent years there are some new broad based commodity tracking ETFs like DBC and GSG which sound promising, but they are experimental new techniques to get exposure to commodities. And I'm not encouraged by what I've seen with them. These ETFs have shown 75% and 85% maximum drawdowns over 13 years, and I'm not convinced that they are a solid way to get commodity exposure.
 

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Also want to add: there's a reason many of us get exposures we want (like commodities/oil/real estate) through stocks instead of going directly to those other things.

Stocks are well established, highly regulated, and there's very good infrastructure that lets us hold the shares. Reputable auditing firms review the financial statements. Yes it's possible to open a commodities account and hold crude oil e-mini futures but this brings a world of new challenges with it and can be extremely dangerous if done incorrectly.

Stocks just become useful as a way to invest in a lot of things. I do like commodity exposure, but I mostly get it through my Canada-heavy equities (where Canada is 50% of my stock allocation). And with modern discount brokerages, holding these things is incredibly easy... and generally seems to be pretty safe too.
 

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I always find it funny when people talk about being diversified but own all their assets in stocks. Ever notice that when the stock market crashes, the reits, the gold stocks, the commodity stocks, etc. All go down as well.

Unlike my house prices, my rents, my clients who pay for goods and services...
 

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Most members of financial forums don't give a shite about RE investment JAG. Only an interested few here are listening. Over the long term, stock investment returns beat RE returns and most, like myself, don't have any interest in doing the work to own and manage RE. It's likely as simple as that.
 

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Who is investing in anything non-boring in other words. Countless threads on stocks, TFSAs, etc. etc. but where are the threads on 'how to invest in gold' or 'how to invest in antiques' or 'how to earn high returns investing in a franchise', and so on.

I knew a guy from the UK who invested a modest amount (10-20k GBO) in a bar on a greek island. He got a decent return on his money (around 10%) each year and was also able to write off 4 trips per year to 'check on his investment.' That's what you call a win/win.

I knew another guy who got a lump sum contract payment at the end of the contract and put it all into a franchise. Not as the operating partner but as a silent partner. Again, +10% return.

Are there really no 1%ers here and only the 99%er sheep?
It does not matter which table you play on the average player will lose & only the so called 1%ers will win. It might not be precisely one percent though it will not be the average player i.e., How would you like to be the average investor in the best performing mutual fund of the year ? A few years back I read the average investor for the best performing mutual fund that year actually lost money even though the fund was up. They lost by selling low & buying high. Like a poker game not everyone can win.
 

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I have a friend who started his company in heavy electrical equipment and was in his mid-forties when he sold out for $50 million. Then he dabbled in private investments and lost that money, so now he is in managed funds.

Another one invested in rental properties and a restaurant. The restaurant worked fine until his trusted manager of 20+ years turned bad and robbed him blind. He survived that fiasco but learned that the need for oversight never goes away. When his profit margins declined, he hired a mole to find out what was going on.

I have several other stories but I will spare you and I believe LTA has no real interest in this subject. I have told the story here before about being a successful silent partner in a land development project. Beyond JAG, most 1%ers and alternative investors do not frequent online forums.

There is a sub-reddit called FatFIRE that touches on the subject but it is mostly frequented by wannabes.
 

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Discussion Starter #17

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... I have several other stories but I will spare you and I believe LTA has no real interest in this subject.
I suspect that like a lot of other threads, the interest is in the success stories.

My parents had a couple of houses for rent that they did well with most of them. The one bad apple plus an increasingly busier life convinced them it was time to move on. My friend in university had an inventor uncle who didn't make it insanely rich but had a steady stream of money makers that kept him comfortable.

We used to chat with three brothers who had a franchise submarine shop. They were a well oiled machine at that point but had stories of long hours to get to that point.

A house mate in university looked at the "1 in three will win", spend a couple of hundred on entries and then won enough prizes to resell that he made a tidy profit.


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It is entirely possible to be a passive investor in franchises and real estate.
you mean through reits and income trusts...ya, I know.

i have a couple of reits and income trusts (now ex).

problem is that most income trusts that trade on the TSX are garbage....they pay out too much, keep issuing units, keep piling on debt...the stock price does not appreciate and after years and years of holding, your total return is flat, or +/- few % points.
basically i have found in over 20 years that most reits and income trusts deliver GIC like returns for penny stock like risks...

there are of course some exceptions in both reit and income trust sector but those are very few...
 
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