INVESTMENT STRATEGY
YOU ONLY HAVE $100,000 TO INVEST IN AND THERE EXIST THE RISK THAT $100,000 WHEN INVESTED CAN BE LOST.
HOW CAN YOU MITIGATE THE RISK OF INVESTING THIS AMOUNT?
You only have $100,000 to invest in and there exists the risk that $100,000 when invested can be lost.
How can you mitigate the risk of investing this amount?
The investor can decide to invest the total amount of $100,000 into his business and thereby face the potential risk of losing the total in his business.
The law of probability works the way it increases exposure to risk works. The chance of failure of losing $100,000 when adversity or business uncertainty occurs is great.
HOW CAN THIS RISK BE REDUCED?
Out of the $100,000. An investor can decide to invest $50,000 in stock/business; $25000 in treasury bills/fixed deposit and $25000 in Real estate.
We can see that the investment is somewhat diversified.
TAX PLANNING AND INVESTMENT STRATEGY-EBOOK
For example when the $50,000 stock investment fails, the treasury bills and real estate(pool investment fund will bring its own return
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