Life is Risky, So’s Investing
The world is a risky place. Its very nature is that it is subject to the whim of unexpected chance and the potential for catastrophe and crisis. Yet, by using the incorrect tools and methods to assess risk, and by allowing others who benefit from our choices to do our thinking for us, we convince ourselves that things are less risky than they truly are.
We have to free ourselves from the shackles of conventional thinking and formalized ways of estimating risk vs. reward when looking at choices.
And, as someone who works with private investors who invest in my company’s real estate ventures, that applies to how we must also look at risk vs. rewards scenarios in evaluating potential investments.
When you realize that everything is risky, it can help you determine what risks you’re willing to take to get the rewards that you seek.
And which risks you’re not.
Remember that just being alive here today to read this is in itself a succession of huge risks already braved and bested. Our life, our very breathing, the miracle of our body as our heart pumps blood through miles of vessels throughout our body every day is an extraordinary event in and of itself, is it not?
Especially when you look at the risks we had to overcome even to be here, as every day lives end without reaching the age we have already—and even before our birth, a confluence of events that resulted from our having overcome tremendous odds led to our existence in favor of the seed of others who could as easily have been in our place.
With all the many variables of life itself, life’s little coincidences and uncertainties, accidents and unpredictable scenarios, we have a choice before us in looking at risk.
We can be overwhelmed with the risks, or we can learn to manage them and in so doing we can take on a very exciting state of mind.
And that is this: anything is possible. Anything. And if anything is possible, the risk of things going wrong is very real…but so is the chance for things going perfectly.
The bottom line is that we can’t merely look in the rearview mirror looking at what has happened in the past to plan and assess potential future risks when considering any choice, including possible investments.
It could be that that investment opportunity you’re looking at is the perfect solution to get you what you want at this stage in life. But trust me, it has risk.
Check it out, weigh it against the possible risk of NOT taking action, and against the other risks we face on a daily basis in our lives, and if you feel it makes sense then go for it!
We have to live in the real world, and as such we must recognize that the real world is risky.
Investing is risky.
But so is life.
Which life would you rather have, though? One where you took on some calculated risks and accomplished things others never dreamed of…or the one where you played it completely safe, did what everyone else does, and ended up with the same life everyone else has?
To me, that’s always been the biggest risk of all.
To look back and wonder if my life mattered. If I accomplished anything worthwhile. If the world was unmoved by my having moved within it.
Nope, I won’t take that risk.
Will you?
Take a risk. Live. Take action. Do something great.
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