The modern investment portfolio: What alternative investments should you consider.
Investment portfolio’s are a great way to build wealth over a period of time. Diversification is key to a successful portfolio. Most portfolios contain IRA’s, 401k’s, CD’s, Preferred Stocks, Mutual Funds, and variations of these investment vehicles. What about other non-traditional investments. Let’s explore your options.
Website Domains
Domain names are now becoming the new real-estate. For $10.00 a year, sometimes less, anyone can own a piece of the internet. This is key to why it should be added to everyone’s investment portfolio. The barriers to entry are very low, and are very easy to obtain. So the real question is why is this considered an investment? Investments are supposed to make money right? Correct, and domain names can make you money. There are multiple ways domain names can make you money, but the simplest form is that you would buy a domain, then somebody comes along and wants to buy it from you for a profit. This has happened to many people, but you need to have the best domain names. People actually have strategies to how they find these and resell them for profits. Another way to make money is to use the domain. Write a blog, sell advertising space, ect. So if you ask me domains need to be a part of investment portfolios. As the future approaches and the internet grows even more, real-estate will be at a great price and the goodwill associated to well established domain names will be a premium. My prediction is that it will become part of our own portfolios, and even new forms of investments will emerge to help diversify our investments.
Crypto currency
Bitcoin has been all over the news as of late. Why? Because it is quickly changing the way we look at money. The two key reasons why; Block-chain and a finite amount available. Block-chain is a disruptor and a brilliant idea. Block-chain is a game changer and industries will soon be using it for more than just money. If that wasn’t enough reason to look into Bitcoin and other crypto currencies, scarcity comes into play as well. Whenever a finite amount of something exist supply and demand will rule. This is the case here as well. So, should you invest? Maybe. I would suggest you do a lot of self education before you do. Understanding the block chain ecosystem and its importance is paramount before investing any money.
E Commerce Businesses
E commerce is taking over. Amazon has proven that. But how do you invest in E commerce? The easiest way is to purchase an existing business. There are a handful of great websites and brokers that can guide you through the process. You can team up with a tech savvy friend and start your own as well. The bottom line is that it has never been easier to generate income from an E commerce business. Take some time, research, plan and talk to people who have experience in what you want to do.
Is there anything else to add to a modern portfolio? Do you think domains should be considered an investment? Is crypto currency here to stay or will it burn out? Will Amazon and Jeff Bezos become the next Andrew Carnegie? I would love to hear your thoughts.