"Force your adviser to diversify your assets and always have real estate in your portfolio"
Jan. 25, 2011
In our series of portraits of MyPrivatebanking Members we interviewed Gus_49, a real estate broker living in Paris, on his investment experiences and portfolio management. Gus_49 is in his late 40s and works in the management of a leading real estate agency.
MyPrivateBanking: How do you invest your money?
Gus_49: Given my background it is probably to be expected that real estate became my favourite asset class. Even more so as the last decade was really good for residential and commercial property – at least in Paris – and really bad for most other asset classes. Consequently, I had success in my job and also with some of my own deals. Of course, I diversify my assets and own stocks and bonds as well. I am quite optimistic for the future of the stock markets
MyPrivateBanking: Whom do you trust to manage your wealth?
Gus_49: I know what I am good in and where I’m not. Therefore, I focus on my real estate ventures and let my banker take care of my other investments. I had to change advisers during the crisis, because I really felt misled with their advice in 2007. My former adviser talked me in hedge funds that turned out to be a real disaster.
MyPrivateBanking: Which characteristics do you value in an adviser most?
Gus_49: Experience! Loads of experience! I think a good adviser should have gone through different stages of the markets, the good times as well as the bad times. So I am looking for a person with at least 15 years, better 20 or 25 years of investing experience. Only with this first hand knowledge of market history can he tell me when to get in and get out of the market. I had a learning curve in my real estate business and I am not willing to pay an adviser to get his learning curve while investing my money.
MyPrivateBanking: What is your most important advice to fellow investors?
Gus_49: Force yourself or your adviser to diversify your assets and always have real estate in your portfolio. Even more so in times of inflation, which in my opinion looms in the not-so-distant future.
MyPrivateBanking: Do you have any passion investments?
Gus_49: I have a passion for antique furniture, but I would not call it an investment in the traditional sense. My return is the enjoyment looking at it and I neither expect a lot of appreciation nor plan to sell it.
If you are interested in seeing Gus_49’s portfolio please check his full profile.