Showing posts with label risk. Show all posts
Showing posts with label risk. Show all posts

Friday, September 13, 2024

A small task of great importance to any investor.

This is not a question for traders, but for investors. Assume that you know a noble, rich person who believes in you. He agrees to give you the sum of one million to buy a financial asset or a commodity, or it doesn't matter what you want, but with a condition. You are not allowed to sell what you buy for at least 10 years. After ten years, if it has maintained its price or increased after its sale. You can expect a profit sharing + BGN 100 thousand as a bonus that you did not lose in your judgment. If it has lost its value, you will not receive a share of the profit or the promised bonus. Please consider this amount as a hundred million. Your promised bonus is $10 million. You have to invest the funds in whatever you want. Invest in honey, oil, stocks, wine, or any other asset you deem suitable for earning. With a smaller amount, you would even react emotionally and act a little hastily. But with the larger amount, you have to invest your mind as well as emotionally. Not everyone has this amount. Not everyone can make that much money in a lifetime. Your success means putting in the effort and gathering information. Regardless of whether you're a beginner or not, it's still something you can win. Demonstrate your abilities. Whether it's someone else's money or your own, always gather some information. Try to see into the future, not rely on quick profits. They say patience always pays off. Because if you believe in something and it has a future, it can thank you.

Author Sezgin Ismailov


Sunday, September 17, 2023

Alternatives to get rich - Risk wins, Risk loses.

Yesterday, I came across a graphic created by a visual capitalist. Could you please let me know how long it typically takes for money to double in various investments? The fact that it has taken nearly 100 years is truly impressive. Real estate is the worst. But 4.4 percent is something, compared to nothing. Investing a hundred dollars in a property for a hundred years results in over 5,000 dollars, which is impressive. Gold (6.48 percent) is better. Corporate bonds offer an impressive yield of 6.96 percent. But investing in the S&P 500 brings a yield of nearly 11.51 percent. This return is phenomenal. The result means that every six and a half years, your money doubles. But let's not forget that if you hit the initial public offering of a company that has a future and a good product,. It can make you a several-thousand-dollar millionaire in no time.  But recognizing such a company in times of huge competition is like hitting the lottery numbers. However, the risk can sometimes be worthwhile when investing in a company that holds patents. But whatever you invest in brings dividends. Occasionally there is disappointment. Consider investing in a property in an area that is experiencing a decline in value. When the market is calm, gold does not grow, and you are waiting for a crisis. You come across a company that has appointed a bad manager, and the excellent company declares bankruptcy because of this bad management. Risk wins, risk loses. There is no reward without risk. But let's not forget that the thing that can make us very rich is something like an idea. Your creation is the key to your wealth. You might consider selling the idea, but it would be beneficial to at least sketch it or create a prototype.

Author Sezgin Ismailov

A Modern Fable of Friendship and Finding Your Own Feast

We all know the story: a wide-eyed country mouse visits their city slicker friend, only to find the allure of fancy food overshadowed by the...