Or security, in Spanish.
After a couple of sleeps in North Yorkshire my family and I are off again, this time to Menorca for a week of hopefully relaxing (if my son’s new-found snoring abates), and my attempt to rediscover what used to be a decent level of Spanish.
Seven months in South America meant that by early 2010 I could converse with the locals pretty well, which helped in Argentina where they properly hate the English. A lack of practice since then means I’m back to being just past beginner level.
Anyway, back to security.
For an investment to meet my strict criteria for toe dipping it needs to have a few key components, namely:
1. Be asset backed (preferably with a first charge if it’s property related).
2. Not give a monkeys about Brexit/Trump/Corbyn etc.
3. Have clearly defined exits (preferably multiple ones).
That’s pretty much it as a starting point (noting that it doesn’t have to meet all three criteria, just at least two). Obviously I then conduct more thorough due diligence.
The topic of the September guide is probably a rare occasion where all three boxes are ticked, but you also need to be open-minded.
There’s property involved, it really doesn’t care about Brexit, and the exit strategy is clearly defined – although you would probably never ever want to sell and would instead pass this down through future generations.
The security is solid, and the long-term potential is excellent. Which is something that cannot be said for holding a portfolio of shares right now.
Because with that option there’s no security, you’re an equity investor.
The long-term potential is anyone’s guess (the stock market doesn’t always go up forever, ask the Japanese if you want to check).
Yes you might earn dividends, but they could be cancelled at any time and if the company doesn’t make a profit then they can’t pay them.
Which is why it’s never interested me as an investment area.
I sleep easier knowing that there’s an asset that can be sold to return my capital, even if that process might take a while.
Or I sleep easier knowing that the end of October will come and go and the following day will be no different for me and my family (for those of us living in the UK, or indeed anywhere in the EU).
This latest guide would put you in that sleeping easier category as well, and it’s open to investors from all corners of the world.
Subscribers will receive it, otherwise you need to wait to see if I ever sell back issues as a one-off.
Details are here:
All the best,
Copyrighted and published by FOAR Ltd