| Wednesday, August 25, 2010

Which asset class should you invest in? Which asset class are you good at investing in? Which asset class do you enjoy investing in? The two questions are not, of course the same.

You can be good at something and not enjoy it and enjoy something but not be good at it.

You might enjoy investing in real-estate, searching out nice houses and apartments, with great views and great location, but not make wise decisions about investing your money in real-estate.

You might be great at coming up with ideas for new businesses but not enjoy the actual business creation process.

You might be good at creating new small companies but crap at turning them into medium-sized or large companies.

You might really enjoy trying to understand the stock market but not actually be very good at picking stocks in a way which increases your capital over time.

Are you better at:

• Some kind of real-estate investing?
• Creating small businesses?
• Investing in small business?
• Turning small businesses into large ones?
• Working in a highly-paid profession?
• Investing in stocks?
• Placing your money in high-performing investment funds?
• Or just saving your money in a deposit account?

In the current economic environment—with so much instability in terms of the medium-term future—it’s not at all clear which one would be the best option for you, given how everything is changing and what you’re actually good at.

There is no ultimate safe place for your money, every type of investment involves risks and dangers.

Have you ever thought about which might be the best asset class—in terms of your ability to master it—for you to invest in?

You must think about these things carefully.