Harmel Rayat has swiftly become one of the top performers in the global investment community.
He has proven an ability to spot trends early and develop strategies to maximize the opportunities within those trends. Rayat has been able to develop a varied and immensely profitable portfolio for him, his partners, and investors.
Here’s what he recommends as his top tips to managing your money in 2014.
Harmel Rayat’s Top Investment Advice for 2014
Harmel Rayat believes it is critical for investors to always keep an open mind. He says that is going to be even more important in 2014.
“This year will be a year of major changes. After years of consistent returns for stocks, real estate, bonds, and nearly all major financial asset classes, I don’t see the trends continuing,” says Rayat.
Mr. Rayat points to history in that no market has gone up forever and in unison. It cannot and will not last, he says.
In the past few years, any investor in any market or security could have made money – big money. That’s not likely to continue in 2014.
He has hand-selected the following three rules from legendary investors and business leaders that will be critical to making 2014 a successful year..
Whether you’re a novice investor, opening your first brokerage account, or an experienced investor like Rayat with a broad portfolio of real estate, stocks, and other investments, you will find the following investment tips helpful in for 2014 and the future.
Warren Buffett on Safety and Simplicity
Warren Buffett is one of the world’s greatest investment minds. Wise strategy, expert decision-making, and patience have led him to decades of top-performing investment returns.
Harmel Rayat himself believes, “If you’re ever uncertain of whether you’re on the right path or making right decisions, look towards Buffett. If you’re doing what he would do, you’re likely making the right investment decisions.
CNBC’s Schuyler Velasco recently chronicled investment tips from Buffett, some of which Rayat believes are central to developing a sound strategy.
For example, the article cites Buffett as backing a strategy to invest in industries and companies that display minimal change, rather than rapid change. Velasco writes, “A look at Berkshire Hathaway’s portfolio bears out this bit of advice: The firm invests primarily in companies that have been around a long time and can be explained in a brief sentence: Dairy Queen sells ice cream, GEICO sells insurance, and so on.”
This features Buffett’s focus on simplicity and safety.
However, other investors have made fortunes focusing on the exact opposite of Buffett. One of those investors is Carl Icahn.
Carl Icahn on Making the Best of a Bad Market
Carl Icahn exemplifies being in the market for the long haul.
A recent ETF Daily News feature article on Icahn’s success explains, “Icahn who is almost 80 years old and has a lot more to lose than you, invests almost 100% of his $20 billion dollar plus net worth in stocks.”
“Icahn who has the greatest track record in the history of investing destroying even Warren Buffett, has averaged 27 percent a year for 51 years.”
So how has Icahn developed such notoriety throughout his career, and more importantly, how has he built a profitable portfolio?
Rayat has followed Icahn closely over the years and says Icahn’s success is due to his role as “activist investor.”
Rayat says Icahn looks for “fixer-upper” investments. Like a rundown house can have enormous potential in the hands of the right owner, a run down company with depressed share values can have much more potential under the direction of the right people.
Many times, the direction comes from Carl Icahn’s.
A recent Washington Post article reveals, “Outspoken billionaire Carl Icahn has tossed another bushel of Apple stock into his investment portfolio and suggested some new products as he tries to persuade the iPhone maker to do more to lift its market value.”
Furthermore, “In an attempt to give his arguments more credence, Icahn disclosed that he invested another $500 million in Apple Inc. in a series of purchases.”
At the time of the article, Apple shares rose more than 30% from their recent lows.
Elon Musk on Looking to the Future
One other investor is likely to end up alongside these investing legends.
Elon Musk may be one of the most enigmatic figures of the business—and investment—world.
Musk continues to involve himself with projects that are true visions of what is to come. Two examples are SpaceX, a private space transport enterprise, and electric carmaker Tesla Motors.
Harmel Rayat notes that Elon Musk’s investment strategy to take part in risky projects that might shape the future and offer great return is the cornerstone of the mogul’s success.
Musk may now be involved with what is considered “out of this world” investments today. But he is also noted for taking the lead at PayPal—an innovative idea that has progressed into a standard for electronic payments.
In one Business Insider article, Musk states, “You have to have a very compelling goal for the company. If you put yourself in the shoes of someone who’s talented at a world level, they have to believe that there’s potential for a great outcome and believe in the leader of the company, that you’re the right guy to work with.”
For Rayat, Musk’s philosophy on team management can apply to investment decisions; invest in companies that have a clear goal, the right talent, and can shape the future.
Use Startups to Stimulate Your Portfolio in 2014 and Beyond
Harmel Rayat has built his success on combining the top investment advice from these leading investors.
He focuses his attention (and money) on investing for the long-term in undervalued assets, start-ups with world-changing potential, and the right people to run and grow them all.
As the aforementioned investors recommend, Rayat too has a strong desire to shape the future—by way of new ventures—through strategic, risk-assessed decisions.
In addition to investing in startups, Harmel Rayat is also credited for holding assets in long-term markets that provide return to those investors who stay in place, such as the commercial real estate sector.