It depends. I have found that my equities portfolio outperforms the real estate we dabble in from time to time (my wife still swears by real estate even though the financial statements say otherwise ). One big advantage of equities is that they are much more liquid than real estate - if you need to sell a property it may take months or even years in a down market. With equities, you can liquidate your position in seconds. From my experience, that is a huge differentiating factor between the asset classes. Heck, blue chip key comics are more liquid than real estate.