Always Protect Your Capital

Do you follow investment trends without doing deep research? If so, it’s a dangerous game you’re playing!

Sure, you may get lucky. Example: some property investors made a killing in the Perth market during the mining boom.

Others got lucky and jumped on crypto when it was ripping up to $20,000 USD. 

But, truly, bubbles such as those can’t sustain themselves. Sure, you might make a killing for a while but, like most people experience, the bubble bursts! 

Which is why one of the silliest things you can do is invest without deep research. I’ve seen it time and time again in the property market. 

Before investors know it, suddenly they’re saddled with mortgages that are greater than the value of the properties. Banks can’t close enough to get their money back. And everybody is in a world of hurt.

Just plain silliness.

Warren Buffett said years ago to “always protect your capital.”

You aren’t doing that if you’re getting greedy and chasing trends.

As a good rule of thumb, you want to have an investment strategy that extends 15 to 20 years down the line.

You want something with a proven history. Or you could end up going backwards with your investments the way that some people do when they chase trends.

Investing is never completely risk-free, but you can minimise your risk. One way to do that is to do your research and look at the criteria carefully.

That’s really the only way to protect your capital.

If you need help picking out your next property, we can help.