People sometimes ask about the best kind of investment to make. But it’s impossible to answer that question without knowing more. Asking about the best kind of investment is like asking:

• Where is the best place for me to buy a house?
• What is the best way for me to spend time in Paris?
• What is the best kind of car for me to buy?

Such questions require that we know more about the individual asking.

Similarly, when it comes to questions about investments, we need to know more about the individual. The more information we have about the individual, the better prepared we are to answer.

And no one knows more about an individual than the individual himself.

We can talk about assets as being anything of value. A key point is that, at the end of the day, an asset is only worth what the next person is willing to pay for it.

There are different types of assets. For example, intangible assets may include experience, or education. But without a carefully coordinated plan, it may be difficult to convert those types of intangible assets into cash.

Tangible assets are a bit easier to put a value on. For example, consider all of your personal belongings. Those are assets that, if you wanted, you could likely convert into cash. Businesses like eBay and Craig’s List have been built around turning consumer goods into cash. So even though consumer goods like those listed below rarely appreciate in value, they are still tangible assets:

• Clothes
• Televisions
• Jewelry
• Computers
• Furniture
• Cars

Rather than rising in value, consumer goods are the type of asset that become less valuable immediately after the purchase.

Investment strategies for beginners should include the accumulation of a different kind of asset. I advise people to acquire tangible assets that are likely to grow more valuable over time. Traditional investment grade assets include:

• Owning stock in publicly traded companies
• Owning equity in privately held companies
• Owning bonds or debt instruments that generate cash flow

One of the most popular “alternative investments” includes owning investment real estate.

If you’re a beginner striving to build an investment strategy, set a plan in place that will help you grow your asset base over time. When you’re creating that plan, think about the types of assets you want to acquire. The worksheet you created in the previous lesson should help you establish your investment plan and strategies, even if you’re a beginner.

As I described in the previous chapter, in August of 2013, I finished 26 years in federal prison. I was 49 years old. Within five years of finishing that sentence, I wanted to own a portfolio of assets that would be worth more than $1 million. The only way that I would reach that goal would be to establish an investment strategy. I considered the investment strategies for beginners that I described above:

I had to:

• Consider my strengths and weaknesses
• Focus on my strengths
• Invest in the type of assets that would work best for me

What would work for me wasn’t necessarily right for anyone else. By being self-aware, I could choose a strategy that I believed would have the highest likelihood for success, with the lowest possibility for risk.

In the next chapter, I’ll describe the investment tactics that I chose for my strategy.

But we’re all individuals and we all must make our own decisions when it comes to establishing an investment strategy. What works for me may not be right for someone else. And likewise, what works for someone else may not be right for me.

With this investment guide, it’s my hope that you’ll learn to ask better questions. Consider your strengths and weaknesses and write out your investment objectives. Then create a deliberate, coordinated strategy that will take your personal circumstances into account. Use your investment worksheet and your judgment as your guide.