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Tag: General Investing

Property Investing And The Advantages of an Illiquid Asset

Property Investing And The Advantages of an Illiquid Asset

Real estate is a great way to build wealth, and owning property has made a lot of people a lot of money over the years. However, equity investing has yielded similar, if not better results over the years (although this varies from market to market and depends on which benchmark you use.) The one primary difference between real estate investing and equity investing, however, is liquidity. The liquidity issue It is very well known that investors are their own worst…

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Seth Klarman: Approach Investing With a “Strict Standard of Risk Avoidance”

Seth Klarman: Approach Investing With a “Strict Standard of Risk Avoidance”

Investing is hard. To be able to outperform the market consistently, you need to be able to predict the future. Unfortunately, predicting the future is impossible. So, investing is a game of probabilities. Estimating the probabilities of individual outcomes and then investing in the scenario with the highest likelihood of success. As it is impossible to predict the future, it is best to include a wide margin of safety in the calculation of the probabilities. First proposed by Benjamin Graham,…

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