Which is Better … Shares or Property?

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Shares (stocks) or property … which is better?

That’s been a loaded question for as long as there’s been shares and property.  So, we’re talking … a long time!

Now, that we’ve got the question out in the open, let’s look at it.  Let’s analyze it, let’s see if we can do something with it.  Make some sense of it.

First, I would suggest that it’s difficult to get a proper answer from most “experts” because they’re biased.  They either prefer shares or property.  And, the one they prefer is the way the argument goes.  If they prefer shares, somehow shares is the better investment.  If they prefer property, then magically property becomes the way to go.

So, here-in lies the quandary.  What to believe?  What to make of all the arguments?

Shares or property?  Basketball or Golf?

Well, I’d like to state upfront, I prefer property.  By a mile.

But, I’ll also state upfront, that I prefer basketball over golf.  Does that mean basketball is a better sport than golf?

That would be a tough argument to make.  For the simple reason, it’s just my opinion.

I could talk on and on about the critical points that make basketball a – far and away – better sport than golf.  But when I was done, my audience – all golfers – is still not convinced.  They still prefer golf.

And, isn’t this somewhat like the shares vs property arguments?  Isn’t it just a matter of what you prefer?

Some would argue … emphatically, “NO!”

I can hear the arguments now.

“Shares are better because …. ”

“Oh yeah!   Well, with property you can …  Can’t do that with shares!”

And on and on we go.

It really all comes of as a bit childish to me.

I would sum it up by saying, “Who cares?’

Who cares if you like golf better than basketball?

Who cares if you feel shares are better than property?  Or, the other way around.

It  seems to me the only ones “who care” are the  ones selling you either property or shares.

Get it?  Do you see the connection?  Do you see the link?

If you’re talking to someone who sells shares, are they going to be excited about property?

If you’re talking to someone selling property, are they going to mention shares?

Pretty basic stuff.

Objective View?

Now, let me see if I can take an objective view on this topic.  Keeping in mind, I prefer property over shares.  (Just like I prefer basketball over golf … but that doesn’t make golf any less of a sport – does it?  Just ask any golfer!)

We’re after benefits, results, profits

Let’s start by looking at the reasons for investing in properties and shares.  After all, isn’t it the benefits people are after?  Isn’t it what property and/or shares can do for you that’s the driver?

I invest in property to make a profit.  To make money over and above expenses.  To create wealth.

I also invest in shares and for basically the same reasons.

And I would conjecture, most people do the same.

Have you ever met anyone who says, “I invest in shares because it feels good.  I don’t care whether or not I make money.  It doesn’t matter to me.  I just like to invest in shares.  It’s what I do.  Last month I lost 80 grand and I just don’t care!”

I don’t think so.  I feel pretty comfortable asserting that most people are in it for a profit motive.

Wealth Vehicles

So, from an objective point of view, it appears shares and property are just vehicles;  wealth vehicles.

Now the only question is, which vehicle is better for getting you to where you want to go financially?

How to  answer this one?  This is where the big debate begins.  The “my Daddy’s bigger than your Daddy arguments start to come out.”  And, it all gets a bit silly.

So, how do we keep it from getting silly.  How do we strip out the biases?

What if we just look at what each vehicle can do?  Kind of like comparing two automobiles.  Just look at where you want to go, then decide which vehicle is  better for your journey.

How does that sound?

Let’s start with a series of questions as follows:

  1. Can you make a profit?
  2. Which is more profitable?
  3. Which one is faster?
  4. Which one gives more options?
  5. Which one is easier?

Now, time for some answers.

Can you make a profit?

Absolutely.  That goes for both property and shares.

How do I know?

Well, in property, I know first hand because, I’ve done it.

With shares, I have to resort to second hand information.  You see, my experience with shares hasn’t been profitable.  But, I’ve read about Warren Buffet and his success with shares.  There’s profit; lot’s of profit.

Bottom line; you can make a profit in both shares and property.

Which is more profitable?

This is really a pretty silly question.  I mean, come on, some people make a lot of money in property, some don’t.  Some people make a lot of money in shares, some don’t.  Can you find people in shares who make more money than people in property?  Sure.  So, what?  What does that prove?

Can you find people in property who make more money than people in shares?

And, on and on we go.

I would suggest that the profit associated with each vehicle (property or shares) is directly related to the skill of the person driving the vehilce (the investor)!  Skillful investor leads to “mucho” profit.  Unskilled investor, leads to disaster.

End of story.

Which one is faster?

Another silly question.  That’s like saying which sport can you become a champion in faster, basketball or golf?  Both require lots of time and effort on the part of the player.  And, there’s no guarantee of ultimate success.  There in lies the profit.  If success was guaranteed, then the profit is all squeezed out.  You need some element of uncertainty to leave room for profit.

To ask a question about speed of success  is to suggest a greed motive.  And greed is a wealth killer.  How do I  know?

I’ve been there.  I’ve grabbed at the seemingly quick  deal.  I got sqashed.

Folks, there are no shortcuts.  And, shortcuts are no fun anyway.  Something for nothing is a losers game.  Who wants to play a losers game?  Not me.

Here’s something to ponder … who cares which one is faster?  Will either one get you to where you’re going?  If the answer is “yes” (and it is) then why not just pick the one you enjoy more?  Or, here’s a twist … pick both!

But, you cannot cheat.  You can try, but it won’t work.  You must become a good player.  There’s no way around it.  Sorry to disappoint.

What happens when you try to cheat?

You get run over … financially.

You’ve heard the stories.  “I gave him my money.  I trusted him.  He said I’d become rich if I just listened to him … blah blah blah.”

It’s called trying to find a shortcut – cheating – and it doesn’t work.  You need to become a player.

How long it takes is really up to you?

Which one gives you more options?

More silliness.  Both give “oodles” of options.  It’s your ability to play that determines the result.  That simple.

That’s like saying which sport gives you more options, basketball or golf?  Ridiculous.  Each sport has it’s own set of options and the spoils always go to the best players.

If you want to “win” at property, become a good player at the property game.

If you want to “win” at shares, become a good player at the shares game.

Can you “hire” someone to be a good golfer for you?  (The answer is no!)

What makes you think you can hire someone to be a good shares person for you?  Or, hire someone to make you millions in property?

You can’t.  If you try, you’ll just be eaten alive.  Fresh food for the big corporate financial sharks.  They’ll see you coming.  They’ll smell blood.  And, then they’ll start feeding.

Which one is easier?

I’ve left the silliest question for last.

You’ve got to be kidding here?

If you’re looking for easy then you have no real interest in success.  Because success is not easy.  And, why should it be?

That’s like someone asking, “Which is easier, basketball or golf?”

Well, I would have to conjecture that after swinging a golf club for 20 years, on average 200 times  a day, then maybe you would say golf is easier.

But, instead, if you played basketball all those years, you might say basketball.

It only becomes easy after years of doing it.  You only become great after years of hard work.

And, no surprise, that goes for property and shares.

Neither one is inherently easy.  It requires, effort, work and determination.  Sustained. Consistent.  Over long periods of time.

Property or Shares?  Basketball or Golf?

Take your pick.  Who cares?  It’s all up to you.  Do you prefer golf over basketball?  Great.  But, you’ll have to put in the work to become successful at it.

Is that a surprise to anyone?

Let’s say you pick golf, does that mean that golf is a better sport than basketball?

Hardly.  And, why should it?  Almost makes no sense to ask the question.

Rather silly.

And, the same goes with property and shares.

Who cares which one you or I like better?

But, if you want to be successful in either, then you better roll up your sleeves and get to work.  Get good.  Become a player.

If you don’t want to become a player, that’s fine too.

But, don’t be upset when you’re game is off.  Don’t throw your golf club when you make a bad shot.  Come on, it’s the first time in 10 years since you’ve picked up a club.  Do you really have cause to be upset?  You stink at golf.  So what?  That’s a choice you made by not playing for all these years.  That’s ok.  Nothing to be ashamed of.

Same with shares and property.  If  you’ve never played or haven’t played for years, then you’re going to be rusty.  You’re going to make mistakes.  That’s ok.  It’s part of the process.  The process of getting good at the game.  Remember, there are no shortcuts.  You must get on the playing field and risk getting bruised up.  You must risk getting hit.  But, just like on the football field, you get back up and keep running.  You keep going for the goal line.  And, when you cross the line, you celebrate.

And, just like the sportsman, you must train.  You must study.  You must become a student of the sport.  You must learn the rules.  You must put in sustained effort.

So, is it property or shares?  Both are excellent wealth building vehicles.  Pick one or pick both.  But, you must become a player.

Then go out an win some tournaments!  Make some profits.

And, most importantly … this is critical to your success …

ENJOY THE GAME!

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