Investing is risky. 

This is what everyone believes. 

Maybe it’s true. I guess it all depends on your perspective.

Is driving a car risky? I’m sure everyone would agree there is an element of risk, but most people believe it’s worth the risk, due to the fact that it beats walking. 

People also believe that they are willing to accept the risk of driving car because they believe themselves to be good drivers. 

“In the hands of a lesser mortal, a car is a dangerous weapon, but when piloted by me, the best driver in the world, there is no problem.”

What about all the other drivers? Maybe they are idiots? 

“It’s OK, I can handle that too.”  

So you understand that driving is only risky in reverse proportion to the skill level of the driver. 

I am suggesting that the risk associated with investing is quite the same. 

If you educate yourself, you can understand the risks involved in investing and you should be able to mitigate them. You might even be able to anticipate market corrections and hedge against bear markets. 

You tend to pick the right stocks and look at every angle to see the true value in a position, not the sentiment on the street. You are not gambling, you are truly investing. 

If you are truly an investor and not a trader, then you buy stocks or “ownership” in a public company that:

a. You believe in

b. Has a great track record

c. Provides value to the world

d. Is relevant

e. Is fiscally responsible 

f. Gives back

This is the root of value investing. You are looking for value and you are leveraging that value. You do not take undo risks. You are not guessing. You are not hoping. You are basing your investing decisions on facts and research. You are putting skin in the game, yes. You are hoping that you don’t make a poor decision but you are building a portfolio of companies that provide valuable goods and services in any economic climate. Whether times are good or bad, people still need their stuff. 

I have had a few, but vocal, number of people claim my investing strategy is “too risky”.

That is OK. I believe that the beauty of my strategy is that it is flexible enough to be only as risky as you want it to be. You are the one in control and you are the one who decides how exposed you are comfortable being. If you go crazy and throw caution to the wind, then yes, it is extremly risky. The rewards tend to match the risk but it is still very scary to take things to the max if you don’t know what you are doing. I recommend you follow your heart and only go as far as you are comfortable going. No need to “take my word for it”. 

I am giving you a plan that you can use at your own discretion.  Knowledge is power. Sometimes, power can be abused. In the wrong hands, it can do terrible harm. That is unfortunate, and I hope that doesn’t happen very often. But it is power, nonetheless. I don’t think because there is potential for ideas or knowledge to be used inappropriately that they shouldn’t be used. They have the power to do great things too. There is no use in suppressing new inventions or technology just because there is a potential for misuse. Humanity needs new ideas and philosophies to move forward. 

I also don’t believe that people should be given a “paint by numbers” strategy for investing. If you want to invest without knowing what you are doing, you should give your money to a certified financial planner and let him do it for you. No harm, no foul. There is plenty of people out there willing to take your money. 

I created this strategy because I wanted to do better. I wanted to develop a plan that created wealth and protected my future. I wanted to be in control. I am willing to take responsibility for my success or failure. That is how you get ahead in this world. No one is going to do it for you. You are the one who has your own best interests in mind at any given time. 

Many people stay in soul crushing jobs for their whole lives because doing anything outside of their comfort zone is “too risky”. They are afraid to start a business. They are afraid to go back to school to learn a new skill. They are afraid to make changes that could improve their lives, just in case it makes things worse. In my humble opinion, this is no way to live. Structuring your whole life around safety and security, without possibility for growth is, to me, the same as dying slowly. I am not a thrill seeker, by any means, but I understand that if you are not growing, you are dying.. and growth sometimes requires change, risk and the need to be uncomfortable. 

Every person is unique. I would never tell someone how to live their life. I have a hard enough time living my own life without too many disasters. I offer suggestions to people that they are free to use if they so choose. My books offer a TON of suggestions. Some can take the information and run with it and others may find it too scary. I want to help the people who want to be helped. If I can make a positive difference in even one persons life with my ideas then I feel like I have succeeded in adding value to the world. I have spoken to many people who have used my plan and they are grateful and excited. Most have tweaked the strategy to suite their own financial situations, and that makes me happy, as that was the whole idea. It is customizable. 

I have read hundreds of books on personal finance, investing, economics and business. I have made and lost hundreds of thousands of dollars while figuring out how to invest. I understand risk. I always try to clearly state that there is risk involved in investing. Please be aware of that.. but also remember that risk is relative to your skill level. If you educate yourself and use all the myriad of available resources at your disposal in this modern era, you can turn risk into opportunity, You can use your amazing brain to see what others don’t. You can learn how money works and make it work for you.

Investing can be risky. 

Doing nothing can be pretty risky too. 

The world changes pretty fast. It’s your choice.