FINANCE WHAT WAS THE BEST INVESTMENT OVER THE LAST TEN YEARS? People often ask what’s the best place to invest just now. There’s never a correct answer to this unless we know a person’s time horizon or attitude to risk. If someone was a balanced investor and had ten years to invest there are several options, but none are correct all the way through. Let me explain to you why. Some UK investment funds have gone up by over 30% in the last year, but they fell by the same amount the year before so it largely depends when you went in and when you came out. If you came out at the wrong time because the markets spooked you then you would have lost money. Some clients like the thought of Emerging Markets or Gold or Crypto Currency as their Xanadu. Sadly, this will invariably fail because the trick is to spread your investments and diversify. Whilst either of the latter could go up by 100% over one year and make your pulse race, equally they could fall by 50% the next year and make you as sick as that proverbial parrot! Some of the better Global investment funds have gone up by over 500% in the last ten years and by allowing the fund manager to spread their purchases between the likes of Amazon, Apple, Tesla or Netflix you’re letting them do the hard work for you. It’s impossible for an amateur investor to beat the star rated managers as they have a raft of staff to carry out all the necessary research and you don’t. Some people opt for esoteric investments as they like being in control. Whisky might have been a good investment over the
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last few years and so would classic cars or even personalised number plates and now even antique clothes are in fashion. You could always drown your sorrows sitting in your Frog Eyed Sprite wearing your Grayson Perry frock if the markets collapse all around you! If you don’t understand an investment just don’t buy it. Charlotte Church was allegedly offered Bitcoin to pay for one of her gigs some years back and she opted for the cash instead, oops! That might be worth a million now, but she was probably wise to take the money as hindsight makes monkeys of us all. Generally speaking, to make money you need to hold your nerve or just don’t read your investment statements and let your advisor decide your investment planning, that’s what we’re there for. PHILIP VAUGHAN Director at Abacus Assurance Financial Services Ltd Porthcawl 01656 772222
Deadline date for the November issue is: Friday 15th October
