INVESTMENT STRATEGY
YOU
ONLY HAVE $100,000 TO INVEST IN AND THERE EXIST THE RISK THAT $100,000 WHEN
INVESTED CAN BE LOST.
HOW
CAN YOU MITIGATE THE RISK OF INVESTING THIS AMOUNT?
You only have $100,000 to invest in and there exist the risk
that $100,000 when invested can be lost.
How can you mitigate the risk of investing this amount?
The investor can decide to invest the total amount of
$100,000 into his business and thereby face the potential risk of losing the
total in his business.
The law of probability works the way increase exposure to risk
works. The chance of failure of losing $100,000 when adversity or business
uncertainty occurs is great.
HOW CAN THIS RISK BE REDUCED.
Out of the $100,000. An investor can decide to invest $50,000
in stock/business; $25000 in treasury bills/fixed deposit and $25000 in Real
estate.
We can see that the investment is somehow diversified.
For example when the $50,000 stock investment fails, the
treasury bills and real estate(pool investment
fund will brings its own return
see E-BOOK
https://obitaxanswer.blogspot.com/2020/03/manage-your-taxes-and-investment-to.html
Disclaimer: Obi Azubuike is not by this publication acting as a professional advisers and therefore not liable to any damage whatsoever for your acting or refraining to act based on this publication. Consult your professional for advice.
copyright(c) 2016-Obi Azubuike
Comments
Post a Comment