What is alternative investment?
Conclusion: Investing in assets other than stocks and bonds
One word explanation
Alternative investment = investment targets other than traditional assets
Detailed explanation
Because prices move due to factors different from those in the stock market, Contributes to stabilizing the entire portfolio.
Main features
- Price movements tend to be independent
- Mainly physical assets
- low liquidity
Representative ①: Art investment
Conclusion: Price is determined by supply, demand and valuation
One word explanation
Art investment = investment aiming to increase the value of the work
price factor
- Writer's rating
- rarity
- market trends
Benefits
- resistant to inflation
- Difficult to correlate with stocks
Disadvantages
- It takes time to sell
- There is a risk of authenticity
Representative ②: Wine investment
Conclusion: The aim is to increase the value through aging
One word explanation
Wine investment = Aiming to increase the price of high-quality wine
price factor
- Production volume (vintage)
- preservation state
- brand power
Benefits
- Potential for value to increase over time
- Supply decrease due to consumption
Disadvantages
- Storage cost required
- fake risk
Representative ③: Luxury watch investment
Conclusion: Popular models have assets
One word explanation
Watch investment = Aiming to increase the price of rare models
price factor
- Brand (e.g. limited edition model)
- supply restrictions
- Used market demand
Benefits
- Easy to carry
- Balancing practicality and asset value
Disadvantages
- Market prices fluctuate sharply
- Counterfeit/altered risk
Biggest point to keep in mind: Liquidity risk
Conclusion: You may not be able to sell when you want to sell
One word explanation
Liquidity = Can you buy and sell quickly?
Problem
- no buyer found
- Selling price drops significantly
Comparison with stocks
| assets | Selling speed | price transparency |
|---|---|---|
| stocks | expensive | expensive |
| Alternative | low | low |
How to incorporate it into your portfolio
Conclusion: Be a supporting role, not a main character
Basic rules
- Keep it to 5-15% of the total
- done with surplus funds
- hold on a long-term basis
example
- Stock: 60%
- Bonds: 25%
- Alternate: 10%
- Cash: 5%
How to use it in practice
Conclusion: Have fun and diversify
points
- Limit yourself to areas where you can understand the value
- Focus on real value as well as market price
- Check the sales route in advance
common mistakes
- Make decisions based on hobbies alone
- neglect liquidity
- Too large proportion of total assets
Summary
- Alternative investments have diversification effects
- However, liquidity risk is large
- Use it as part of your portfolio
action steps
- ① Set the investment ratio within 10%
- ② Select a reliable market and storage method
- ③ Decide the sales strategy in advance