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Monday, 5 September 2011

Another Debate On Property Or Stocks Investing (9)

Read? Another Debate On Property Or Stocks Investing - Part8

I often read in the blogs space, forums or cboxes that one of many reasons why you should invest in property is something like this: "The difference is property market won't be like stock market, simply it will not crash to zero value."

Last Sunday, I flipped through one property investment book that was written by a local Singapore author. He similarly said something like this too in his book.

The type of reason given is either naive or misleading.

Investors may dump most of their money into a single property and leverage up; but no sensible investors will dump most of their money into a single stock. Whoever does that must be a dumb. Most likely, they will invest  their money into a portfolio of stocks. A portfolio of stocks will not crash to zero value too. Get it?

7 comments:

  1. Hi,
    Quote from you:
    "The difference is property market won't be like stock market, simply it will not crash to zero value."
    To me, it means if i own one free-hold property outright, there is always some value no matter what happens.
    On the other hand if i own 15 to 20 stocks, there is always a possibilty one or more than one stock can become ZERO VALUE "overnight".
    Hey, i still own 15 to 20 stocks leh.
    What's the matter?
    No sweat leh.
    i actually like to own all equities and no property except my dwelling.
    It so much easier to manage an all equity portfolio.
    No landlord/tenant headache.
    i have been this way for more than 23+ years until now.
    Anyway, i agree do not use leverage if you are not prepared for the worst case of losing your income, to buy a property.

    ReplyDelete
  2. so businessman who own 100% of their company shares are dumb too?

    ReplyDelete
  3. Hi coconut,
    Yes, he is dumb, if that is his only portfolio.
    Nevertheless, every businessman has to start somewhere.

    ReplyDelete
  4. Buying share in the stock market as minority shareholder is totally different from investing in business as a major stakeholder with one or more board seats or investing in own business.

    uying into a single share with all of his/her money as minority shareholder is dumb.

    ReplyDelete
  5. some say that between investors and traders are like cats and dogs haha. i do have the same feeling.

    ReplyDelete
  6. If you have no confidence in your own business, you shouldn't be in it in the first place.

    ReplyDelete

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