Alternative investments: Q&A with The Motorcycle Broker
Paul Jayson is the owner of The Motorcycle Broker. His love of motorbikes from an early age resulted in him following his dream. Unlike classic cars, classic motorbikes can be bought for considerably less money and as long as they are well kept, have proven to be a wise investment choice. We talked to Paul about the business and asked him what his investment strategy is
DIY: How long have you been an investor?
PJ: All my life in various ways. I started by building my own motorbike and selling it at a profit. The natural progression for me was to buy bikes and store them in mint condition and sell them further down the line for a profit. I had other jobs but eventually I realised that running a Motorcyle Broking business was what I wanted to do full-time.
DIY: What type of Investor are you?
PJ: I now have all my money in bikes, although I did make money from property in the 80’s and 90’s. I also invested in gold but felt it to be a manipulated market, and property I’ve felt won’t be stable so I’ve come back to something I know and understand…bikes.
DIY: What are your key considerations when making an investment?
PJ: Do your homework, do your due diligence or find a trading partner to help you before you invest. Also, I know that I have a business in motorcycle broking, but it means that I have knowledge about something that I care about. My view is that if you invest in something that you have a passion for and you do your homework, there’s every chance that you will do ok. A friend of mine works in the music industry and she invested in Hipgnosis Songs Fund which offers investors a pure-play exposure to songs and musical intellectual property rights and she’s had great returns.
DIY: ISA or Pension?
PJ: I use my classic motorcycle collection instead of an ISA or pension. It’s tax-free and averages about 10-20% per year over ten years.
DIY: What have been your best and worst investments?
PJ: My best investment was probably my houseboat which I bought for £25,000 and sold for £350,000. Several bikes that I’ve owned, in particular one I bought for £15,000 and sold 6 months later for £35,000…but that doesn’t happen every day! My worst investment was investing £6,000 in becoming a computer network engineer which turned out to be unregulated and I was totally mis-sold. The company promised that I would get the required qualification, alas it became apparent that this wouldn’t be the case. Sadly, they seem to still be operating
DIY: What advice would you give to someone considering self-directed investment for the first time?
PJ: To get rid of fear you need knowledge. The internet can be a useful resource, but it’s not the only one. Watch out for people selling you their pride and joy because they’ve got a motive. Also, as I mentioned earlier, you must do your homework and never put all your eggs in one basket – or indeed all of your life savings into one investment!