I'm not alerting on SCAMS and fraud activities; but I'm telling you some very legit and common investment options which are introduced to you, are not worth a dime! avoiding to put your money in scams are obvious, items I'm gonna share and discuss, are not scam or fraud, they are just not working!
I will write another post about my suggestions on "What to invest in" so together you will have a full mindset of investment policy and strategy.
Why you have to listen to me?!
I have been an active business developer and investor since 1998. Starting my career with teaching, I founded my first fully owned business in 1999. I have also invested in Stock markets, Forex, Mutual Funds, Real Estate, Art pieces, Gold and Oil commodities for last two decades.
So I have invested in many things and through this bumpy ride, I have made my capital 200 times bigger than 1999!
It may be important to say, I have invested in some of the NOT to invest in items myself! So this post is not only a knowledge base article, but an experimental thing from my own life.
Clear? let's meet the reality!
No. 1 - Jewellery
Buying a diamond for your the girl you love may sound very tempting, especially if you badly want to hear that YES! and it is legit; but it's a very bad idea for investment.
Diamonds are difficult for normal people to examination of value, and if you even are lucky enough to buy a valuable diamond, you have lost 20% of your money right away and gaining back that value may take decades.
Other valuable stones and marvelous jewels are even worse!
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No.2 - Time Sharing ownerships
well... it's a legit scam! and if you are confused, let me remind you, there is a company in the world, who sells drug legally! well, if you consider SUGAR a drug
back to time-shares
Time shares are built on tourism and travelling industry. the industry felt saturating supply with limited demand in many segments and in many time periods; so delivering diversification on offers, was vital.
Paying for time shares, is not an investment. it's wasting money or in the best place, it's a way for having some fun. either way, it is not returning back your money. So next time the time sharing marketing guy told you it's an investment option, just ignore him/her.
No.3 - Primary living place
While buying a real estate is a good thing, buying your living place can be not! I have done this for many years and I'll tell you why.
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When you want to buy a property to own, you will look in to investment issues only. you may buy 10 small apartments to let them, or a land to build, or a foreclosure to renovate etc.
But when you buy a primary house to live, you will have more concerns like neighborhood, schools close to place etc. You will lose your focus on investment measures. and in the end, investment is always about LIQUIDITY.
A place you live in, is obviously less liquid-able, so I prefer to put it in the list of "not to invest in"s.
No.4 - Penny Stocks
The reason is simple:
- they are mostly over estimated in value
So why we call them penny stock? well, this is a bit misleading! I believe we shouldn't! - they mainly go bankrupt in the first year
- they are mostly highly leveraged
So I consider them, certain option investors should never, ever do.
No.5 - Hedge Funds
If you have a empire of assets, I would advise you to recruit right people and DO IT your way, hedge funding I mean. But as an investment option, I prefer to say no to them. because:
- the minimum entry is too high often
- less regulations and requirements comparing to mutual funds
- less liquid than stocks
- high management charges and fees
Please stay with me, by following my account. I will soon write my opinion on what you should invest in; and don't forget to upvote and/or resteem this post, if you found it worth to spread; beside I value your comments and I've learnt from them a lot.