MY DUMBEST INVESTMENT
Sunday 21 February 1999
Years ago, I did three months of back-breaking work to help pay our crippling mortgage. On the final day, looking through the FT-SE index a company name - Poseidon - jumped out at me. The name stuck and wouldn't go away. The crucial question was: invest in our mortgage or buy the shares? The mortgage won. A few weeks later, Poseidon shares started to rocket and quickly went through the roof. I could have bought two houses with the proceeds of the shares.
The Fool responds: Perhaps this wasn't such a dim investment decision, after all. Investing in shares should be a long-term undertaking. There are big gains to be made in short-term speculation, but more often there are big losses. The last thing we should be doing is risking our homes on the back of a gamble.
Maybe another lesson here is not to buy "too much" house simply as an investment. In pure investment terms, property has proved a decent investment over time, but the stock market is better. And when interest rates go up (inconceivable as that seems now), an over-large mortgage rapidly becomes a millstone.
- 1 Which country would be hardest to invade?
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 Floyd Mayweather vs Manny Pacquiao live: Mayweather puts on defensive masterclass to win by unanimous decision
- 4 Floyd Mayweather's mouthguard costs $25,000 - enough to fly to Las Vegas and back 18 times
- 5 Royal baby girl born: Duchess of Cambridge's second child will be a princess thanks to Queen
Which country would be hardest to invade?
Morgan Freeman on the riot-focused coverage of the Baltimore protests: 'F**k the media'
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
The man who filmed the Freddie Gray video has been arrested at gunpoint
Nepal earthquake: Many survivors receiving no help despite relief effort
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
Indonesia executions live: 'Hysterical' families heard prisoners being shot dead by firing squad
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
EU exit would hit UK economy much harder than neighbouring countries, study finds
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...