Risk Management – What Is The REAL Secret of Good Investing?

Risk Management – What Is The REAL Secret of Good Investing?

There is this current dilemma of how to invest in stormy times (well, it is not a current dilemma, but according to the last 20 years it may look like one).

Financial theory says that in order to take great rewards you have to take great risks. Or to put in other words: Rewards are the compensation for taking risks. However, risk is subjective, not objective. The interesting question is therefore, if we can make „risk“ an objective matter that we can then implement into our portfolio strategy.

Let’s start with risk: We can say that risk means that there is a possibility we will have less liquidity at any given time than you originally expected from our investments. (There are of course a bunch of different types of risk which we will cover some other time – if you are interested…). But in genereal it is the potential for loss, and the scope of that loss.

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Is Finding Your „Why“ Overrated?

Is Finding Your „Why“ Overrated?

It is becoming more and more common to look for deeper meanings before starting to do something. Even in finances.

Why are you doing it? – Because I want to make amount X.

And why do you want to make amount X? – To travel the world, to help my kids, etc.

Why do you want to travel the world? – …

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Yes, Michael Singer Helps Your Finances

Yes, Michael Singer Helps Your Finances

Michael A. Singer teaches the fundamentals of spirituality in such a profound and easy to understand way that there is almost no excuse to quit if you happen to start your personal journey but somehow got lost along the way – and therefore decide to quit. What has that to do with finances? (mehr …)

Don’t Become A BAD Investor

Don’t Become A BAD Investor

Looking around the internet, I notice that passive investment approaches are more and more ridiculed (surprisingly, especially by young people – even though a passive investment approach would be most beneficial for them as it requires almost no capital and at the same time has a long time horizon; two very strong factors in the financial math equation…).

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