The old adage, “No risks, no gain” says it all. The late Dr. Michael DeBakey once talked about vascular surgery. He explained in an interview that vascular surgery and heart surgery simply does not come without risks.
When it comes to investing your dollars in any venture there are going to be risks. From metals to real estate, from stocks to bonds, from gem stones to venture capital, from produce to collectibles there are risks.
I like what Will Rogers once said, “I’m not so much interested in the return on my money as I am in the return of my money.”
With risks there is the possibility you can lose on your investments. This is why it is critical that you spread out your investments into a diverse portfolio. All of your eggs in one basket spells danger.
Many years ago I had a client who was ready to retire. I urged, even pleaded with my client to diversify his proprietary shares of stock in Lucent Technologies. He refused believing that Lucent stock was the Holy Grail to his lucrative and long-awaited retirement.
Lucent Technologies, once an elite American technology company, had a stock price that rose to $84 a share from $7.56 a share. Unfortunately a crash came some years later. Thousands of people lost their jobs and many had to continue working rather than retire with a ‘fat’ 401 (K). Sadly my client continued working.
Diversity. Spread your risks. Listen to those who care about you. To those who have investing experience. To professionals who will educate you, not try to simply sell you.
Risks are real. Losses are real. Invest in more than one nest…..always.