Cash Flow vs. Capital Gains Investing: The Two Investing Paths (read here)For me, in my portfolio, are two vehicles (among others): Stocks and P2P Loans / Invoice Financing. I tend to treat the latter as a kind of bond – One of a lower grade than retail bonds or junk bonds, but these do pay a higher interest. As I have said in my earlier post, I have been focusing on building up the P2P loans and Invoice Financing portfolio. It can be quite difficult at times due to the following ......
We can view our portfolio in many different ways. Some people like to track the overall stock prices or value of their properties and calculate their net worth. While others think about generating passive cash flows.
Nevertheless, both Capital gains and Cash flow are part of the sum of our Wealth.
Wealth = Capital Gain + Cash Flow