Having invested in many different areas including stocks, bonds mutual funds, and the foreign exchange I feel that the strategy that without a doubt yields the most return is real estate. I am not talking about the appreciation on your primary residence but instead the cash flow, equity buildup, tax advantages and appreciation you get from an intelligently purchased and well run revenue property. For the average person real estate is usually the investment option that they understand the best and offers a certain amount of personal control, not to mention the fact that banks are usually willing to lend you up to 90% of the capital needed. When you do the math correctly and realize how much return you are bringing in using the bank's money (instead of your own money like with many other investment strategies) you begin to see that there is no comparison at all. It takes a little more effort than just buying and holding some stocks for example, but like everything else in life you are rewaded for those efforts. Just a small example: We bought an older building with long term tenants and low rents compared to other buildings in the area, we had an older unit that was renting at $500 per month which became vacant, by doing some renovations it now rents at $750 per month, which means we bring in an extra $3000 per year (on top of the fact that the property was already paying itself off and building equity), since revenue properties usually sell at roughly 10 times the annual revenue the building, which now brings in an extra $3000 per year is technically worth $30,000 more (3000 x 10), not to mention that the costs of the renovations are tax deductible, now imagine doing the same with all the other units, add to the fact that the initial investment was almost all borrowed from the banks, and consider the gradual appreciation of the building and you will be hard pressed to beat those results with other investment strategies. Good luck.