Israeli Investor Advocates Stocks Over Real Estate, Citing Higher Returns and Values-Based Investing
Ofri Pilz, a 29-year-old financial services manager at IBI Investment House in Tel Aviv, shares her investment journey and philosophy in a weekly column focused on new investors. With a background in philosophy, economics, and political science from the Hebrew University of Jerusalem, Pilz began investing seriously after her military service, initially focusing on index funds before shifting to individual stocks with higher risk and reward potential.
Pilz recounts the challenges she faced during the COVID-19 market crash in March 2020, when her stock portfolio halved in value. Encouraged by her father to hold rather than sell, she saw her investments recover and eventually yield profits. She now allocates about 50% of her portfolio to stocks, 20% to money market funds, and 30% to European bonds, emphasizing the importance of patience and risk tolerance.
She strongly advises women to enter the stock market, noting that many hesitate due to a lack of confidence. Pilz has even organized investment and wine evenings to introduce her friends to investing. She prefers stocks over real estate, considering the latter a poor investment in Israel due to low annual returns of 2.5%-3%, compared to her portfolio's average annual return of about 25% over the past 3-4 years.
Pilz also invests according to her ethical values, avoiding sectors like weapons, polluting industries, and companies harming rainforests, even if they are profitable. She follows economic news daily, uses Twitter for updates, and subscribes to analyst Dr. Yinon Arieli’s recommendations. Looking ahead, she is interested in renewable energy and nuclear power stocks, believing these sectors hold significant growth potential.
Despite not yet reaching her first million she aims to do so soon, viewing her investments as long-term capital rather than immediate income. Pilz’s story highlights the benefits of informed, value-driven investing and encourages others, especially women, to overcome fears and engage actively in the stock market.