Warren Buffet, one of the world’s most successful investors, cautions to never invest in something you don’t understand. And yet, thousands of investors choose to ignore this sage advice and continue to invest in complex investment instruments they simply do not understand.
The result is that these investors have no choice but to relinquish control of their hard-earned money to an unknown third party in the hope that they will deliver on their promises, while paying exorbitant fees that decimate investment returns.
Unfortunately, most investment instruments are quite complex and few investors have the time or inclination to understand how these investment vehicles really work.
If you do not understand how it works, and you do not have the time or inclination to learn how it works, don’t invest your hard-earned money into it, regardless of whether it is a family member, a trusted friend or a financial adviser who advises you to do so.
So how can investors practically follow Buffet’s advice? While the ideal would be for investors to educate themselves on how to invest their money, few ordinary hard-working people have the time or the inclination to learn about the intricacies of the vast range of investment choices: from shares, equities, bonds and commodities to unit trusts, electronic traded funds (ETFs), retirement annuities and more, all of which are shrouded in unintelligible terms and foreign-sounding jargon.
“Our top choice for a simple, straightforward investment alternative that any ordinary South African investor can understand and implement is a well-selected and properly managed portfolio of buy-to-let properties.”
Many investors are surprised to discover just how simple buy-to-let property investment is. He says it is merely a matter of understanding a common sense strategy and implementing a proven system: acquire a well-chosen property, rent the property out to a well-screened tenant, and watch your relatively small investment grow into a passive, inflation-linked income stream for life in the form of monthly rental, while also producing capital growth, providing you with multiple returns on a single, simple investment.
In addition, your hard-earned money is invested in brick and mortar, where you can see and touch it, and you can make investment decisions with your own best interests in mind.
There is no need for investors to risk their money in complex investment vehicles they do not understand. As Leonardo DaVinci taught, ‘Simplicity is the ultimate sophistication’.
“There are investment opportunities that are stunningly simple, ingenious in structure and practically fail-safe if investors follow a proven step-by-step system. And buy-to-let property investment ranks supreme among these investment options.”
You don’t need to understand investment jargon or the intricacies of global economics or market dynamics. You also don’t need qualifications or experience, you don’t need much time, training or effort, and you don’t need a lump sum to invest or even a monthly investment that is more than your current retirement savings.
Buy-to-let property investment is a simple, straightforward and proven way to ensure your money grows, without complex investment advice and fees that decimate your returns, he says. It puts the power in your hands to secure your financial future in a simplified way that belies the sophistication of this investment vehicle and its ability to generate truly impressive returns.