Properties and shares are entirely 2 different asset classes although if you buy property syndicates then its a different story.
Best to read and do lots of research not disimiler to when you buy properties.
before you invest ask
1. Does the company sell anything? Laugh all you want, but this one question (and its answer) can save you lots and lots of money...and grief. If you look at most biotech companies, they don't sell anything except hope. They have no revenues, but their stories are fantastic. Investors can get carried away with the promise (not the revenues or profits) of these sometime miracle producers. Most often, the promise turns to pffffft; the stock goes to zero. If a company doesn't have revenues, it doesn't mean you don't buy it (though you should have very good reasons), it only means you buy very little of it....if you must, and you can't help yourself, and you've temporarily lost your investing compass.
2. Does it make a profit? When you know that a stock price is theoretically the present value of all future profits, it really hits home that profits are essential to a stock's (and your portfolio's) well-being. No stock can continue higher if there are no profits, no matter how promising the premise. Without profits, a company can't grow. Investors like to see increasing profits, no matter the economic conditions.
Everything else is speculation - just ask the 87 crash folks and GFC shares and properties included. If you are after yields then buy co that have give you good yields any capital gains is a bonus -(sounds very similar to property investment doesnt it - perhapes you are in the right place!)
Diversity in asset classes is the key.
Best to read and do lots of research not disimiler to when you buy properties.
before you invest ask
1. Does the company sell anything? Laugh all you want, but this one question (and its answer) can save you lots and lots of money...and grief. If you look at most biotech companies, they don't sell anything except hope. They have no revenues, but their stories are fantastic. Investors can get carried away with the promise (not the revenues or profits) of these sometime miracle producers. Most often, the promise turns to pffffft; the stock goes to zero. If a company doesn't have revenues, it doesn't mean you don't buy it (though you should have very good reasons), it only means you buy very little of it....if you must, and you can't help yourself, and you've temporarily lost your investing compass.
2. Does it make a profit? When you know that a stock price is theoretically the present value of all future profits, it really hits home that profits are essential to a stock's (and your portfolio's) well-being. No stock can continue higher if there are no profits, no matter how promising the premise. Without profits, a company can't grow. Investors like to see increasing profits, no matter the economic conditions.
Everything else is speculation - just ask the 87 crash folks and GFC shares and properties included. If you are after yields then buy co that have give you good yields any capital gains is a bonus -(sounds very similar to property investment doesnt it - perhapes you are in the right place!)
Diversity in asset classes is the key.
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