Nov 11

Asset Management Essentials 4

3. Greed versus Need

In any plan for investing, you should always set clear goals and guide your decisions on what you need rather than what you want.

What are your investment goals? A house, a car, college tuition, retirement? Your goals and how long or short term they are will also help you determine what your investment strategies should be.

How much risk can you afford? The greater risks must be balanced by a realistic expectation of greater gains, but you have to ask yourself if you can genuinely afford the great losses that might result.

You might be able to when you are in your 30s, but when you are 64, you will not be able to.

One crucial aspect in any investment decision is an accurate risk assessment using the best information you can get.

But research as you will, there will always be information that you can’t get, or circumstances you can’t predict.

So your acessments will always be inaccurate, perhaps disastrously so. Therefore, invest cautiously, and keep your eye on the prize. Work with your team to maintain growth and minimize risk and loss, in order to watch your portfolio grow.

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