Famed lawyer, investor and businessman Sam Tabar is out with his 2015 recommendations which have been profiled on a report by CNBC. While he provides some traditional advice, he also gave a few out of the box ideas to make this year the best yet for investors.
Firstly, Tabar recommends that novice or amateur investors stick to what they know best and invest in diversified, stock market or mutual fund investments. Diversification tends to provide more consistent, stable and positive returns over time. A broad swath of the market including cyclical and non-cyclical firms
On the other hand, Tabar advises to keep out of commodity markets if you are not an expert. While oil, gas, gold and other commodities are in the news, they are not to be played by most retail investors. These products are extremely volatile and can quickly erase a sizable investment. While volatile commodities provide the potential for huge gains in a short period of time, odds are that an investor without the appropriate education, market expertise or in-depth knowledge will not be able to capitalize on these potential gains.
Tabar also recommends investing in the growing world of socially conscious enterprises. He personally invested in a socially conscious private company called THINX which is a women’s undergarment manufacturer that also donates sanitary cloth pads to supply needy young women in Africa.
While private enterprise investing may be a little more risky, it can provide alternative psychological and moral benefits to the investor. In addition, social investments continue to grow with more companies taking in more funding, providing a bright future for the industry. Entrepreneurs continue to innovate in the social enterprise space, with more people leverage new technologies and the internet to provide ground breaking solutions.