Make your money work for you. Sustainable investment growth is a rate of growth where you no longer need to put in more money for your investment to grow. It is the ultimate in having your money work for you.
If there is one main goal that every investor have in common, it is to reach a point of sustainable growth in an investment. Certain investments lend themselves to sustainable growth.
Think about a real estate investment. You invest in a rental property that is in a desirable area and has no shortage of potential tenants. Your tenants pay rent to you, which essentially covers your mortgage payments. Depending on your property, you may even make a little profit from your rent after paying your mortgage. At the same time, your rental property continues to appreciate in value. This is a self sufficient investment.
Although some investments can be entirely self sustained, there are a variety of investments these days that can fit into the category of sustained growth. Many people consider growth stocks or mutual funds to fall into this category. Long term CD’s can also be considered sustainable growth investments. Social lending is another type of investment that doesn’t require more than the initial investments.
Many venture investors look for small growth companies in hopes to strike on the same formula. A small tech company that only needs some seed money to get started and then suddenly grow can be a diamond in the rough.
Some companies like Oakmount and Partners Ltd specialize in sustainable growth investments.
While some people may bemoan the time spent on such an investment as well as the risk of vacancy, many investors realize that there is incredible potential in a sustained growth investment. The reality is that if you can find a completely sustained growth investment, it’s well worth the effort. Otherwise, you can always have your investments managed by professionals.