Property wasn’t the only market in the world that had a rough 2022.
As interest rates started rising it was the classic illustration of the Warren Buffett wisdom that “When the tide goes out, you see who is swimming naked.”
Classic bubbles had emerged in many areas, and we got to see history rhyming when these bubbles started popping. Everybody is a genius in a bull market.
Another Warren Buffett maxim that is relevant is rule number 1: Never lose money. With rule No 2 being: Never forget rule number 1.
Of course such simple wisdom can be difficult to implement. One simple work around is to buy quality assets and hold for the long term.
A sound idea is to always be overweight, or even obese, in an asset class that is tried and proven, government supported and sponsored and as close to guaranteed as possible to deliver solid longer term results.
Which is after all, a few of the reasons we all love Australian property so much 🙂
