We’ve all heard the saying, “Don’t put all your eggs in one basket” and it does make total sense when it comes to your investment portfolio. Imagine having your entire wealth halved in a manis trading session! Or doubling down on an initial investment, only to see the value fall away like it’s in freefall!
In this article, we outline a few investments that you could add to your portfolio to add some diversification.
- Gold – If you have yet to include gold in your portfolio, we recommend making a purchase now, as inflation is rising and gold has always been a safe bet to hedge. The majority of private investors hold at least a few ingots or coins. There are other precious metals that offer the potential for a healthy return; tech industries have a need for metals such as titanium, palladium and others.
- Real estate – You can’t beat real estate and buying a rundown property, renovating and selling can be a very good investment. Quite a few billionaires started by flipping upmarket houses and if you approach it as a business and outsource property maintenance, you can rent out and enjoy a steady income stream. Your investment will appreciate over the years and after all your costs, you should have a sizeable income and profit. If in doubt, invest in land and you can’t really go wrong. Location is everything and acquiring land in an undeveloped area could pay big dividends; the demand for land is growing, yet real estate is a finite commodity, which means demand will increase.
- Crypto – Dealing with digital currencies is not for the faint of heart; you need to understand market forces and do what you can to mitigate risk. Traders are as sharp as a razor and it is easy get burned; we don’t recommend you enter this arena unless you have trading experience. If you had bought 1,000 Bitcoins when they were a dollar each, you would now be very wealthy!
- Stocks & shares – The ASX is where you can invest in more than 2,000 Australian businesses; if you have little knowledge about a sector, you shouldn’t invest; stick to markets you know. Some canny investors buy into tech startups at the offset and make millions! There are many variables that can cause share values to rise or fall; a good trader is one who predicts a future outcome. If you are in it for the long term, resist selling when shares drop a little; keep your eye on the market and sell on a spike.
- Fine wines РA couple of cases of ros̩ wine would be a wise acquisition; certain years are much sought-after and if you know your fine wines, you can make some astute purchases and have them stored.
- Forex – You can make successful pair trades by holding the right positions; fiat currencies are volatile, even the top currencies are not stable in 2024. Not for the squeamish.
- Fine antiques – The great thing about investing in fine furniture is you can surround yourself with classic workmanship; many antique collectors started as a hobby and the rest is history; if you informed a dealer of your goals, they could make some recommendations and most are happy to give you their professional opinion. Some people are passionate about antiques and they hold fine pieces, with an eye on the future; a commodity that can quickly be liquidated, should a need arise.
- Luxury watches – The list of names is long and starts with Rolex, the fames Swiss chronograph maker; why not acquire a Submariner? One thing is for sure, you won’t lose out if the watch is serviced regularly, plus you get the pleasure from wearing a fine watch. Don’t expect huge wins but if you love quality engineering, why not?
- Art – We are moving into where billionaires play and opulence is on display; definitely only for the expert, or one with an eye for something special. You could find a local up-and-coming artist and acquire half a dozen of their finest work; you might get lucky and end up with a few million! There is no reason why you can make a small investment in art you like, not so much as an investment although that is possible.
- AI – The pace of AI development is scary and with a bit of research, you could find a promising startup and acquire shares; if they make it, so do you; of course, there’s an element of risk, as with any investment. Major players offer shares openly on public exchanges; it is certainly worth further investigation. Market volatility is high but that works in your favour if you buy early in a winning tech company and ride the wave.
- Gemstones – Some investors incorporate antique jewellery in their portfolio and why not indeed? If you know your gems, you can make astute purchases that will pay good dividends. Exquisite jewellery or acquiring uncut stones for processing can be a good investment; you need to have a sound knowledge in gemstone assessment. Insurance is recommended for expensive items; you can find a leading Australian insurer of gemstones with an online search.
- Vintage cars & motorcycles – Make the right purchases and you’ll be laughing all the way to the bank, however, this is generally a hobby for the wealthy. If you can leave some wealth in a classic car and are prepared for the high maintenance cost, indulge in your passion and hopefully, it won’t cost you anything.
There are many ways that you can diversify your investment portfolio and with some due diligence and research, you can minimise risk and generate wealth. Whether a few grams of gold or a case of fine Chateau Lafite, adding diversity to your investment portfolio is a smart move and hopefully, you can indulge in your passion.
