A large percentage of people now invest their money into funds or assets. However, they don’t all make the same decisions. Many follow the advice of influencers or simply go along with the crowd.
So how do you know if you stand out?
That’s the topic of this post. We look at some of the investment decisions you could make over the coming years that might set you apart from the average person.
Microcap Investing
Top of the list is microcap investing, something that only a handful of people ever explore. The idea here is to seek out under-the-radar companies worth less than $300 million and become an early investor before they explode in value.
Microcaps are exciting because they have so much more upside. All the biggest names, like Microsoft, Google, and Apple were all microcaps once upon a time.
Alternative Assets
Another investment choice that sets you apart from the average person is to explore alternative assets. Diversifying beyond crypto and real estates is rare.
For example, you might explore luxury superyachts for sale. These are popular among the ultrawealthy and often have a large number of buyers hankering after the same boat.
You could also look into the crowdfunding or startup platforms to see whether there are any promising ideas out there.
Contrarian Bets
Placing contrarian bets is another sign you’re willing to stake your beliefs against those of the markets. When you short the rally or buy in the deepest dips, you’re essentially going against the flow.
Yes, contrarian bets are risky. But if you’re right, then you’re doing better than 99% of investors. Most people simply follow what the pundits are saying without really thinking through what might happen next.
Data-Driven Analysis
Related to this last point, you might also be someone who feels comfortable with data-driven analysis. You could develop personal models or use financial metrics to decide what to do next.
Data-driven models are informed by information, not emotions or hype. They allow investors to make better overall decisions, even if it seems like your actions don’t make sense today.
Impact Investing
Allocating capital for impact investing is also a clear sign you view investing differently. You might be more concerned about ESG than the profits you make at the end of the process.
Some influencers, like Ross Baird, argue that impact investing actually promotes profitability. Studies often show that the more committed companies are to ESG, the more likely they are to be leaders in their industries.
Macro Strategies
Leveraging global macro strategies is another approach you can take. The idea here is to analyse trends and then make decisions about what to buy based on that.
For example, since 2022, stocks have been great to own because of increasing liquidity in the system from governments. However, if that was to stop, then it might be better to hold cash or buy fixed assets people need during periods of hardship. This ability to reposition can be invaluable.
So there you have it: some non-standard investment choices that set you apart from the average person.