On Taking Calculated Risks…

6 Aug

Lately I’ve been learning about investing and am surprised by how financial principles reflect aspects of life. It’s quite interesting actually. Had I realized this I might have pursued a degree in economics and made considerable more money than I do now…. But that is besides the point. 

As I sat listening to my financial guy, I jotted down some notes. “Most people are either risk adverse or take risks that are way too big. But anyone who plays the stock market for long will know there are ups and downs and you have to just ride out the trends.” I nodded. 

“Diversification is key.” Well, that makes sense. Don’t put all your eggs in one basket.

“Take those company shares for sure but do something with them.”

“Nothing is a sure thing but it’s not good to pull out just because the climate seems a little rocky or unstable. You have to look at the big picture.” 

Apparently Warren Buffet once said, “Be fearful when others are greedy. Be greedy when others are fearful.” 

The point that most struck me is that people who do not invest, rarely experience financial gain. Without calculated risk, there is no growth or advancement. One continues to live pay check to pay check and perhaps in the negative. To reverse this, attention and patience can yield long term dividends.

Risk is key for abundance can be measured in domains far outside the financial market.  

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