Investing fundamentals//46s

Alternative investments, ranked by risk and how fast you can sell.

Real estate, private credit, infrastructure, venture, private equity, and crypto, lined up by how risky they are and how quickly you can get your money out.

Transcript

These are high risk, and they can also be high reward. When you look at alternative investments you have real estate, you have venture capital, you have private equity, and at the far end you have cryptocurrency.

Depending on your risk tolerance, liquidity needs, and what makes sense for you, it is important to look at this as a spectrum. Crypto is the most volatile, but it is also the most liquid, meaning you can get your money in and out. Something like real estate is much less liquid and generally less volatile. Somewhere in the middle you have private credit, venture capital, and infrastructure, each with its own liquidity terms.

When you look at alternatives, always know the risks you are taking on, and do not do anything purely on speculation or emotion. It never ends well.

These are transcripts of short educational videos Malik published on his own social profiles, edited for readability and to remove phrasing that could read as a personal recommendation. They are general education and marketing, not tax, legal, or investment advice, and not a recommendation to buy, sell, exercise, donate, hedge, or hold any security or to use any account, plan, or strategy. Contribution limits, phase-outs, and tax treatment change and depend on your facts. Talk with your own tax, legal, and advisory professionals before acting.

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