Investing for mavericks is less traditional than other forms of investing. It is fun and it doesn’t have to be risky. To invest like a maverick you must remember its three rules:
You make money when you buy.
You have to be an expert in the niche or work with an expert.
You must be connected in the niche.
Investing for mavericks is not everybody’s cup of tea but it is certainly my brandy shot.
You see, I like my investing just as I like my life: unique, interesting, full of adventure and discovery, and somewhat off the beaten track. Yes, I could put my money in index funds, digital wealth managers and select stocks and shares. To a degree I have done.
Still, where is the fun in that? Where is the adventure and the profound satisfaction of success?
Couple of years ago, I got interested in what I call investing for mavericks. I told you about fun ways to spice up your portfolio and that this can be very profitable: some classic cars can return up to 500% over a decade.
Then, slightly over a year ago, I bought a 50% stake in a business: a MOT and car service garage. I also shared with you the three rules for buying a business that make it less risky than other investments.
Do you know what? A month ago, we were offered for the MOT and car service garage eight times what we paid for it. No bad (but we are not selling because the garage is not a gig, it is an opportunity).
Since I live what I preach, I also bought a half share of a rally car.
Investing for Mavericks: Meet Fordy
Are you wondering what I’m doing sitting in this very snazzy rally car?
Well, meet Fordy. Fordy, as I affectionately call it, is in fact a Ford Escort MK 1 classic rally car with Pinto 2 litre engine.
It is not that I know very well what this means, right. And so that you don’t get overly excited no I have not taken to rallying cars.
This my friends, is my latest investment. You see, I told you about spicing up your portfolios with non-traditional investments. As non-traditional investments go rally cars now are a very good one.
“But Maria, we get this ‘investing for mavericks’ stuff. But isn’t this very risky?”- you may wish to ask.
Yes, it can be risky. Still you can minimise the risk if you remember the one rule for success in this kind of investment, namely, that you make money when you buy not when you sell. Also, when you buy you either need to know the trade you are buying into well; or you should be in partnership with somebody whom you can trust with your life who know the trade inside out.
We could buy Fordy because we are already in the motor car business and are in the productive partnership with somebody who knows about cars and more importantly knows a good rally car when he sees one. What we do is that our partner spots great deals and we buy a share into it.
Fordy is half ours. We are hoping to double our investment in the car. Even if we don’t achieve this kind of return we know that we will always recover our investment and make a modest profit.
Three rules of investing for mavericks:
#1. You make money when you buy not when you sell: This kind of investing is (potentially) very profitable under two conditions: you either find a great deal or you find a classic car and keep it for a long time.
#2. You must know what you invest in: it won’t even occur to me to buy a rally car without consulting with, getting into partnership with, somebody who knows a lot about rally cars.
#3. Make sure you are well connected in the niche: we bought this car at a very good price. Still if we don’t have solid connections in the rally car communities we don’t stand a very good chance of saying it. I very much doubt that this car will sell on eBay.
This is it and we’ll see how this one goes; I’ll keep you posted.
For now, I’ll sit here in Fordy and who knows, I may even take it for a spin.
I didn’t take Fordy for a spin because being a rally car it has no hand brake (it is illegal on the road).
It was such a pain getting out of it, though. I regret I asked John to stop the camera – the ‘getting out of a rally car’ part of the video would have become an instant comic success of innuendo and antics.