How to Manage Risk in Real Estate Investments?

Then they fear the risk comes from their lack of knowledge. There is no need to feel naive or claim ignorance. The bottom line is that unless you do this every day for a living you will always feel ‘out-of-the-loop’. Funny thing is – most people know what a stock is yet they have no idea what drives stock prices up or down. Yet, because the societal ‘norm‘ is to buy mutual funds because a fund manager must understand the stocks better than you – people go out and buy mutual funds. Then, even if the funds/stocks go down, the fund manager gets paid and people invest more because they are saving for retirement. I buy mutual funds too – but this year (2008) they have lost money and I can’t do a damn thing about it. In the worst real estate/mortgage crisis of our time, I’m making money in real estate investing. I’ll hold on to my funds, but managing risk is about diversification.

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Thoughts on the Art of Investing

In Sun Tzu’s ancient book on military tactics, The Art of War, he lists the five components of a battle as: the way; the weather; the terrain; the leadership; and the discipline.

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Where to Invest Money So You Can Live the Great Life

Though saving helps you put away money for a specific use in the near future, investing helps you build your wealth to achieve your long-term financial goals. Money market funds can be a smart choice for investors looking for a temporary place to store their short-term cash.

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