Ed Dunens, CC BY 2.0, via Wikimedia Commons
When you talk to people about what it takes to be an “entrepreneur,” most people will say you need to be a risk taker.
When you talk to people about what it means to be a “risk taker,” most people will begin describing daredevils and gamblers.
In both cases, these answers are at best incomplete if not totally incorrect.
Risk taking is fundamental to sound investing. Without risk, there could be no return. It’s Continue Reading “Why It’s Important You Become A Calculated Risk Taker”
Should You Slap A Simple Single Or Swing For The Fences?
Photo by Ulrik on Freeimages.com
This could easily become a column on successful investing, but it’s not. It does, however, reflect a Noble Prize-winning concept that has propelled successful investors for more than half a century. It’s simple. I’ll explain it quickly.
Every investment option possesses two critical factors: risk and return. Scholars credit economist Harry Markowitz as the first to identify the correlation of risk and return. In his 1952 paper “Portfolio Selection,” Markowitz, the father of “Modern Portfolio Theory,” says low-risk investments can yield low returns and high-risk investments must yield high returns. The “can” and “must” refer to the price you should reasonably pay for the investment.
But this column isn’t about successful investing, it’s about life. Specifically, your life. More precisely, the choices you face in your life. Understanding the dichotomy between “low-Continue Reading “Should You Slap A Simple Single Or Swing For The Fences?”