L E X | Investing, Trading, Property

Head of Futures Broker-Dealer. Trading | Investing | Golf. Exp’ Institutional IDB, Wealth Manager, Broker.

[L E X | Investing, Trading, Property @TraderWarner]

What does your setup look like?

Here's mine;

[L E X | Investing, Trading, Property @TraderWarner]

@BellaBaddie__ Insurance.

[L E X | Investing, Trading, Property @TraderWarner]

Not everyone has your struggles, emotional regulation. At 25, I had millions in the bank, 7 year relationship. Houses, businesses, my wife doesn’t work, and our parents are retured. It was the natural next step.
Whilst having children is extremely challenging it is as much rewarding!

[L E X | Investing, Trading, Property @TraderWarner]

@PropJoshD I’ll happily have a call with you and run the numbers to show you why the math maths.

[L E X | Investing, Trading, Property @TraderWarner]

@kharma_7 Orange Juice, Massage Gun & Rest are good compliments to recovery. I use all of the above inclusive of supplements

[L E X | Investing, Trading, Property @TraderWarner]

@TradersParadise Let’s rent it out one evening next week, and I’ll join you.

[L E X | Investing, Trading, Property @TraderWarner]

@ChrisXCrossX23 @divotdudesgolf 12.

Inside 25 Yards….. Im working on.

[L E X | Investing, Trading, Property @TraderWarner]

@incomepills @Fink_Money That being said, your portfolio is up, so may be you’re not clueless 😅

[L E X | Investing, Trading, Property @TraderWarner]

@incomepills @Fink_Money Your BIO states you are Clueless….. why would want to invest money without having a proven edge that gives you the opportunity to no longer be clueless?

[L E X | Investing, Trading, Property @TraderWarner]

@MacroCRG @elliotrades @LDNCryptoClub @ZFXtrading @Fink_Money More importantly those that know Macro, usually only do so to understand it, not trade it 😅

[L E X | Investing, Trading, Property @TraderWarner]

@jen_moxon A.

I already have B & C.

[L E X | Investing, Trading, Property @TraderWarner]

@micheal_ws18 For me it was very much worth it.

It’s not inly my gym, it’s a gym for my entire family. What that does to the family, the mindset, the brain and wellbeing of your children is unparalleled

[L E X | Investing, Trading, Property @TraderWarner]

2-3 months average, 6weeks for searches, drawn-out processes and bloated fee’s. It’s an out-dated system that really needs to change. I completed on a Sale of a property today, On Wednesday, my Solicitor ‘informed me’ the Buyers solicitors were not responding, yet moment laters I had a call from The EA Telling me the sellers solicitor was signed off and files completed, and that my solicitor was holding it up. Of course you know what happened next.

[L E X | Investing, Trading, Property @TraderWarner]

@Trader__E @Fink_Money Remember we were the OG Academy

[L E X | Investing, Trading, Property @TraderWarner]

@2147mill @Trader__E @Fink_Money Looking forward to seeing you on the inside

[L E X | Investing, Trading, Property @TraderWarner]

@Trader__E @Fink_Money We’ve killed it. To say the least.

[L E X | Investing, Trading, Property @TraderWarner]

Here - https://t.co/zokDwOdcJY

Good timing as this week we’ve seen huge moves in our stock portfolios, and today, I completed on another property, that had invested £50k + put in to it.

The annual returns from Invested capital in the stock-market when done properly is far greater. Better liquidity, less counter party risk, more edge

[L E X | Investing, Trading, Property @TraderWarner]

Investing in the Stock Market vs. Property

The musings of a business owner, trader, stock and property investor!

Which Investment Vehicle is right for you?

As a Professional Investor in the Stock market and Property, here is my unbiased view on the two different asset classes!

Stock market investing and property (real estate) investing are among the most popular long-term wealth creation strategies. Each has its own advantages, risks, and characteristics.

In this comparison, both will be compared against each other in terms of expert opinion—including Warren Buffett's viewpoint—and returns, longevity of assets, and liquidity.

Let’s dive in

Stock Market Investing

Advantages
- High Liquidity: You can sell or buy stocks in a matter of minutes during market hours, so it is easy to access your money quickly if you need to.

- Diversification: Investors can diversify risk across hundreds of companies, industries, and even countries.

- Lower Entry Barriers: You can begin investing with relatively small amounts of money.

- Passive Management Options: Index funds and ETFs allow for hands-off investing.

- Potential for High Returns: Historically, the overall stock market indices have outperformed most other asset classes over the long term.
- Leverage: subject to country and regulatory jurisdictions investors have the ability to Leverage single stock positions through their platforms, provided by Leverage Shares (we can talk about opportunity cost/risk vs decay in another piece)

Cons

- Volatility: Share prices tend to shift sharply over the short term, which could lead to significant losses if you do not have a structure and systematic risk-management plan in place.

- Emotional Investing: Fluctuations in the market can lead to impulsive decisions. There are many different behavioural traits to consider within Psychology, and it will play a key factor in many success/failures however, the two tangibles that I’ve discovered are Fear of Loss and Fear of Failure. Whilst I understand emotions and behavioural finance, let’s look at this objectively and sprinkle some logic! Capital erosion through Inflation and/or low interest rate environments decays not only our capital but our returns also and unfortunately it’s out of our control, not all are able to easily open a HYSA or even aware of what they are, they are by no means a sophisticated product however, we quite frankly are not educated within specific areas and often only come across such learnings through friends, family or professionals. Rather than keep your capital in a Savings account or Cash ISA, let’s educate ourselves, once we have a proven methodical and systematic edge that is easy to follow, the psychological imbalances that we feel, invading our mental space settle down.

- No Tangible Asset: Unlike property, shares are intangible and rely on company performance and market perception.

Property (Real Estate) Investing

Advantages

- Tangible Asset: Property is a physical asset, providing a sense of control and security.

- Leverage: Bridging Finance and/or Mortgages allow investors to control big assets with relatively little capital, amplifying returns if property values rise.

Income Stream: Rental properties can generate steady cash flow. In property, investors have moved on from your traditional Buy-to-let, with other higher-income yielding strategies such as: HMO’s, R2R’s, Serviced accommodation and Social housing.

Inflation Hedge: Property values and rents traditionally rise with inflation.

Potential Tax Benefits: Depreciation and mortgage interest may offer tax deductions, subject to jurisdiction.

Cons
Illiquidity: Selling property is a lengthy process, sometimes taking months and incurring heavy transaction costs.

High Upfront Costs: Buying property requires substantial initial investment.

Recurring Expenses: Maintenance, property taxes, insurance, and vacancies can reduce returns.

Management Headache: Being a Landlord requires time, effort, and sometimes legal troubles, which will extend to Management when running HMO, R2R or Serviced accommodation.

Returns: Stock Market vs Property

Stocks Market 8–10%, The S&P 500 rose 2,218% since 1988 (10%/yr); reinvested dividends boost returns
Property: 7–9%, UK property up >300% in 30 years (~5–6%/yr); leverage and rental income can increase returns

*Factoring in Inflation, returns will decrease.

Stocks have historically outperformed property in the U.S. over the past four decades, especially if dividends are reinvested. Investors now also have the advantage of using Leverage through Derivatives or other, including Leverage Shares.

Property returns are amplified by leverage and rental income but often offset by costs and illiquidity.

Company Lifetimes vs Property Lifetimes

Company Lifespans: The survival period of a company in the major stock indices has decreased over time, and most companies live only for a couple of decades. But stock market indices replace their members, and therefore investors are not exposed to the collapse risk of a single company.

Property Lifetimes: Physical property can last for centuries with care, but economic life depends on location, condition, and market demand. Properties can obsolete or lose value due to local economic changes.

Liquidity
Stocks: Highly liquid. Trades can be executed in a few minutes, allowing investors to act on market moves or gain access to funds in short order.

Property: Illiquid. It can take from weeks to months to sell, with high transaction costs and the risk of price negotiation delays.

Warren Buffett's Comments
Warren Buffett, the world's most successful investor, has always favoured stocks over real estate due to a variety of reasons:

Greater Potential: "The United States security market provides a lot more opportunity than does real estate," Buffett commented, referring to the S&P 500's far superior long-term track record compared to property indices.

Liquidity & Simplicity: Buffett refers to the ease and simplicity of buying and selling stocks, and how it contrasts with the intricacies and time involved in real estate transactions. He remarks that "you can do billions of dollars' worth of business, totally anonymous, and you can do it in five minutes at the New York Stock Exchange," whereas deals in property involve prolonged negotiations and multiple parties.

Complexity of Real Estate: Buffett refers to real estate transactions as "so much harder to transact," with deals occasionally taking forever and having to deal with lenders, tenants, and regulators. Stock transactions, by contrast, are finished as soon as they are executed.

Personal Preference: Although his deceased partner Charlie Munger preferred real estate, Buffett states that he and Munger would both choose stocks for the greater potential and ease.

Warren Buffett's preference for stocks resides in their greater potential, ease of transaction, and superior long-term performance. That being said, the appropriate choice is a function of your investment goals, risk tolerance, and investment style

Conclusion
Both the stock market and property can play valuable roles within a diversified portfolio. Stocks are more liquid, have lower costs of investment, and historically higher returns, especially with reinvestment of dividends. Property provides real assets, leverage, and stability of income but is costlier, illiquid, and needs management.
Transferring your knowledge on to your family and the next generation can be seemingly difficult for both however, there are ways to make it easier for your family and future generations!

I for example write everything down in detailed journals across Property and the Stock Market, sharing and providing them with what I believe to be everything in order for them to pick it up, use and pass it on as they wish.

Yours

Kevin Warner

[L E X | Investing, Trading, Property @TraderWarner]

@mcgrawventure People will say anything to get reach and clicks 🤣

[L E X | Investing, Trading, Property @TraderWarner]

@UKsterlings If you don’t know what to buy or where to look, then the first thing to do is Stop. The second is to join @Fink_Money - Understand the edge, then where to invest.

You will thank me later.