Everywhere you look online, you’ll find someone writing a guide designed to tell you that a specific market or asset class is the best way to diversify, so we’re going to do something different. Rather than trying to sell you on one particular option, we’re going to focus on safe, actionable steps that you can take for every potential investment opportunity.
By covering the fundamentals in this way, we’ll be equipping you with a framework that you can then use to assess the wealth of opportunities that are out there. Some will be of interest, some will raise red flags, and some you may be unsure of, but we will help you safely navigate the process.
Invest in tangible assets with proof of ownership
Moving away from stocks, shares, and bonds can mean opening the door to a world of tangible assets such as collectibles, precious metals, and raw materials. The key point here is that you need proof that you own the asset and written confirmation that you are actually investing in what is being advertised. Cask whisky is a good example of a tangible asset that has a mature market, and in this case, you would need a Delivery Order as proof of ownership. Having this vital piece of documentation will give you a much higher level of protection than not having it.
Never invest in an asset without the input of an expert
“Cask whisky is an exciting and unique asset, but as with everything, it’s important to go with your eyes fully open,” says Alphie Valentine, Co-founder of Hackstons, established whisky specialists who provide opportunities for both investment and consumption. The point here is that the right expert will be able to guide you through common practices, advise on past performance, and provide information on the latest investment opportunities. It may seem like you can do it all yourself online, but experts can talk you through the fine details you will never find online.
Invest in something you love, but always maintain perspective
Investing in an area that you are keen to learn more about and have a passion for is an underrated way to keep yourself safe. You will have to invest in a pragmatic way so that you’re not led by your emotions and enthusiasm, but having an interest in the underlying asset will inspire you to want to learn everything there is to know about it. While there is no such thing as a guaranteed return in any market, the more you know about the asset, the more capable you will be of making an informed decision.
Perform a simple sanity check before making an investment
Sanity checks sound like nothing more than common sense, but we want to highlight the need for them as they’re so easy to overlook. Before you take up a new position, think about how you heard about the opportunity, who told you about it, and whether or not it sounds too good to be true. Are you being sold something, or are you doing your own research and forming an opinion that you feel you can justify? By stepping back and looking at the whole picture, you will be able to protect yourself from scams and confidence tricks that are designed to get you swept up in the moment by offering something that sounds too good to ignore.
Only work with experts who are fully open and transparent
We’ve covered the importance of expertise, but we need to highlight the importance of how the expertise is delivered. For example, Hackstons recently won Newcomer of the Year and has a physical location you can go to when you want to talk to experts and start to learn about the industry. You can start putting faces to names, look at some of the products, and feel more comfortable with the people you are dealing with. By contrast, if all you have is an email address or a phone number, do you really feel as confident? Find someone who knows the industry and who will simplify it for you, and you will be able to better assess the nature of the opportunity.
Final thoughts
Now that we’ve guided you through the fundamentals, you’re ready to go out there and consider your options. Take your time, revisit this guide as often as you need to, and make sure that you never feel like you have to rush for fear of missing out. By moving at your own pace and performing all of the necessary due diligence, you’ll be able to make smart, informed decisions that are in your best interests.