Focus on Acquiring Assets of Value

This week at Wyson Financial we are having a family event in our beautiful conference room. As I watched my talented daughter putting up the decorations, I thought back on the years since we purchased the building.

It was originally a government office that housed the IRS and several other agencies. When we first toured it, the building was a disaster. It had been vacant for years. The leaking roof had damaged most of the interior and it was easy to see why there was little buying interest.The place needed a major remodel that would likely exceed the purchase price. Perhaps the only undamaged part was the unique bulletproof lobby.

As I considered the dilapidated place, my mind filled with ideas. I have always loved real estate, and a challenge, so put the two together and I am ready to go. As we walked around, stepping over slimy puddles, I was a bit concerned about what Launa might be thinking. I must say I was thrilled when she broke the silence with, “I like it.” She has always had great vision, so we bought it.

Through a major remodel we converted an unwanted property into a business office that benefits our company and the local community. The finished product was expensive, but what a valuable asset it has been. The meetings and gatherings, the major street visibility, the electronic reader board viewed by thousands of drivers a day, all give great value to us or to another in the future if needed. During our ownership I have never worried about what we could sell the building for. We bought it for its value. Because it has value, I don’t worry about getting a good price for it in the future should I desire to.

Investors often place too much importance on the current “price” of the things they own, while forgetting the “value” of the things they own. This tendency becomes more pronounced when markets go down. This is a good time to evaluate your portfolio’s value. Cover up the price numbers and just look at the assets and ask; Do I own strong companies whose products and services are valuable to the world, and will continue to be? Have I added any real estate investments (if appropriate for you) with strong tenants whose products are also valuable to the world? Are these assets likely to continue to provide valuable goods and services to a growing country in the years to come? These are the issues that matter most. You cannot control the prices on Wall Street, but you can control whether you own valuable assets.

A wise friend once said, “Rich people become rich people by acquiring and keeping valuable assets.” If investors could only learn that simple concept. Acquire assets of value and when others are scared, keep acquiring them. Don’t be bothered by price fluctuations. Over time price will take care of itself. In the experiences of thousands of investors I have worked with, I have found that to be a principle worth following.

Dan Wyson, CFP® is author of “The Gold Egg," and “21 Financial Myths” and owner of Wyson Financial/Wealth Management 375 E. Riverside Dr. St. George, UT 84790 - 435-986-9525 – Securities and Advisory services offered through Commonwealth Financial Network, member FINRA/SIPC, a registered investment advisor