W
ealthy individuals in India have been adopting a savvy investment strategy, one that balances the growth potential of stocks with the stability and cash flow offered by real estate. According to Akshat Shrivastava, founder of Wisdom Hatch, this dual approach is key to maximizing returns.

    The strategy involves leveraging real estate during downturns to raise cash, which is then invested in stocks for higher alpha. Conversely, when stocks become overvalued, the capital is rotated into real estate. This rotation allows for optimal returns and underscores the importance of diversification.

    Shrivastava cites Jeff Bezos as an example, highlighting how the Amazon founder has successfully sold stocks and reinvested in real estate. However, not everyone agrees with this approach, pointing out that it may be challenging for retail investors to replicate due to high ticket sizes for commercial real estate.

    The concept of asset allocation is at play here, where wealth is divided between different asset classes to minimize risk. Buying undervalued assets can lead to above-normal returns, but it's essential to ensure that assets are not correlated or inversely related. As one user noted, "asset allocation is the only free lunch in finance."