The best investment over 25 years

[Hyphen(-)]

Not against diversifying but people should know how to do it before getting themselves involves in what they don't know. The wealthy give advice about diversifying but they don't tell you that, majority of their capital are in fewer assets and then the rest scattered around other investments.

That’s true and that’s where new investors make mistakes, they will want to diversify because they are advised to do so, therefore, once they have money, they don’t look for further advices or consult experienced people, they just go in straight and that’s where most of get it wrong which do lead to losing their capital especially if they invested in something risky.

Prioritize having one main investment/asset that you put more time,/money in instead of scattering your money around as that won't give you focus as a long term investors. One thing you'll notice about the wealthy individuals is that they made majority of their wealth from one asset or sector then have smaller accumulations in other things.

 It'd easier when you have a goal that you can put all your attention on achieving than when you have different things taking your attention (funds). I'm not saying you shouldn't diversity but don't be in a rush to do that when you aren't actually wealth yet because diversifying should be protecting your wealth more, that's how the rich play the game.

Having one single source is not bad, but I think it is not bad to diversify either if you are yet to get a single direction you will be making money from, but if you got one main investment clear and knows more about it, you can focus on that and make good money from that investment instead of diversifying in wrong investments.

[abhiseshakana]

Having one single source is not bad, but I think it is not bad to diversify either if you are yet to get a single direction you will be making money from, but if you got one main investment clear and knows more about it, you can focus on that and make good money from that investment instead of diversifying in wrong investments.

Totally agree, based on my own business experiences, at the first i started to focus on my export busines as my main and major income, I put all my investment saving for grow my export business and at one commofity i become the biggest exporter from my country. After may main income stable and create excess cashflow, i alocated some of the margin for passive asset and other i use for my new freight forwarding business. And these two businesses became my income pillar beside my active asset.

I like hyper focus because i can get maximum leverage such as become domain expertise, expertise provides advantages such as bargaining power and high margin. manage one business can make overhead cheaper and we don't wate time to learnn something mew from zero.

[Adiljutt156]

We should be wise enough to think beyond just keeping money safe in accounts. The purchasing power of money has reduced extremely low over the past years because Inflation is one of the serious issues in Pakistan, whereas assets like gold, investment and real estate have tried to increase wealth their value has increased as compared to the past.

If I had 100k in 2001, instead of investing in a single thing, I would just diversify. I would keep some portion of money for safe investment, while investing the remaining amount in gold, real estate and mutual funds for getting diversified benefits. Mutual funds are interesting, but past returns should not be expected to repeat.

The biggest lesson for me as a person is that compounding and time can make huge difference. For decades, investing a small amount can become significant amount of wealth. We should start today and make wise and informed decisions rather than just having money and leaving it completely idle.

[DrBeer]

Financial literacy, taught by educators like these, should become one of the core subjects of basic education in every country.

Not only did you see excellent examples of "different life cycles of money" and, as a result, completely different outcomes, ranging from outright negative to very positive, but we’ve also examined just one positive, and the most obvious, benefit of such an education.
The other side of the coin: now imagine how a country’s economy would change if people weren’t just consumers or "money destroyers", but instead, for example, invested more in domestic projects? That would provide a very powerful boost to economic development! So financial literacy has two very positive outcomes.

As for investments - I’m a proponent of diversification. That’s why I don’t invest in just one thing. But I definitely don’t keep my money in bank deposits

[WillyAp]

Financial literacy, taught by educators like these, should become one of the core subjects of basic education in every country.

Not only did you see excellent examples of "different life cycles of money" and, as a result, completely different outcomes, ranging from outright negative to very positive, but we’ve also examined just one positive, and the most obvious, benefit of such an education.
The other side of the coin: now imagine how a country’s economy would change if people weren’t just consumers or "money destroyers", but instead, for example, invested more in domestic projects? That would provide a very powerful boost to economic development! So financial literacy has two very positive outcomes.

As for investments - I’m a proponent of diversification. That’s why I don’t invest in just one thing. But I definitely don’t keep my money in bank deposits

Parents should teach that kind of thing.
And money in the bank why not if that is not the only place you keep values. Money in the bank can be an advantage.

[SatsPH]

As for investments - I’m a proponent of diversification. That’s why I don’t invest in just one thing. But I definitely don’t keep my money in bank deposits

I have stocks, gold and now Bitcoin. So I think I've diversified enough, although I think I needed more money to invest or at least cycle it. So that I can keep a generational wealth for me and kids and grand kids.

As for bank, it's not that I don't put money on it, but I don't put it there as a investment. I needed it so that I can keep my self liquid. Anytime I can withdraw money and there will be no problems on my end.

[Jostle]

Historically, mutual funds or even index/ETFs of the developed countries (e.g. USA), Gold, are good investment over LONG horizons. Investment should be viewed as a 20-30 year horizon, so yes, S&P500 is one of them.

Real estate, it depends on which countries you are referring to.

[PERtua]

I would add, that if you are comparing the final value alone. This may not be enough information to tell you if the return includes fees. Taxes dividends or reinvestment. The difference between gross and net return really adds up when compounded over 25 years. Which is the time frame of your purchase.A 25% annualised return is at the very extreme end of where it is possible to return. However the difference between gross and net return becomes significant over 25 years  the time frame of your purchase. It would also be good to compare the investments by inflation adjusted return and CAGR. Not just the ending investment. This would bring a much more accurate representation as to what actually expanded the investor's purchasing power.

[DanWalker]

I have stocks, gold and now Bitcoin. So I think I've diversified enough, although I think I needed more money to invest or at least cycle it. So that I can keep a generational wealth for me and kids and grand kids.

As for bank, it's not that I don't put money on it, but I don't put it there as a investment. I needed it so that I can keep my self liquid. Anytime I can withdraw money and there will be no problems on my end.

Idk why people hate keeping money in the bank so much.
It doesn't give huge profit like Bitcoin, but I think it's still useful for our financial plan. It's even important for emergency funds and as a financial cushion. There isn't really a better financial tool for those purposes than banks and fiat.

When it comes to financial planning, it's not just about profit. We need some stability too. So don't just look at the profit and think banks are useless.

Bitcoin, gold and stock for investment, banks and fiat for emergency funds. Every asset has its own role, and none of them are useless.

[WillyAp]

When it comes to financial planning, it's not just about profit. We need some stability too. So don't just look at the profit and think banks are useless.

Bitcoin, gold and stock for investment, banks and fiat for emergency funds. Every asset has its own role, and none of them are useless.

Many people posting about money lack precisely that.
You see people in social networks giving out investment tips and having cero experience.
So called billionaire friends who told them, all most likely imagined. Linkedin is full with them.

[pawanjain]

This has always been the case. There are financial investment options with different set of returns and risks and it depends on our risk taking capability which one to choose from.
Our ancestors would have chosen fixed deposits in bank accounts but we know it's not a viable option to grow our money in the current economy.
We have to rely on better yields like bonds and mutual funds to beat the inflation and to diversify further we have to invest in real estate and gold.

[Su-asa]

If we talk about investing in Pakistan even Rs 1lakh PKR could make a big difference .
Yesterday i attended a financial literacy session. The speaker showed us what Rs.100k PKR could have grown over the last 25 years if invested in different ways. At first he talked about keeping money in the bank. For many of us it may feel safe but inflation slowly reduces its value .

I'm not from Pakistan, and I don't stay there either, but no matter the region we fund ourselves today, I won't advise anyone to save money in the bank because inflation keeps getting worse everyday and Fiat currency keeps getting affected by it.

However, It's better to invest that money in Bitcoin instead of saving it in the bank. Those who prefer to save money in the bank don't have confidence in Bitcoin, but truth be told, they will regret it after a very long period of time wasted  (25 years as you said).

Not against diversifying but people should know how to do it before getting themselves involves in what they don't know.

Information is the main reason why a lot of people need to do their own research before starting any investment; there are a lot of people making investments they know nothing about. Just because someone told them about an investment doesn't mean they already know the important details about the investment.
However, whenever they fail to do their own research and rely solely on other people's information, they mostly get misled because there's a higher chance that most of that information received is not legit

[leonair]

If we talk about investing in Pakistan even Rs 1lakh PKR could make a big difference .
Yesterday i attended a financial literacy session. The speaker showed us what Rs.100k PKR could have grown over the last 25 years if invested in different ways. At first he talked about keeping money in the bank. For many of us it may feel safe but inflation slowly reduces its value .He gave examples that how Rs 100k PKR from 2001 could have value (or purchasing power) of only around 9 thousand PKR today.Then we looked at national savings. Rs 100k PKR could have grown 15 lakh PKR which is around 11.5% in 25 years, if we take the average rate every year. When he calculated real estate with 13% annual growth Rs 1 lakh PKR could have grown into 21.2 lakh PKR in 25 years. The Gold was more interesting . Its one tola was around 8k in 2001 Rs 100kPKR were equal to 12.5 tolas at that time. Today tola is around 465,000.It could be 58 lakh PKR today.
But the biggest surprise for me was mutual funds that had given a very high return in that period , including around 430% growth. So if we invested Rs 1lakh PKR and it grew 25%, it would almost become Rs 40 millions today . Offcourse these are the past records and cannot guaranteed the same progress in future but still it was huge. it was an interesting session and made me think what is my money doing while i m not using it?
If you had Rs 100,000 in 2001, where would you have invested in?

In 2001, technology was not very advanced and people were very simple and at that time people thought of banks as the most trusted and safe place to keep money. At that time, if you had this amount of money yourself, you would keep it in the bank. But in the present time, people worry a lot about inflation because as the inflation rate increases, the persuasive power of money is decreasing. So in this situation, it is the wisest thing to do to invest in Fiat money instead of holding it. Those who still hold Fiat money will never be financially prosperous, no matter which country they live in.

Now, when it comes to investing physically, the safest and most profitable investments are investing in gold and land, as well as buying house properties and investing in multiple businesses. And if someone wants to invest virtually, they can invest in the stock market, and they can also invest in crypto, especially Bitcoin. However, all these investments are quite risky. Only those who are not afraid of taking risks can do good, and those who keep their money in the bank due to fear of risk will continue to lose value. If you lose 10% a year by investing somewhere, it is a big worry for them, but still now maximum people are do not wants to keep an eye on the fact that the earning power of money decreases by 10% in 1 year by keeping money in the bank.

[Texac]

If we talk about investing in Pakistan even Rs 1lakh PKR could make a big difference .
Yesterday i attended a financial literacy session. The speaker showed us what Rs.100k PKR could have grown over the last 25 years if invested in different ways. At first he talked about keeping money in the bank. For many of us it may feel safe but inflation slowly reduces its value .

I'm not from Pakistan, and I don't stay there either, but no matter the region we fund ourselves today, I won't advise anyone to save money in the bank because inflation keeps getting worse everyday and Fiat currency keeps getting affected by it.

However, It's better to invest that money in Bitcoin instead of saving it in the bank. Those who prefer to save money in the bank don't have confidence in Bitcoin, but truth be told, they will regret it after a very long period of time wasted  (25 years as you said).

Yup, idea of keeping money in the bank does not really make much sense in the current economic climate anymore. Inflation is creeping up way too fast, so  keeping money in the bank is basically pointless since it cannot even preserve our purchasing power anymore.

But Bitcoin is not the only alternative. Gold, stock and real estate are also equally attractive option. Everyone should pick whatever fits their own risk appetite, it doesn't have to be Bitcoin specifically.

Also, do not forget to diversify your portfolio and never go allin on a single asset. The reality is that there's zero guarantee Bitcoin or stocks will still be around and thriving 25 years from now

[Nalain420]

This has always been the case. There are financial investment options with different set of returns and risks and it depends on our risk taking capability which one to choose from.
Our ancestors would have chosen fixed deposits in bank accounts but we know it's not a viable option to grow our money in the current economy.
We have to rely on better yields like bonds and mutual funds to beat the inflation and to diversify further we have to invest in real estate and gold.

Saving in the bank account is not enough because your money value is going down with time . If you have money you should not save in the bank rather you should invest in the property if you have large amount because your money will be safe in the property. I saw many people who were nothing in the past but now they are ultra rich of our area because their land price gone to sky and people purchased from them and now they have a land of millions of dollars and they made land commercial and shops are sold at high price and shops are out of rich and they are making big homes and markets . You should invest in the property first and should make long term plan and you can make calony .

[PVequalNRT]

Saving in the bank account is not enough because your money value is going down with time . If you have money you should not save in the bank rather you should invest in the property if you have large amount because your money will be safe in the property. I saw many people who were nothing in the past but now they are ultra rich of our area because their land price gone to sky and people purchased from them and now they have a land of millions of dollars and they made land commercial and shops are sold at high price and shops are out of rich and they are making big homes and markets . You should invest in the property first and should make long term plan and you can make calony .

Bank should be the least place where you will want to keep your money because they are not helping you and in the process you are losing the value of your deposit without knowing. If you put your money on a bank in my country and they gave you 6% interest after 1 year, you will lose 23% of the value of that money after the same year because inflation in my country is around that range.

It's better option to invest in bond with 18% with your bank, at least you that one is better than leaving your money with banks while they take your profit and give you small investment.

[Die_empty]

Saving in the bank account is not enough because your money value is going down with time . If you have money you should not save in the bank rather you should invest in the property if you have large amount because your money will be safe in the property. I saw many people who were nothing in the past but now they are ultra rich of our area because their land price gone to sky and people purchased from them and now they have a land of millions of dollars and they made land commercial and shops are sold at high price and shops are out of rich and they are making big homes and markets . You should invest in the property first and should make long term plan and you can make calony .

The real estate business is not also a guaranteed profit-making investment. Those who don't understand the business can make investment mistakes. You would have to identify houses or land that have the potential to grow in value. You can buy land in an area where the population is decreasing, and it would not increase in value. You would also have to consider some environmental factors. In my country, some properties are flood-prone. If you are not comfortable with this factor, you might be deceived into buying a flood-prone property.

However, I would have to accept your view that real estate has potential. Those who bought land in some rural areas in my country were able to make good profit when these areas began to attract development. Real Estate investors also have some advantage since they can use these properties as collateral to access credit facilities. These loans could be used to finance other viable businesses.

[alastantiger]

Many people posting about money lack precisely that. You see people in social networks giving out investment tips and having cero experience.
So called billionaire friends who told them, all most likely imagined. Linkedin is full with them.

Social media will always mislead you because those that are using them to show rich status are not and most of the things online are fake and not real or hired to look rich. Social media is all about lifestyle and people that know how to do that and convince people to believe that they are rich are the ones ruling the social media world.

People living fake life are going to regret hence it should not be what we should be doing but investing is what we should be doing and Bitcoin can always be a good investment for us regardless of how long we want to keep holding it, it can be for 25 years or none. It does not matter what you decide to invest into but what matters is if you can keep holding that investment untill it gives you enough profits for you not to work again in your life time.

[uneng]

I prefer real estate. Properties are always getting more valuable along the years, protecting your patrimony against inflation. And you don't have to own a property in a fancy or exclusive area. Even average and poor areas are having the prices of properties and allotments raised within time. If you regret not having bought BTC 10 years ago, you also regret not having bought a piece of land 25 years ago.

The only cons is that this kind of investment isn't available for every budgets sizes, meaning you have to own a considerable portion of money to invest. Nowadays even more. For an example, about 40,000$ to find something minimally acceptable right now on the market inside a city going from small to medium size.

[STT]

Surprisingly gold is not always that great an investment as it has no yield and can cost in physical security.   The property or real estate can at least yield a benefit of some kind.
  Gold is a kind of security not everyone needs to own personally, the problem is the government or banks who should are mostly lacking hence citizens have to take up the responsibility.

  The point is its closer to insurance then a performance product exactly, thats how I view it.   Plain commodities are not investment exactly, they are speculative positions held for future utility.