Investment Strategy

Stocks versus real estate….an argument among investors that wages on and on. The variables involved in the argument of which method of investing is more profitable are endless. Therefore, we decided to invest in both the stock market and real estate. Baer Goldman Investments incorporates Dr. David Schumacher’s investment approach to real estate, and Warren Buffett’s investment approach to stocks & bonds.

Photo: National Geographic

Location is crucial in regard to real estate investing. Desirable areas with healthy population growth and a versatile economy are some of the requirements for any holdings within Baer Goldman’s real estate portfolio. Large down payments on rental property allows for numerous exit strategies should an emergency arise. Never refinancing the equity out of our rental properties provides for higher monthly cash flow, as well as reaping all the benefits of appreciation gains without the risks of being over-leveraged.

Vanguard has provided us with the means of obtaining broad market exposure while keeping expense ratios and fund management costs as low as possible. The less money spent on fund managers directly results into more money being reinvested, which leads to more dividends and capital gains. Index funds provide us a profitable and stress free approach to stocks & bonds.