Are paper assets like stocks better than businesses? Are you looking for an investment with good return? There are different types of investments that can give high return on investment (ROI). In paper assets, stocks and mutual funds equity. You may want to include to your investment portfolio the real estate properties and business enterprises because these two can give your investment a high return if you invest properly.
I used the word “if invest properly”, because even though you will buy a real estate property and start your own business, you may encounter financial losses because you didn’t carefully analyze which properties or what types of business niche you should invest. Business entrepreneurship and real estate will be more profitable if it’s done right and implemented properly. Besides, if you will invest money not just on paper assets, you are doing diversification.
Advantages in Diversification
The good thing is, when you diversified your investment portfolio, if one of your investment basked is not profitable or in losses, you still have chances to recover through other investment baskets. Literally, if you invest in stocks and the stock market is not doing well, but, you have a real estate that you can sell high or profitable business, your over all return on investment will be great.
Paper Assets Vs. Business for Highest ROI
I always mentioned this topic to my personal finance blog, wherein I discover something. I do hope you’re still with me. Business will surpassed the profits you can make in stock market. Here’s how;
If you invest $10,000 in stocks that earns 15% per year, after a year you will have $11,500. If you will invest in business, and your business is making a profit of 3% per month with the same investment capital ($10,000), you will make a profit of $300 per month. Now, imagine $300 x 12 months is equal to $3,600. Note: 3% interest in a business every month is achievable, so easy. If you buy $10 product and sell it $12, how much is the interest earned then? That’s 20%, wondering why other people on paper assets.
Maybe because paper assets didn’t require the investor an extra effort, the “invest and leave it” strategy is awesome, however, you should take a chance to start a business. Rich people start their business and invest their business profits in paper assets, so that, when they don’t want to work anymore, they have their money work for them.