Your choice of investment should be dependent on two things
1. How much you know about the investment.
2. In case you have good knowledge in both, then you will be in a position to compare the two and choose the best option at any given time.

Therefore, for a guy working in NSE or a wazua veteran, stocksmaster et al, investing in stocks would seem the best option if they have limited knowledge in real estate. On the other hand, Mwalimu Marty, A4Architect et al, would choose real estate any day. So knowledge should be your investment compass, and if you are lucky to be knowledgeable in both, then you can make even more money by continuously choosing the best deals in both types of investments.

Are you sure????Links coming soon to disapprove you!!!!!!!!!!!!!!!!

As an economics student, Adam Smith's theory of absolute advantage comes into play. According to his theory, individuals have fixed resources (in our case money). However, each individual ought to pursue the investment which he is likely to yield the most gain, which is contingent on his level of knowledge, experience and access to critical information. An architect for instance has an absolute advantage in the development of real estate, and so does a stock broker in the trading of shares. Therefore, if any investment was to be made by both parties, the theory supports that the architect would go for real estate while the stock broker would buy stocks. But what about a person who is in neither the real estate business or the stocks business, but who is interested in investing? Assuming that his knowledge of the two investments is equal, the theory of comparative advantage by David Ricardo would apply. The theory holds that, an individual could still invest even if he has no absolute advantage in the two investments. Such an individual would mainly consider the opportunity costs of investing in either of the two. For instance, if he invests in stocks, how much income will he forego in the form of real estate income? And if he invests in real estate, how much is he likely to forego in stock market returns? He would then choose the investment where the opportunity costs are lowest for him. Both theories are used in international trade but have been modified to solve this investor's dilemma. #My 2 Zimbabwe bucks#

Thanks man. I am humbled

Kindly explain the highlighted part. What is the procedure? By how much do they discount the shares while valuing them, because I cant accept the security to be valued at more than 20% below market prices