Investment Race
Two investors began an investment race.
One made lots of money with a high paying job and tons of investible surplus while the other made average money little of which found it’s way into mutual funds.
The lots of money guy’s money found it’s way into real estate ( a couple of beautiful flats with huge expected notional value )
The average money guy’s money grew at a very average rate in mutual funds both in debt and equity with a little more emphasis on debt.
Time passed by and after several years, the average man made portfolio returns of 9% and all his money was available to him just a redemption away.
The lots of money guy on the other hand had lots of hope of notional profit locked up in his beautiful flats with neither rent bearing tenants nor profit bearing buyers.
And of course the money was not available to him as buyers had complexly dried out.
The race was interestingly then won by the average money guy.
This is a real story being enacted in the lives of thousands of Indians who are seeing before their eyes their awesome looking flats in even more awesome looking towers come crashing down in value.
The simple investor often thrives in safety, liquidity, returns and above all experience while the rich in his quest to prove his smartness gets trapped in his own game.
