10 suggestions for investing in a recession
By Petros Kitsikoudis – Real Estate Consultant INVESTA Real Estate
I write this article on the occasion of the discussions, in which I either actively participate with my fellow human beings, or I become a witness by listening with the same attention as always, most of them refer to the following topics:
Everything has become more expensive / war and what will I do with my money?
There is an increasingly intense upward trend in prices for goods, services, and even basic necessities. The worry and anxiety about how we will be called to experience the next day, the next month or even year, make their presence felt in our daily life, and without even thinking about the world events, which of course have a direct or indirect effect .
So what is the best investment today?
With the above in mind, I feel it is the best time to share my thoughts on investing with you today.
What I want you to remember is that these suggestions work / work for me and my way of thinking, whether in good times or bad and certainly for some others it may work different things.
So let's see what these suggestions are:
1. People
So why people? Why not a stock? Why not a mutual fund? Why are humans number one on the list?
I like to follow the path of a person who is constantly building a strong reputation, who gets results, who has a new idea and I will declare/share that such a person I would like to support. For example, who wouldn't want to invest in an Elon Musk idea? You will tell me, there is no Elon in Larissa and I know it, but I think you get the point.
2. Lasting
What does "invest in lasting" mean? Anything that I know I need to buy every month, every week, every day, such as services or products are called durables. We have to invest in them, because they are part of our lives - you usually don't buy them once and for all. Lasting can mean many different things. No one goes to a chiropractor once and becomes a partridge, we don't buy a toothbrush in our life, we don't go to the dentist once in our life, we don't pay for NETFLIX once for the rest of our lives. Such investments, if operated smartly, can bring you monthly income.
3. Unprecedented
What is unprecedented? It's art, it's trading cards or games, it's Bitcoin, it's the fad of our time, NFTs and these usually come out of nowhere one day in our life, and become a fad/trend. In these investments, of course, because they are high risk, and in addition to daily information, specialized knowledge is often required, it is recommended that the investment does not exceed 2% of your portfolio. On the other hand, high risk has high rewards if successful!
4. Problem solving
You're at work all day, you come home, you put the kids to bed, you've just had a bath, the last thing you want is to go out to get food or go to the supermarket. One day, as if from a god machine, efood came to untie your hands. After years, efood managed to be one of the largest companies in Greece, with significant expansion and growth. It is important, therefore, to be able to recognize which are these companies, which will solve important problems or satisfy wants and needs, and to invest in them at their inception.
5. Prevention
It is a concept that in many areas of life, professional and non-professional, has been used many times. Prevention works as a hedge in prospective investments, so it is good to pay the necessary attention to preventive investments - it is essentially a hedge against the risk, which accompanies a prospective investment.
6. Patent
Many times people who create new products and excel in the creative part of a business are not good managers or entrepreneurs. However, in a healthy and profitable business, you must consider in such a case the creation of a team, which will support the technical-business part, as it will more easily attract new investors for the product. In addition, such creative individuals, who hold one patent, rarely have only one so they are likely to be "lost", so a support group is essential.
7. Product
Many people, as soon as they see a new, unique and good product, rush to buy it, however, the question you should ask yourself is not whether and how you will buy this product, but how you can invest in this product, which both yourself and others would use. In these cases you have to look for a way to invest in this product, not only because it is a good product, but because you see its evolution and the development of the company through it.
8. Expected
What do we mean by this concept? It refers to anything one can invest that will not necessarily have a high rate of return or skyrocket in a short period of time. It is an investment, which can be predicted, it gets the job done, it is a constant, which works with relative consistency in the world of investments. Examples of such investments could be an ETF, or an investment company (mutual fund).
9. Priceless
It essentially refers to the best possible experience that one can have (whether it's work, family, fun, holidays, travel - whatever one considers important and invaluable). It is those moments that you will remember forever, whether they concern you or your people, friends, relatives, partners, etc. You must invest in priceless moments, create memories, which will last for your whole life.
10. Property - Real Estate
Last and most important. In my experience, one of the rules of thumb is “when Real Estate takes a hit, it's mostly an ordinary property. Then, you have to move to other types of properties, which are accompanied by some criteria, which are objective and will always, over time, be necessary or have some surplus value. For example, a property on the sea front, a property which is close to schools (ideal for families) or in areas where everyone would like to live, or in the center if it is a commercial property - these types of properties will always be in demand.” Therefore, when you are interested in investing in Real Estate, there must be a clear strategy behind it.
