It’s May and the sun is out, at least where I am right now, and my guess is plenty of people in the Northern Hemisphere are getting ready for summer: thinking about and planning holidays, considering where to stay and what to stay in, sizing up everything from the cost of and size of the hotel room to the quality of the service they’ll get—usually before they’ve even pulled out the credit card or found out about availability.
I’m sure you know what I’m talking about: you scour the web and pore over sites for days on end, looking at high-res pics of gorgeous tropical beaches, dreaming about sizzling days and sultry nights, chirping cicadas, sweet tropical smells and long luxuriant evenings where time seems to stand still.
But you don’t book anything.
The mind that binds
There are plenty of psychological reasons we hesitate to do things we think we should, or want to do. Top of the list are fear, overanalysis, and doubt. But I’d like to put it out there in a slightly different way – many people fail to make a decision because they’re looking for something intangible and elusive. I’m talking about perfection.
They try to predict the unpredictable, and end up suffering with what’s commonly known as paralysis from analysis.
Their minds are full of what if’s? They do more research. Then more. They want to control each and every facet of their experience, before they’ve even had it!
The problem with perfection
As far as seeking perfection is concerned, we’re always going to be disappointed. Perfection is the death of progress, the thing that makes you stop in your tracks, your mind full of a worry and doubt.
I can’t tell you the number of ‘investors’ I’ve met who are in pursuit of perfection. These are the type of guys who want to buy at the lowest point in the market and sell at the highest.
Don’t we all?
But those guys have unrealistic expectations and never buy, or sell, because they always think the bottom is a few points lower and the top a few points higher. They always think there’s more to be had. That sort of ‘perfect’ strategy is the surest route to ending up with a portfolio with little in it.
These sorts of investors aren’t investors at all. They’re dreamers focussed on losses, never wanting to make a move unless they can be 100% right. When I tell them the best investors in the world, the the creme de la creme of the investment crop, people like George Soros and Richard Branson, are happy to be right just 30% of the time, their eyebrows raise and their mouths fall open. They fail to comprehend that being right less than 50% of the time can still lead to stratospheric wealth.
Winners don’t just dare to dream, they do!
To ‘winning’ investors, losses are no more than a necessary cost of doing business. They know their strategy has an edge and will give them the returns they want over time. They aren’t looking for quick fixes. As to their thoughts on perfection? To them, it doesn’t exist. It never will. Savvy investors are hooked on reality and are content to win by increments.
Certainty is the name of the game
What the best investors look for isn’t perfection at all, but certainty, or the nearest approximation of it. They want to be as certain as they can when they strike deals, but they know there will always be variables beyond their control. So they operate in the world of best probabilities. And within their portfolios, what you will almost always find is plenty of property. Why? Because…
Property is as certain as it gets
The physical asset of bricks and mortar is one of the most solid holdings any investor can possess. Property is a physical footprint in the world, and if you own or co-own the deeds, or have a significant amount of capital in property, you have something that will stand the test of time.
To put it in the words of Mark Twain: ‘buy land, they aren’t making any more of it.’ Sure, prices will rise and fall, but over the long term, the rises in property have always outpaced the dips. Ask yourself this: when was the last time you could easily get your hands on a two-bedder in the Southeast of England for £3k? The sixties. That’s when.
So if you’re looking for certainty, property is king. Of course, you could plough capital into Gold or Bitcoin, and there’s nothing wrong with that, but there’s no yield in holding onto gold, only capital gains if you time things right, and Bitcoin moves like a bucking Bronco on steroids, meaning you need to have some mighty big kahunas to hold tight and stomach an 80% correction, something that happened fairly recently. Putting things into perspective, you might get a correction in the property market, but I’ve yet to see anything that outlandish.
It certainly makes sense to have a diversified portfolio, but for me, over the last quarter of a century, I can safely say that the only thing that has reliably given me a strong and steady return is property.
With hotels, my favourite thing, as you know, markets can and do change, but you always have the underlying asset. And if the hotels in which you invest are in prime locations and are run well, you have plenty of added revenue streams to give you that all important security.
From my point of view, hotels are as close as you can get to the holy grail of true investment certainty. And I can honestly say that, since I started striking property deals 25 years ago, all of the investors that have joined me have, without fail, realised the returns they were promised.
With a guaranteed yield of up to 50% over five years, hotels provide security in the form of tangible assets, and certainty in the form of multiple revenue streams. And while nothing is perfect, that’s the sort of investment that, in my humble opinion, gets as close to perfection as possible. I can settle for that!
If you’d like to find out more about investing in hotels and enjoying multiple revenue streams, and guaranteed returns of up to 50% over five years, get in touch with Shepherd Cox today.