A Personal Anecdote Part 1: Why our CEO invested $1m at market highs
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Verify your email address by clicking on the link we sent to {{user.Email}}
- You now have free access, we look forward to helping you on your financial journey.
But for the last few years that is exactly what I have been doing.
I was finally forced to face each of my pet shortcomings when our long-term tenant bought their own place and decided to move out. I tried to outsource the problem to the real estate agent, but he made it worse. “Have you thought about selling?”, he asked.
That got us thinking. He told me the market was hot, there was no better time to sell and that I would get top dollar. Which of course he would. We were tempted, but that meant we would have to face two even harder questions: Do we really sell and if we do, what do we do with the money?
After discussing it, we instructed the agent to do an off-market sale. If the market was so hot, why advertise? It also meant we would only pay his commission if he sold our place. We also asked the tenant if she would be amenable to some open house viewings during her final weeks. She agreed, which was fortunate, especially as she had really nice furniture.
In no time at all, we had a good offer.
Our final decision was one the analysts at Intelligent Investor use to help them decide whether to sell a stock: imagine you don’t own it but had spare cash and no other investments. Is this the stock you would buy? In the case of our investment property, the answer was ‘no’. We decided to sell.
Then we needed to decide what to do with the money. We sat down and went through our options. With diversification in mind and a long investment time frame, we didn’t want to be on the sidelines in cash.
To us, it didn’t matter that the All Ords was breaking new highs and the property market had moved even higher. We knew that trying to time the market rarely works and we were investing for the next 20 years. We were going to put our money to work somewhere. We just didn’t know where.
These two articles helped us decide, so I recommend reading these if you have the time.
https://www.investsmart.com.au/investment-news/investor-psychology-series-chapter-4-the-human-psyche-and-diversification/149186
Here are the links to the rest of the series
https://www.investsmart.com.au/investment-news/a-personal-anecdote-part-2-how-did-i-invest-keeping-it-simple/149966
https://www.investsmart.com.au/investment-news/a-personal-anecdote-part-3-where-my-wife-and-i-invest-1m-and-why/149973
https://www.investsmart.com.au/investment-news/why-our-ceo-is-investing-1m-at-the-top-of-the-market/149967
https://www.investsmart.com.au/investment-news/qanda-from-ceo-invests-1m-series/150003
Call 1300 880 160
Start a chat
Schedule a call
