Invest in the Tortoise Not the Hare…

That plain industrial space may yield bigger profits than a glitzy office building or glamorous stock!

The sagging economy brings out lots of new investment ideas. People wonder what is safe and what will create the largest return on their investment. We think an investor’s best move in today’s market is to invest in the tortoise instead of the hare.

For every Google that goes through the roof there are hundreds of stocks that under-perform the market or collapse entirely. In fact, a $100,000 stake invested in the S&P 500 10 years ago is now probably worth no more than $63,000, including reinvested dividends. Likewise, money sitting in the bank might be safe, but it certainly won’t generate real returns. Banks today are giving savers the least return on their hard-earned dollars of any investment out there. Interest rates are so low that savers can actually lose money because the Consumer Price Index is increasing more than the interest they are earning on their saved dollars.

By contrast the real estate market, as challenging as it has been of late, has performed better than stocks. In fact, today’s market could be a once in a generation chance to increase your property holdings. And there is perhaps no better place to put your money than the industrial real estate market around Los Angeles International Airport. To take advantage of these incredible opportunities, Oakstone has created the Oakstone

Investment Fund, allowing savvy investors to invest strictly in industrial property adjacent to LAX. Los Angeles International Airport continues to be the main gateway between North America and the Pacific Rim.

While residential real estate or even high-rise office buildings might grab all the media headlines, it is the plain industrial space that continues to generate positive returns for investors year after year.

For individual investors or pension funds, it makes sense to invest in this tortoise rather than risk hard-earned dollars betting on the hare. This type of investment is neither sexy, nor spectacular, but it’s dependable and steady performance makes the Oakstone Investment Fund a solid addition to any serious investor’s portfolio.

Consider that the LAX area is likely to be among the first to recover from the current economic downturn, and the area is already starting to post some positive signs. Did you know that the last sale in the LAX industrial market, was a building in El Segundo that sold for $171 per square foot? In addition, one of the area’s largest land sales has just been

Izzy Portraitcompleted adjacent to LAX in which AMB sold a 21-acre parcel for $125 million – a per-square-foot land value of $136!As of July, 2009, nearly 16% of office space in Los Angeles County was vacant, but the industrial vacancy rate in Los Angeles County in the second quarter averaged only about 5%. During these uncertain economic times, I think about the words of American writer Charles Swindoll, who said, “We are all faced with a series of great opportunities brilliantly disguised as impossible situations.” He was right. Today, we face an impossible situation, but it is those forward-thinking investors who will take advantage of the great opportunities that come with it. Invest in the tortoise, not the hare.Izzy Signature