About a week ago, two “Aunties” or middle-aged women were in the heat of discussing about property investing
vs stocks and which to go for on the MRT carriage.
Well, there’s no right or wrong, the wealthy always spread their assets among the different classes, however, one of them remarked that Singapore property investments are “sure-win” while stocks are risky.
This is definitely not true. If you take a look around and talk to those who invested in property in Singapore, while a good portion of them would have been profitable even without formal training, there are still people who have lost MILLIONS by buying properties at the height of bubbles.
Now, then is it true that Singapore property investments are less risky than stocks? The answer is no. Then why do people so-called seem to stand a better chance at making money in the property space?
A series of interviews with profitable property investors was conducted and it was essentially found that their behaviour approximates Value Investing in stocks:
- Singapore property investors typically do their homework, looking at location, amenities, track record of developer – this is akin to looking at business quality in stocks!
- Singapore property investors do their valuation, by looking at the price per square feet, haggling it down – this is exactly what a Value Investor in stocks would do, looking for the fairest value to buy stocks at
- Singapore property investors have no way of looking at daily market prices and dumping their property because of lower liquidity than stocks. To sell a piece of property, you need to have buyers and loads of administrative transactions in place. Because of this, Singapore property investments are done using a buy-and-hold mentality, rather than short-term punting. This is exactly like Value Investing. Stock Value Investors are not concerned about day-to-day stock market volatility, looking at their investments in the bigger picture.
By applying the same principles that make property investing profitable, to the stock market in a systematic manner, it is possible to make real profits on the stock market.
Stocks have historically been one of the best returning asset classes to exist and it’s liquidity is meant for your convenience, not your downfall! So take the stock market into your hands and make it into your slave by joining our complimentary masterclass: