My thought of the Day: Risk and Opportunity
When I talk to people that I am investing in real estate or some asset classes, I almost always receive the comments something like "Investing in real estate (can be other assets) is very risky!". First, I would like to say that risk can be greatly reduced with proper knowledge and experiences. We can even eliminate the risk if we know what we are doing. On the other hands, even putting the money in the bank can be risky if we don't know what we are doing. With current highly inflationary environment, your saving will be evaporated like steam if you keep money in CD or saving account in every single day. That's my typical comment against the person who always says "investing is risky". But, that is not my point in this blog. Based on three years of my wealth building experience, I noticed one thing. That is, "If we take the risk out of life, we take opportunities out of life". This word served me over the years. In this blog, I would like to share my thought about risk and opportunities.
Average middle class people are not becoming financially successful simply because they are not taking risk. They are avoiding the risk yet they always hope that something good is going to happen to them. To me, this is insanity. Definition of insanity is doing the same thing expecting different result. We will get the same result if we keep doing the same thing. For example, if you do the same thing like average people do, then you will achieve the result that average people are getting.
On the other hands, successful people are always taking the risk. Again, risk does not have to be risky. With knowledge, risk can be greatly diminished. If you try to do the things that you have never done before, you will make mistake. However, in order to achieve great result, you must do something drastically different from what masses are doing (taking risk). Again, if you follow the masses, you will get the result that masses are getting. Albert Einstein said the best. He said "The one who follows the crowd will usually get no further than the crowd. The one who walks alone is likely to find himself in places no one has ever been". I believe his statement is so true.
I've practiced this principle for over these three years and am getting the results that I have never experienced if I cringed my old way of thinking (What masses are thinking and doing). If you are unsatisfied with the result you are currently getting, why don't you give it a try. You have nothing to lose by trying this. There is only upside that allow you to achieve the result that you have never thought possible.
Related Blogs and Articles