Investing in 2013 is tricky business, even for the pros who have their ears to the street 24/7. The stock market continues to climb, yet most experts are predicting a 10-15% correction at any time. Something to consider are alternative investments, which are gaining popularity around the world and have the potential to produce exciting returns. I’ve been involved in this world for a number of years and had some pretty good luck. As always, buyer beware: if it looks too good to be true, it probably is! I’ve taken a bath a few times in this arena early on, and it’s easy to get taken if you’re unfamiliar with the investment. Watch this short video I filmed last week while we were considering the purchase of a small overseas operation that looked very good on paper.
Author and Professional Speaker since 1997. Past Chairman of the National Speakers Association's Million Dollar Speakers Group. Author of 11 books with 1.4 million copies in print.
10 thoughts on “Critical Thinking on Alternative Investments”
A lot of people are getting serious about alternative investments. Anyway, I found this youtube video of Jim Rogers. According to his data, the savvy investor will be running towards the agriculture sector. A penny for your thoughts.
Steve,
Another great topic. i have been considering alternative investments for a few years, but have not gotten in many so far. it is funny you mentioned baseball cards and coins, because I have both. My grandmother gave me my grandfather’s coin collection in the early ’80’s, a banker by the way, after he passed away. Dana, are you referring to tax lien certificates? I attended a Trump seminar about these a few years ago, and it seemed interesting and fairly easy to accomplish but I never followed up on it or put any money into it.
Scott
Sorry, @Neil – All that $$$ you’ve spent on Absolut Mandarin is not what Steve means by an “alternative investment.”
Wiz…
Fascinating stuff, Steve. Definitely something on the considerations list!
Wiz…
I have found Tax Certificates to be an excellent, safe investement (guaranteed by the taxing authority in the respective State. like Arizona) with high yields 16 – 18% per year. For an investment that is basically guaranteed by the government it is hard to beat this. The only draw back is that it is not liquid, and isn’t paid back until the home owner brings his taxes current, or you will become the owner of the property and have to sell to recover your investment (Although if that happens you will receive the value of the property which may far exceed what you invested), Check it out – High Yield with Minimum Risk!!
Hi Steve,
Being here in Costa Rica for 12 years I have seen changes you would not believe. Based on our belief that the Central American Free Trade Agreement would be ratified we took a risk that paid off very well and our real estate development is one of the best in the country. What we thought was going to happen economically is surpassing our greatest expectations and just yesterday learned of awesome growth and changes happening here on the Caribbean side. You have targeted a niche market and a business that can be examined and is an already going concern that makes it a good bet if you have enough history and data. This side of the country has more opportunities than any country I have been in the last couple years. This is different then what you are doing–starting a business can be quite challenging but of course the payoff can be great. One advantage we have as Gringos in Costa Rica is our sense of business and entrepreneurial talents work very well in this business climate. Believe me that many folks are ready to do something different–when we grew up in the States the world was wanting to come to the US and who would have thought that people would be choosing to now leave? It is what it is and the time to start a business and provide a service to expats and tourists here in Costa
Rica has never been better. Any questions contact me at gillphelan@gvecr.com.
Gill Phelan
Ahh! Guitar Man! I know that you play guitar and have done so for many years, but I’ve got to tell you…
When you break a string, or hit the D instead of the A, or the cutaway still isn’t deep enough for you to hit the ‘Santana’ notes – YOU DON’T HAVE TO TAKE IT OUT ON THE GUITAR!!!
Now while I know that the amount of damage that you are inflicting on these otherwise innocent music apparatus and the cost of ensuing repair makes the purchase of your very own guitar repair shop to fix your frustrations seem good economic sense, I think the premise could lead to a decided lack of advancement in good guitar playing and etiquette.
Like, think of it this way… I have a very real fear that when, for example, you dent the Range Rover again you will probably make a bid to takeover the company just so that you can get your scraps, dings and dog-hair removed or fixed!
Methinks your ‘alternative investments’ have ‘alternative motives’!
Learn to drive Siebold! And Shred that Ax Guitar Man!! And look to these ‘Alternative Investments’ – that you quite correctly point-out as where the action is at the moment – to MAKE MONEY, instead of losing all their profit cleaning up your indiscretions!
Pete Townshend eventually learnt to play very, very well you know!
Steve, your talk of “alternative investments” needs to be differentiated from “alts” or “alternatives” in the stock market exchanges. You seem to be discussing buying a business or material assets which can be termed “alternative”, which have very different risks, fees, volatility, liquidity, and event markets than “alts” in the stock market exchange. That being said, in either case, one should leverage other professionals whom you trust, who can help you in the areas or knowledge in which one is deficient.
The only guarantees are that there are no guarantees…. TINSTAAFL “there is no such thing as a free lunch”.
There is no place for the small investor in the stock market. Investing in Mutual Funds takes control of your funds and gives ultimate control to others. Investing in the alternatives should be based on your ability to comprehend all facets of the business, knowledge and experience in that area of expertise to accomplish specific goals. If you do not have the prerequisites, go to Las Vegas stay on a good 5 dollar table and save yourself a lot of heartache. Then wait for a little good luck.
Good luck: Victory awaits him who has everything in order.
A lot of people are getting serious about alternative investments. Anyway, I found this youtube video of Jim Rogers. According to his data, the savvy investor will be running towards the agriculture sector. A penny for your thoughts.
http://www.youtube.com/watch?v=F1Ly5kPwG7U
Steve,
Another great topic. i have been considering alternative investments for a few years, but have not gotten in many so far. it is funny you mentioned baseball cards and coins, because I have both. My grandmother gave me my grandfather’s coin collection in the early ’80’s, a banker by the way, after he passed away. Dana, are you referring to tax lien certificates? I attended a Trump seminar about these a few years ago, and it seemed interesting and fairly easy to accomplish but I never followed up on it or put any money into it.
Scott
Sorry, @Neil – All that $$$ you’ve spent on Absolut Mandarin is not what Steve means by an “alternative investment.”
Wiz…
Fascinating stuff, Steve. Definitely something on the considerations list!
Wiz…
I have found Tax Certificates to be an excellent, safe investement (guaranteed by the taxing authority in the respective State. like Arizona) with high yields 16 – 18% per year. For an investment that is basically guaranteed by the government it is hard to beat this. The only draw back is that it is not liquid, and isn’t paid back until the home owner brings his taxes current, or you will become the owner of the property and have to sell to recover your investment (Although if that happens you will receive the value of the property which may far exceed what you invested), Check it out – High Yield with Minimum Risk!!
Hi Steve,
Being here in Costa Rica for 12 years I have seen changes you would not believe. Based on our belief that the Central American Free Trade Agreement would be ratified we took a risk that paid off very well and our real estate development is one of the best in the country. What we thought was going to happen economically is surpassing our greatest expectations and just yesterday learned of awesome growth and changes happening here on the Caribbean side. You have targeted a niche market and a business that can be examined and is an already going concern that makes it a good bet if you have enough history and data. This side of the country has more opportunities than any country I have been in the last couple years. This is different then what you are doing–starting a business can be quite challenging but of course the payoff can be great. One advantage we have as Gringos in Costa Rica is our sense of business and entrepreneurial talents work very well in this business climate. Believe me that many folks are ready to do something different–when we grew up in the States the world was wanting to come to the US and who would have thought that people would be choosing to now leave? It is what it is and the time to start a business and provide a service to expats and tourists here in Costa
Rica has never been better. Any questions contact me at gillphelan@gvecr.com.
Gill Phelan
Ahh! Guitar Man! I know that you play guitar and have done so for many years, but I’ve got to tell you…
When you break a string, or hit the D instead of the A, or the cutaway still isn’t deep enough for you to hit the ‘Santana’ notes – YOU DON’T HAVE TO TAKE IT OUT ON THE GUITAR!!!
Now while I know that the amount of damage that you are inflicting on these otherwise innocent music apparatus and the cost of ensuing repair makes the purchase of your very own guitar repair shop to fix your frustrations seem good economic sense, I think the premise could lead to a decided lack of advancement in good guitar playing and etiquette.
Like, think of it this way… I have a very real fear that when, for example, you dent the Range Rover again you will probably make a bid to takeover the company just so that you can get your scraps, dings and dog-hair removed or fixed!
Methinks your ‘alternative investments’ have ‘alternative motives’!
Learn to drive Siebold! And Shred that Ax Guitar Man!! And look to these ‘Alternative Investments’ – that you quite correctly point-out as where the action is at the moment – to MAKE MONEY, instead of losing all their profit cleaning up your indiscretions!
Pete Townshend eventually learnt to play very, very well you know!
Steve, your talk of “alternative investments” needs to be differentiated from “alts” or “alternatives” in the stock market exchanges. You seem to be discussing buying a business or material assets which can be termed “alternative”, which have very different risks, fees, volatility, liquidity, and event markets than “alts” in the stock market exchange. That being said, in either case, one should leverage other professionals whom you trust, who can help you in the areas or knowledge in which one is deficient.
The only guarantees are that there are no guarantees…. TINSTAAFL “there is no such thing as a free lunch”.
There is no place for the small investor in the stock market. Investing in Mutual Funds takes control of your funds and gives ultimate control to others. Investing in the alternatives should be based on your ability to comprehend all facets of the business, knowledge and experience in that area of expertise to accomplish specific goals. If you do not have the prerequisites, go to Las Vegas stay on a good 5 dollar table and save yourself a lot of heartache. Then wait for a little good luck.
Good luck: Victory awaits him who has everything in order.