#NRImoneyclinic #Cashflow #CapitalAppreciation

CASH FLOW OR CAPITAL APPRECIATION – Part 3

ADVANTAGES OF CASH FLOW INVESTMENTS

Cash Flow Is Genuine And Real
Speaks Of Strength Of A Business
Cannot Be Faked For Long
Returns Flow Immediately
You Can Design As Per Your Choice

DISADVANTAGES OF CASH FLOW INVESTMENTS

Cash Flow Could Be Small( stocks )
Cash Flow May Not Beat Inflation ( Unless Reinvested)
Cash Flow Cannot Be Guaranteed

DISADVANTAGES OF CAPITAL APPRECIATION

It is A Mirage – No Assurance
Needs Unlimited Period Of Time
Depends On Growth/Inflation/Speculation/Sentiment/Liquidity

ADVANTAGES OF CAPITAL APPRECIATION

Creates Wealth Effect By Beating Inflation
Mispricing In Asset Prices Create Huge Opportunity

WHAT IS THE RIGHT STRATEGY TO ADOPT ?

Not A Choice Between The Two
Right Choice Is A Combo Of Two
Mix Fixed Income & Capital Appreciation Appropriately
Proportions Are Your Choice
Set A Accepted Ratio Between The Two
Constantly Rebalance When Deviated