Sunday, September 17, 2023

Alternatives to get rich - Risk wins, Risk loses.

Yesterday I came across a graphic of a visual capitalist. Could you please let me know how long it typically takes for money to double in various investments? For a period of nearly 100 years, it is truly impressive. Real estate is the worst. But 4.4 percent is something compared to nothing. A hundred dollars invested in a property after a hundred years becomes over 5,000 dollars, which is great, though. Gold (6.48 percent) is better. Corporate bonds are extremely excellent, at 6.96 percent. But investing in the S&P 500 brings a yield of nearly 11.51 percent. This return is phenomenal. This 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. But occasionally the risk is worth it with a company with 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 can always sell the idea, but at least try to draw it or make a prototype.

Author Sezgin Ismailov

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