Investing Outside the Box 🍾

Investing Outside the Box

As investors contemplate how to slice their pie in 2020, lines have never been more blurred between investments and speculations. Is fine wine investing and Rolex collecting like throwing dollar bills onto a bonfire? Let’s settle this once and for all!

Most die-hard investors avoid getting their fingers burnt by following a simple rule of thumb: if it doesn’t produce its own cash flow, it’s not an investment! These wise words leave wine hoarders, gold bugs, and crypto crazies in the cold, favoring savers with monthly interest payments, and the buyers of bonds, buildings, and businesses. However, this is an old adage. What if it’s not timeless?

Given risks in the market today, some market players have carried the torch even further by insisting we know the size of those cash flow streams, their schedule, and their risks. If those aren’t obvious from the start, alarm bells start ringing. The problem with this is how severely it shrinks the investment universe. Microsoft and Disney remain in the picture, but stocks like Tesla and Uber don’t cut it, despite offering the most growth! Perhaps, we can learn something from art and wine dealers?

Vintage watch collections and the Salvator Mundi by Da Vinci, a $450 million splash of paint, command higher prices as they become scarcer. However, these are not investments. It’s easy to confuse watches for the business of watches, as at the end of the day, businesspeople remain the key ingredient to wring out “value” from those idle objects. We need people to unlock a good old fashioned corporate cash flow from them!

Ultimately then, no universal parameters apply. Different investors enjoy different fortune-telling talents, so some have the edge in semiconductor stocks while others rule the roost in retail. What’s an investment to you? How far outside the box are you willing to stray in the name of diversification?

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.