The father of my colleagues invested heavily in real estate. Immediately after he retired from his job, he invested his entire retirement benefits in real estate. And he kept expanding the business by building more houses. My co-worker usually tells me that real estate is the best investment because of less risk. It is common for him to say that he or his father will never invest in Bitcoin because it has high risk.
There was a flood in a section of my country that destroyed lives and properties. His father lost about seven blocks of flats which is all he has in life. The houses were not issued, so he is totally broke.
Lessons
- Diversify your assets. Don't invest all you have in a single asset.
- If you are investing in real estate, let your properties be in different locations. My friend's father lost all his property because they were in the same place.
- insure your assets and businesses. Insurance can help reduce the effect of a loss.
This is a fact and what you shared is a tough lesson, but an important one for all of us. I always believe in diversifying not just in different types of assets like real estate, crypto or stocks, but also in different coins, currencies, and even platforms. You never know what could happen like price crashes, withdrawal limits or unexpected pauses from banks or platforms...
A big mistake is putting everything in one place, no matter how
safe it seems but in reality thats a big risk on its own. I believe in balanced portfolio to help protect you from unexpected events, whether it’s a flood a market dip or a blocked withdrawal. Successful people are already aware of this feom experience and that's how they avoid surprises.