FAQ
Which asset class do most people invest in?
Short Answer
Paper assets.
Explanation
Paper assets are the most liquid, which means they are easy to get into
and get out of. Getting into paper assets requires the least financial
education, zero sales skills, and zero management skills. All you have
to do is go online or call a broker and say, “I want to buy 100 shares of
this or sell 100 shares of that.” You can train a monkey to buy and sell
paper assets.
FAQ
Why don’t you invest more in paper assets?
Short Answer
Not enough control.
Explanation
As an entrepreneur, I want control of the income, expense, asset, and
liability columns of the financial statement.
If I invest in, let’s say, Microsoft, Bill Gates will not take my call. He
does not care if I think his expenses are too high or too low. I care.
When I invest in oil, I can call the president and he will take my call.
When I invest in real estate, I can call Ken McElroy or my manager on
duty. When I run my business, I can call anyone in the offices around
the world and discuss the business. That is what I mean by control.
Asset Class: Paper Assets
Kim and I rarely invest in paper assets because paper assets
offer the least control. When you look at stocks, bonds, or mutual
funds, the investor has zero control over income, expenses, assets,
and liabilities.
Asset Class: Commodities
Buying gold and silver coins takes the least financial education, yet
you still need to know something about the asset class. Gold and silver
do go up and down in price. Also, there are many con artists in the
gold and silver business, especially today with prices climbing.
Which Asset Class Is Best for You?
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